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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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Given  By 

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U.  S.  SUPT.  OY  DOCUMENTS 

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INVESTIGATION  OF  IMPROPER  ACTIVITIES  IN  THE 
LABOR  OR  MANAGEMENT  FIELD 


■^-tf* 


HEARINGS 

BEFORE  THE 

SELECT  COMMITTEE 

ON  IMPROPER  ACTIVITIES  IN  THE 

LABOR  OR  MANAGEMENT  EIELD 

EIGHTY-FIFTH  CONGRESS 

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


MAY  27,  JUNE  4,  5,  6,  9,  25,  26,  AND  27,  1958 


PART  31 


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  IMPROPEE  ACTIVITIES  IN  THE 

LABOR  OR  MANAGEMENT  EIELD 

EIGHTY-FIFTH  CONGRESS 

SECOND  SESSION 
I'URSUAXT   TO    SENATE   RESOLUTIONS    74   AND   221,    85TH   CONGRESS 


MAY  27,  JUNE  4,  5,  6,  9,  25.  26,  AND  27,  1958 


PART  31 


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


UNITED   STATES 

(JOVERNMENT  PRINTING  OFFICE 

WASHINGTON  :  1958 


Boston  Public  Library 
Superintendent  of  Documents 

OCT  2  8  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  GOLDWATER,  Arizona 

FRANK  CHURCH,  Idaho  CARL  T.  CURTIS,  Nebraska 

Robert  P.  Kennedy,  Chief  Counsel 
Ruth  Young  Watt,  Chief  Clerk 
II 


CONTENTS 


Maxwell  C.  Raddock  and  United  Brotherhood  of  Carpenters  and  Joiners 

OF  America 

Page 

Appendix 12135 

Testiinonv  of — 

Blaier,  O.  William 1205^ 

Booth,  Davis 11926 

Christie,  Dr.  Robert  A 12006 

Danforth,  Harold  R 11918 

Deibel,  Karl  E 11860,  11893,  11924,  11996,  12079 

Dunne,  Robert  E 11786,  11818,  11834,  11845,  11972 

Graeber,  Isaque 11913 

Horn ,  Morris 11 803 

Hutcheson,  Maurice  A 12087,  12104,  12124 

Johnson,  Charles,  Jr 12041 

Katz,  A.  Martin 12089 

Keen,  Rosemary 11908 

Koota,  David 11841,  11845 

Kuhn,  Joseph 11898 

Kushner,  Ben 11 866 

Madden,  Joseph 11 891 

Perlman ,  Max 11 866 

Raddock,  Bert 11811,  11832 

Raddock,  Maxwell  C 11932,  11971,  11973,  12000,  12017 

Ranstad,  Harold 12131 

Sawochka,  Michael 12033 

Sinclair,  Richard  G 12101 

Stevenson,  John  D 11836 

Sullivan,  Joseph 12046 

Terkeltaub,  Julius 11902 

Tierney,  Paul  J 11860,  11884,  11895,  12123 

Thompson,  Stahley 1 1874 

Weiss,  Edward 12045 

Weiss,  Phil 12045 

Wentworth,  Robert  J 11822 

Wolfe,  Charles  E 11786,  11996 

Williams,  H.  M 11926 

EXHIBITS 

1.  Subpena  issued  to  Ernest  Mark  High,  publisher  of  the 

Spotlight,  requiring  records  to  be  produced  before  the  introduced  Appear 

Senate  Select  Committee  on  Improper  Activities  in     on  page  on  page 

the  Labor  or  Management  Field 11783  12135 

2.  Letter  dated  May  13,  1958,  addressed  to  Ernest  Mark 

High  from  Robert  F.  Kennedy,  chief  counsel 11783       12136 

3.  Telegram  dated  May  20,  1958,  addressed  to  Ernest  Mark 

High  from  John  L.  McClellan,  chairman 11783       12137 

4.  Telegram  dated  Mav  21,  1958,  addressed  to  Hon.  John 

L.  McClellan  froni  Ernest  M.  High 11783       12138 

5.  Memorandum  from  Robert  E.  Dunne  dated  May  21, 

1958  re  Ernest  Mark  High;  the  Spotlight 11783       (*) 

6.  Telegram  dated  Mav  21,  1958,  addressed  to  Hon.  John 

L.  McClellan  from  Ernest  M.  High 11783       12139 

7.  Memorandum  dated  May  22,  1958  to  Robert  F.  Kennedy 

from  Robert  E.  Dunne  re  Ernest  Mark  High 1        11783       (*) 


♦May  be  found  in  the  files  of  the  select  committee. 


IV 


CONTENTS 


Introduced     Appear 

8.  List  of  people  who  subscribe  to  the  Trade  Union  Courier'  on  page       on  page 

asofl9o8 11794       (*) 

9.  Compilation  of  bond  purchases 11794       (*) 

10.  Trade  Union   Courier,   issues  of  September-December 

1956 11834      (*) 

11.  Comparative   schedule   of   organizations   endorsing  the 

Trade  Union  Courier 11835       (*) 

12.  Affidavit  of  Hull  Youngblood 11846       (*) 

13.  Affidavit  of  George  A.  AlcXeff 11851       (*) 

14.  Telegram  addressed  to  Robert  F.  Kennedy,  chief  coun- 

sel, from  Earle  Cabell,  president,  Cabell's,  Inc.,  dated 

June  4,  1958 11856      12140. 

12141 

15.  Letter  dated  December  8,  1953,  addressed  to  Maurice  A. 

Hutcheson,  general  president.  United  Brotherhood  of 
Carpenters  from  Max  Raddock,  editor.  Trade  Union 
Courier 11865       (*) 

16.  Soft-bound  volume  of  Portrait  of  an  American  Labor 

Leader:  William  L.  Hutcheson  by  Maxwell  C.  Rad- 
dock         11872       (*) 

17.  Hard-bound  volume  of  Portrait  of  an  American  Labor 

Leader:  William  L.  Hutcheson  by  Maxwell  C.  Rad- 
dock         11875       (*) 

18.  Proposal  on  the  book  Portrait  of  an  American  Labor 

Leader  dated  October  21,  1955,  submitted  to  Max- 
well C.  Raddock  from  Stahley  Thompson  Associates^,        11876       12142 

19.  Proposal  on  the  book  Portrait  of  an  American  Labor 

Leader  dated  May  12,  1955,  together  with  a  letter  of 
transmittal    dated    May    12,    1955,    to    Maxwell    C. 

Raddock  from  Stahlev  Thompson  Associates 11877      12143, 

12144 

20 A.  Letter  dated  November  23,  1956,  addressed  to  Miss  R. 
Quasha,  Trade  Union  Courier,  from  Stahlev  Thompson 
Associates 1 11880       12145 

20B.  Letter  dated  November  23,  1956,  addressed  to  Melvin 
Friedman,  Book  Production  Co.  re  Portrait  of  an 
American  Labor  Leader  from  Stahlev  Thompson 
Associates 11880       12146 

20C.  Letter  dated  November  27,  1956,  addressed  to  Miss  R. 
Quasha,  Trade  Union  Courier,  from  Stahley  Thomp- 
son Associates 11880       12147 

21.  Letter    dated    June    12,     1956,    addressed    to    Stahley 

Thompson  Associates  from  Maxwell  Raddock,  presi- 
dent. World  Wide  Press  Syndicate,  Inc 11881        12148 

22.  Letter  dated  June  13,   1956,  addressed  to  Mr.   Melvin 

Friedman,    the    Book    Production    Co.,    Inc.,    from 

Stahlev  Thompson  Associates 11882       12149 

23.  Letter    dated    June    27,    1956,    addressed    to    Miss    R. 

Quasha,  Trade  Union  Courier,  from  Stahlev  Thomp- 
son Associates 11882       12150 

24A.  Estimate  sheet  dated  November  1,  1955,  furnished  to 
Maxwell    C.    Raddock   on    Portrait   of   an    American 

Labor  Leader  from  Stahlev  Thompson  Associates 11884       (*) 

24B.   Estimate    sheet    dated    March    15,    195(1,    furnished    to 

Maxwell    C.    Raddock    on    Portrait   of   an    American 

Labor  Leader  from  Stahlev  Tliompson  .\ssoriat(>s —        11884       (*) 

24C.   Estimate  sheet  dat(>d   March"   15,   195(),  furnished  Max- 

wel.  C.   Raddock  on  Portrait  of  an  American  Labor 

Leader  from  Stahlev  Thompson  Associates 11884       {*) 

24D.  Estimates  sheet  dated  March  15,  1956,  furnished  Max- 
w(^ll    Radflock    on    Portrait    of    an    American    Labor 

Leader  from  Stahlev  Tliompson  Associates 11884       (*) 

25A-G.  Letter  dateil  December  23,  1954,  to  A.  W.  Muir,  gen- 
eral executive  board  member  and  other  executive 
board  members  from  All)ert  Fischer,  secretary,  gen- 
eral executive  board  and  replies  from  the  members-.        11885       (*) 

•Mav  be  foiuul  in  the  files  of  tlie  select  committee. 


CONTENTS 


26 A.   Check    dated    January    8,    1954,    payable    to    Maxwell.introcluccd 
Haddock  in  the  amount  of  $25,000  drawn  by  United    on  page 
Brotherhood  of  Carpenters 11885 

2r)B.  Letter  dated  January  8,  1954,  addressed  to  Mr.  M.  A. 
Hutcheson,  general  president  from  Maxwell  C.  Rad- 
dock  acknowledgiu"!;  receipt  of  check 11 885 

27.  Minutes  of  the  general  executive  board  of  the  United 

Brotherhood  of  Carpenters,  Lakeland,  Fla.,  dated 
February  22,  1954,  Mav  9,  1954,  February  10,  1955, 
and  February  20,  1950 11886 

28.  Hand  menio  pad  piece  of  paper  with  handwritten  notes, 

"Maxwell  C.  Raddock,  Mav  IS,  1954,  $25,000" 11886 

29.  Check   dated    May    18,    1954,   payable   to    Maxwell    C. 

Raddock   in   the   amount  of  $25,000  and  drawn  by 

United  Brotherhood  of  Carpenters 11886 

30.  Handwritten   minutes  dated   February    14,    1955,   of  a 

conference  of  a  committee  appointed  by  Maurice 
Hutcheson  to  meet  with  Mr.  Raddock 11887 

31.  Performance   agreement   dated   February    14,    1955,    in 

which  Raddock  acknowledges  receipt  of  $100,000 
paid  in  advance,  part  payment  of  order  for  50,000 
copies  of  book  Portrait  of  an  American  Labor  Leader-        11888 

32A.  Check  dated  January  31,  1955,  payable  to  Raddock  & 
Bros,  in  the  amount  of  $50,000,  drawn  by  United 
Brotherhood  of  Carpenters  and  Joiners 11888 

32B.  Check  dated  February  14,  1956,  payable  to  Raddock  & 
Bros,  in  the  amount  of  $50,000  drawn  by  United 
Brotherhood  of  Carpenters  and  Joiners 11 888 

32C.  Check  dated  March  31,  1956,  payable  to  Raddock  & 
Bros,  in  the  amount  of  $50,000  drawn  by  United 
Brotherhood  of  Carpenters  and  Joiners 11888 

32D.  Check  dated  November  29,  1955,  payable  to  Raddock  & 
Bros,  in  the  amount  of  $50,000  drawn  by  United 
Brotherhood  of  Carpenters  and  Joiners 11888 

33.  Check  dated  February  24,  1956  payable  to  World  Wide 

Press  Syndicate  in  the  amount  of  $50,000  drawn  by 

United  Brotherhood  of  Carpenters  and  Joiners 11889 

33A.  Letter  dated  February  23,  1956,  addressed  to  M.  C. 
Raddock,  World  Wide  Press  Syndicate,  from  general 
president 1 11889 

33B.  Authorization  slip  dated  February  23,  1956,  payable  to 
World  Wide  Press  Syndicate  in  the  amount  of  $50,000, 
O.  K.'d  by  MAH..1 11889 

34.  Letter  dated  December  13,  1946,  addressed  to  Maxweil 

C.  Raddock  from  Albert  E.  Fischer,  general  secretary, 
requesting  an  additional  2,000  copies  of  the  book  to 
make  up  back  orders 11 889 

35.  Letter  dated  December  28,  1956,  addressed  to  Maurice  A. 

Hutcheson,  general  president.  United  Brotherhood  of 
Carpenters  and  Joiners  of  America  from  Rhoda 
Quasha,  secretary,  American  Institute  of  Social 
Science,  Inc 11890 

35 A.  Letter  dated  January  9,  1957,  addressed  to  Maxwell 
Raddock  from  Maurice  Hutcheson,  general  president, 
enclosing  a  check  in  the  amount  of  $10,000 11891 

35B.  Check  dated  January  9,  1957,  payable  to  American 
Institute  of  Social  Science,  Inc.,  in  the  amount  of 
$10,000  drawn  by  United  Brotherhood  of  Carpenters 
and  Joiners  of  America ISO  I 

35C.   Authorization  slip  dated  January  9,  1957,  in  the  amount 

of  $10,000,  O.  K.'d  by  MAH 11891 

36.  Check  No.  21881  dated  March  4,  1957,  payable  to  the 

American  Institute  of  Social  Science,  Inc.,  in  the 
amount  of  $375  drawn  by  International  Hod  Carriers 
Building  &  Common  Laborers  Union 11892 

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


Appear 
on  page 

12151 


12152 

(*) 
12153 

12154 

(*) 

12155 
12156 
12157 

12158 


12159- 
12160 


12161 
12162 
12163 


(*) 


12164- 
12165 


12166 

:2i67 
12168 

12169 


VI 


CONTENTS 


36A.  List  of  institutions  to  which  Mr.  Raddock  was  to  send  introduced  Appear 
copies  of  the  book,  Portrait  of  an  American  Labor  on  page  on  page 
Leader 11892       (*) 

37.  Invoice  No.  23789  of  Congress  Card  &  Paper  Co.,  dated 

November  26,  1957,  to  World  Wide  Press  for  English- 
finish  paper 11896       (*) 

37A,  Invoice  No.  24061  of  Congress  Card  &  Paper  Co.,  dated 
December  2,  1957,  to  World  Wide  Press  for  Krone 
Kote 11896       (*) 

37B.  Invoice  No.  24293  of  Congress  Card  &  Paper  Co.,  dated 
December  5,  1957,  to  World  Wide  Press  for  English- 
finish  paper  and  Krone  Kote 11896       (*) 

37C.  Invoice  from  American  Book-Stratford  Co.  for  white 
eggshell  paper  in  the  amount  of  $2,995,  dated  Decem- 
ber 26,  1957 11897       (*) 

37D.  Customer's  order  card  showing  30,000  books  ordered 

from  the  same  company,  January  23,  1957. 11897       (*) 

37E.  Delivery  records  of  American  Book-Stratford  Press,  Inc., 
showing  dates  of  deliveries  of  all  books  printed  by  them 
for  World  Wide  Press 11897       (*) 

38.  Letter  dated  August  7,   1957,  addressed  to  American 

Book-Stratford   from    World    Wide   Press   Syndicate, 

Inc 11900   12170 

38A.  Letter  dated  October  8,  1957,  addressed  to  American 
Book-Stratford  from  World  Wide  Press  Syndicate, 
Inc 11900       12171 

38B.  Letter  dated  January  22,  1958,  addressed  to  World  Wide 
Press  Syndicate,  Inc.,  from  American  Book-Stratford 
Press,  Inc 11900       12172 

39.  Letter  dated   March   1,    1956,  addressed  to   Albert  E. 

Fischer,  general  secretary.  United  Brotherhood  of 
Carpenters  &  Joiners,  from  Julie  Taub,  manager, 
World  Wide  Press  Syndicate,  Inc 11906       12173 

40.  Letter  dated  December  10,  1956,  addressed  to  Albert  E. 

Fischer,  general  secretary.  United  Brotherhood  of 
Carpenters  &  Joiners  of  America,  and  signed  by 
Maxwell  Raddock 11911       12174 

40A.  Letter  dated  December  13,  1956,  addressed  to  Maxwell 
C.  Raddock,  signed  by  Albert  Fischer,  general  secre- 
tary        11911       12175 

41  A.  Letter  dated  December  18,  1940,  addressed  to  Maxwell 
C.  Raddock,  from  George  Meany,  secretary-treasurer, 
American  Federation  of  Labor 11961       12176 

41B.  Letter  dated  December  20,  1940,  addressed  to  Maxwell 
Raddock  from  WiUiam  Green,  president,  American 
Federation  of  Labor 11961       12177 

42.  Check  No.  93  dated  October  25,  1955,  payable  to  Max- 

well C.  Raddock  in  the  amount  of  $1,750  drawn  by 

Amalgamated  Meat  Cutters  Local  342 11971       12178 

43.  Excerpts  from  the  book.  Portrait  of  an  American  Labor 

Leader,  by  Maxwell  C.  Raddock,  and  excerpts  from  a 

thesis  by  Dr.  Robert  A.  Christie 12010       (*) 

43A.  Excerpts  from  Frederick  Lewis  Allen's,  The  Big  Change.        12011       (*) 

44A.  Telegram  addressed  to  Cornell  University  Press  from 
Dr.  I.  Graeber,  director  of  research,  Trade  Union 
Courier 12014       12179 

44B.  Letter  dated  October  1,  1954,  addressed  to  Dr.  Leonard 
P.  Adams,  director  of  research,  Cornell  University, 
from  Dr.  I.  Graeber,  director  of  research,  Trade  Union 
Courier 12014       12180 

44C.  Letter  dated  November  1,  1954,  addressed  to  Leonard 
Adams,  director  of  research,  Cornell  University,  from 
Dr.  I.  Graeber,  director  of  research,  Trade  Union 
Courier 12014       12181 

44D.  Letter  dated  November  3,  1954,  addressed  to  Dr.  I. 
Graeber  from  Leonard  P.  Adams,  director  of  research, 
Cornell  University 12014       12182 

•May  be  found  in  the  flies  of  the  select  committee. 


CONTENTS 


VII 


44E.  Letter  dated  November  9,  1954,  addressed  to  Leonard  P. 

Adams,  director  of  research,  Cornell  University,  from  introduced  Appear 
Dr.  I.  Graeber,  director  of  research.  Trade  Union  on  page  on  page 
Courier 12014       12183 

45A.  Registration  No.  L61916  at  the  Drake  Hotel,  Chicago, 

August  15,  1957 12025      (*) 

45B.  Bills  rendered  to  Maxwell  C.  Raddock  by  the  Drake 

Hotel,  August  11  through  August  27,  1957 12025      (*) 

46A.  Check  No.  1033  dated  October  1,  1951,  payable  to 
"Cash"  in  the  amount  of  $5,000,  drawn  by  Charles 
Johnson,  Jr 12043       12184 

46B.  Check  No.  1034  dated  October  4,  1951,  payable  to 
"Cash"  in  the  amount  of  $5,000,  drawn  by  Charles 
Johnson,  Jr 12043       12185 

46C.  Check  No.  1035  dated  October  4,  1951,  payable  to 
"Cash"  in  the  amount  of  $5,000,  drawn  by  Charles 
Johnson,  Jr 12043       12186 

46D.  Check  No.  1036  dated  October  5,  1951,  payable  to 
"Cash"  in  the  amount  of  $11,000,  drawn  by  Charles 
Johnson,  Jr 12043       12187 

47.  Copy    of    indictment    against    Maurice    A.    Hutcheson, 

Frank  M.  Chapman,  and  O.  William  Blaier  for 
conspiracy  to  commit  a  felony  and  bribery  of  State 
officer 12061       (*) 

48.  Letter  dated  March  2,  1950,  addressed  to  "Dear  Billy" 

and  signed  by  Henry  W.  Bumenberg 12069       (*) 

49.  Hotel  bill  from  the  Drake  Hotel,  Chicago,  for  William  O. 

Blaier  from  August  9  through  August  17,  1957 12074 

50.  Files  and  documents  regarding  expenses  of  Frank  Chap- 

man        12083      (*) 

51.  File  regarding  expenses  of  European  trip  of  Frank  Chap- 

man         12084       (*) 

52.  File  regarding  income-tax  payments  of  Frank  Chapman,        12085       (*) 
63.  File  regarding  income  received  by  Carpenters  Union  from 

Adams  Packing  Co 12086      (*) 

54.  Cashier's  check  No.  21985  dated  September  27,  1957, 

payable  to  State-Sibley  Corp.  in  the  amount  of  $5,000, 

drawn  on  Gary  National  Bank,  Gary,  Ind 12092       12188 

54A.  Cashier's  check  No.  22669,  dated  November  27,  1957, 
pavable  to  A.  Martin  Katz,  agent,  in  the  amount  of 
$8,'000,  drawn  on  Gary  National  Bank,  Gary,  Ind...        12092       12189 

55.  Check  No.    1730,  dated  October  29,   1957,  payable  to 

Metro  M.  Holovachka,  in  the  amount  of  $6,000  drawn 

by  Martin  Katz 12094       12190 

56.  Balance  sheet  of  State  Sibley  Corp.,  Hammond,  Ind 12095       (*) 

57.  Seller's  affidavit  of  liabiUties  dated  November  26,  1957.       12097      (*) 

58.  Document  prepared  by  the  general  counsel  of  carpenters 

showing  air-travel  card  of  the  L^nited  Brotherhood  of 
Carpenters  and  list  of  charges  made  against  that  card 
for  Raddock  from  April  1956  through  November  1957.        12123       (*) 

59.  Hotel  bill  from  Hotel  Washington,  Washington,  D.  C, 

made  out  to  M.  A.  Hutcheson  from  October  13  to  15, 

1957 12127       (*) 

60.  Memorandum    by   Harold    Ranstad    of   acquisition   by 

William  L.  Hutcheson  of  capital  stock  in  Adams  Pack- 
ing Co.,  Inc.,  and  Adams  Packing  Association  from 
Carpenters   Union 12132       (*) 

Proceedings  of — 

May  27,  1958 _  11783 

June  4,  1958 11785 

June  5,  1958 11859 

June  6,  1958 11895 

June  9,  1958 12041 

June  25,  1958 _      __  11931 

June  26,  1958 12017,  12045 

June  27,  1958 12079 

•  May  be  found  in  the  flies  of  the  select  committee. 


INVESTIGATIONS  OF  IMPROPER  ACTIVITIES  IN  THE 
LABOR  OR  3IANAGEMENT  FIELD 


TUESDAY,   MAY   27,    1958 

United  States  Senate, 
Select  Committee  on  Improper  Activities 

IN  THE  Labor  or  JVIanagement  Field, 

W ashing ton^D.  C. 

The  select  committee  met  at  10 :  30  a.  m.,  pursuant  to  Senate  Reso- 
lution 221,  agreed  to  January  29,  1958,  in  the  caucus  room.  Senate 
Office  Building,  Senator  Jolin  L.  McClellan  (chairman  of  the  select 
committee)  presiding. 

Present :  Senator  John  L.  McClellan,  Democrat,  Arkansas ;  Senator 
Barry  Goldwater,  Eepublican,  Arizona ;  Senator  Carl  T.  Curtis,  Re- 
publican, Nebraska. 

Also  present :  Robert  F.  Kennedy,  chief  counsel ;  Walter  R.  May, 
investigator;  George  H.  ]\Iartin,  investigator;  John  Cye  Cheasty,  in- 
vestigator ;  Ruth  Young  Watt,  chief  clerk. 

(At  the  start  of  the  session,  the  following  members  are  present: 
Senators  McClellan  and  Goldwater.) 

The  Chairman.  The  committee  will  be  in  order.  Mr.  Ernest  Mark 
High?  Mr.  High  was  expected  to  be  here  yesterday.  Apparently 
he  has  not  put  in  his  appearance.  This  is  a  matter  the  committee  will 
have  to  give  prompt  attention  to.  There  is  some  indication,  a  rather 
strong  indication,  that  he  is  not  trying  to  cooperate. 

Mr.  Counsel,  prepare  the  necessary  papers  for  contempt  and  have 
them  ready  to  submit  to  the  committee  as  early  as  possible. 

For  the  purpose  of  the  record,  with  respect  to  Mr.  High,  the  subpena 
and  the  telegrams,  and  the  correspondence,  in  connection  with  it,  may 
be  placed  in  the  record  as  exhibits  at  this  point.  They  will  be  num- 
bered separately.  This  is  with  regard  to  the  matter  of  Mr.  High. 
They  will  be  made  exhibits  1,  2,  3,  4,  5,  6,  and  7  in  order  of  their  dates, 
beginning  with  the  subpena  and  the  return  thereon. 

(The  documents  referred  to  will  be  marked  "Exhibits  1,  2,  3,  4,  5, 
6,  and  7"  for  reference,  and  will  be  found  in  the  appendix  on  pp. 
12135-12139.) 

11783 


INVESTIGATION   OF  OIPROPER  ACTIVITIES   IN  THE 
LABOR  OR  MANAGE3IENT  FIELD 


WEDNESDAY,   JUNE  4,    1958 

United  States  Senate, 
Select  Committee  on  Improper  Activities 

In  the  Labor  or  Management  Field, 

Washington^  D.  C. 

The  select  committee  met  at  11 :  10  a.  m.,  pursuant  to  Senate  Resolu- 
tion 221,  agreed  to  January  29, 1958,  in  room  457  of  the  Senate  Office 
Building,  Senator  Jolui  L.  McClellan  (chairman  of  the  select  com- 
mittee) presiding. 

Present :  Senator  John  L.  McClellan,  Democrat,  Arkansas ;  Senator 
Sam  J.  Ervin,  Jr.,  Democrat,  North  Carolina. 

Also  present :  Robert  F.  Kennedy,  chief  counsel ;  Jerome  S.  Alder- 
man, assistant  chief  counsel ;  Paul  J.  Tierney,  assistant  counsel ;  Robert 
E.  Dunne,  assistant  comisel;  John  J.  McGovern,  assistant  counsel; 
Charles  E,  Wolfe,  accountant,  GAO;  Francis  J.  AVard,  accountant, 
GAO ;  Karl  Deibel,  accountant,  GAO ;  Ruth  Young  Watt,  chief  clerk. 

The  Chairman.  The  committee  will  be  in  order. 

(Members  of  the  committee  present  at  the  convening  of  the  session 
were :  Senators  McClellan  and  Ervin.) 

The  Chairman.  We  have  just  concluded  some  executive  hearings 
and  the  Chair  would  like  to  make  a  brief  statement,  an  opening  state- 
ment regarding  the  hearings  we  are  now  begimiing. 

The  committee  will  hear  witnesses  today  on  the  operations  of  Mr. 
Maxwell  Raddock,  owner  of  the  World  Wide  Press,  a  large  New 
York  printing  plant,  and  publisher  of  the  Trade  Union  Courier. 

Witnesses  will  be  called  to  testify  as  to  financial  interests  and  in- 
vestments in  the  World  Wide  Press  by  labor  organizations  and  certain 
labor  officials  and  the  unorthodox  manner  in  which  bonds  of  the  com- 
pany were  issued  and  handled. 

The  committee  will  also  inquire  into  the  propriety  of  labor  officials' 
having  financial  interests  in  Maxwell  Raddock's  company  at  the  same 
time  that  they  invested  considerable  sums  of  their  union's  funds  in 
the  plant  that  prints  the  Trade  Union  Courier  and  in  subscriptions 
to  that  paper. 

The  manner  in  which  advertisements  were  solicited  by  the  Trade 
Union  Courier  has  been  the  subject  of  investigation  by  the  committee 
staff.  The  committee  is  particularly  interested  in  whether  solicitors 
emploj^ed  by  the  Trade  Union  Courier  represented  it  as  the  organ 
of  the  AFL-CIO  as  well  as  making  other  false  representations. 

Preliminary  investigation  by  the  staff  has  disclosed  certain  financial 
transactions  of  the  United  Brotherhood  of  Carpenters  which  require 
explanation. 

11785 


11786  IMPROPER    ACXrVITIES    IN    THE    LABOR    FIELD 

One  of  these  transactions  involves  very  large  expenditures  in  the 
publication  of  a  book  entitled,  "The  Portrait  of  an  American  Labor 
Leader,  William  L.  Hutcheson." 

Maurice  Hutcheson,  who  is  now  president  of  the  United  Brother- 
hood of  Carpenters,  and  Mr.  Raddock  will  be  questioned  about  this 
matter. 

The  Chair  may  say  that  during  the  existence  of  this  committee  we 
have  had  much  information  and  a  great  deal  of  testimony  regarding 
the  misuse  of  union  funds,  regarding  personal  financial  gain  and 
benefit  and  profit  and  expenditure  of  such  funds  by  union  officials, 
and  we  are  still  pursuing  that  aspect  of  labor-management  relations. 

We  have  also  had  considerable  evidence  of  collusion  between  man- 
agement and  union  officials  where  they  both  profit  at  the  expense  of 
the  men  who  work  and  pay  the  dues. 

In  this  particular  instance,  there  is  indication  that  the  union  mem- 
bership have  again  been  imposed  upon  by  transactions  that  have 
occurred  that  we  will  look  into  as  the  evidence  unfolds  before  us. 

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

Mr.  Kennedy.  The  first  witnesses  are  Mr.  Robert  Dunne,  and  Mr. 
Charles  Wolfe  of  the  staff  of  the  committee. 

The  Chairman.  Gentlemen,  will  you  be  sworn. 

Each  of  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.  Dunne.  I  do. 

Mr.  Wolfe.  I  do. 

TESTIMONY  OF  ROBEET  E.  DUNNE  AND  CHARLES  E.  WOLFE 

The  Chairman.  Be  seated.  Beginning  on  my  left,  state  your  name, 
and  your  place  of  residence,  and  your  business  or  occupation. 

Mr.  Dunne.  I  am  Robert  Emmet  Dunne,  member  of  the  staff  of  the 
committee,  on  loan  from  the  Permanent  Investigations  Subcommittee, 
and  I  live  in  Arlington,  Va. 

The  Chairman.  And  the  next  one. 

Mr.  Wolfe.  Charles  E.  Wolfe,  an  investigator  for  the  General 
Accounting  Office,  assigned  to  this  committee.  I  live  at  67th  Avenue, 
in  Flushing,  N.  Y. 

The  Chairman.  Are  you  a  certified  public  accountant? 

Mr.  Wolfe.  No,  sir ;  but  I  am  an  accountant. 

The  Chairman.  How  long  have  you  been  employed  by  the  GAO  ? 

Mr.  Wolfe.  23  years. 

The  Chairman.  You  have  been  in  the  accounting  service  of  the 
GAO,  or  Government  service  that  long? 

Mr.  Wolfe.  Yes,  sir. 

The  Chairman.  Thank  you  very  much. 

Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  Mr.  Chairman,  I  thought  it  would  be  helpful  to  the 
committee  to  know  a  little  bit  of  the  background  of  the  organizations 
we  will  be  discussing  over  the  next  few  days,  and  particularly  the 
World  Wide  Press,  and  the  Trade  Union  Courier. 

Now,  first,  as  far  as  the  World  Wire  Press  is  concerned,  will  you, 
Mr.  Dunne,  describe  what  the  World  Wide  Press  is,  and  who  owns  the 
World  Wide  Press. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11787 

Mr.  Dunne.  The  World  Wide  is  a  New  York  publication  that  was 
formed  in  1950.  At  that  time  Max  Raddock  had  been  publishing  the 
Trade  Union  Courier,  and  had  operated  a  small  printshop  in  New 
York  called  Feature  Press. 

The  Chairman.  What  is  that? 

Mr.  Dunne.  Feature  Press.  The  plant  was  inadequate  for  the  type 
of  work  that  he  needed  to  do,  and  he  formed  this  corporation  for 
World  Wide  Press  for  the  purpose  of  building  a  large  printing  plant 
in  Yonkers,  N.  Y. 

Mr.  Kennedy.  Now,  as  I  understand  it,  the  World  Wide  Press  is  a 
printing  plant,  in  Yonkers,  N.  Y.  ? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  It  has  been  in  existence  from  about  1950? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  Prior  to  that  there  was  a  plant  called  the  Feature 
Press  ? 

Mr.  Dunne.  That  was  in  Manhattan. 

Mr.  Kennedy.  And  now  World  Wide  Press  is  owned  by  Max  Rad- 
dock ;  is  that  correct  ? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  Completely? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  Complete  ownership  by  Maxwell  Raddock? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  The  Trade  Union  Courier  is  a  newspaper;  is  that 
right? 

Mr.  Dunne.  That  is  correct. 

Mr.  Kennedy.  How  often  is  that  produced  ? 

Mr.  Dunne,  Produced  every  2  weeks. 

Mr.  Kennedy.  And  that  is  printed  at  the  World  Wide  Press  ? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  But  there  are  a  number  of  other  items  that  are 
printed  in  the  World  Wide  Press  ? 

Mr.  Dunne.  That  is  right. 

Mr,  Kennedy.  Now,  Mr.  Chairman,  we  will  go  into  some  of  these 
other  things  that  are  printed  in  World  Wide  Press,  but  that  sets  the 
background  on  it. 

Now,  how  was  the  World  Wide  Press  financed,  starting  in  1950  ? 

Mr.  Dunne,  Upon  the  incorporation  of  the  new  organization,  a 
bond  issue  Avas  authorized  by  the  board  of  directors  in  the  amount  of 
$250,000.  This  was  a  debenture  bond  issue,  and  was  exempted  by  the 
Securities  and  Exchange  Commission, 

Through  March  of  1951,  Max  Raddock  succeeded  in  selling  $75,000 
worth  of  these  debenture  bounds  to  various  people  and  labor  organi- 
zations. At  that  time,  he  contracted  to  buy  a  plot  of  land  with  a  build- 
ing on  it  at  763  Sawmill  River  Road  at  Yonkers,  N.  Y.  The  purchase 
price  of  the  buildins;  was  $137,372.15.  From  the  proceeds  of  the  bonds 
he  had  sold,  he  paid  $67,372. 

Mr.  Kennedy,  Tlie  purchase  price  was  how  much  again  ? 

Mr,  Dunne,  $137,372.15, 

Mr.  Kennedy,  He  raised  $67,372.15  from  bonds  ? 

Mr,  Dunne.  Yes,  sir,  and  the  remainder  of  the  purchase  price  was 
$70,000,  and  it  was  taken  up  in  a  first  mortgage  given  to  the  welfare 


11788  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

funds  of  local  640  and  local  342.  Those  are  Meat  Cutter  locals  in 
New  York,    Each  took  a  $35,000  interest  in  a  joint  first  mortgage. 

Mr.  Kennedy.  Now,  that  is  the  Meat  Cutters  Union  of  Max  and 
Louis  Block ;  is  that  right  ? 

Mr.  Dunne.  That  is  right. 

Mr.  Ivennedy.  Those  are  the  unions  about  whom  we  have  had  some 
testimony  over  the  last  10  days,  or  approximately  10  days. 

Could  you  just  tell  us  briefly,  and  it  has  already  been  put  in  the 
record,  as  to  what  happened  to  those  mortgages,  and  just  trace  those 
for  us. 

Mr.  Dunne.  Those  mortgages  were  held  by  the  welfare  depart- 
ments of  these  two  local  unions.  In  1956,  possible  because  of  pressure 
from  congressional  investigations,  there  was  a  House  committee  in- 
vestigation of  w^elfare  funds  at  that  time  which  was  looking  into  the 
Meat  Cutter's  Union  in  New  York — the  Douglas  committee  was  then 
functioning — each  of  these  assets  of  these  two  welfare  funds  was  sold 
by  the  fund  to  the  local  unions. 

Mr.  Kennedy.  At  that  time  the  World  Wide  Press  was  in  default 
as  to  the  payments  ? 

Mr.  Dunne.  These  were  in  default  on  the  mortgage  to  each  of  the 
organizations. 

Mr.  Kennedy.  And  had  been  in  default  for  a  number  of  years? 

Mr.  Dunne.  Both  in  principal  and  interest. 

Mr.  Kennedy.  And  so  the  welfare  funds  got  rid  of  the  mortgages 
and  sold  them  to  the  unions  themselves  ? 

Mr.  Dunne.  That  is  right. 

Mr.  IvENNEDY.  Locals  No.  342  and  640  of  the  Meat  Cutters? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  In  order  to  finance  that,  these  Meat  Cutter  locals 
had  to  borrow  from  a  bank  ? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  Is  that  right  ? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  That  was  all  arranged  through  Max  and  Louis 
Block? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  Now,  those  mortgages  are  owned  by  locals  No.  342 
and  640? 

Mr.  Dunne.  By  the  locals  themselves ;  yes,  sir. 

Mr.  Kennedy.  And  the  president  of  those  locals  is  Max  Block; 
isn't  that  right? 

Mr.  Dunne.  Yes,  sir,  I  believe  so. 

Mr.  Kennedy.  All  right. 

Mr.  Dunne.  Now,  the  operation  got  started  in  1950,  upon  the  clos- 
ing of  the  building,  and  for  the  remainder  of  that  year  most  of  the 
activity  was  concerned  with  equipping  the  plant. 

The  old  equipment  from  Feature  Press  was  transferred  and  con- 
siderable new  printing  equipment  was  purchased,  and  the  principal 
item  being  a  Goss  rotary  nowspaper  press  wliich  cost  about  $120,000. 
These  items  wore  financed  through  the  continued  sale  of  these  de- 
benture bonds  by  Max  Raddock.  Throughout  the  remainder  of  1951, 
and  in  1952,  lie'  sold  an  additional  $138,000  worth  of  bonds,  which 
completed  the  sale  of  the  bond  issue  to  $213,000.  That  was  the  total 
amount  of  the  bond  issue  ever  sold. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11789 

Mr.  Kexxedt.  Now  we  are  going  back  into  the  bonds,  who  re- 
ceived them,  and  who  purchased  them.  But  prior  to  that,  I  would 
like  to  find  out  if  there  was  any  other  mortgage  or  any  other  financing 
that  the  World  Wide  Press  received. 

Mr.  Dunne.  There  was  a  second  mortgage  placed  on  the  property 
for  $35,000,  which  was  given  by  Local  284  of  the  Laundry  Workers' 
International,  a  Jersey  City  local. 

Mr.  Kennedy.  That  is  local  284  ? 

Mr.  Dunne.  The  welfare  fund  of  local  284. 

Mr.  Kennedy.  And  that  was  for  $35,000? 

Mr.  Dunne.  Yes,  sir.  That  welfare  fund  was  going  out  of  business 
on  September  1,  1952,  and  they  had  still  remaining  in  their  assets 
$35,000,  which  they  put  into  this  second  mortgage  on  the  property. 

Mr.  KJENNEDY.  Just  prior  to  the  time  it  went  out  of  business  s 

Mr.  Dunne.  Yes,  sir. 

Mr.  Ivennedy.  And  now  you  say  the  whole  welfare  fund  local  284 
went  out  of  business  ? 

Mr.  Dunne.  That  is  right.  The  welfare  fund  was  incorporated 
into  a  new  international  welfare  fund  which  had  been  set  up,  and 
which  it  was  required  to  join.  However,  none  of  the  assets  of  the 
local  welfare  fund  were  required  to  be  transferred  into  the  new  inter- 
national welfare  fund.   Actually ■ 

Mr.  Kennedy.  Let  us  see  if  we  can  understand.  They  took  $35,000 
from  Local  284  of  the  Laundry  Workers  and  just  prior  to  the  time 
their  welfare  fund  was  going  out  of  existence  and  invested  it  as  a 
second  mortgage  in  World  Wide  Press ;  is  that  right  ? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  Then  the  welfare  fund  went  out  of  existence? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  Now,  has  the  $35,000  ever  been  repaid  ? 

Mr.  Dunne.  No,  sir,  it  hasn't,  and  no  interest  or  principal  has  ever 
been  paid. 

Mr.  KJ2NNEDY.  Who  does  the  $35,000  now  belong  to  ? 

Mr.  Dunne.  That  is  questionable.  Actually,  there  is  more  than 
$35,000  involved,  and  in  addition  to  the  mortgage  the  welfare  fund 
had  in  the  previous  year  invested,  as  far  as  we  have  been  able  to 
ascertain,  everything  that  they  had  left  in  this  welfare  fund  knowing 
it  was  going  to  be  transferred  imminently  to  the  international,  and 
the  total  of  $85,000  or  all  of  the  known  assets  of  that  welfare  fund 
were  put  into  this  operation;  $50,000  in  these  debenture  bonds  were 
purchased  by  the  welfare  fund,  and  $35,000  by  this  second  mortgage. 

Mr.  Kennedy.  And  then  the  welfare  fund  went  out  of  existence ; 
is  that  right  ? 

Mr,  Dunne.  That  is  right. 

Mr.  Kennedy.  Did  they  transfer  those  assets  to  the  books  of  local 
284,  and  have  you  examined  the  books  of  local  284  ? 

Mr.  Dunne,  We  have  examined  the  books  and  records  and  have  been 
able  to  find  no  evidence  whatsoever  that  it  was  ever  listed  as  an  asset 
of  local  284,  or  ever  listed  in  its  financial  statement,  or  ever  listed  in 
the  minutes  of  the  meetings  of  the  executive  board  or  general  member- 
ship meetings  of  that  local, 

Mr.  Kennedy.  So  the  membership,  as  far  as  their  records  are  con- 
cerned, were  never  aware  of  the  fact  that  they  had  assets  amounting 
to  $85,000? 


11790  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  Now,  during  this  period  of  time  had  Mr.  Raddock 
or  World  Wide  Press  made  any  payments  on  the  second  mortgage  or 
on  the  bonds  amounting  to  some  $50,000  ? 

Mr.  Dunne.  The  bonds  of  $50,000  were  purchased  during  1951,  and 
some  small  interest  payments  were  made  through  June  of  1952,  and 
the  $35,000  second  mortgage  was  given  in  September  of  1952,  or  August 
of  1952,  but  from  June  of  1952  on,  no  payments  whatsoever  in  interest 
on  the  bonds  or  in  interest  or  repayment  of  principal  on  the  mortgage 
have  been  made  whatsoever. 

Mr.  Kennedy.  Not  only  have  no  payments  been  made,  but  they  are 
in  default  since  1952  ? 

Mr.  Dunne.  They  are  in  default  on  the  bonds  and  on  the  mortgage, 
and  with  accrued  interest,  that  amounts  to  slightly  over  $100,000  today. 

Mr.  Kennedy.  It  would  appear  from  the  records  that  this  $100,000 
belongs  to  no  one,  as  far  as  the  individual  members  of  local  281 
knowing  about  it. 

Mr.  Dunne.  That  is  right.  Actually  in  law  there  is  some  question 
as  to  who  it  would  belong  to.  The  money  Avas  not  union  money.  It 
was  with  the  welfare  fund,  and  the  welfare  fund  is  now  defunct. 

Mr.  Kennedy.  But  nobody  was  ever  informed  about  it,  from  1952 
up  to  the  present  time  ? 

Mr.  Dunne.  No,  sir,  and  the  nature  of  the  Local  284  Laundry 
Worker  membership,  being  laundry  workers,  it  is  a  transient  type  of 
industry  and  it  would  be  most  difficult  to  say  if  any  or  very  few  of  the 
members  that  participated  in  that  fund  and  that  helped  build  up  that 
fund  in  the  late  forties  and  early  fifties  are  still  members  of  the  union. 

Mr.  Kennedy.  That  is  $35,000  on  the  second  mortgage,  and  $50,000 
worth  of  bonds ;  is  that  right  ? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  Now,  local  284  is  located  where  ? 

Mr.  Dunne.  In  Jersey  City,  N,  J. 

Mr.  Kennedy.  Do  you  know  how  many  members  it  has  approxi- 
mately ? 

Mr.  Dunne.  5,500  members. 

The  Chairman.  Who  now  holds  the  second  mortgage  and  the 
bonds?    They  belong  to  the  membership  of  local  284,  do  they  not? 

Mr.  Dunne.  The  bonds  are  listed  in  the  nnme  of  local  284,  although 
the  monev  came  from  local  284  welfare  fund. 

The  CirAiRMAN.  Local  284,  as  a  union,  took  over  $50,000  worth  of 
bonds  bought  by  welfare  money,  and  now  they  are  held  as  assets,  as 
union  funds? 

Mr.  Dunne.  No.  They  are  not  held  as  assets  at  all.  The  bonds  were 
made  out  to  local  284,  but  they  hnve  never  been  listed,  as  far  as  we 
can  ascertain,  as  an  asset  of  the  local  union. 

Tlie  CTTATR]\r AN.  Tliey  are  not  carried  on  their  books  ? 

Mr.  Dunne.  That  is  right,  sir. 

The  CiiAiiniAN.  So  they  just  evaporated,  but  they  still  exist? 

Mr.  Dunne.  Yes.  sir. 

Tlie  Cttairman.  Who  owns  them  ? 

Mr.  Dunne.  I  don't  know.    The  mortgage  is  payable 

The  Chairman.  The  records  of  local  284  do  not  show  that  local 
284  owns  them  ? 


IMPROPER    ACTIVITIES    IN    THE    L.\BOR    FIELD  11791 

Mr.  DuNXE.  That  is  right. 

Tlie  CiiAiKMAx.  And  they  never  have  been  liquidated  and  divided 
among  the  people  who  were  the  beneficiaries  of  the  welfare  fund  ? 

Mr.  DuNXE.  Xo,  they  haven't. 

The  Chaikmax'.  And  in  whose  posession  are  the  bonds  now  ? 

Mr.  DuxxE.  The  bonds  are  in  the  possession  of  the  officers  of  local 
284. 

The  CiiAimiAX'.  In  possession  of  the  officers.  Have  there  been  any 
l^roceeds  from  the  bonds,  or  any  interest  paid  ? 

Mr.  DuxxE.  Th.ere  were  8  payments  on  interest  on  the  bonds, 
in  1951  and  in  June  of  1952,  and  we  have  carefully  checked  the  books 
and  records  of  the  local  for  that  period  of  time  and  none  of  these 
3  payments  were  listed  as  income  to  the  local  union.  We  don't  know 
what  happened  to  those  checks. 

The  Chairmax.  What  did  the  interest  for  those  three  payments 
ao-gregate? 
"Mr.  DuxxE.  $1,365.03. 

The  Chairmax^.  There  is  no  record  of  that  money  going  even  into 
the  union  f  mids  ? 

]SIr.  DuxN^E.  That  is  right. 

The  Chairmax.  And  of  course  the  welfare  funds  are  now  defunct  ? 

Mr.  DuxxE.  There  is  no  record  of  the  welfare  fund. 

The  Chairmax.  And  these  bonds,  although  made  to  local  384,  did 
3'ou  say  ? 

Mr.  DuxxE.  284. 

The  Chairmax.  They  are  held  by  the  officers  of  the  union  ? 

Mr.  DuxxE.  They  are  in  the  physical  possession  of  the  principal 
officer  of  the  union ;  yes. 

The  Chairmax.  The  principal  officer.    Who  is  that  ? 

Mr.  DuxxE.  Winfield  Chasmar. 

The  Chairmax.  They  are  in  his  possession  ? 

Mr.  DuxxE.  They  are  in  his  possession  at  the  union  offices,  as  far 
as  we  know. 

The  Chairmax.  But  there  is  no  accounting  for  the  interest  ? 

Mr.  DuxxE.  No,  sir. 

The  Chairmax.  And  the  bonds  are  not  carried  as  assets  on  the 

books  ? 

Mr.  DuxxE.  No,  sir. 

The  Chairmax.  ^Yi\en  was  the  last  payment  of  interest  ? 

Mr.  DuxxE.  June  30, 1952.  ^  ...  .i. 

The  Chairmax.  That  is  6  years  now,  and  for  5  years  and  11  months 

there  has  been  no  interest  paid  ? 

Mr.  DrxxE.  That  is  right.  .     .     ■,      i  no  i     r,    i, 

:Mr.  Kkxxedy.  ^Y}lo  is  the  attorney,  that  is,  for  local  284  who  has 

been  handling  this  matter  ?  .  ,   ,  r      -r^    m     i         ^-u 

Mr  DrxxE  The  neo-otiations  were  with  Max  Kaddock  on  the  pur- 
chase'of  these  bonds  and  the  mortgage  was  done  through  the  officer 
of  the  local,  and  through  Jacob  Friedland,  the  attorney  for  the  local 

^"iS.lJEXXEDT.  Was  he  listed  in  the  Douglas  hearings  as  receiving 

some  money  from  a  welfare  fund  ? 

;Mr.  DrxxE.  Yes.  .       , ,      .  ^  , 

Mr.  Kexxedy.  Under  some  questionable  circumstances  i 

21243— 58— pt.  31 2 


11792  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Dunne.  The  welfare  and  pension  fund  investigation  in  1955 
by  the  Douglas  committee,  the  public  hearings,  reflect  that  Mr.  Cro- 
land,  who  was  insurance  agent  for  Continental  Insurance  Co.,  was 
directed  to  make  payoffs  of  part  of  his  commissions,  and  administra- 
tion fees  to  certain  named  individuals  in  order  to  keep  certain  union 
accounts. 

Among  the  recipients — there  are  a  dozen  or  so — of  sums  of  money 
was  Jacob  Friedland,  who  received  about  $11,500  during  1952  and 
1953.     That  is  Mr.  Croland. 

Mr.  Kennedy.  How  was  that  listed  in  Croland's  records  ? 

Mr.  Dunne.  It  was  listed  as  commissions  or  administration  fees. 

Mr.  Kennedy.  Now,  Mr.  Friedland,  as  I  understand  it,  has 
stated 

Mr.  Dunne.  Mr.  Friedland  couldn't  be  reached.  They  made  sev- 
eral attempts  to  serve  him  with  a  subpena  and  he  was  unavailable. 

Mr.  Kennedy.  Since  that  time  he  has  stated  that  this  was  for  legal 
work  that  he  did  ? 

Mr.  Dunne.  He  stated  this  was  for  legal  work  he  did  for  the 
agency,  not  legal  work  but  checking  on  the  status  of  insurance  legisla- 
tion, in  the  State  legislature.  He  stated  that  he  submitted  bills  for 
these  things  but  that  the  bills  may  have  been  submitted  after  the 
money  had  been  received. 

Mr.  Kennedy.  But  the  overall  fact  is  that  the  $85,000  of  thesecond 
mortgage  and  the  bonds  which  is  now  worth  $100,000  remains  un- 
claimed, as  of  this  time  ? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  And  no  interest  has  been  paid  on  it  for  some  6  years  ? 

Mr.  Dunne.  I  interviewed  them ;  yes. 

The  Chairman.  It  is  net  worth  on  face  value? 

Mr.  Dunne.  The  face  value  is  $85,000,  and  with  accrued  interest  it 
is  over  $100,000.  I  asked  Mr.  Friedland  several  months  ago  when  I 
interviewed  him,  since  he  was  counsel  for  local  284  and  was  counsel 
for  the  defunct  welfare  fund,  who  owned  this  money  and  if  in  event 
Raddock  paid  the  money  what  disposition  would  be  made  of  it.  He 
stated  that  the  money  was  not  the  property  of  local  284,  and  it  was 
the  property  of  the  defunct  welfare  fund,  and  the  disposition  of  the 
money  would  be  made  upon  the  receipt  of  it,  and  he  had  no  idea  at 
the  time 

The  Chairman.  The  disposition  has  already  been  made  of  it,  except 
it  hasn't  been  returned. 

Mr.  Kennedy.  Now  going  on 

Mr.  Dunne.  In  summary,  then,  the  financing  of  the  World  Wide 
Press  plant  in  Yonkers  was  done  by  the  sale  of  $213,000  in  debenture 
bonds,  $70,000  first  mortgage  by  the  Block  brothers'  welfare  fund,  and 
the  second  mortgage  placed  by  local  284's  welfare  fund  for  $35,000. 
The  total  money  invested  in  the  operation  to  get  it  underway,  then, 
through  1952,  was  $318,000;  100  percent  of  the  capital  stock  of  World 
Wide  Pi-ess  was  issued  to  Max  Raddock. 

Mr.  Kennedy.  What  did  he  invest  ? 

Mr.  Dunne.  According  to  the  prospectus  which  accompanied  the 
bond  issue,  he  invested  the  old  equipment  from  Feature  Press,  and 
goodwill. 

Mr.  Kennedy.  How  much  was  the  old  equipment  worth,  approxi- 
mately ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11793 

Mr.  Dunne.  He  placed  a  price  on  the  old  equipment  and  the  good 
will  at  $30,050,  and  he  then  received  the  entire  issue  of  the  stock. 

Mr.  Kennedy.  We  are  going  now  to  the  bond  part  of  it,  and  the 
bond  aspect  of  it — you  stated  that  some 

Senator  EmT:N.  Was  this  corporation  formed  in  Xew  York  State? 

Mr.  Dunne.  Yes,  sir. 

Senator  Ervtn.  Do  New  York  statutes  require  that  stock  should  be 
issued  only  for  money  or  money's  worth  in  property  ? 

Mr.  Dunne.  Tliis  was  the  original  issue  of  the  stock,  Senator,  upon 
the  formation. 

Senator  Ervin.  That  is  what  I  am  getting  at.  Most  States  have  a 
statute  which  is  that  the  stock  can  only  be  issued  for  money,  or  money's 
worth  in  property. 

Mr.  Dunne.  This  would  have  been  the  consideration  for  it,  the  good 
will  and  the  existing  used  printing  equipment. 

Senator  Ervin.  But  do  you  know  whether  the  New  York  law  per- 
mits or  does  not  permit  issuance  of  corporate  stock  for  good  will? 

Mr.  Dunne.  I  know  from  my  own  personal  experience  that  stock  is 
transferred  for  a  nominal  amount  upon  the  formation  of  a  corpora- 
tion in  New  York,  usually  through  dummies,  and  then  transferred  to 
the  actual  owner. 

Senator  Ervin.  Good  will  is  nothing  in  the  world  but  probability 
or  possibility  that  a  satisfied  customer  will  return  for  further  trade. 

Mr.  Dunne.  Yes,  sir. 

Senator  Ervin.  All  right. 

Mr.  Kennedy.  Now,  you  stated  that  there  was  some  $213,000  of 
bonds  issued,  is  that  right  ? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  Would  you  break  that  down  as  to  who  received  the 
bonds,  and  to  whom  Mr.  Max  Raddock  was  able  to  sell  the  bonds. 

Mr.  Dunne.  $124,000  was  sold  to  labor  organizations,  that  is,  inter- 
national unions  and  welfare  funds,  or  local  unions.  $92,500  was  sold 
to  officers  of  labor  organizations  or  to  members  of  their  immediate 
families,  wives,  parents,  or  children.  $12,500  was  sold  to  people  with 
no  known  connection  with  the  labor  organizations. 

Mr.  Ivennedy.  Do  you  have  a  chart  on  that,  a  mimeographed  sheet 
giving  us  a  breakdown  on  it  ? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  Now,  Mr.  Dunne,  you  have  prepared  a  memorandum 
on  the  purchase  of  the  bonds,  and  what  has  been  the  disposition  of 
the  bonds? 

Mr.  Dunne.  Yes,  sir.  Getting  into  this  bond  issue,  we  noticed 
many  peculiar  charts  in  the  manner  of  payment,  and  thus  we  went 
into  more  detail  and  tabulated  in  this  chart  all  sales,  and  the  date  of 
the  sale,  and  the  amount  of  it,  and  the  person  to  whom  it  was  sold,  and 
the  method  of  payment  for  the  bonds  with  whatever  remarks  were 
applicable. 

Mr.  Kennedy.  Now,  I  want  to  ask  you  a  further  question.  You 
have  the  circulation  of  the  Trade  Union  Courier,  do  you? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  And  to  whom  the  Trade  Union  Courier  was  sent? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  Now  I  am  going  to  ask  you  whether  there  is  any 
correlation  between  those  union  officials  who  purchased  the  bonds  of 


11794  IMPROPER    ACTR'ITTEP    IX    THE    LABOR    FIELD 

the  Trade  Union  Courier  and  the  unions  that  purchased  the  Trade 
Union  Courier. 

Now,  prior  to  that,  would  you  submit  that  list  to  the  chairman. 

The  Chairman.  What  is  this  document? 

Mr.  Kennedy.  This  is  a  subscription  list. 

Mr.  Dunne.  This  is  a  list  of  those  people  who  take  the  Trade  Union 
Courier,  Senator.     This  is  as  of  1958. 

The  Chairmax.  February  25, 1958? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  These  are  subscriptions  in  bulk,  in  a  number  of  in- 
stances ? 

Mr.  Dunne.  Yes,  sir,  and  the  books  and  records  of  the  Trade  Union 
Courier  reflect  that  there  are  only  32  people  who  buy  the  paper,  but 
that  thev  buy  it  for  large  groups  of  members. 

The  Chairman.  There  are  32  actual  subscribers,  and  some  of  them 
subscribe,  like  local  unions  may  subscribe  for  a  large  number? 

Mr.  Dunne.  For  several  thousand,  yes. 

The  Chairman.  And  if  this  is  correct,  the  document  which  I  now 
make  exhibit  No.  8,  it  shows  that  there  were  total  subscriptions  of 
33.223  as  of  that  date.  _    Is  that  correct  ? 

Mr.  Dunne.  That  is  the  correct  number  of  copies  of  this  paper  that 
are  paid  for ;  yes,  Senator. 

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

(Document  referred  to  was  marked  "Exhibit  No.  8"  for  reference 
and  may  be  found  in  the  files  of  the.select  committee.) 

Mr.  Kennedy.  Now,  we  would  like  to  have,  at  the  same  time,  this 
made  an  exhibit,  which  shows  who  purchased  the  bonds. 

The  Chairman.  Have  you  testified  with  respect  to  having  checked 
on  who  purchased  the  bonds  ? 

Mr.  Dunne.  Yes,  Senator. 

The  Chairman.  Have  you  made  a  compilation  of  that  ? 

Mr.  Dunne.  I  have.  Senator. 

The  Chairman.  Is  this  document  that  you  have  in  your  hand  a  com- 
pilation of  the  bond  purchases  ? 

Mr.  Dunne.  Yes,  Senator,  it  is. 

The  Chairman.  It  may  be  made  exhibit  No.  9  for  reference. 

(Document  referred  to  was  marked  "Exhibit  No.  9"  for  reference, 
and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Kennedy.  "Wliat  I  would  like  to  get  from  you,  Mr.  Dunne,  is 
the  correlation  between  the  individual  union  officials  Avho  invested  in 
World  Wide  Press,  and  the  unions  that  purchased  or  subscribed  in 
bulk  to  the  Trade  Union  Courier.  Would  you  give  us  some  examples 
and  wliat  the  records  show  on  that  ? 

Mr.  Dunne.  The  records  reflect  that  of  the  33,000  copies  of  the 
paper  distributed  to  union  members,  25,689  are  distributed  to  mem- 
bers of  local  unions  in  which  the  officers  of  the  local  union  or  the  inter- 
national have  a  direct  financial  interest  through  bond  purchases  in 
World  Wide  Press  which  prints  the  Trade  ITnion  Courier. 

Mr.  Kennedy.  Would  you  give  us  that  broken  down,  and  for  in- 
stance on  the  Blocks. 

Mr.  Dunne.  In  the  case  of  the  Block  brothers  who  operate  the 
Meat  Cutters'  locals  in  New  York 

Mr.  Kennedy.  They  have  the  mortgage  purchase  ? 


EVIPROPER    ACTIVITIES    IX    THE    L.\BOR    FIELD  11795 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  And  then  they  also  had  their  own  individual  pur- 
chases of  bonds,  is  that  right  ? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  How  much  in  bonds  do  they  have?  Louis  Block 
and  his  family  purchased  some  $15,000  worth  of  bonds '? 

Mr.  Dunne.  There  are  $5,000  worth  of  bonds  issued  to  Louis 
Block's  wife. 

Mr.  Kennedy.  In  her  maiden  name  ? 

Mr.  Dunne.  Which  are  still  held,  yes.  There  is  $6,000  in  bonds  pur- 
chased by  Louis  Block's  sister,  Sonia  Bytansky,  which  were  trans- 
ferred a  short  time  thereafter  to  Louis  Block's  son,  Allen  Eobert 
Block,  and  so  that  is  actually  a  total  purchase  of  only  an  additional 
$6,000. 

In  addition  there  is  another  $4,000  in  bonds  held  by  Louis  Block's 
son.  So  that  members  of  Louis  Block's  family  own  a  total  of  $15,000 
in  bonds  in  World  Wide  Press. 

Mr.  Kennedy.  Does  Max  Block  also  own  some  bonds  ? 

Mr.  Dunne.  Max  Block  owns  no  bonds  personally.  However,  local 
342  of  which  he  is  president  owns  $10,000  worth  of  bonds.  Now, 
between  these  two  locals,  they  account  for  one-third  of  the  total  circu- 
lation of  the  Trade  Union  Courier. 

Mr.  Kennedy.  That  is  11,299  ? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  What  about  32  B  of  the  Building  Trades  or  Build- 
ing Services  ? 

Mr,  Dunne.  The  principal  officers  of  local  32  B  are  Dave  Sullivan, 
president,  and  Thomas  Shortman,  vice  president.  Sullivan  purchased 
$5,000  worth  of  bonds  in  his  own  name,  and  with  his  money.  Short- 
man  purchased  $17,000  worth  of  bonds,  and,  incidentally,  he  is  the 
largest  individual  bondholder.  So  that  between  the  two  principal 
officers  of  local  32  B,  they  purchased  $22,000  in  bonds  in  World  Wide 
Press. 

For  a  number  of  vears,  and  up  to  the  present  time,  they  take  a  bulk 
subscription  for  their  membership  of  2,000  copies  of  the  Courier,  which 
amounts  to  6  percent  of  their  total  circulation. 

Mr.  Kennedy.  Then  Mr.  Charley  Johnson's  wife  ? 

]VIr.  Dunne.  Charley  Johnson  is  an  official  of  the  Carpenters'  Union 
in  New  York  City  and  a  member  of  the  general  executive  board  of  the 
international,  and  we  found  that  $5,000  in  bonds  Avere  purchased  in 
the  name  of  Charles  Johnson's  wife,  and  $5,000  were  purchased  in  the 
name  of  his  brother's  wife,  Eobert  Johnson,  another  official  of  the 
Carpenters'  Union  in  New  York. 

Locals  controlled  by  Johnson  in  New  York  purchased  5,000  copies 
of  the  Courier,  and  the  international,  of  which  he  is  a  member  of  the 
executive  board,  purchased  another  5.500  copies  of  the  Courier,  and 
thus  the  Carpenters'  locals  controlled  by  Johnson  and  the  interna- 
tionnl  union  purchase  close  to  11,000  copies  of  the  biweekly  circula- 
tion of  the  Courier. 

]\Ir.  Kennedy.  So,  in  summary  on  that,  the  Block  group  and  the 
Johnson  group,  and  local  32  B  purchased  some  $67,000  of  bond  issues, 
plus  $70,000  in  mortgages,  and  their  unions  or  unions  controlled  and 
associated  with  them  provided  for  some  70  percent  of  the  circulation 
of  the  Courier,  is  that  right  ? 


11796  IIVIPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Dunne,  That  is  right,  70  percent  of  the  circulation  of  the  Trade 
Union  Courier  goes  to  the  Carpenters,  the  Block's  Meat  Cutters'  locals, 
and  Dave  Sullivan's  local  32  B,  authorized  by  those  individuals. 

The  Chairman.  Of  what  ? 

Mr.  Dunne.  Of  the  Building  Services  Employees  Union. 

Mr.  Kennedy.  Mr.  Dunne,  in  this  breakdown,  this  gives,  I  believe, 
and  exhibit  No.  9  gives  these  bond  purchases  in  detail,  is  that  right? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  And  there  is  going  to  be,  obviously,  a  duplication  in 
here,  because  some  of  the  bonds  were  transferred,  isn't  that  right? 

Mr.  Dunne.  That  is  right,  and  a  good  example  of  that  is  on  page  3, 
where  we  show  a  total  of  $48,000  being  held  by  various  officials  of  the 
Meat  Cutters'  Union,  and  actually  that  is  the  total  amount  held  by 
different  people  throughout  the  years,  and  some  of  those  were  trans- 
ferred within  the  group. 

Mr.  Kennedy.  That  does  not  mean  there  are  $48,000  at  the  present 
time? 

Mr.  Dunne.  No. 

Mr.  Kennedy.  That  is  $48,000  over  the  period  of  time,  and  some  of 
those  were  transferred  from  one  union  official  to  the  other,  is  that 
right? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  Now,  Mr.  Dunne,  did  we  also  find  beyond  this  Bome 
peculiarities  in  the  purchase  of  the  bonds  ? 

Mr.  Dunne.  Yes,  we  did,  Mr.  Kennedy. 

Mr.  Kennedy.  And  this  is  a  matter  of  somewhat  complication,  is 
that  right? 

Mr.  Dunne.  We  had  considerable  difficulty  getting  the  books  and 
records  of  the  Trade  Union  Courier,  World  Wide  Press,  and  two 
other  of  Max  Raddock's  enterprises. 

Mr.  Kennedy.  Are  all  of  the  books  and  records  of  the  World  Wide 
Press  and  Max  Raddock  and  the  Trade  Union  Courier  still  in  ex- 
istence ? 

Mr.  Dunne.  I  don't  know.     I  know  we  don't  have  them  all. 

Mr.  Kennedy.  What  ones  haven't  we  been  able  to  get  ? 

Mr.  Dunne.  There  are  great  gaps  in  the  financial  records  for  the 
period  of  1950  through  1953,  which  would  be  the  crucial  period  in 
which  we  are  involved,  the  issuance  of  these  bonds.  There  are 
thousands  of  canceled  checks  which  have  not  been  supplied,  although 
subpenaed.  The  claim  is  that  they  no  longer  have  them,  or  they 
can't  locate  them. 

Cash  receipts  and  disbursement  books  for  those  early  days,  are  no 
longer  available  to  us. 

Mr.  Kennedy.  So  it  is  somewhat  difficult  to  get  the  complete  an- 
swers, at  least  from  the  records  ? 

Mr.  Dunne.  That  is  right.  Several  of  these  transactions  were 
peculiar,  and  we  have  done  what  we  could  to  trace  them  through,  and 
put  down  the  evidence  as  we  have  found  it. 

Mr.  Kennedy.  T^t  me  ask  you  to  give  some  examples.  For  in- 
stance, on  the  purcliase  of  the  bonds  by  Louis  Block  of  the  INIeat  Cut- 
ters, or  by  his  wife,  for  $5,000,  how  do  the  records  or  bank  deposits 
show  that  that  was  paid  for  ? 

Mr.  Dunne.  The  cash  receipts  book  for  this  bond  account  main- 
tained by  Max  Raddock  shows  that  on  May  8,  1950,  a  deposit  of 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11797 

$5,000  -was  made  for  the  purchase  of  these  bonds.  The  books  and 
records  reflect  just  $5,000.  We  went  to  the  bank  and  obtained  a  copy 
of  the  deposit  ticket,  to  support  that  $5,000  purchase,  and  upon  exam- 
ination of  the  deposit  ticket,  and  I  am  talking  about  item  15  in  the 
chart,  we  noticed  it  was  made  up  of  a  series  of  13  checks  totaling 
$2,700.34,  and  5  checks  totaling  $2,299.66. 

We  have  a  listing  of  the  amount  of  these  checks  and  they  are  all 
odd  amounts,  like  $99.79  and  $173.76,  and  similar  amounts.  We  had 
very  few  canceled  checks  from  Raddock's  enterprises  for  the  year 
1950.  However,  we  did  have  their  payroll  accounts,  and  we  noticed 
upon  an  examination  of  their  payroll  records  that  checks  in  identical 
amounts  to  13  of  these,  to  the  penny,  were  drawn  as  payroll  checks 
from  13  employees  of  the  Trade  Union  Courier.  All  were  drawn  a 
few  days  before  the  deposit  in  that  account,  and  all  cleared  the  bank 
and  the  next  business  day  after  this  $5,000  deposit. 

Based  on  that  circumstantial  evidence,  13  identical  checks,  we 
came  to  the  conclusion  that  the  deposit  that  went  to  make  up  the 
$5,000  purchase  for  Louis  Block's  wife  was  from  money  from  Rad- 
dock's own  enterprise. 

The  Chairman.  Now,  13  checks  aggregating  how  much  ? 

Mr.  Dunne.  $2,700.34. 

The  Chairman.  $2,700? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  Now,  as  I  understand  your  testimony,  you  haven't 
been  able  to  find  all  of  the  checks. 

Mr.  Dunne.  Yes.  Actually  there  were  18  checks,  which,  taken  to- 
gether, totaled  exactly  $5,000.  We  could  trace  13  of  those  checks  to 
payroll  checks  from  Trade  Union  Courier,  and  we  could  not  trace  the 
other  5  checks  which  made  up  the  difference. 

The  Chairman.  Now,  the  13  were  issued  presumably  and  recorded 
as  salary  checks  or  wage  checks  to  the  employees  of  that  company? 

Mr.  Dunne.  Of  Max  Raddock's  company,  yes,  sir. 

The  Chairman.  In  other  words,  these  checks,  so  far  as  the  record  re- 
flects, were  in  payment  of  wages  or  salaries  to  employees  of  the 
company  ? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  Now,  you  find  that  those  checks,  however,  were 
used  or  put  into  an  account  to  purchase  the  bonds  for  Mrs.  Louis 
Block,  is  that  correct  ? 

]\Ir.  Dunne.  Yes,  Senator. 

The  Chairman.  What  did  the  checks  reflect  with  respect  to  en- 
dorsements ? 

Mr.  Dunne.  We  cannot  get  the  actual  checks,  Senator,  and  those 
were  not  delivered  to  us. 

The  CHAiR:NrAN.  You  have  not  examined  the  actual  checks  ? 

Mr.  Dunne.  It  is  an  examination  of  the  payroll  records  and  the 
bank  statements. 

The  Chairman.  But  the  payroll  record  reflects  that  this  money  was 
deposited  in  those  accounts  ? 

Mr.  Dunne.  Yes,  Senator. 

The  Chairman.  The  checks  reflect  it  in  that  they  are  the  exact 
amount  and  all  occurred  at  the  same  time  ? 

Mr.  Dunne.  That  is  right. 


11798  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  The  checks  aggregating  $27.34  that  were  presum- 
ably payroll  checks  ? 

Mr.  Dunne.  $2,700 ;  yes. 

The  Chairman.  They  went  into  this  account  that  paid  for  Mrs. 
Block's  bonds  ? 

Mr.  Dunne.  That  is  right,  Senator. 

Mr.  Kennedt.  Mr.  Chairman,  I  might  point  out  to  you  that  we 
asked  Mr.  Louis  Block  when  he  appeared  before  the  committee  as  to 
how  these  bonds  were  purchased,  and  he  stated  by  check,  and  he  gave 
a  check  to  Mr.  Raddock.  We  have  asked  to  have  liim  turn  that  check 
over  and  he  is  unable  to  produce  it,  and  an  examination  of  his  bank 
accounts  could  not  reveal  a  withdrawal  during  this  period  of  time. 

The  Chairman.  Do  you  have  testimony  from  him  as  to  all  of  the 
bank  accounts  he  has  ? 

Mr.  Kennedy.  That  is  right. 

The  Chairman.  And  he  said  it  was  paid  by  check  ? 

Mr.  Kennedy.  That  is  right. 

The  Chairman.  And  they  have  examined  the  bank  accounts  of 
Louis  Block  and  his  wife,  and  find  no  such  check  given  during  that 
period  of  time  ? 

Mr.  Kennedy.  That  is  correct.  He  gave  us  one  bank  that  he  was 
sure  it  was  drawn  on  and  that  bank  account  was  not  even  in  existence 
at  the  time. 

The  Chairman.  May  I  ask,  do  you  have  any  way  of  ascertaining 
whether  these  checks  were  issued  to  fictitious  employees,  or  to  people 
who  were  actually  on  the  payroll  ? 

Mr.  Dunne.  As  far  as  we  have  been  able  to  ascertain,  these  check? 
were  issued  to  individuals  whom  we  know  to  have  been  connected 
with  the  Courier  at  that  time. 

We  have  not  been  able  to  find  that  there  were  duplicate  checks  issued 
at  that  time.   We  don't  know. 

The  Chairman.  You  can't  trace  it  any  further  than  that  ? 

Mr.  Dunne.  No  ;  we  can't. 

The  Chairman.  It  is  something  that  needs  considerable  explana- 
tion. 

Mr.  Dunne.  Yes,  Senator. 

Mr.  Kennedy.  As  you  know,  we  have  asked  ISIr.  Raddock  for  an 
explanation,  and  as  of  this  time  he  has  not  been  able  to  give  us  one. 

Now  let  me  ask  you  another  question.  Louis  Block's  sister  received 
$G,000,  and  you  have  Louis  Block's  wife's  $5,000;  was  that  handled 
in  the  same  fashion  ? 

Mr.  Dunne.  Yes;  that  is  item  16  on  the  chart,  and  again  the  books 
maintained  by  World  Wide  Press  would  indicate  that  $0,000  was 
deposited  on  the  date  that  the  bond  was  issued,  and  we  secured  the 
deposit  ticket,  and  found  out  that  the  $6,000  was  made  up  of  $28.75  in 
cash  and  20  checks  which  we  identified  by  the  same  process  as  having 
come  from  Raddock  Enterprises. 
The  Chairman.  How  many  ? 

Mr.  Dunne.  20  checks  totaling  $5,127.28,  and  4  unidentified  checks 
totaling  $844.11.    That  is  how  the  $6,000  was  made  up. 
The  Chairman.  'Wliat  is  that? 
Mr.  Dunne.  $844.11.    That  totals,  $6,000. 
The  Chairman.  That  is  $6,000  even. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11799 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  In  other  words,  the  purchase  of  bonds  for  Mrs. 
Louis  Block,  and  also  the  purchase  of  bonds  for  his  sister,  Sonya 
Bytansky,  -were  all  purchased  by  this  devious  way  of  using  payroll 
checks ;  is  that  correct  ? 

Mr.  Dunne.  Yes,  Senator.  Actually,  there  were  other  deposits  in 
that,  too,  which  brought  the  total  deposit,  and  this  is  an  incomplete 
listing  of  those  deposits,  and  there  were  other  deposits  from  other 
known  checks,  totaling  $6,000.14.  We  were  able  to  trace  2  of  those 
checks  directly,  4  of  those  checks  directly  out  of  Max  Raddock's  busi- 
ness interests.  Tliose  were  among  the  few  checks  that  were  delivered 
for  this  period  of  time.  First  of  all,  by  the  circumstantial  identifica- 
tion and  later  by  checking  the  canceled  checks,  we  came  up  with  four 
of  those  checks,  which  went  into  the  deposit  to  make  up  the  purchase 
of  bonds  by  Mrs.  Bytansky. 

Mr.  Kennedy.  So  four  checks  came  directly  from  Mr.  Raddock  to 
purchase  the  bond  for  Louis  Block's  sister ;  is  that  right  ? 

]Mr.  Dunne.  Yes,  sir ;  one  is  a  pettj^-cash  check. 

Mr.  Kennedy.  How  much  do  they  total  ? 

Mr.  Dunne.  One  is  $15  and  another  petty-cash  check  for  $10,  and  a 
petty-cash  check  for  $35,  and  a  cash  payroll  check  for  $545.43. 

AH  of  these  checks  were  drawn  to  cash,  and  then  deposited  in  the 
World  Wide  Press  bond  account  to  support  the  purchase  of  Mrs. 
Bytansky. 

The  Chairman.  In  each  instance,  the  money  that  was  placed  in  the 
bond  account  covering  the  purchase  price  of  the  bonds  issued  to  ]\frs. 
Louie  Block  and  also  to  Mr.  Block's  sister,  the  money  deposited  to  cover 
the  purchase  price  of  those  accounts  came  from  these  checks,  and  as 
you  have  described  them. 

Mr.  Dunne.  That  is  right.  Senator. 

The  Chairman.  You  find  no  record  of  Mrs.  Block  or  of  Mr.  Block's 
sister  having  made  any  payment  whatsoever. 

j\Ir,  Dunne.  That  is  right.  Senator. 

Senator  Ervin.  And  the  bonds  that  were  issued  to  Mrs.  Louis  Block 
were  issued  to  her  in  her  maiden  name  of  Sylvia  Lippel;  isn't  that 
right  ? 

Mr.  Dunne.  That  is  right. 

Senator  Ervin.  They  were  issued  to  her  maiden  name  rather  than 
the  married  name  ? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  What  about  Louis  Block's  son ;  he  received  $4,000. 

Mr.  Dunne.  Actually  he  holds  a  total  of  $10,000.  This  $6,000 
which  we  just  discussed  was  transferred  to  him.  Now,  there  was  an 
additional  purchase  or  an  additional  sending  of  $4,000  in  bonds  to 
Alan  Robert  Block,  who  is  Louis  Block's  son.  This  purchase  was 
made  on  January  16, 1952. 

Mr.  Kennedy.  How  would  it  appear  that  these  bonds  were  pur- 
chased and  paid  for? 

Mr.  Dunne.  The  cash  receipts  book  of  World  Wide  Press  which  I 
have  been  discussing  in  which  there  should  be  entered  the  amounts  of 
money  received  for  the  sale  of  these  bonds  reflected  no  money  received 
whatsoever  for  the  issuance  of  this  $4,000  in  bonds  to  xVlan  Robert 
Block. 


11800  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Now,  at  about  the  same  time,  four  officers  of  another  butcher  local 
had  cashed  in  their  bonds  and  World  Wide  Press  had  paid  each  of 
them  $1,000  by  check,  so  that  World  Wide  Press  was  out  $4,000,  and 
then  these  bonds  were  issued  without  the  receipt  of  any  money,  and  it 
was  shown  on  the  books  as  a  transfer  of  the  bonds  from  these  four 
other  butcher  local  officials  to  Louis  Block's  son. 

The  Chairman.  Now,  as  I  understand  it,  the  World  Wide  Press 
paid  out  $4,000  to  4  separate  bondholders  who  cashed  in  their  bonds. 

Mr.  Dunne.  That  is  ri^ht,  and  it  redeemed  their  bonds. 

The  Chairman.  And  then  they  show  on  the  record  this  $4,000  bond 
to  Louis  Block's  son,  and  show  that  as  a  transfer  from  the  other  4. 

Mr.  Dunne.  That  is  right. 

The  Chairman.  The  4  to  whom  they  paid  out  the  $4,000  cash? 

Mr.  Dunne.  That  is  right. 

The  Chairman.  And  it  reflects  no  deposit  of  $4,000  to  cover  the 
$4,000  paid  out. 

Mr.  Dunne.  That  is  right.  Senator. 

The  Chairman.  That  looks  like  an  outright  gift,  O.  K. 

Mr.  Kennedy.  Now,  Mr.  Dunne,  we  have  some  affidavits,  do  we,  as 
to  why  those  four  union  officials  sold  their  bonds  ? 

Mr.  Dunne.  Yes,  and  actually  affidavits  were  received  from  2  of 
them,  but  they  covered  the  4  of  them. 

Mr.  Kennedy.  Do  you  have  those  affidavits  and  perhaps  we  can 
place  those  in  the  record. 

The  Chairman.  Let  the  Chair  see  the  affidavits,  so  that  I  may  re- 
fer to  the  pertinent  parts  of  them.  The  affidavits  may  be  printed  in 
the  record  in  full,  at  this  point.  I  would  like  to  see  them,  so  that  I 
can  quote  the  pertinent  parts  of  them. 

(The  documents  referred  to  follow :) 

Affidavit 
State  of  New  York, 

County  of  'New  York: 

I,  Richard  Skalet,  being  duly  sworn,  depose  and  say  : 

Ttiat  I  make  this  statement  at  the  request  of  Robert  J.  Cofini,  known  to  me 
to  be  an  investigator,  assigned  to  assist  the  United  States  Senate  Select  Commit- 
tee on  Improper  Activities  in  the  Labor  and  Management  Field  ;  that  I  have  been 
informed  and  know  that  this  statement  will  be  introduced  and  used  into  evidence 
at  a  public  hearing  held  before  the  said  United  States  Senate  Select  Committee 
on  Improper  Activities  in  the  Labor  of  Management  Field ;  and  that  the  state- 
ments contained  herein  are  true. 

Sometime  in  1951,  Mr.  Max  Raddock,  editor  of  the  Trade  Union  Courier  ap- 
proached me  in  reference  to  the  purchase  of  World  "Wide  Press  Syndicate  bonds 
(15  years  debenture  bonds)  as  an  investment  for  Butchers  Union  Local  No.  174. 
At  that  time,  I  informed  Mr.  Raddock,  that  I  did  not  think  that  the  union  would 
purchase  these  bonds.  But  after  discussions  at  subsequent  times,  Mr.  Raddock 
was  able  to  persuade  me  to  purchase  personally  a  $1,000  bond.  This  bond  was 
purchased  in  or  around  August  1951. 

During  the  course  of  our  conversations  I  was  informed  by  Mr.  Raddock  that 
many  local  unions  in  this  area  were  purchasing  AVorld  Wide  Press  Syndicate 
Bonds  as  an  investment  from  the  local  unions.  Sometime  after  I  had  pur- 
chased the  .$1,000  bond  personally  I  found  out  that  many  other  locals  had  pur- 
chased these  bonds,  and  Mr.  Raddock  wanted  us  to  purchase  additional  bonds 
for  our  local  imion,  we  took  this  matter  up  with  our  executive  board  in  Decem- 
ber 1951,  when  it  was  decided  to  purchase  a  $5,000  bond  (World  Wide  Syndicate 
Press  bond)  for  Butchers  Union  Local  No.  74. 

When  this  was  done  I  called  Mr.  Raddock  and  told  him  that  the  executive 
board  had  given  us  permission  to  purchase  a  $5,000  World  Wide  Press  Syndicate 
bond,  and  that  I  would  issue  him  a  check  for  $5,000  for  the  bond,  if  he  would 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11801 

refund  the  $1,000  to  me,  for  the  bond  which  I  had  purchased.  He  took  my  bond 
back  and  refunded  $1,000  to  me  by  check.  To  the  best  of  my  recollection,  I 
purchased  the  bond  with  $1,000  cash  taken  from  my  own  funds. 

RiCHABD  SKALET. 

Sworn  to  before  me  this  2d  day  of  June  1958. 

[Seal]  Robekt  J.  Cofini, 

Notary  Public,  State  of  New  York. 
Commission  expires  March  30.  1960. 


Affidavit 
State  of  New  Yobk, 

County  of  New  York: 

I,  Fred  Rubin,  being  duly  sworn,  depose  and  say : 

That  I  make  this  statement  at  the  request  of  Robert  J.  Cofini,  known  to  me 
to  be  an  investigator  assigned  to  assist  the  United  States  Senate  Select  Commit- 
tee on  Improper  Activities  in  the  Labor  Management  Field ;  that  I  have  been 
informed  and  know  that  this  statement  will  be  used  and  introduced  into  evidence 
at  a  public  hearing  held  before  the  said  United  States  Senate  Select  Committee 
on  Improper  Activities  in  the  Labor  or  Management  Field ;  and  that  the  state- 
ments contained  herein  are  true. 

About  the  beginning  of  the  year  1951,  Mr.  Karl  Muller,  Richard  Skalet,  Frank 
Kissel,  and  myself,  all  officials  of  Butchers  Union  Local  No.  174,  were  ap- 
proached by  Mr.  Maxwell  Raddock,  to  propose  to  the  local  union  to  buy  bonds 
issued  by  the  World  Wide  Press  Syndicate,  Inc.  We  told  Mr.  Raddock  that 
we  would  not  do  so. 

However,  after  some  discussion  we  agreed  to  purchase  bonds  individually, 
for  the  sum  of  $1,000  each.  And  this  was  done.  I  sent  him  a  check  of  $1,000 
drawn  on  my  own  personal  account,  and  after  a  while  I  received  a  bond 
certificate.  About  2  months  later,  the  above-mentioned  officials  and  myself  had 
a  discussion  of  the  money  so  invested.  During  this  discussion  it  was  brought 
out  that  many  of  the  other  locals  had  purchased  bonds  for  their  locals,  but  the 
officials  had  not  bought  any  bonds  personally.  We  decided  that  we  would  get 
in  touch  with  Mr.  Raddock  and  ask  him  whether  or  not  it  would  be  possible 
to  return  the  bonds  and  get  our  personal  money  back. 

In  turn  we  proposed  to  the  local  union  to  purchase  a  liond  for  the  sum  of 
$5,000.  This  was  done  and  accepted  by  the  executive  board  of  our  local.  I 
turned  over  the  bond  which  was  in  my  possession  to  Mr.  Raddock,  and  at  the 
same  time  I  received  a  check  for  $1,000  as  refund. 

Feed  Rubin. 

Sworn  to  before  me  this  2d  day  of  June  1958. 
[seal] 

robebt  j.  cofini, 

Notary  Public. 

Mr.  IsJENNEDY.  Mr.  Chairman,  these  are  union  officials  trying  to  get 
their  money  back,  and  they  got  their  money  back  only  with  the  under- 
standing or  arrangement  that  their  union  would  make  a  similar  pur- 
chase of  the  $5,000  with  union  funds. 

The  Chairman.  It  is  more  than  similar;  they  are  getting  back 
$5,000  bonds  purchased  by  the  union. 

Mr.  Kennedy.  Wliat  about  John  O'Rouke,  the  vice  president? 

Mr.  Dunne.  That  is  item  34  on  the  chart. 

Mr.  Kennedy.  That  was  handled  in  a  similar  way  that  you  de- 
scribed before. 

Mr.  Dunne.  For  that  $5,000  bond  purchase,  only  $5.97  in  cash  was 
deposited  in  World  Wide  Bond  account,  and  the  remaining  deposit 
was  made  up  of  25  checks,  18  of  these  checks  have  been  identified  as 
coming  from  Eaddock's  various  business  enterprises,  and  7  checks  re- 
main unidentified. 

Mr.  Kennedy.  Then  you  have  some  purchase  of  bonds  by  certain 
officials  of  the  Jewelry  Workers  Union.  Could  you  tell  us  in  substance 
from  an  examination  of  the  records  what  happened  there? 


11802  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Dunne.  From  an  examination  of  the  records,  it  reflects  that 
Frank  Gold,  president,  and  Benjamin  Berger,  secretary-treasurer  of 
Jewelry  Workers  Local  8,  and  these  are  items  37  and  38  on  the  chart, 
each  purchased  $1,000  in  July  of  1951.  Upon  interview  it  was  noted 
that  the  deposit  tickets  making  up  these  purchases,  that  the  money 
was  i)aid  in  cash.  On  interview  they  admitted  the  money  was  paid 
in  cash,  and  stated  that  they  had  gone  to  a  local  bank  and  had  borrowed 
$1,000  at  about  8  percent  interest,  in  order  to  purchase  these  bonds  at 
3.5  percent  interest. 

The  comaker  on  each  of  their  notes  was  Hyman  Powell,  the  interna- 
tional president  of  the  Jewelry  Workers,  who  recommended  to  them 
that  they  buy  the  bonds.  About  18  months  later,  in  January  of  1953, 
Hj'man  Powell  wanted  to  borrow  money  from  each  of  the  officers 
of  this  subordinate  local  in  his  organization. 

Mr.  Kennedy.  He  is  a  vice  president,  I  believe. 

Mr.  Dunne.  International  vice  president,  I  believe  yes. 

Mr.  Kennedy.  Go  ahead. 

Mr.  Dunne.  They  told  him  at  that  time  that  they  were  unable  to 
give  him  any  mone}^  as  they  were  short,  but  gave  him  instead  these  2, 
$1,000  World  Wide  Press  bonds  and  told  him  to  get  the  best  price 
that  he  could  for  them. 

Hyman  Powell  then  had  a  conference  with  Max  Paddock  and  ac- 
cepted $1,500  in  cash  for  these  $2,000  in  bonds.  He  was  unable  to 
tell  us  what  he  di d  with  the  $1 ,500. 

Mr.  Kennedy.  A  lot  of  this  is  hearsay,  Mr.  Chairman,  but  the 
records  do  indicate  that  the  two  union  officials  borrowed  from  the 
bank  at  some  8  percent  interest,  and  th^n  purchased  bonds  in  Max 
Paddock's  company  at  3.5  percent  interest,  and  that  these  bonds  were 
ultimately  turned  in  and  redeemed,  not  for  the  full  price,  but  for  some 
$1,500,  as  I  understand,  for  $2,000  worth  of  bonds. 

The  Chairman.  Within  what  period  of  time  ? 

Mr.  Dunne.  About  18  months  later.  Senator. 

Mr.  Kennedy.  Now,  you  also  have  a  situation  in  dealing  with  Mr. 
John  P.  Crane,  who  used  to  be  head  of  the  Fireman's  Union,  up  in 
New  York  City. 

Mr.  Dunne.  Yes,  sir, 

Mr.  Kennedy.  Does  it  also  show  that  his  purchases  of  bonds  was 
done  through  these  deposit  tickets  ? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  Or  traced  to  these  checks  ? 

Mr.  Dunne.  That  is  right,  and  the  details  are  in  this  chart. 

Mr.  Kennedy.  What  number  is  that  ? 

Mr.  Dunne.  No.  36  on  the  chart. 

Mr.  Kennedy.  Now,  what  about  Morris  Horn  of  the  Butchers' 
Local  627,  does  it  show  he  received  some  $3,000  in  bonds?  That  is 
item  No.  14, 

Mr.  Dunne.  Yes,  in  September  of  1952,  $3,000  in  bonds  was  issued 
to  Morris  Horn,  the  business  manager  of  another  Butchers'  local  in 
New  York,  and  that  is  local  027. 

Mr.  Kennedy.  Do  the  records  show  the  receipt  of  any  cash  by  Mr. 
Paddock  in  connection  with  that? 

Mr.  Dunne.  No,  the  records  show  the  receipt  of  no  cash,  and  there 
was  no  deposit  in  the  bank  supporting  this  purchase. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11803 

P 

'Sir.  Kennedy.  ]\Ir.  Morris  Horn  is  liere,  and  I  would  like  if  we 
might  have  permission  to  call  him  around  at  this  time,  if  that  is  all 
right. 

The  Chairman.  You  two  gentlemen  just  stand  by,  and  we  will  call 
Mr.  Horn. 

TESTIMONY  OF  MOREIS  HORN,  ACCOMPANIED  BY  COUNSEL,  ELIAS 

FELIG 

The  Chairman.  All  right,  ]\Ir,  Horn.  You  do  solemnly  swear  that 
the  evidence  you  shall  give  before  this  Senate  select  committee  shall 
be  the  truth,  the  whole  truth,  and  notliing  but  the  truth,  so  help  you 
God? 

Mr.  Horn.  I  do. 

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

Mr.  Horn.  Morris  Horn,  56-11,  Easthampton  Boulevard,  Bayside, 
X.  Y.  I  am  business  manager  of  the  Provision  Salesmen  and  Distribu- 
tors Union,  Local  627,  affiliated  with  the  Amalgamated  Meat  Cutters 
and  Butcher  Workmen  of  North  America,  AFI^CIO. 

The  Chairman.  You  have  counsel  present  and  will  you  identify 
vourself  for  the  record  ? 

Mr.  Felig.  Elias  N.  Felig,  170  Broadway,  New  York  City. 

The  Chairman.  All  right ;  we  will  proceed. 

Mr.  Kennedy.  Mr.  Horn,  we  have  had  some  conversations  and  dis- 
cussions with  you  pointing  out  that  the  records  of  the  World  Wide 
Press  indicate  that  on  September  3,  1952,  you  purchased  some  $3,000 
in  World  Wide  Press  bonds ;  is  that  correct? 

Mr.  Horn.  Yes,  sir ;  personally. 

Mr.  Kennedy.  Could  you  tell  us  where  you  got  the  money  to  pur- 
chase those  bonds? 

Mr.  Horn.  I  cannot  recall.  Senator,  and  it  must  be  cash  paid. 

Mr.  Kennedy,  Wliere  did  you  get  the  cash? 

Mr.  Horn.  I  don't  recall.  Senator. 

Mr.  Kennedy.  Do  you  have  a  bank  account  ? 

Mr.  Horn.  Yes,  sir. 

Mr.  Kennedy.  Where  is  your  bank  account  ? 

Mr.  Horn.  I  plead  personal  privilege  on  constitutional  rights,  and 
I  decline  to  answer. 

Mr.  Kennedy.  Mr.  Chairman,  the  only  way  to  trace  these  bonds, 
as  we  pointed  out  before,  is  go  to  the  bank  accounts  and  see  if  there  was 
a  withdrawal  of  cash  or  see  if  there  was  a  check  written  at  the  time. 
Now  the  reason  I  asked  this  question,  and  the  reason  I  need  the  assist- 
ance of  Mr.  Horn,  is  to  find  out  where  his  bank  account  is  so  that  we 
can  trace  it  and  find  out  if  there  was  in  fact  a  withdrawal  of  $3,000 
cash  at  that  time. 

The  records  of  Max  Raddock  indicate  that  these  bonds  were  never 
paid  for,  and  no  money  was  found  to  pay  for  the  bonds.  It  would 
appear  to  be  a  gift.  For  that  reason,  we  need  the  information  from 
Mr.  Horn,  and  I  would  like  to  ask  you  again  to  tell  us  where  your 
bank  accounts  are. 

Mr,  Horn.  ISIy  answer  is  the  same,  counselor. 

Mr.  Kennedy.  Where  were  your  bank  accounts  in  September  of 
1952? 


11804  IMPROPER    ACTIVITIES    EST    THE    LABOR    FIELD 

Mr.  Horn.  In  New  York. 

Mr.  Kennedy.  Whereabouts ;  what  bank  ? 

Mr.  Horn.  I  decline  to  answer  on  the  grounds  it  might  tend  to 
incriminate  me. 

The  Chairman.  Mr.  Horn,  you  testified  in  executive  session  as  you 
have  testified  here,  and  you  said  at  that  time  that  you  wanted  to  think 
it  over,  I  told  you  you  would  be  given  another  opportunity  in  a  pub- 
lic session.  I  pointed  out  to  you  at  that  time  that  there  were  rec- 
ords and  circumstances  that  indicated  some  financial  finagling  in  con- 
nection with  the  sale  of  these  bonds. 

I  suggested  if  you  could  give  us  this  information  it  might  help  to 
clear  up  what  otherwise  will  remain  as  a  suspicion  of  wrongdoing. 
If  there  was  nothing  wrong  in  the  transaction,  you  could  be  very 
helpful  to  clear  it  up. 

We  want  to  give  you  that  opportunity  to  do  it.  I  don't  see  how 
suspicion  could  attach  to  Mr.  Raddock  in  this  connection  without  also 
attaching  to  you,  if  you  decline  to  make  some  satisfactory  explana- 
tion of  it,  or  to  cooperate  with  the  committee  in  getting  the  records 
that  substantiate  the  transaction. 

Do  you  want  to  be  helpful  ? 

Mr.  Horn.  I  do  want  to  cooperate,  but  I  don't  believe  going  into 
a  fishing  expedition  into  my  personal  accounts 

The  Chairman.  We  are  not  fishing,  and  we  just  want  the  facts. 

Mr.  Horn.  I  am  willing  to  answer  any  questions  and  give  facts, 
but  I  don't  feel,  and  I  think  it  is  my  personal  right  under  the  Consti- 
tution not  to  give  that  information  out. 

The  Chairman.  As  to  where  this  money  came  from,  you  feel  like 
you  shouldn't  answer  ? 

Mr.  Horn.  I  don't  recollect  where  the  money  came  from. 

The  Chairman.  We  might  help  you  recollect  if  we  could  get  hold 
of  the  records,  and  it  wouldn't  be  just  a  matter  of  recollection,  and 
we  would  have  a  record. 

Mr.  Horn.  I  have  no  records. 

The  Chairman.  To  substantiate  the  transaction  as  to  how  it  took 
place  ? 

Mr.  Horn.  Senator,  I  have  explained  that  to  the  investigator. 

The  Chairman.  Explain  it  to  us. 

Mr.  Horn.  I  have  no  records  of  any  kind,  and  I  am  not  a  business- 
man, and  I  have  no  records. 

The  Chairman.  You  have  no  records,  but  the  bank  has. 

Mr.  Horn.  I  didn't  say  that. 

The  Chairman.  I  am  sure  the  bank  has  a  record. 

Mr.  Horn,  I  didn't  state  I  drew  it  from  the  bank. 

The  Chairman.  I  know  you  didn't,  but  you  don't  know  where  you 
got  it,  and  that  might  help  you  to  remember.  Wouldn't  you  like  to 
remember  where  it  came  from,  and  have  the  transaction  put  out  ? 

Mr.  Horn.  I  still  plead  that  privilege. 

The  Chairman,  You  are  still  going  to  stand  on  the  privilege? 

Mr.  Horn.  Yes,  sir. 

Senator  Ervin.  If  I  understand  you,  you  are  pleading  the  fifth 
amendment. 

Mr.  Horn.  I  beg  your  pardon  ? 

Senator  Ervin.  You  are  pleading  the  fifth  amendment. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11805 

Mr.  Horn.  If  that  is  what  it  is. 

Senator  Ervin.  In  other  words,  you  are  telling  this  committee,  in 
substance,  tliat  if  you  give  a  truthful  answer  as  to  where  your  back  ac- 
count was  in  September  of  1952,  your  truthful  answer  may  tend  to 
incriminate  you  in  the  commission  of  some  criminal  oll'ense.  Is  that 
what  you  are  doing? 

Mr.  Horn.  I  don't  know.   It  might,  and  I  don't  know. 

Senator  Ervix.  You  think  that  it  might,  and  that  is  the  reason  that 
you  are  pleading  the  fifth  amendment? 

Mr.  HoRX.  I  think  that  is  my  privilege,  Senator,  isn't  it,  under 
the  Constitution  ? 

Senator  Ervin.  It  is  your  privilege.  If  you  honestly  believe  that 
if  you  tell  this  committee  where  your  bank  account  was  in  Septem- 
ber of  1952,  that  your  honest  disclosure  in  that  respect  might  tend  to 
incriminate  you  in  the  commission  of  some  crime,  then  you  are  en- 
titled to  plead  the  fifth  amendment  under  the  Constitution,  and  that 
is  what  you  are  doing,  isn't  it  ? 

Mr.  Horn.  It  may  or  may  not.  Senator. 

Senator  Ervin.  If  it  may  not  tend  to  incriminate  you 

Mr.  Horn.  But  it  might,  or  it  may,  too. 

Senator  Ervin.  You  have  no  right  to  plead  it  on  the  ground  it  may 
not  tend  to  incriminate  you. 

Mr.  Horn.  But  I  say  it  might. 

Senator  Ervin.  Now,  you  stated  in  executive  session,  however,  that 
it  wouldn't  tend  to  incriminate  you,  and  you  were  merely  pleading 
the  personal  privilege  as  distinguished  from  a  constitutional  privilege, 
didn't  you  ? 

Mr.  Horn.  I  don't  recall  that. 

Senator  Ervin.  You  stated  in  executive  session  that  it  would  not 
tend  to  incriminate  you,  and  that  you  were  not  pleading  it  on  that 
ground,  but  that  you  were  pleading  a  personal  privilege  as  distin- 
guished from  a  constitutional  privilege,  didn't  you  ? 

Mr.  Horn.  I  said  it  may  not  incriminate  me,  and  I  said  it  may  not, 
and  I  said  it  might. 

The  Chairman.  But  you  stated  in  executive  session  first  that  you 
didn't  think  it  would  incriminate  you. 

Mr.  Horn.  Senator,  are  we  bickering?  You  want  to  know,  and  let 
me  get  the  question  correctly.  You  want  to  know  my  accounts  of  Sep- 
tember of  1952.    Is  that  what  you  want  ? 

The  Chairman.  Yes. 

Mr.  Horn.  In  1952,  you  shall  have  it. 

The  Chairman.  Give  it. 

Mr.  Horn.  I  haven't  it  with  me  now,  but  I  will  give  it  to  you,  and 
I  am  willing  to  submit  the  records  of  1952. 

The  Chairman.  'VVliat  is  your  recollection  about  it? 

Mr.  Horn.  I  have  the  Public  National  Bank  and  the  Williamsburg 
Savings  Bank. 

The  Chairman.  Wliat  is  that  ? 

]Mr.  Horn.  The  Public  National  Bank  and  the  Williamsburg  Sav- 
ings Bank. 

The  Chair^nian.  Those  are  the  two  banks  in  which  you  had  accounts 
in  September  of  1952? 


11806  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Horn.  Yes,  sir,  and  now  I  may  have  another  one,  and  I  would 
have  to  check  it. 

The  Chairman.  You  check  for  the  other  one. 

Mr.  Horn.  I  can't  check  it  here.    I  came  unprepared  for  this. 

The  Chairman.  I  understand,  and  I  am  not  trying  to  say  that,  but 
will  you  check  your  records  and  see  if  you  have  any  other  bank  account 
from  which  you  may  have  drawn  the  money  ? 

Mr.  Horn.  Exactly. 

The  Chairman.  Now,  that  is  very  nice,  very  nice  indeed.  Thank 
you. 

Senator  Ervin.  You  have  check  stubs  and  checks,  canceled  checks 
returned  to  you  from  your  banks,  don't  you  ? 

Mr.  Horn.  Yes,  sir. 

Senator  Ervin.  You  have  them  for  September  of  1952  ? 

Mr.  Horn.  No,  sir,  because  I  have  bouoht  a  home  in  that  year,  and  I 
have  moved,  and  all  of  my  old  records — there  is  no  need  for  me  to 
carry  it,  and  I  don't  carry  big  checking  accounts,  and  I  don't  have  to 
carry  them  along  with  me  to  my  new  home. 

Senator  Ervin.  Did  you  keep  the  checks  ? 

Mr.  Horn.  No. 

Senator  Ervin.  What  did  you  do  with  them  ? 

Mr.  Horn.  I  left  them  there,  and  destroyed  them,  and  what  do  I 
need  them  for  ? 

Senator  Ervin.  You  left  them  there  or  destroyed  them,  and  which 
did  you  do  ?  That  is  two  different  things,  and  you  didn't  do  both.  If 
you  destroyed  them,  you  didn't  leave  them  anywhere. 

Mr.  Horn.  I  might  have  left  them  there  in  the  old  apartment. 

Senator  Er\t;n.  You  moved  out  of  an  apartment  and  left  your  check 
stubs  there  ? 

Mr.  Horn.  All  of  my  old  records  were  there  and  they  are  gone. 
Senator. 

Senator  Ervin.  Now,  you  moved  your  home  from  one  place  to 
another  ? 

Mr.  Horn.  Yes,  sir. 

Senator  Ervin.  You  took  your  furniture  along  with  you,  didn't 
you? 

Mr.  Horn.  Sure. 

Senator  Ervin.  But  you  left  your  check  stubs,  and  your  canceled 
checks  at  your  old  home,  is  that  what  you  are  telling  the  committee  ? 

Mr.  Horn.  That  is  correct,  sir,  and  they  might  be  there,  and  T  don't 
know.  You  could  get  those  records,  and  they  are  no  secret,  and  tliose 
records  are  available. 

Senator  Ervin.  How  long  have  you  been  moved  away  from  that 
place? 

Mr.  Horn.  Since  1952. 

Senator  Ervin.  You  say  you  bought  your  house,  and  why  didn't 
you  take  your  canceled  checks  and  your  clieck  stubs  along  with  you 
so  you  would  have  evidence  that  you  had  paid  for  the  house  ? 

Ml-.  Horn.  Wait  a  minute,  sir.  We  probably  liave  evidence  for 
that,  and  we  have  a  bill  of  sale,  and  a  purchase  which  indicates  all  of 
that  stuff.  We  have  a  title  which  indicates  all  of  the  items,  how  I 
paid. 

Senator  Ervin.  So  you  left,  and  you  are  swearing  to  this  committee 
on  your  oath  that  when  you  moved  from  the  apartment  to  the  new 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11807 

house  3'ou  took  yourself  and  your  family  and  your  furniture  along 
with  you  to  your  new  home  but  left  your  canceled  checks  and  your 
check  stubs  in  the  old  apartment  ? 

Mr.  Horn.  I  don't  know  what  happened  to  those  checks,  and  I 
wasn't  interested  in  them,  because  1  was  not  concerned  with  them, 
Senator. 

Senator  Ervix.  Then  you  are  not  swearing  j^ou  left  them  there  ? 

Mr.  Horn.  No  ;  I  have  said  I  don't  know  what  happened. 

Senator  Ervin.  As  far  as  you  knew,  these  just  vanished  into  thin 
air? 

Mr.  Horn.  That  is  correct.  Senator. 

Senator  Ervin.  That  is  all. 

Mr.  Kennedy.  I  have  some  questions. 

Did  you  get  this  money  that  you  paid  for  the  bonds  out  of  your 
bank  account? 

Mr.  Horn.  I  don't  recall. 

Mr.  Kennedy.  Where  else  did  you  have  money  ? 

Mr.  Horn.  I  could  have  borrowed  it. 

Mr.  Kennedy.  Did  j'ou  keep  money  at  home  ? 

Mr.  Horn.  I  might  have  some  cash  on  hand. 

Mr.  Kennedy.  How  much  money  did  j^ou  keep  at  home  ? 

Mr.  Horn.  I  don't  know. 

Mr.  Kennedy.  Where  would  you  keep  your  money  in  1952 ;  did  you 
have  a  box  ? 

Mr.  Horn.  No,  sir. 

Mr.  Kennedy.  Did  you  have  a  safe  deposit  box  ? 

Mr.  Horn.  No. 

Mr.  Kennedy.  You  must  remember;  this  is  $3,000. 

Mr.  Horn.  I  might  have  loaned  it  from  another  person. 

Mr.  Kennedy.  You  might  have  borrowed  it  ? 

Mr.  Horn.  Yes,  sir. 

Mr.  Kennedy.  From  whom  would  you  borrow  it  ? 

Mr.  Horn.  I  don't  recall. 

Mr.  Kennedy.  You  don't  remember  that  ? 

Mr.  Horn.  No,  sir. 

Mr.  Kennedy.  You  have  no  idea  as  to  how  you  paid  for  this  ? 

Mr.  Horn.  No,  sir. 

Mr.  Kennedy.  How  much  money  do  you  receive  from  the  union  ? 

Mr.  Horn.  By  salary? 

Mr.  Kennedy.  Yes. 

Mr.  Horn.  Is  that  material? 

Mr.  Kennedy.  It  is  a  very  material  question,  and  how  much  money 
do  you  receive  from  the  union  ? 

Mr.  Horn.  How  much  money  I  receive  from  the  union  ? 

Mr.  Kennedy.  Yes. 

(Witness  conferred  with  his  counsel.) 

Mr.  Horn.  Do  you  want  now,  and  then  ? 

Mr.  Kennedy.  Kight  now,  how  much  money  do  you  receive  ? 

Mr.  Horn.  $275. 

Mr.  Kennedy.  Do  you  get  expenses  ? 

The  Chairman.  Per  week  ? 

Mr.  Horn.  Yes,  sir. 

Mr.  Kennedy.  How  much,  around,  do  you  get  in  expenses  ? 

21243—58 — pt.  31 -3 


11808  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Horn.  $100. 

Mr.  Kennedy.  A  week  ? 

Mr.  Horn.  Yes,  sir. 

Mr.  Kennedy.  Have  you  received  any  money  from  the  union  other 
than  your  sahiry  of  $275,  and  your  expenses  of  $100  ? 

Mr.  Horn.  No,  sir. 

Mr.  Kennedy.  No  other  money  ? 

Mr.  Horn.  No  other  moneys. 

Mr.  Kennedy.  Do  you  have  any  other  source  of  income  ? 

Mr.  Horn.  Yes. 

Mr.  Kennedy.  What  other  sources  ? 

Mr.  Horn.  Not  any  income.  I  don't  get  the  question  correctly.  I 
am  not  employed  anywhere  else,  is  that  what  you  mean  ? 

Mr.  Kennedy.  No  ;  I  asked  you  whether  you  had  any  other  source 
of  income. 

Mr.  Horn.  No  ;  I  have  no  other  source  of  income. 

Mr.  Kennedy.  Do  you  receive  any  money  from  any  other  source 
other  than  your  salary  of  $275  and  your  expenses  ? 

Mr.  Horn.  Sometimes  I  might  make  a  commission  on  a  sale  of  a 
business  or  something  like  that,  or  brokerage. 

Mr.  Kennedy.  What  kind  of  business  ? 

Mr.  Horn.  It  could  be  any  kind  of  business,  a  provision  route,  or 
a  provision  plant. 

Mr.  Kennedy.  A  provision  route  ? 

Mr.  Horn.  Yes,  sir. 

Mr.  Kennedy.  For  whom  do  you  work,  and  how  do  you  get  a 
commission  on  that  ? 

Mr.  Horn.  I  beg  your  pardon  ? 

Mr.  Kennedy.  How  do  you  get  a  commission  on  that  ? 

Mr.  Horn.  From  the  one  who  sells  the  route. 

Mr.  Kennedy.  Do  you  sell  routes  for  them  ? 

]\Ir.  Horn.  We  help  them,  and  they  are  members,  and  we  help  them 
sell  routes. 

]\Ir.  Kennedy.  And  vou  sell  the  routes  for  them  ? 

^Iv.  Horn.  We  get  them  customers  and  we  don't  sell  them,  and  we 
get  buvers  for  the  routes. 

;Mr.  Kennedy.  How  much  money  did  you  receive  from  that  ? 

Mr.  Horn.  Depending  on  the  amount  of  the  sale. 

Mr.  Kennedy.  How  much  money  did  you  receive  from  that  source 

in  1057? 

:Mr.  Horn.  I  don't  know,  and  I  don't  recall. 

Mr.  Kennedy.  Approximately  how  much  money  ? 

Mr.  HoitN.  I  can't  recall  andmv  records  would  show  it. 

:Mr.  Kf,x :>KDV.  Will  vou  turn  your  records  over  to  the  committee? 

Mr.  HnnN.  T  have  pi-omised  to  give  you  the  1952  records. 

Mr.  Kennedy.  Will  you  turn  your  records,  and  you  say  your  rec- 
ords will  show  it,  will  you  turn  your  records ,     , 

Mr.  Horn.  I  refuse  to  on  the  ground  it  might  tend  to  mcrmimatc 
me. 

Mr.  Kennedy.  You  refuse  to  turn  your  records  over  to  the  com- 
mittee ? 

Mr.  Horn.  Yes,  sir.  . 

Mr.  Kennedy.  Don't  you  receive  about  $20,000  a  year  from  this 

union  ? 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11809 

Mr.  Horn.  No,  sir. 

Mr.  Kennedy.  You  do  not  ? 

Mr.  Horn.  Incliidin<;  the  expenses? 

Mr.  Kennedy.  Includin*!;  expenses. 

Mr.  Horn.  I  made  that  statement  to  your  investigator. 

Mr.  Kennedy.  How  many  members  do  you  have  ? 

Mr.  Horn.  Approximately  1,700. 

Mr.  Kennedy.  How  much  in  dues  do  they  pay  ? 

Mr.  Horn.  $8  a  month. 

Mr.  Kennedy.  $8  a  month  I 

Mr.  Horn.  Yes,  sir. 

Mr.  Kennedy.  Do  you  drive  an  automobile? 

Mr.  Horn.  Yes,  sir. 

Mr.  Kennedy,  \\niat  kind  of  an  automobile  do  you  drive  ? 

Mr.  Horn.  Driving  now  ?     I  don't  own  my  automobile. 

Mr.  Kennedy.  Does  the  union  provide  an  automobile  for  you? 

Mr.  Horn.  No.  Up  to  this  present  time  I  bought  my  own  auto- 
mobile, and  now  we  rent  an  automobile,  beginning  in  this  month. 

Mr.  Kennedy.  Have  you  got  an  automobile  that  was  rented  for  you 
by  the  union  l 

Mr.  Horn.  This  month. 

Mr.  Kennedy.  What  kind  of  an  automobile? 

Mr.  Horn.  A  Cadillac. 

Mr.  Kennedy.  What  model  ? 

Mr.  Horn.  Sedan  DeVille. 

Mr.  Kennedy.  A  1958  Cadillac  Sedan  DeVille? 

Mr.  Horn.  Yes,  sir. 

Mr.  Kennedy.  And  beyond  that  you  receive  $20,000,  and  you  refuse 
to  turn  over  your  personal  books  and  records  to  the  committee  on  the 
ground  it  might  tend  to  incriminate  you  ? 

Mr.  Horn.  Mr.  Counsel,  I  want  you  to  know  that  the  makeup  of  my 
organization,  and  my  members  earn  more  than  I  do.  They  are  sales- 
men, and  we  work  on  a  selling  commission,  and  we  have  a  contract 
that  the  average  salary  of  any  of  our  members,  the  minimum,  would 
be  around  $10,000  a  year. 

Mr.  Kennedy.  Will  you  give  us  a  list  of  the  names  of  the  individuals 
and  employers  tliat  have  given  you  commissions  over  the  period  of 
the  past  5  years  ( 

Mr.  Horn.  No  employers  gave  me  commissions. 

]Mi'.  Kennedy.  Who  gave  you  commissions,  then  ? 

Mr.  Horn.  We  have,  in  our  organization,  members  who  own  and 
operate  their  own  vehicle.  They  want  to  sell  it,  and  they  ask  us  if  we 
can  get  them  a  buyer,  and  if  we  get  them  a  buyer,  we  sell  their  routes. 
There  is  nothing  to  do  with  any  employers  and  we  have  no  connection 
or  association  with  any  employers. 

]Mr.  Kennedy.  Are  these  self-employed  people  ?  Is  that  what  you 
are  talking  about  ? 

^Iv.  Horn.  Yes,  sir. 

]\rr.  Kennedy.  Are  they  members  of  your  union  ? 

]Mr.  Horn.  Yes,  sir. 

Mr.  Kennedy.  Tlie:=e  are  self-employed  people? 

Mr.  Horn.  That  is  correct,  sir. 


11810  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  Wliat  is  the  advantage  for  a  self-employed  person 
to  belong  to  your  union  ? 

Mr.  Horn.  We  have  established  a  certain  standard  of  living  for 
our  members  in  the  organization. 

Mr.  Kennedy.  If  a  person  owns  his  own  business,  how  can  you 
improve  his  working  conditions,  or  his  salary  ? 

Mr.  Horn.  The  working  conditions  of  an  agent-distributor,  we  have 
'taken  them  in  in  order  to  protect  their  working  conditions  of  our 
"workingmen.  When  we  first  organized  ourselves  into  a  labor  union, 
in  1933,  we  were  at  the  mercy  of  the  employers,  and  the  rackets  that 
controlled  them. 

Mr.  Kennedy.  How  many  members  of  your  union  are  self- 
employed  ? 

Mr.  Horn.  About  300. 

Mr.  Kennedy.  Let  us  establish  this.    Beyond  your  salary  and  the 
$100  expenses,  you  receive  no  other  money  ? 
Mr.  Horn.  That  is  correct. 

Mr.  Kennedy.  And  you  receive  no  money  from  any  other  source? 
Mr.  Horn.  No,  sir ;  except  commissions  that  I  might  earn. 
Mr.  Kennedy.  What  is  that  ? 
Mr.  Horn.  Except  commissions. 

Mr.  Kennedy.  Does  anybody  in  your  family,  does  anybody  receive 
any  money  for  you  in  your  family  ? 
Mr.  Horn.  No,  sir. 
Mr.  Kennedy.  They  do  not  ? 
Mr.  Horn.  No,  sir. 

Mr.  Kennedy.  And  you  refuse  to  turn  over  your  books  and  records  ? 
Mr.  Horn.  I  have  no  books  and  records. 

Mr.  Kennedy.  You  said  your  records  would  show  how  much  money 
you  receive  as  commissions. 

Mr.  Horn.  Your  internal  revenue  has  that. 
Mr.  Kennedy.  They  have  all  of  those  now  ? 
Mr.  Horn.  They  have  all  of  those  records. 

Mr.  Kennedy.  Are  they  making  an  investigation  of  you  at  the 
present  time? 

Mr.  Horn.  No,  sir. 

Mr.  Kennedy.  Well,  you  said  you  could  tell  what  commissions 
you  had  by  examining  your  books  and  records,  and  I  am  trying  to 
get  those  books  and  records. 

Mr.  Horn.  Well,  the  report  that  I  filed  with  the  Internal  Revenue, 
and  I  paid  my  taxes. 

Mr.  Kennedy.  That's  fine,  but  what  about  your  own  books,  personal 
books  and  records  ? 

Mr.  Horn.  As  I  said  before,  I  will  stand  on  my  personal  privilege. 
Mr.  Kennedy.  By  turning  over  your  books  and  records  ? 
Mr.  PIoRN.  On  the  ground  it  might  tend  to  incriminate  me. 
Mr.  Kennedy.  And  your  bank  accounts  at  the  present  time? 

Mr.  Horn.  For  1952, 1  agreed  to  give 

Mr.  Kennedy.  What  about  at  the  present  time? 

Mr.  Horn.  I  am  not  submitting  them. 

Mr.  Kennedy.  You  are  not  submitting  any  of  those  ? 

Mr.  Horn.  No,  sir. 

Mr.  Kennedy.  On  what  ground  ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11811 

Mr.  Horn.  On  the  same  ground,  my  constitutional  ground. 

Mr.  Kennedy.  This  gentleman  runs  this  union,  local  G27  of  the 
Meat  Cutters,  and  obviously  all  of  the  other  answers  that  he  had  given 
as  to  his  source  of  income,  and  what  money  he  received  from  the  union 
must  be  suspect,  if  he  will  not  allow  the  committee  to  examine  his 
book  accounts  and  his  own  personal  books  and  records. 

The  Chairman.  Is  there  anything  further  ? 

Mr.  Kennedy.  That  is  all. 

The  Chairman.  The  committee  will  stand  in  recess  until  2  o'clock. 

(Whereupon,  at  12 :  30  p.  m.,  the  committee  recessed  to  reconvene  at 
2  p.  m.,  the  same  day.) 

AFTERNOON    SESSION 

(At  the  start  of  the  session,  the  following  members  were  present : 
Senators  McClellan  and  Ervin.) 

The  Chairman.  The  committee  will  be  in  order. 

Call  the  next  witness. 

Mr.  Kennedy.  Mr.  Bert  Raddock.  Mr.  Chairman,  he  has  request- 
ed an  opportunity  to  testify  to  try  to  clear  up  some  of  these  matters. 

The  Chairman.  Tlie  witness  testifies  by  request. 

Do  you  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.  Raddock.  I  do. 

TESTIMONY  OF  BERT  EADDOCK,  ACCOMPANIED  BY  COUNSEL, 
SEYMOUR  WALDMAN 

The  Chaieman.  State  your  name,  your  place  of  residence  and  busi- 
ness or  occupation. 

Mr.  Kaddock.  Bert  Raddock,  144 — 1570th  Avenue,  Flushing,  Long 
Island,  N.  Y.,  employee,  Trade  Union  Courier. 

The  Chairman.  You  have  counsel. 

Counsel,  identify  yourself  for  the  record. 

Mr.  Waldman.  Waldman  and  Waldman,  305  Broadway,  New  York 
City,  by  Seymour  Waldman. 

The  Chairman.  Mr.  Raddock,  do  you  have  a  prepared  statement? 

Mr.  Raddock.  I  do  not.     My  statement  will  be  oral,  Mr.  Chairman, 

The  Chairman.  You  may  proceed,  then,  with  the  testimony  you 
wanted  to  give. 

Mr.  Raddock.  Thank  you,  Mr.  Chairman,  and  Mr.  Counselor,  and 
members  of  the  committee. 

I  was  present  this  morning  when  Mr.  Dunne,  of  staff,  testified 
with  regard  to  certain  bond  purchases,  and  the  payment  or  nonpay- 
ment thereof  by  deposits  or  entries  or  no  entries  in  the  cash  books. 
And  in  his  testimony,  Mr.  Dunne  suggested,  by  inference,  that  the 
Trade  Union  Courier  had  paid  for  the  purchase  of  some  of  these 
bonds. 

The  Chairman.  Do  vou  mean  by  payroll  checks  ? 

Mr.  Raddock.  By,  I'believe  there  were,  17  or  18  checks  in  1  deposit, 
a  number  of  them  pavroU  checks  to  various  employees. 

The  Chairman.  I  think  there  were  three  instances  he  testified  to 
where  apparently  payroll  checks  had  been  used. 
Mr.  Raddock.  1  believe  so,  Mr.  Chairman. 


11812  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

It  was  further  suggested  by  the  chairman  of  this  committee  when 
he  asked  the  question  of  could  it  have  been  a  duplicate  payroll  for 
that  week,  the  inference,  and  I  am  sure  that  it  was  not  intended  as 
such,  was  that  there  might  have  been  a  duplicate  payroll  that  week, 
and  that  one  would  go  to  the  employees  of  the  Courier  and  the  other 
would  perhaps  go  toward  the  purchase  of  these  bonds  on  behalf  of 
some  individual  or  organization.  I  would  like  the  chairman  of  this 
committee  to  know  that  to  my  best  knowledge,  in  any  instance  where 
there  would  have  been  a  deposit  by  Courier,  payroll  checks  or  any  other 
kind  of  checks,  into  World  Wide  Press  bond  account,  it  would  have 
been  because  of  the  need  by  Courier  of  moneys  that  particular  week 
for  miscellaneous  expenses,  payroll,  or  any  other  sundry  expenses, 
and  that  this  was  for  us  a  normal  procedure,  not  an  abnormal  one,  as 
was  suggested  here  today ;  that  there  have  been  many  instances  for  a 
number  of  years,  almost  up  to  the  present  day  when  Courier  at  times 
would  be  short  for  certain  expenses  for  that  week,  or  World  Wide 
would,  and  there  would  be  exchanges.  But  I  do  suggest,  Mr.  Chair- 
man, that  the  inference  that  Trade  Union  Courier  would  have  paid 
for  the  bond  purchased  for  any  individual  is  a  rather  unfair  one, 
because  to  my  knowledge  I  don't  know  of  any  individual  who  received 
a  bond  without  paying  therefor. 

The  Chairman.  The  Chair  doesn't  want  to  be  unfair.  The  only 
thing  is  the  circumstances  pointed  in  that  direction  and  I  suggested 
it.  If  you  have  an  explanation  for  it,  and  the  records  will  show  how 
these  funds  were  really  handled,  we  welcome  it. 

But  Avlien  we  get  tliese  circumstances,  we  have  been  in  so  many 
crooked  deals  in  the  course  of  hearings  this  committee  has  held,  when 
we  get  these  crooked  circumstances  or  circumstances  that  indicate 
that  something  is  wrong,  then  we  get  folks  in  here  who  could  help  us, 
tliey  begin  to  take  the  fifth  amendment  or  they  have  lost  their  records 
or  they  have  all  been  destroyed  or  they  have  no  records  for  them,  other 
than  to  say  "Well,  Ave  are  honest,"  but  that  doesn't  answer  it. 

Mr.  Raddock.  I  don't  envy  your  job,  sir,  but  we  have  not  been 
involved  in  crooked  deals. 

Ml'.  Waldiman.  The  Chair  does  know  tliat  the  records  we  are  re- 
ferring to  were  approximately  Y  years  old.  Numerous  records  were 
produced.  There  are  undoubtedly  some  gaps.  But  T  tliink  any  busi- 
ness enterprise  of  this  size,  which  is  not  a  terribly  large  enterprise, 
it  is  not  unusual  to  not  have  all  records  7  years  later.  Nobody  on 
behalf  of  this  enterprise  has  pleaded  the  fifth  amendment  either  in 
private  or  public  hearings. 

The  Chairman.  Gentlemen,  we  will  proceed  to  hear  the  evidence 
that  the  staff  has  procured,  and  we  will  accept  any  explnnntion  under 
oath  that  you  have  to  o-ive.  It  will  be  made  in  the  liglit  of  the  other 
evidence  and  the  attending  circumstances. 

Mr.  Raddock.  Mr,  Chairman,  if  we  can 

The  Chairman.  I  mnke  no  final  decision  ns  to  myself  at  this  mo- 
ment except  to  say  we  have  a  record  here  before  us  of  information 
that  badly  needs  explanation. 

Senator  Ervtn.  Mr.  Chairman? 

The  Chairman.  Senator  Ervin. 

Senator  Erahcn.  Let  me  see  if  I  understand  your  testimony.  At 
certain  times  you  say  that  either  the  World  Wide  Press  or  tlie  Courier 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11813 

was  short  of  funds  and  that  they  issued  checks  to  employees  in  pay- 
ment of  salary  and  then  these  checks  were  endorsed  back  to  the  com- 
pany?    I  don't  know  whether  I  understood  your  testimony. 

Air.  Kaddock.  I  don't  believe  that  I  understand  your  question, 
Senator. 

Senator  Euvix.  You  were  speaking  of  these  checks,  checks  being 
issued  by  the  Trade  Union  Courier,  or  on  some  occasions  by  the  World 
Wide  Press,  to  employees,  and  then  the  checks  being  received  back, 
or  the  amount  of  the  checks  being  received  back  by  the  Courier  or 
the  World  Wide  Press. 

Mr.  Raddock.  That  isn't  quite  what  I  suggested,  Senator. 

Senator  Ervix.  I  wish  you  would  explain. 

Mr.  Raddock.  I  will  try  to,  to  the  best  of  my  ability.  Through  the 
years,  there  have  been  times,  as  in  any  business,  where  there  is  a  short- 
age of  funds  due  to  a  depletion  of  income  from  time  to  time,  when  cer- 
tain expenditures  have  to  be  met,  as  for  instance,  payroll  on  a  weekly 
basis,  and  in  a  particular  instance  quite  often  the  Courier  might  have 
had  to  go  out  and  borrow  money  that  week  in  order  to  meet  payroll, 
or  AVorld  Wide  Press  might  have  had  to  go  out  and  borrow  money 
in  order  to  purchase  a  carload  of  paper. 

In  these  particular  instances  that  I  refer  to,  where  Mr.  Dunne 
testified  that  the  payroll  checks  of  employees  of  Courier  were  de- 
posited in  a  World  Wide  Press  bond  account,  these  employees  had  to 
be  paid,  and  very  obviously  they  would  have  had  to  be  paid  with 
cash  money  in  lieu  of  these  checks. 

This  money  would  have  had  to  come  from  a  source  other  than  Trade 
Union  Courier,  because  if  Courier  deposited  these  employees'  checks 
in  the  World  Wide  Press  account,  then  World  Wide  Press  would 
have,  in  exchange,  given  the  Trade  Union  Courier  the  cash  that  week 
with  which  to  meet  its  payroll. 

This  would  have  been  balanced  out  by  the  checks  of  the  employees' 
payroll.  As  Air.  Dunne  testified  this  morning,  a  number  of  checks, 
totaling  X  amount  of  dollars,  were  deposited  in  the  World  Wide  Press 
bond  account,  this  would  have  been  in  exchange  for  the  cash  which 
would  have  been  advanced  by  World  Wide  to  the  Trade  Union 
Courier 

This  has  happened  a  number  of  times  in  our  organization.  I  am 
sorry  to  say  that.  I  would  like  us  to  be  so  capitalized  that  these  things 
would  not  be  necessary. 

Senator  Ervin.  "Wliat  I  do  not  understand,  then,  is  why  did  you 
have  to  take  the  checks  ?  Why  did  you  pay  them  checks  and  take  the 
money  ? 

For  example,  if  the  Courier  borrowed  the  money  from  the  bond 
account  of  the  World  Wide  Press,  why  didn't  it  make  the  deposit  of 
the  World  Wide  bond  account  check  into  the  bank  and  then  let  these 
checks  go  and  be  cashed  ? 

That  would  seem  to  be  a  simpler  method  of  bookkeeping. 

Mr.  Raddock.  Because  as  a  normal  occurrence  our  bookkeeping  de- 
partment would  make  up  checks  for  payroll  individual  checks  for  a 
number  of  the  employees.  If  there  was  not  sufficient  moneys  in  the 
account  to  cash  these  checks  that  day,  quite  often  a  number  of  the 
employees  would  be  asked  to  hold  their  checks  for  a  few  days  until 
there  would  be  sufficient  moneys  in  the  account  to  be  able  to  meet  these 
checks. 


11814  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Senator  Ervin.  In  other  words,  you  issued  checks  to  your  employees 
in  payment  of  the  payroll  and  then  you  cashed  the  checks,  instead  of 
them  taking  them  and  cashing  them  themselves? 

Mr.  Kaddock.  Well,  they  might  not  have  been  able  to  cash  them  had 
they  gone  to  the  bank.    There  might  not  have  been  sufficient  moneys. 

Senator  Ervin,  How  could  you  cash  them  yourself?  Instead  of 
cashing  checks,  why  didn't  you  take  the  money  to  the  bank  and  deposit 
it  in  the  bank  ? 

Mr.  Raddock.  I  thought  that  I  explained  that.  Senator. 
Senator  Ervin.  Well,  the  more  the  explanation,  the  less  I  under- 
stand it. 

Mr.  Haddock.  Then  let  me  try  to  explain  it  again.  In  the  case  of 
someone  purchasing  a  bond  from  World  Wide  Press  Syndicate,  and 
if  this  would  have  been  a  bond  which  was  paid  for  by  check,  perhaps 
made  out  to  Maxwell  C.  Raddock,  or  a  check  made  out  to  cash,  or 
cash — if  it  was  cash,  it  would  have  been  turned  in,  into  our  office. 
Trade  Union  Courier  and  World  Wide  Press  at  that  time,  you  must 
remember,  were  located  at  the  same  premises.  So  physically  our  set 
up  was  such,  unlike  today,  where  were  are  perhaps  30  miles  apart,  at 
that  time  we  were  located  at  the  same  premises,  and  while  this  was  a 
transaction  between  two  corporations,  it  was  a  transaction  between 
two  corporations  located  at  the  same  premises. 

So  what  appears  rather  unusual  was  a  normal  procedure. 
Senator  Ervin.  As  I  was  thinking,  it  seems  to  be  an  abnormal  pro- 
cedure which  could  have  been  handled  in  a  normal  way.  If  the  bond 
account  got  a  check,  it  would  strike  me  that  instead  of  cashing  that 
check  and  bringing  the  cash  back  there,  that  you  would  deposit  it  in 
the  bank. 

Mr.  Raddock.  Unless  it  was  after  hours.  Senator.  You  see,  it  looks 
like  it  was  not  the  best  kind  of  procedure.  But  this  is  hindsight  on  my 
part.   I  can't  recall  that. 

Senator  Ervin.  Even  after  hours,  though,  you  could  find  it  difficult 
to  get  a  check  cashed  yourself. 

Mr.  Raddock.  I  agree  with  yon.  Senator.  Hereafter  there  cannot 
be  such  occurrences,  because  now  it  is  high-lighted  by  something  like 
this,  for  which  I  am  thankful. 

Senator  Ervin.  It  seems  to  me  it  w-ould  be  much  simpler,  and  I  think 
it  would  be  a  more  normal  thing,  if  you  have  two  separate  corpora- 
tions, presumably  wdth  two  separate  bank  accounts,  and  if  one  was 
going  to  borrow"  from  the  other,  it  seems  to  me  what  you  would  do 
would  be  to  have  an  exchange  of  checks. 

That  is,  if  World  Wide  wants  to  loan  money  to  the  Courier,  they 
would  draw  a  check  on  their  bank  account  and  that  check  would  be 
deposited. 

It  seems  to  me  that  you  used,  to  me,  an  abnormal  way  of  doing  busi- 
ness to  complicate  simplicity. 

Mr.  Waldman.  Senator,  there  is  no  question  that  would  have  been 
better  practice,  and  that  this  was  not  in  accordance  with  the  best  prac- 
tice. But  I  would  point  out  that  it  may  well  have  been  on  occasions 
that  a  day  or  so  would  have  been  saved  by  doing  this,  which  would  have 
been  taken  up  by  going  through  the  two  separate  checks,  and  on  oc- 
casion money  was  needed  that  ]iarticular  day. 

Senator  Ervin.  There  is  another  thing  that  troubles  us  on  the  com- 
mittee, and  that  is  this.  Whenever  we  start  to  asking  people  how 
they  got  the  bonds,  they  all  plead  the  fifth  amendment,  so  far. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11815 

Mr.  Eaddock.  I  wisli  they  "wouldn't,  Senator.  I  wish  the3^  wouldn't. 
They  have  nothin^^  to  hide  insofar  as  any  transaction  with  Courier 
or  World  Wide.  This  is  one  thin*;  we  do  intend  to  establish  before 
this  committee.  I  know  that  we  will  be  given  that  opportunity,  Sen- 
ator, so  I  have  heard. 

Senator  Ervin.  Every  one  of  them  who  has  been  here  so  far,  as  near 
as  I  can  recall,  has  either  pleaded  the  fifth  amendment,  or  he  has 
shown  himself  to  be  the  possessor  of  one  of  the  most  complete  for- 
getteries  of  any  human  being  who  has  ever  been  before  the  committee. 

Mr.  Raddock.  I  would  say  that  the  pleading  of  the  fifth  amendment 
is  their  personal  privilege.  However,  I  would  plead  with  them  that 
insofar  as  the  Courier  and  World  Wide  are  concerned,  that  they  please 
not  avail  themselves  of  the  fifth  amendment. 

Senator  Ervin.  The  committee  echoes  that  supplication  and  prayer. 

Mr.  Raddock.  I  am  glad  to  know  we  are  working  together.  Senator. 

Mr.  Kennedy.  I  am  not  going  to  go  through  all  of  them,  but  at 
least  one  of  them,  for  instance,  Morris  Horn,  who  appeared  this  morn- 
ing, he  got  $3,000  in  bonds  and,  according  to  your  records,  they  don't 
show  that  any  money  was  paid  for  those  bonds.  The  same  thing  is 
true  for  Louis  Block,  his  son.  What  is  the  explanation  of  that?  You 
have  explained  some  exchanges  and  checks  and  other  transactions,  but 
what  about  Morris  Horn  ? 

Mr.  Raddock.  While  I  do  not  have  the  records  before  me,  nor 
did  I  prepare  the  records,  I  do  know,  and  I  am  under  oath,  and  I  am 
testifying,  insofar  as  Morris  Horn  is  concerned,  that  happens  to  be 
one  situation  with  which  I  was  made  familiar  at  the  time  that  Morris 
Horn  was  sold  $3,000  worth  of  bonds  by  my  brother  Mac. 

Mr.  Kennedy.  By  check  or  by  cash  ? 

Mr,  Raddock.  That  I  do  not  know,  and  I  don't  intend  to  testify  to 
something  to  which  I  don't  have  complete  knowledge.  But  I  do 
know  this,  that  when  my  brother  Mac  told  me  that  he  had  sold,  at  long 
last,  Morris  Horn,  $3,000  worth  of  bonds,  I  told  him  that  I  didn't 
think  it  was  such  a  tremendous  thing  that  he  had  done. 

Mr.  Kennedy.  Would  you  mind  answering  the  question,  Mr.  Rad- 
dock? You  are  not  answering  the  question.  The  records  show 
$3,000  worth  of  bonds  to  Morris  Horn.  The  records  show  that  they 
weren't  paid  for. 

Mr.  Raddock.  I  can't  accept  that,  Mr.  Kennedy,  that  the  records 
show  that  they  are  not  paid  for. 

The  Chairman.  It  doesn't  show  that  they  were  paid  for. 

Mr.  Raddock.  It  does  not  show  that  they  were  paid  for  ? 

The  Chairman.  It  does  not  show  that  they  were  paid  for. 

Mr.  Raddock.  I  don't  know  whether  those  records  are  complete. 
They  would  have  to  show  in  one  form  or  another  that  they  were  paid 
for. 

The  Chairman.  They  should. 

Mr.  Raddock.  They  probably  do,  ]\Ir.  Chairman. 

Mr.  Waldman.  Mr.  Chairman,  I  take  it  we  will  be  given  an  op- 
portunity to  examine  those  records  before  your  hearings  are  complete 
on  that? 

The  Chairman.  Yes,  sir,  you  may  examine  them.  All  right,  is  there 
anything  further  ? 


11816  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Senator  Ervin.  Can  you  give  me  any  reason  why  Louis  Block 
would  Avant  to  have  a  bond  that  was  purchased  for  his  wife  put  into 
her  maiden  name  rather  than  her  name  as  his  wife  ? 

Mr.  Haddock.  I  believe,  Mr.  Senator,  you  would  have  to  ask  either 
Louis  Block  or  his  wife  for  the  answer  to  that,  because  World  Wide 
Press  Syndicate,  to  my  knowledge,  never  suggested  in  whose  names 
the  bond  purchases  should  be  made  out.  It  was  only  the  bond  pur- 
chaser who  decided  in  whose  name  the  bond  purchase  should  be  made 
out.   We  were  not  the  masters  of  that  situation. 

The  Chairman.  All  right,  is  there  anything  further  ? 

Mr.  Kaddock.  Thank  you,  Mr.  Chairman,  for  the  privilege. 

Mr.  Kennedy.  Mr.  Chairman,  several  days  ago  you  called  as  a 
witness  Ernest  Mark  High,  who  did  not  appear  in  answer  to  a  sub- 
pena.  We  have  since  sent  him  a  telegram  and  told  him  that  he  could 
expunge  the  record  if  he  appeared  today.  I  would  like  to  call  him 
again,  if  we  may.    Can  we  call  him  again  ? 

The  Chairman.  What  is  the  name  ? 

Mr.  Kennedy.  Ernest  Mark  High. 

The  Chairman.  On  May  29,  as  chairman  of  the  committee,  I  sent 
a  wire  to  Mr.  Ernest  Mark  High,  AFL  Spotlight,  Empire  State  Build- 
ing, New  York,  N,  Y.,  in  which  he  was  notified — and  this  wire  may  be 
printed  in  the  record  at  this  j^oint — in  which  he  was  notified  that  he 
had  defaulted  in  appearance  before  the  committee  pursuant  to  a  sub- 
pena  served  on  him  on  May  13,  1958,  and  that  that  default  had  been 
noted  on  May  27.  Such  default  would  subject  him  to  a  penalty  of 
contempt  of  the  Senate.     Then  he  was  advised  : 

You  will  be  given  a  final  opportunity  to  purge  yourself  of  contempt  by  appearing 
and  bringing  said  records  before  the  committee  at  room  101,  Senate  Ofiice 
Building,  Washington,  D.  C,  on  Wednesday,  June  4,  1958,  by  2  p.  m.  Upon 
failure  to  appear  and  produce  the  records,  the  committee  will  proceed  with 
contempt  action. 

I  received  a  reply  by  Western  Union  which  may  be  incorporated  in 
the  record  at  this  point,  dated  June  2.  This  states  that  the  telegram 
sent,  to  which  I  have  referred,  was  delivered  to  Mr.  High. 

(The  documents  referred  to  follow :) 

Senate  Select  Committee  To  Investigate  Improper 

Activities  in  Labor  or  Management  Field, 

May  29, 1958. 
Mr.  Ernest  Mark  High, 

AFL  Spotlight,  Empire  State  Buildinff,  Netc  York,  N.  Y.: 
You  are  hereby  notified  that  your  default  in  appearance  before  the  committee 
pursuant  to  a  subpena  served  upon  you  on  May  13,  1958,  was  noted  on  May  27, 
1958.     Your  default  subjects  you  to  the  penalty  of  contempt  of  the  Senate. 

It  is  further  noted  that  you  failed  to  produce  any  records  called  for  by  the 
subpena. 

You  will  be  given  a  final  opportunity  to  purge  yourself  of  contempt  by  appear- 
ing and  bringing  said  records  before  the  committee  at  room  101.  Senate  OflBce 
Building,  Washington,  D.  C,  on  Wednesday,  June  4,  1958,  by  2  p.  m.  Upon 
failure  to  appear  and  produce  the  records,  the  committee  will  proceed  with  con- 
tempt proceedings. 

John  L.  McClellan, 
Chairman,  Senate  Select  Committee  To  Investigate  Improper  Activities 
in  Labor  or  Management  Field. 
Official  business. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11817 

New  York,  N.  Y. 
John  L.  McClellan, 

Chairman,  Senate  Select  Committee  To  Investigate  Improper  Activities 
in  Labor  or  Management  Field,  Washington,  D.  C: 
Your  telegram  of  May  29  was  not  received  by  my  office  until  June  2,  1958,  be- 
cause of  the  intervening  Memorial  Day  weekend.  I  did  not  reply  immediately 
because  I  had  expected  to  receive  a  medical  report  respecting  my  physical 
ability  to  appear  before  your  committee  and  as  I  have  heretofore  informed  you 
to  make  certain  that  such  appearance  would  not  jeopardize  my  life  I  have 
been  told  that  I  may  expect  such  a  report  tomorrow  and  upon  its  receipt  will 
advise. 

Ernest  M.  High,  The  Spotlight. 

[Western  Union  Teleg  Co.] 

New  York,  N.  Y.,  June  2, 1958. 
John  L.  Mc  Clellan, 

Chairman,  Select  Committee: 
Asking  Rept  Dely,  Washington,  D.  C. 

Ernest  Mark  High, 
AFL  Spotlight,  Empire  State  Building. 

Mr.  Kennedy,  Mr.  Chairman,  we  have  not  had  any  response  from 
Mr.  High,  but  we  do  have  an  affidavit  from  an  attorney  in  New  York. 
We  might  ask  if  Mr.  High  is  present  here  now. 

The  Chairman.  I  will.  Mrs.  Watt,  call  room  101  and  have  him 
called  there  by  someone.  Let  them  identify  himself  to  see  if  he  is 
present. 

Mr.  Kennedy.  The  affidavit  shows  that  he  has  been  active  in  New 
York  City  over  the  period  of  the  past  week  over  the  days  that  he  was 
called  on  to  appear  before  the  committee,  despite  the  fact  that  he 
claimed  he  was  home.  Also,  we  have  information  that  he  was  at 
his  office  during  this  pertinent  period  of  time. 

The  Chairman.  Mr.  High  ?     Ernest  Mark  High  ? 

He  does  not  reply.  All  right,  we  will  finish  out  in  this  letter  a 
little  later. 

In  the  meantime,  this  affidavit  from  jSIr.  Herbert  S.  Thatcher,  an 
attorney  at  law,  whose  offices  are  at  1009  Tower  Building,  Washington, 
D.  C,  the  affidavit  being  dated  the  2d  day  of  June  1958,  may  be  in- 
serted into  the  record  at  this  point. 

Affidavit 

United  States  of  America, 

District  of  Columbia,  ss: 

Having  been  requested  to  do  so  by  a  representative  of  the  McClellan  committee, 
employed  on  the  staff  of  Robert  Kennedy,  counsel  for  that  committee,  I  make 
the  following  statement : 

My  name  is  Herbert  S.  Thatcher,  and  I  am  an  attorney  at  law,  with  offices  at 
1009  Tower  Building.  Washington,  D.  C.  This  is  to  certify  that  I  was  present 
in  the  city  court  of  the  city  of  New  York,  New  York  County,  on  Thursday  morn- 
ing. May  22,  1958,  at  10  a.m.  in  connection  with  a  lawsuit  which  had  been  set 
for  trial  at  that  time  before  a  judge  whose  name,  I  believe,  is  Shapiro. 

The  name  of  the  lawsuit  is  '^Ernest  M.  High  v.  Arnold  S.  Zander,  as  interna- 
tional president  of  the  American  Federation  of  State,  County  and  Municipal 
Employees,  AFL-CIO,"  and  involved  a  claim  by  Mr.  High  for  the  cost  of  printing 
an  alleged  number  of  excess  copies  of  the  newspaper  Spotlight.  I  am  general 
counsel  for  the  federation  and  was  a  necessary  witness  in  the  case.  Mr.  Zander 
and  the  union  were  represented  by  Attorney  Martin  E.  Raphael,  38  Park  Row, 
New  York,  N.  Y.  Present  in  court  were  Mr.  High  and  his  attorney,  Mr.  Alexander 
Eltman,  Empire  State  Building,  New  York,  N.  Y^     Mr.  High  appeared  to  be  in 


11818  IMPROPER    ACTIVITIES    IN    THE    L.\BOR    FIELD 

good  health  and  spirits.  At  a  pretrial  conference  with  the  judge,  the  judge 
indicated  that  the  case  should  be  settled,  and  accordingly  we  adjourned  the 
matter  until  Wednesday,  May  28, 1958. 

Following  the  conference  at  the  bench,  we  discussed  possible  settlement  back 
and  forth  between  Mr.  Eltman,  Mr.  High,  and  a  Mr.  Jerry  Wurf  of  22  Elk 
Street,  New  York  City,  who  is  federation  representative.  We  broke  off  these 
discussions  around  noon. 

On  Wednesday  morning.  May  28,  1958,  I  again  appeared  in  that  same  court, 
before  the  same  judge,  along  with  Mr.  Raphael  and  Mr.  Wurf.  Present  in  court 
at  10  a.  m.  and  ready  for  trial  were  Mr.  High  and  Mr.  Eltman.  The  judge  again 
indicated  that  the  case  should  be  settled,  and  after  a  discussion  among  the 
parties  above-mentioned,  it  was  decided  to  again  adjourn  the  cas-^  until  Tne-^day, 
June  3,  1958,  to  permit  the  parties  time  to  work  out  the  details  of  a  settlement. 

All  of  the  named  above  parties  (excluding,  of  course,  the  judge)  then  went 
over  to  Mr.  Wurf 's  offices  at  22  Elk  Street  where  we  spent  the  rest  of  the  day  until 
at  least  4  o'clock  in  the  afternoon  (when  I  left)  in  working  out  the  details  of  a 
settlement.  We  worked  steadily  through  this  entire  period,  not  even  adjourning 
for  lunch,  although  lunch  was  sent  in  to  us  in  the  office.  Mr.  High  again  ap- 
peared to  be  in  good  health  and  in  good  spirits  during  the  period  that  I  was 
with  him.    Mr.  High  took  an  active  part  in  the  negotiations. 

Hekbert  S.  Thatches. 

-Sworn  and  subscribed  to  before  me  this  2d  day  of  June  1958. 

Thomas  T.  Mott,  Jr., 

Notary  Public,  D.  C. 

Mr.  IvENNEDY.  Mr.  Chairman,  I  would  like  to  call  Mr.  Dunne  to 
finish  up  this  testimony. 

The  Chairman.  Mr.  Dunne,  take  the  stand. 

TESTIMONY  OE  ROBERT  DUNNE— Resumed 

The  Chairman.  These  witnesses  have  been  previously  sworn.  You 
may  proceed,  Mr.  Counsel. 

Mr.  Kennedy.  Mr.  Dunne,  we  talked  about  the  World  Wide  Press, 
which  produces  the  Trade  Union  Courier,  or  wliere  the  Trade  Union 
Courier  is  printed.  So  we  will  have  an  idea  of  the  size  of  the  World 
Wide  press,  what  w^ere  the  ^ross  sales  in  1957  ? 

Mr.  Dunne.  In  1957  World  Wide  Press  wrote  gross  sales  of 
$710,000. 

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

(At  this  point,  the  following  member  is  present:  Senator  Ervin.) 

Mr.  Kennedy.  What  percentage  did  the  gross  sales  of  the  Trade 
Union  Courier  amount  to  ? 

Mr.  Dunne.  The  Trade  Union  Courier  provided  about  $58,000  an- 
nual income  to  World  Wide  Press,  or  about  8  percent. 

Mr.  Kennedy.  Who  were  the  biggest  customers  of  AYorld  Wide 
Press? 

Mr.  Dunne.  The  principal  customers  of  World  Wide  Press  are  two, 
Food  Fair  Stores,  Inc.,  a  Philadelphia  corporation,  and  a  group  of 
accounts  written  through  a  broker  called  Steenson.  These  are  A.  &  P. 
stores.  Grand  Union  stores,  and  a  few  lesser  food  chains.  They  print 
the  throwaways  in  the  stores,  for  the  various  stores,  giving  the  prices 
for  the  items  on  a  day  to  day  basis. 

Mr.  Kennedy.  How  much  do  they  amount  to  ? 

Mr.  Dunne.  In  1957,  out  of  that  $710,000  gross  sales  of  World  Wide 
Press,  $140,000  or  20  percent  was  represented  by  the  Food  Fair  stores 
account,  and  the  A.  &  P.,  Grand  Union  and  lesser  things  written 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11819 

throiio:li  a  broker  amounted  to  $148,000,  or  another  21  percent,  so  that 
in  total,  41  percent  of  the  business  was  in  providing  this  material  for 
Food  Fair  stores,  A.  &  P.,  and  other  food  chains. 

Mr.  Kennedy.  Of  course,  these  food  chains  have  organizational 
contracts  with  the  meat  cutters,  do  they  not? 

^Ir.  Dunne.  Yes,  sir,  which  are  the  holders  of  the  bonds  and 
mortgages. 

Mr.  Kennedy.  And  also  individually  owning  some  of  the  bonds  I 

Mr.  Dunne.  And  members  of  their  family,  yes,  sir. 

Mr,  Kennedy.  Did  the  plant  show  a  profit  during  the  period  of 
time  1950  to  1957? 

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

Mr.  Dunne.  The  plant  only  began  operating  fully  in  the  fiscal  year 
ending  February  28,  1952.  That  year  they  showed  a  $17,000  loss. 
In  1953  they  showed  a  $90,000  loss.  In  1954,  the  plant  showed  a 
$40,000  loss."  In  1955,  a  $74,000  loss.  In  1956,  their  first  year  of 
profits,  they  showed  a  profit  of  $107,000. 

The  Chairman.  How  much  ? 

Mr.  Dunne.  $107,000.  In  the  fiscal  year  ending  February  1957, 
they  showed  a  profit  of  $117,000. 

Mr.  Kennedy.  Was  this  during  a  period  of  time  when  they  had  a 
particularly  large  financial  transaction  with  the  Brotherhood  of  Car- 
penters that  they  made  a  profit  ? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  "We  will  go  into  that  at  a  later  time. 

The  Chairman.  For  how  many  years  since  it  was  organized  has  it 
shown  a  loss? 

Mr.  Dunne.  Well,  tlie  first  couple  of  years  they  were  just  organ- 
izing, Senator.  After  beginning  operations,  and  having  sales  and  in- 
come, they  showed  a  loss  for  the  first  4  years  and  a  profit  for  the 
next  2. 

The  Chairman.  What  was  the  loss  for  the  first  4  years,  total? 

Mr.  Dunne.  $221,00,  Senator. 

The  Chairman.  Wliat  was  the  profit  for  the  next  two  ? 

Mr.  Dunne.  $224,000,  Senator. 

The  Chairman.  And  the  $224,000  profit  all  accrued  after  the  special 
arrangements  with  the  Carpenters  for  the  writing  of  the  book? 

Mr.  Dunne.  Yes,  sir.  I  might  point  out  that  these  figure  I  give 
you  are  from  the  income  tax  returns  which  were  made  available  to  us 
by  World  Wide  Press,  and  which  are  joint  returns  for  another  enter- 
prise, Raddock  &  Bros.,  Ltd.,  to  which  most  of  that  other  money  was 
paid.  That  was  the  only  function  of  that  organization  during  those 
years. 

Mr.  Kennedy.  Mr.  Dunne,  we  have  gone,  in  the  past,  into  some  of 
these  so-called  labor  magazines  or  newspapers,  into  their  efforts  to 
obtain  ads  from  employers.  Was  the  same  procedure  used  by  World 
Wide  Press  and  Max  Eaddock  ? 

Mr.  Dunne.  Generally  the  internal  operation  of  the  office  was  quite 
similar.  There  was  a  group  of  ad  solicitors,  each  of  whom  had  a  desk 
with  telephones  on  them,  and  placed  advertising  either  locally  or  on  a 
long  distance  basis,  and  obtained  his  remuneration  on  the  number  of 
ads  he  wrote,  percentage  of  the  ads  he  wrote. 

Mr.  Kennedy.  Did  the  advertising  that  they  received  amount  to 
the  major  source  of  the  money  that  was  received  by  the  company? 


11820  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  Rather  than  the  circulation,  is  that  right? 
Hr.  Dunne.  That  is  right. 

Mr.  Kennedy.  Rather  than  the  money  that  they  obtained  from  sell- 
ing the  newspaper? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  Now  can  you  tell  us  from  the  years  1950  through 
1957,  what  the  Courier  received,  as  far  as  subscriptions  were  con- 
cerned ? 

Mr.  Dunne.  During  that  8-year  period,  they  received,  as  subscrip- 
tion income  for  selling  their  magazine  in  bulk  to  various  labor  organ- 
izations, $514,955.36. 

Mr.  Kennedy.  And  TO  percent,  as  you  showed  this  morning,  TO 
percent  of  that  goes  to  labor  organizations,  those  subscriptions  go  to 
labor  organizations,  where  the  union  officials  have  a  personal  financial 
interest  by  means  of  purchasing  bonds  ? 

Mr.  Dunne.  That  is  right,  and  the  inverse  of  that,  of  course,  is  that 
TO  percent  of  that  $514,000  was  paid  to  the  Courier  by  those  unions. 
Mr.  Kennedy.  By  those  unions. 

The  Chairman.  In  other  words,  it  was  paid  out  of  union  funds,  out 
of  union  dues  funds  ? 

Mr.  Dunne.  That  is  right.  Excuse  me,  that  TO  percent  just  covered 
three  locals.  Those  in  the  Block  group,  the  Johnson  group,  and  local 
32-B  group. 

The  Chairman.  It  just  covers  those  locals  where  the  officers  had 
invested  in  the  company  in  bonds. 

Mr.  Dunne.  That  is  riglit  Actually,  all  the  subscription  income 
came  from  various  locals. 

The  Chairman.  And  tlie  other  30  percent  came  from  other  locals  ? 
Mr.  Dunne.  That  is  right. 

The  Chairman.  How  many  individual  subscribers  did  it  have,  ]ust 
where  one  person  subscribed  to  one  paper  ? 
Mr.  Dunne.  We  could  not  find  any. 

Actually,  gratuitous  copies  of  the  paper  are  sent  to  Congressmen,  the 
President,  the  Secretary  of  State.  t  i   <. 

The  Chairman.  I  don't  think  they  paid  for  it,  did  they  ?  You  didn't 
find  a  record  where  they  paid  for  it  ? 

Mr.  Dunne.  No,  sir.  . 

Mr  Kennedy.  $514,055.36  comes  from  subscriptions.  Uow  much, 
during  that  period  of  1950  to  195T,  comes  from  advertising? 

Mr."  Dunne.  During  the  same  8-year-period.  up^through  February 
28,  195T,  advertising  income  amounted  to  $3,580,8T6.10. 

:Mr.  Kennedy.  So  by  far  the  greatest  bulk  of  the  money  that  was 
received  by  the  Trade  Union  Courier  comes  from  this  advertising;  is 
that  right? 

Mr.  Di'NNE.  Yes ;  on  about  a  T-to-1  ratio. 

Mr.  Kennedy.  And  this  advertising,  the  soliciting,  is  done  with 
emplovers ;  is  that  right  ? 

Mr  "Dunne.  By  sol  iritinc:  funds  from  management :  yes. 
Mr.  Kennedy."  And  did  we  find  a  number  of  those  management 
firms  were  nonunion  companies? 

Mr.  Dunne.  Yes,  sir.  . 

Mr.  Kennedy.  Mr.  Raddock  and  his  two  brothers  receive  a  salary 
and  ex]>enses ;  is  that  right? 


IMPROPKR    ACTIVITIKS    IN    THE    LABOR    FIELD  11821 

Mr.  DuNXE,  That  is  right. 

Mr.  IvENNEDY.  And  for  the  brothers,  it  amounts  to  approximately 
$50,000  each  year  for  the  3  brothers  ? 

Mr.  Dunne.  That  is  right.    It  is  a  yearly  average  of  about  $50,000. 

The  Chairman.  What  is  the  total  amount  paid  out  to  the  brothers  in 
salaries  during  the  7-year  period  'i 

Mr.  Dunne.  It  is  an  8-year  period,  Senator.  I  might  point  out 
there  are  three  Raddook  brothers  connected  with  the  enterprise, 
Max  Raddock,  Bert  Haddock,  and  Charles  Haddock. 

They  are  the  principal  officers.  Max  Raddock  is  the  sole  stock- 
holder. During  that  8-year  period,  total  salaries  paid  to  the  three 
brothers  amounted  to  $411,590. 

Mr.  Kennedy.  On  top  of  that,  they  received  expenses ;  is  that  right  ? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  Do  you  know  what  the  expenses  amounted  to? 
Do  you  have  that  total  ? 

Mr.  Dunne.  Yes,  sir.  The  total  expenses  definitely  attributable 
to  the  three  Raddock  brothers  amounted  to  an  additional  $159,547.90. 

The  Chairman.  I  see. 

Mr.  Dunne.  And  then  there  were  certain  hotel  bills,  railroad  tickets, 
airline  tickets,  which  are  not  definitely  identifiable  with  the  Raddock 
brothers,  but  most  probably  incurred  by  them. 

Mr.  Kennedy.  How  much  is  that  I 

Mr.  Dunne.  $11:2,821.07.  A  substantial  part  of  that,  I  do  not  have 
the  exact  figure,  was  paid  to  the  Black  Angus,  for  bills  run  up  there. 

Mr.  Kennedy.  That  is  the 

Mr.  Dunne.  The  Black  Angus  Restaurant. 

Mr.  Kennedy.  Which  is  run  by  Block  ? 

Mr.  Dunne.  Yes,  sir.  For  the  grand  total  of  moneys  withdrawn 
by  the  three  Raddock  brothers  in  salaries,  traveling  expenses  and 
hotel  and  restaurant  bills  having  been  paid  for  them  during  this  8-vear 
period,  it  amounted  to  $683,958.87. 

Mr.  Kennedy.  Mr.  Dunne,  this  is  a  completely  personal  operation, 
is  it  not? 

Mr.  Dunne.  Yes,  sir,  it  is. 

Mr.  Kennedy.  None  of  this  money  goes  to  any  charitable  organiza- 
tion ;  none  of  it  goes  to  any  labor  union  as  such  ? 

Mr.  Dunne.  That  is  correct. 

Mr.  Kennedy.  And  none  of  it  goes  to  any  fund  to  fight  communism 
or  anything  like  that  ? 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  This  is  a  completely  personally  owned  and  operated 
business :  is  that  right  ? 

Mr.  Dunne.  And  operated  for  profit ;  yes,  sir. 

Mr.  Kennedy.  And  from  which  the  Raddock  brothers  received  a 
salary  and  expenses  ? 

Mr.  Dunne.  Yes,  sir. 

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

The  Chairman.  Are  there  any  other  questions  ? 

If  not,  call  the  next  witness. 

A[r.  Kennedy.  Mr.  Wentworth. 

The  Chairman.  Be  sworn,  please. 


11822  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

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

Mr.  Wentwokth.  I  do. 

TESTIMONY  OF  EGBERT  J.  WENTWOETH 

The  Chairman.  Mr.  Wentworth,  state  your  name,  your  place  of 
residence,  and  your  business  or  occupation. 

Mr.  Wentworth.  My  name  is  Robert  J.  Wentworth.  I  live  at 
7513  New  Market  Drive,  Bethesda,  Md.  I  am  the  assistant  director 
of  the  Department  of  Public  Relations  of  the  AFL-CIO. 

The  Chairman.  You  waive  counsel,  do  you,  Mr.  Wentworth? 

Mr.  Wentworth.  Yes. 

The  Chairman.  You  have  a  prepared  statement  ? 

Mr.  Wentworth.  Yes,  I  do. 

The  Chairman.  Was  the  statement  submitted  within  the  rules  ? 

Mr.  Kennedy.  Yes. 

The  Chairman.  Thank  you. 

You  may  proceed  to  read  your  statement. 

Mr.  Kennedy.  Mr.  Chairman,  prior  to  Mr.  Wentworth  beginning 
to  read  his  statement,  I  made  a  request  of  the  AFL-CIO  to  determine 
what  their  attitude  had  been  toward  the  Trade  Union  Courier,  and 
what  their  experience  had  been  with  this  magazine.  We  have  had 
some  discussions  with  officials  or  our  investigators  have,  with  officials 
of  the  AFI^CIO.  Mr.  Wentworth  is  appearing  here  today  to  answer 
any  questions,  and  to  give  the  attitude  and  position  of  the  AFL-CIO 
toward  the  Trade  Union  Courier  and  Mr.  Raddock. 

The  Chairman.  As  I  understand  the  representatives  of  this  paper 
at  times,  through  some  means,  gave  out  the  implication  that  this 
paper  was  backed  or  officially  connected,  in  some  way,  with  the 
AFI^CIO ;  is  that  correct  ? 

Mr.  Kennedy.  That  is  correct. 

The  Chairman.  Therefore,  you  are  appearing  now  on  behalf  of 
the  AFI^CIO  to  give  your  statement  in  clarification  of  whatever 
that  relationship  may  have  been,  if  any  ? 

Mr.  Wentw^orth.  That  is  right,  Senator. 

The  Chairman.  You  may  proceed. 

Mr.  Wentworth.  I  have  been  authorized  by  George  Meany,  presi- 
dent of  the  American  Federation  of  Labor  and  Congress  of  Industrial 
Organizations,  to  make  this  statement  on  behalf  of  this  organization. 

It  is  my  understanding  that  this  committee  is  presently  inquuTUg 
into  and  examining  the  practices  of  certain  publishing  concerns  who 
engage  in  the  printing  and  distribution  of  papers  and  periodicals  in 
the  labor  field.  .  i   •     i.i 

I  understand  that  this  committee  is  primarily  interested  in  the 
methods  and  procedures  used  by  the  promoters  of  these  publications 
in  obtaining  revenue  through  the  solicitation  of  advertisements  to  be 
used  in  these  publications. 

The  committee  has  indicated  that  it  has  information  revealing  un- 
fair, deceptive,  and  fraudulent  practices  on  the  part  of  these  concerns 
in  the  solicitation  of  advertisements  and  in  the  representations  made 
by  agents  of  these  ]-)iiblishing  companies  to  the  general  public  in  seek- 
ing contracts  for  advertisements. 


niPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11823 

This  committee,  I  am  informed,  is  now  particularly  engaged  in  an 
investigation  of  the  activities  of  the  Trade  Union  Courier  Publishing 
Co,  of  New  York. 

It  is  engaged  also  in  an  examination  of  the  activities  and  background 
of  that  company's  principal  officer,  Mr.  Maxwell  Kaddock.  This  com- 
mittee, I  am  told,  is  examining  j^ractices  of  this  concern  which,  in  the 
process  of  publishing  the  Trade  Union  Courier,  have  been  held  by 
the  United  States  Federal  Trade  Commission,  and  denounced  by 
the  AFIj-CIO,  as  fraudulent,  unfair,  and  deceptive  as  well  as  prejudi- 
cal  and  injurious  to  the  public  welfare. 

The  AFL  and  now  the  xiFL-CIO  has  been  vitally  concerned  with 
respect  to  the  acts  of  the  Trade  Union  Courier  and  its  representatives. 

Of  primary  concern  to  the  federation  is  the  continued  unauthorized 
practice  of  this  company's  representatives  of  using  the  name  of  the 
AFL  and  the  AFI>r-CIO  in  its  solicitations  from  prospective  clients. 
Of  equal  concern  is  the  fact  that  in  many  situations  that  have  been 
brought  to  the  attention  of  the  federation  the  ad  solicitors  have  indi- 
cated to  the  victim  being  solicited  that  the  best  way  to  maintain  labor 
cooperation  is  through  the  purchase  of  advertising  space  in  the  Courier. 

In  almost  every  instance  that  has  been  brought  to  the  attention  of 
the  federation  during  the  past  years  there  has  been  some  indication 
of  fraudulent  practices  in  connection  with  the  solicitation. 

xVcts  and  practices  of  this  nature,  which  are  always  harmful  to  the 
trade  union  movement,  have  prompted  the  AFL  through  its  executive 
council  and  its  convention,  to  place  on  record  the  alarm  with  which 
it  views  the  threatening  and  fraudulent  practices  of  these  "boiler- 
room''  publishers. 

The  federation  has,  through  the  years,  continued  to  make  known  its 
policy  to  its  affiliated  organizations  strongly  recommending  the  great- 
est caution  and  extreme  care  in  dealing  with  the  use  of  advertising  in 
union  publications  to  help  prevent  activities  such  as  those  being  dis- 
cussed here. 

In  1945,  for  instance,  at  the  October  meeting  of  the  executive  council 
the  activities  of  the  Trade  Union  Courier  were  discussed  at  some 
length.  The  president  of  the  AFL  reviewed  for  the  council  the  shady 
practices  of  the  Courier's  agents  in  soliciting  ads. 

It  was  indicated  at  that  time  that  the  solicitations  of  the  Courier 
were  being  made  by  long-distance  telephone  calls  originating  in  the 
New  York  area. 

This  practice  of  using  the  telephone  was,  of  course,  a  substitute  for 
a  procedure  which  would  properly  identify  the  solicitors  had  printed 
letterheads  been  used  in  their  solicitations. 

Generally  the  solicitors  would  hit  one  particular  geographical  area 
at  a  time,  attempting  to  drain  all  the  money  possible  before  going  on 
to  another.  The  council  was  advised  that  the  solicitors  used  all  types 
of  lures  in  their  efforts  to  attract  advertisers  such  as  tie-ins  with  very 
"worthy  and  patriotic"  causes  such  as  Victory  bond  drives,  aid  to 
veterans  drives,  welcome  home  to  veterans  drives  and  so  on. 

In  connection  with  one  such  drive  that  was  largely  centered  in  the 
Atlanta,  Ga.,  area,  the  following  statement  was  made  and  distributed 
by  the  AFL  regional  director  in  that  area  for  the  benefit  of  business 
concerns  likely  to  be  jeopardized : 

2124,3— 58— pt.  31 4 


11824  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

September  1945. 

The  American  Federation  of  Labor  southern  headquarters  at  Atlanta,  Ga., 
during  the  past  few  days  has  been  flooded  with  inquiries  from  manufacturers 
and  commercial  business  throughout  the  South  relative  to  solicitation  for  ad- 
vertising funds  by  high  pressure  long-distance  telephone  salesmen  alleging  to 
represent  the  American  Federation  of  Labor  in  publishing  a  special  edition  of 
the  Trade  Union  Courier  an  alleged  American  Federation  of  Labor  newspaper. 
The  Trade  Union  Courier  is  a  labor  sheet  with  headquarters  in  New  York  City. 
It  is  published  by  Maxwell  C.  Raddock.  They  have  a  crew  of  high-pressure  male 
telephone  operators  calling  manufacturers  long  distance  stating  that  the  Ameri- 
can Federation  of  Labor  is  getting  out  a  special  edition  of  the  Trade  Union 
Courier  in  cooperation  with  the  Victory  Loan  drive  and  urging  employers  to 
cooperate  with  the  coming  Victory  loan  drive  and  the  American  Federation  of 
Labor  membership. 

They  allege  the  publication  goes  to  all  7i/^  million  members  of  the  American 
Federation  of  Labor  and  they  are  requesting  the  employers  to  take  an  ad  from 
$1,600  down  to  $100. 

They  are  using  a  second  racket,  they  tell  the  employers  they  are  getting  out 
a  special  edition  to  all  veterans,  welcoming  the  victorious  veterans  back  home  in 
behalf  of  the  American  Federation  of  Labor's  membership  and  are  requesting 
permission  to  run  ads  in  this  edition  from  $1,600,  down  to  $100. 

I  wish  to  oiiicially  inform  all  business  institutions  that  the  American  Federa- 
tion of  Labor  does  not  solicit  or  accept  advertising  in  any  shape  or  form,  that 
the  Trade  Union  Courier,  as  far  as  the  American  Federation  of  Labor  is  con- 
cerned, is  an  outlaw  racket  publication,  has  been  condemned  and  repudiated 
by  the  New  York  Central  Labor  Union,  official  New  York  branch  of  the  Ameri- 
can Federation  of  Labor,  and  we  urge  employers  not  to  be  gypped  by  placing 
ads  thinking  they  are  cooperating  with  the  American  Federation  of  Labor  and 
where  any  employer  has  paid  their  money  under  false  representation  to  these 
long-distance  telephone  racketeers,  the  American  Federation  of  Labor  will  aid 
the  employer  in  every  possible  way  in  recovering  their  loss  and  prosecuting  to  the 
fullest  extent  of  the  law. 

The  federation  has  always  maintained  a  policy  disapprovinc:  any 
unethical  advertisinc;  practice  of  any  publication.  The  executive 
council  of  the  AFL  at  its  meetino;  on  May  16,  1949.  pronounced  very 
clearly  the  policy  of  the  federation  when  it  unainmously  agreed  that 
no  publication  claiminp;  to  be  a  labor  paper  should  engage  in  any 
unethical  advertising  practices. 

The  executive  council  at  that  time  also  recommended  and  urged  that 
all  of  its  affiliates  and  subordinate  bodies  exercise  extreme  caution  in 
any  endorsement  of  any  labor  publication  unless  it  had  first  complied 
and  adhered  to  the  code  of  ethics  approved  by  the  International  Labor 
Press  of  America. 

Here  is  the  current  code  of  ethics  of  the  International  Labor  Press 
Association. 

Mr.  Chairman,  rather  than  read  this  long  code,  I  have  given  the 
reporter  a  copy.  I  hope  that  will  suffice.  Or  would  you  rather  have 
me  read  it  ? 

The  Chatumax.  It  is  not  necessary  to  read  it.  We  will  accept  it 
for  the  present.     How  long  is  it  ? 

I  do  not  know  whether  it  needs  to  be  printed  in  the  record  or  made 
an  exhibit.     How  many  pages  is  it  ? 

Mr.  Wentwortii.  That  one  page  is  the  current  ethical  code. 

The  Chairman.  It  may  be  printed  in  the  record,  if  it  is  short,  at 
this  point. 

(The  document  referred  to  follows :) 

Intebn.ytioxal  Labor  Prkss  Association   (AFL-CIO)  Code  of  Ethics 

To  better  serve  the  members  of  the  American  Federation  of  Labor  and  Con- 
gress of  Industrial  Organizations,  and  to  protect  the  good  name  of  labor  from 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11825 

lexploitation  by  racket  papers  masquerading  as  union  publications,  the  Interna- 
tional Labor  Press  Association  (AFL-CIO)  and  its  members  publications  sub- 
scribe to  and  shall  abide  by  this  code  of  ethics  : 

1.  Member  publications  will  serve  the  best  interests  of  the  American  Federa- 
tiim  of  Labor  and  Congress  of  Industrial  Organizations,  and  uphold  the  high 
ideals  of  the  AFL-CIO  constitution  at  all  times. 

2.  Member  publications  will  plainly  and  prominently  publish  in  each  issue 
an  accurate  statement  of  ownership  and  endorsement. 

3.  Member  publications  will  not  represent,  either  in  their  publications  or 
in  the  promotion  or  sale  of  advertising,  that  they  are  endorsed  by  the  national 
AFL-CIO. 

4.  Member  publications  will  not  knowingly  solicit,  accept,  or  publish  adver- 
tising from  any  linn  against  which  a  strike  or  lockout  is  in  progress,  or  from 
any  firm  on  the  unfair  list  of  a  central  labor  body. 

'}.  Member  publications  will  not  solicit  nor  accept  local  advertising  from  out- 
side their  area  <)f  circulation.     This  does  not  apply  to  national  advertising. 

6.  Member  publications  will  not  employ  high-pressure,  long-distance  telephone 
solicitors,  or  accept  or  publish  advertising  obtained  through  such  methods. 

7.  Member  publications  will  make  no  claim  or  suggestions  directly  or  through 
salesmen  that  the  purchase  of  advertising  space  can  accomplish  anything  for 
the  advertiser  beyond  winning  consumer  iicceptance  or  approval  of  the  adver- 
tiser's product  or  services.  All  advertising  in  member  publications,  except  that 
concerned  with  nationally  advertised  standard  brands,  must  carry  the  name  and 
location  of  the  advertiser  and,  when  pertinent,  also  the  identification  of  the 
product  or  services  he  sells. 

8.  ^lember  publications  will  not  associate  themselves  in  any  manner  with  the 
publication  of  any  yearbook,  directory,  or  program  that  has  for  its  primary 
purpose  the  solicitation  of  donations  under  the  guise  of  selling  advertising. 

Violation  of  this  code  of  ethics  by  a  member  publication  shall  constitute 
cause  for  suspension  and  expulsion  under  procedures  provided  in  the  constitu- 
tion of  the  International  Press  Association  (AFL-CIO) . 

Mr.  Wextworth.  Tlie  executive  council  in  its  January  30,  1950, 
meeting  noted  that  improper  practices  of  tlie  Trade  Union  Courier 
had  continued  in  spite  of  the  earlier  actions  taken  by  the  federation. 

It  noted  that  certain  AFL  affiliates  had,  in  fact,  not  followed  the 
recommendations  of  the  council  in  connection  with  the  exercising  of 
extreme  care  in  endorsing  labor  publications.  The  council  therefore 
authorized  tlie  president  to  inform  all  subordinate  affiliates  of  the 
policy  of  the  federation  on  the  status  of  the  Trade  Union  Courier. 
This  letter  was  sent  March  IT,  1950,  and  reads  as  follows: 

I  also  have  placed  a  copy  of  that  in  the  hands  of  the  reporter. 

The  Chaikmax.  It  is  a  one-page  letter  ? 

Mr.  Wextwotth.  Yes,  sir. 

The  CiiAiRMx\.x.  It  may  be  printed  in  the  record. 

(The  document  referred  to  follows :) 

American  Federation  of  Labor. 

WushUujton,  D.  6\,  March  11, 1950. 
To  Secretaries  of  Central  Labor  Unions  and  State  Federations  of  Labor. 

Dear  Sirs  and  Brothers  :  The  executive  council  of  the  American  Federation 
of  Labor,  at  a  meeting  which  it  held  recently,  gave  consideration  to  reports 
which  had  been  submitted  to  it  which  showed  that  the  Trade  Union  Courier, 
a  publication  which  classifies  itself  as  a  labor  newspaper,  had  engaged  in  un- 
etliical  and  misrepresentation  practices  in  the  solicitation  of  advertisements. 
Tliis  fact  is  refiected  in  a  conuuunication  received  from  the  president  of  a  State 
federation  of  labor  which  is  in  a  large  way  similar  to  other  communications 
which  have  been  received,  and  wliich  contained  the  following  statement : 

"Mr.  R.  I.  Kaye.  .3  West  17th  Street,  Xew  York  City,  has  been  making  long 
distance  calls  into  the  State  to  firms  employing  large  groups  of  organized  labor. 
INIr.  Kaye  informs  these  industrialists  that  his  Trade  Union  Courier  has  the 
official  approval  of  the  American  Federation  of  Labor,  and  that  the  Courier  is 
devoting  all  of  its  efforts  to  building  better   relations  along  the  conciliatory 


11826  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

approach,  and  that  he  stands  to  succeed  if  he  can  get  the  support  of  the  in- 
dustrial group. 

"This  morning  he  asked  1  industrialist  for  a  donation  of  $2,500.  Many  such 
calls  have  come  into  this  State." 

After  giving  this  information  and  all  facts  in  support  of  it  careful  thought 
and  consideration  the  executive  council  directed  that  this  official  communica- 
tion be  sent  to  central  bodies  and  State  federations  of  labor,  advising  them  as 
follows : 

(1)  That  the  Trade  Union  Courier  is  not  in  any  way  connected  with  the 
American  Federation  of  Labor  and  does  not  speak  for  the  American  Federation 
of  Labor. 

(2)  No  endorsement  of  any  kind  has  been  given  by  the  American  Federation 
of  Labor  or  any  of  its  representatives,  to  the  Trade  Union  Courier. 

(3)  That  the  executive  council  believes  that  it  is  not  helpful  to  the  American 
Federation  of  Labor  and  for  that  reason  the  executive  council  requests  that  our 
affiliated  unions  withhold  and  discontinue  giving  aid  or  assistance  to  this 
publication. 

I  respectfully  request  that  the  officers  and  members  of  city  central  bodies  and 
State  federations  of  labor  will  be  guided  by  the  advice  and  instructions  herein 
submitted,  and  will  give  as  wide  publicity  as  possible  to  the  information,  advice, 
and  instructions  herein  set  forth. 
Fraternally  yours, 

W.  Green, 
President,  Amei'ican  Fedei'ation  of  Laior. 

Mr.  Wentwortii.  Again  in  September  1951,  the  subject  of  this 
publishing  company's  activities  was  discussed  by  the  executive  coun- 
cil. During  the  interim  period  continued  complaints  had  been  re- 
ceived from  AFL  affiliates  in  and  outside  of  the  New  York  area  as 
well  as  from  business  concerns  complaining  of  the  tactics  of  the  Trade 
Union  Courier  representatives  in  their  efforts  to  secure  subscribers 
to  this  advertising  medium. 

The  council  was  advised  at  that  time  of  tlie  letter  condemning  the 
practices  of  the  Trade  Union  Courier  and  warning  affiliates  that  the 
Trade  Union  Courier  was  not  in  any  way  connected  with  the  American 
Federation  of  Labor  and  did  not  speak  for  the  AFL. 

It  was  further  reported  to  the  council  that  no  legal  action  could  be 
taken  except  by  a  person  who  was  approached  in  a  fraudulent  manner 
by  a  Courier  representative.  The  federation  continued  to  receive 
complaints  from  affiliates  and  from  business  groups. 

The  general  tenure  of  these  complaints  indicated  that  representa- 
tives of  the  Courier  were  contacting  business  concerns  far  outside- 
to  the  New  York  area  and  were  representing  themselves  as  representa- 
tives of  the  AFL  and  as  representatives  of  an  official  publication  of  the 
AFL. 

In  March  1952,  then  with  the  full  cooperation  and  support  of  the 
American  Federation  of  Labor,  the  United  States  Federal  Trade  Com- 
mission issued  a  complaint  against  the  Trade  Union  Courier  Publish- 
ing Corp.  and  against  Maxwell.  Charles,  and  Bert  Raddock,  as  in- 
dividuals and  officers  of  that  corporation. 

The  Commission  charged  the  coinpany  with  unfair  and  deceptive 
acts  and  practices,  and  unfair  methods  of  competition  in  commerce 
in  violation  of  the  Federal  Trade  Commission  Act. 

After  a  full  hearing  in  the  matter  the  Commission  found  that  the 
charges  were  proven  and  issued  an  order  to  the  corporation  to  cease 
and  desist  from;  representing  directly  or  by  implication  that  the 
Courier  was  endorsed  by,  affiliated  with,  sponsored  by,  or  otherwise 
connected  with  the  American  Federation  of  Labor;  placing,  printing, 
or  publishing  an  advertisement  on  behalf  of  any  person  or  firm  in 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11827 

such  paper  without  a  prior  order  or  agreement  to  purchase  said  ad- 
vertisement; and  from  sending  bills,  letters,  or  notices  to  any  person 
or  firm  with  regard  to  an  advertisement  which  has  been  or  is  to  be 
printed,  inserting  or  publishing  on  behalf  of  such  person  or  firm,  or  in 
any  other  manner  seeking  to  exact  payment  for  any  such  advertise- 
ment without  a  bona  fide  order  or  agreement  to  purchase  such  ad- 
vertising. 

This  decision  was  appealed  by  the  Trade  Union  Courier  to  the 
United  States  Court  of  Appeals,  Third  Circuit.  Four  years  follow- 
ing the  original  FTC  complaint  the  court  of  appeals  fomid  that  no 
error  had  been  committed  in  the  procedure  of  the  Commission  and 
that  the  record  in  the  case  fully  supported  the  findings  and  conclusions 
of  the  Federal  Trade  Commission.  The  findings,  the  court  held, 
were  clear  and  defijiite  and  the  Commission  had  acted  in  the  public 
interest. 

In  an  effort  to  further  counter  the  activities  of  the  Trade  Union 
Courier,  the  federation,  on  April  15,  1952,  directed  a  letter  to  the 
Better  Business  Bureaus  located  throughout  the  country.  This  letter 
was  sent  to  all  organizations  appearing  on  a  master  list  furnished  by 
the  Better  Business  Bureau. 

The  letter,  which  is  set  forth  below,  was  intended  to  apprise  on  a 
national  basis,  as  many  employers  as  possible  of  the  unethical  prac- 
tices of  these  publishing  companies  as  well  as  to  fully  acquaint  these 
employers  with  the  longstanding  fact  that  no  one  was  authorized  to 
solicit  advertising  in  the  name  of  the  AFL  or  to  use  the  name  of  the 
AFL  for  any  publication. 

The  CiiAiRiNiAN.  I  wonder  if  you  know  whether  these  letters  and 
statements  you  issued — whether  copies  of  them  were  sent  to  the 
Courier  publication. 

Mr.  Wextw^ortii.  I  am  afraid  I  do  not  have  tliat  information, 
Senator. 

The  Chairman.  I  just  wondered,  when  you  were  trying  to  protect 
your  union,  your  international  against  this  practice,  if,  as  you  sent 
out  these  notices,  you  sent  to  them  and  demanded  that  they  desist. 

You  may  not  know  about  it. 

Mr.  Wentwortii.  I  do  not  know  about  it  at  the  moment,  Senator, 
but  I  could  find  out  if  the  Trade  Union  Courier  was  included. 

The  Chairman.  You  may  submit  information  on  that.  I  think 
thev  certainly  should  have  received  a  copy. 

Mr.  Wentworth.  That  letter,  Senator,  has  also  been  handed  to  the 
reporter  and  that  will  preclude  my  reading  it,  I  assume. 

The  Ciiairmax.  Is  it  brief  ? 

Mr.  WENT^voRTH.  Yes,  sir,  it  is.     It  is  one  page. 

The  Chairman.  All  right.     It  may  be  printed  in  the  record. 

(The  document  referred  to  follows :) 

American  Federation  of  Labor, 

Washinfiton,  D.  C,  April  15, 1952. 

Gentlemen  :  The  American  Federation  of  Labor  has  received  numerous  in- 
•quiries  from  businessmen  in  all  parts  of  the  country  regarding  solicitation  of. 
advertising. 

This  solicitation,  according  to  the  inquiries,  comes  by  long-distance  telephone 
from  New  Yorlc  City  and  the  solicitor  identifies  himself  as  representing  the 
American  Federation  of  Labor.  The  latest  "sales  talk"  is  to  seek  advertising 
for  the  purpose  of  financing  an  anti-Communist  drive  of  some  kind.  /"© 
"boilerroom"  method  is  used  and  they  canvass  business  firms  listed  m  direc- 
tories— taking  a  single  city  or  a  whole  State  at  a  time. 


11828  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

For  many  years  the  American  Federation  of  Labor  has  publicly  and  officiallr 
disavowed  this  type  of  activity  by  unscrupulous  individuals.  Let  me  emphasize, 
no  businessman  is  doing  the  American  Federation  of  Labor  a  favor  by  purchasing 
advertising  space  solicited  in  this  manner. 

We  wish  to  inform  you — and  we  hope  you  will  pass  along  the  information  to 
the  businessmen  in  your  community — the  American  Federation  of  Labor  does 
not  accept  paid  advertising  in  any  of  its  publications.  No  one  is  authorized  to 
solicit  advertising  in  the  name  of  the  American  Federation  of  Labor  for  any 
publication. 

Very  truly  yours, 

George  Meany, 
Secretary-Treasurer ,  American  Federation  of  Labor. 

Mr.  Wentwortii.  Again  in  1953,  the  federation,  by  letter,  advised 
its  affiliates  of  the  AFL  position  on  the  Trade  Union  Courier  and 
other  unauthorized  publications. 

At  the  73d  convention  of  the  AFL,  held  in  September  1954  at  Los 
Angeles,  Calif.,  a  resolution  was  passed  unanimously  by  the  delegates 
assembled,  condemning  the  fraudulent  and  deceptive  tactics  of  "boiler 
room"  type  solicitation  of  advertisements  for  labor  papers. 

This  resolution,  which  I  present  herewith,  was  circulated  by  order 
of  the  convention  to  all  affiliates  of  the  American  Federation  of  Labor. 

That,  sir,  is  a  page  and  a  half,  and  I  am  submitting  that  also  to  the 
reporter  for  inclusion,  if  I  may. 

The  Chairman.  All  right.  If  the  Chair  had  known  there  was  to 
have  been  so  much  of  it,  I  would  have  made  them  all  exhibits.  But 
let  them  go  in,  since  we  started  that  way. 

(The  document  referred  to  follows :) 

Resolution  Taken  From  the  Proceedings  of  the  1954  Convention 

Resolution  No.  140 :  By  Delegates  J.  Scott  Milne,  Lewis  M.  Hermann,  Geo.  L. 
Russ,  Brownie  H.  Cuthbert,  Wallace  C.  Reilly,  J.  Arthur  Moriarty,  Ernest  M. 
Hathaway,  W.  H.  C.  Murray.  Fred  H.  Brigham,  and  J.  S.  Smith. 

Whereas  the  International  Labor  Press  of  America  has  consistently  endeav- 
ored to  eliminate  from  the  labor  press  field  unethical  and  irregular  publications 
parading  as  labor  papers ;  and 

Whereas  the  American  Federation  of  Labor  has  at  all  times  encouraged  and 
cooperated  with  the  labor  press  in  carrying  out  this  important  task ;  and 

Whereas  in  the  course  of  this  phase  of  ILPA  endeavors,  a  complaint  was  filed 
with  the  United  States  Federal  Trade  Commission  against  a  publication  known 
as  the  Trade  Union  Courier,  published  in  the  city  of  New  York,  charging  thai 
publication  with  unauthorized  use  of  the  name  of  the  American  Federation  of 
Labor  in  the  solicitation  of  advertising  and  donations  ;  and 

Whereas  the  aforesaid  Trade  Union  Courier  has  been  announcing  publicly 
through  its  columns  and  in  testimony  before  a  Federal  Trade  Commission  exam- 
iner, that  it  has  the  bonafide  endorsement  of  over  2.000  A.  F.  of  L.  unions,  and 

Whereas  this  publication  has  continued  to  claim  of  2,000  A.  F.  of  L.  union  en- 
dorsements in  the  high  pressure  solicitation  of  advertising  and  donations,  in  spite 
of  the  fact  that  the  officers  and  executive  council  of  the  A.  F.  of  L.  and  the  ILPA 
have  repeatedly  denounced  the  Trade  Union  Courier  for  its  unethical  methods 
which  have  proved  injurious  to  the  prestige  and  good  name  of  the  labor  move- 
ment :  Be  it  therefore 

Resolved  by  the  American  Federation  of  Labor,  at  its  ISd  Annual  Convention 
at  Los  Angeles,  Calif.,  September  20,  195.',,  That  we  hereby  go  on  record  request- 
ing the  officers  of  this  federation  to  institute  a  thorough  investigation  into  the 
validity  of  the  2,000  A.  F.  of  L.  union  endorsements  claimed  by  the  Trade  Union 
Courier,  and  be  it  further 

Resolved,  That  in  the  event  that  any  of  the  above-mentioned  endorsements  are 
found  to  be  valid,  the  offices  of  the  American  Federation  of  Labor  are  hereby  urged 
to  bring  about  the  cancellation  of  such  endorsements,  to  the  end  that  the  good 
name  of  the  American  Federation  of  Labor,  the  International  Labor  Press  of 
America  and  their  affiliates  be  protected  from  further  injury;  and  be  it  further 


IIMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11829 

Resolved.  That  copies  of  this  resolution  be  spread  upon  the  minutes  of  this 
convention,  and  forwarded  to  the  International  Labor  Press  of  America  and  to 
the  aflSliated  international  unions  of  the  A.  F.  of  L.  for  their  information  and 
guidance. 

Referred  to  committee  on  resolutions. 

Mr.  Wentwouth.  During  the  investigation  of  the  Trade  Union 
Courier  Publishing  Co.  by  the  United  States  J'ederal  Trades  Com- 
mission, the  Courier,  as  a  defense  to  the  action  stated  it  had  been  en- 
dorsed by  some  2,000  labor  organizations  which  were  in  some  way 
affiliated  with  the  AFL. 

The  president  of  the  AFL  ordered  in  1955  an  investigation  of  these 
endorsements  and  found  that  the  Courier  had  some  form  of  endorse- 
ment from  101  individual  local  unions,  9  international  unions  on  be- 
half of  their  affiliates  which  brought  the  total  to  1,074  local  unions. 

In  addition,  24  central  bodies  had  endorsed  the  paper  and  this  was 
done  on  behalf  of  1,094  local  unions  affiliated  with  the  central  bodies. 
These  endorsements,  I  understand,  did  not  contemplate  the  receipt 
of  any  revenue  from  the  publishing  firm. 

The  council  at  this  time  authorized  the  president  to  direct  letters 
to  the  international  unions  and  central  bodies  involved  to  seek  with- 
drawal by  these  organizations  of  their  endorsement  because  of  the 
flagrant  and  frequent  misuse  of  the  name  of  the  AFL  in  these  solicita- 
tions. 

Such  a  letter  was  sent  and  is  included  herein. 

The  Chairmax.  All  right.  That  may  be  printed  in  the  record  at 
this  point. 

(The  document  referred  to  follows  :) 

Dear  Sir  and  Brother  :  At  its  recent  meeting,  the  executive  council  of  the 
American  Federation  of  Labor  considered  the  subject  matter  of  Resolution  No. 
140,  which  had  been  adopted  by  the  1954  convention,  together  with  a  recommenda- 
tion of  the  hearing  examiner  of  the  Federal  Trade  Commission  relative  to  the 
Trade  Union  Courier. 

As  a  result,  I  was  directed  to  notify  all  AFL  affiliates  which  have  endorsed 
this  publication  that,  by  order  of  the  examiner,  the  Trade  Union  Courier  is 
prohibited  from : 

"Representing  the  newspaper  is  endorsed  by,  affiliated  with,  sponsored  by, 
or  otherwise  connected  with  the  American  Federation  of  Labor. 

"Placing,  printing  or  publishing  any  advertisement  in  behalf  of  any  person 
or  firm  in  the  paper  without  a  prior  order  of  agreement  to  purchase  the  advertise- 
ment. 

"Sending  bills,  letters  or  notices  to  any  person  or  firm  with  regard  to  an 
advertisement  which  has  been,  or  is  to  be  printed  for  the  person  or  firm  with- 
out a  bona  fide  order  or  agreement  to  purchase." 

During  any  discussion  of  this  question,  it  was  brought  out  that  for  many 
years  the  national  office  of  the  American  Federation  of  Labor  and  the  Federal 
Trade  Commission  has  received  numerous  complaints  regarding  the  unethical 
and  misrepresentation  practices  followed  by  this  publication  in  its  solicitation 
of  advertising.  It  is  the  opinion  of  the  council  that  such  practices  are  harmful 
and  injurious  to  the  prestige  and  good  name  of  the  trade-union  movement. 

By  direction  of  the  executive  council,  I  am  therefore  requesting  that  the  (name 
of  organization  giving  endorsement)  consider  withdrawal  of  their  endorsement 
of  the  Trade  Union  Courier  (date  of  endorsement)  in  order  that  we  might  be 
spared  the  embarrassment  caused  by  the  unethical  methods  and  practices  of 
this  publication. 

It  is  my  sincere  hope  that  we  will  have  your  cooperation  in  this  instance. 
Sincerely  and  fraternally, 


President,  American  Federation  of  Labor. 


11830  IMPROPER    ACTIVITIES    IN    THE    L-\BOR    FIELD 

Mr.  Wentworth.  The  AFL-CIO  today  is  aware  of  the  evil  and 
sly  practices  of  these  outside  groups  who,  feigning  friendship,  are  in 
fact  operating  to  the  detriment  of  the  trade-union  movement. 

While  feathering  their  own  nests  these  vulturous  concerns  are  doing 
untold  damage  to  the  excellent  relationship  that  exists  between  the 
vast  majority  of  organized  labor  and  their  employers. 

As  an  example  of  this  awareness  the  federation  in  its  rules  govern- 
ing central  bodies  warns  that  experience  has  demonstrated  that  un- 
scrupulous solicitors  of  advertisements  have,  on  occasion,  exploited 
the  name  and  standing  of  some  organizations  now  affiliated  with  the 
AFL-CIO,  to  further  their  own  selfish  ends  and  to  the  detriment 
of  the  best  interest  of  such  affiliate  and  organized  labor  generally. 

For  this  reason,  the  rules  state,  central  bodies  should  be  careful  in 
authorizing  or  permitting  the  solicitation  of  advertising. 

The  rule  further  prohibits  the  solicitation  of  any  advertising  in  the 
name  of  the  central  body  or  for  publication  in  any  periodical,  pro- 
gram, or  other  publication  issued  or  endorsed  by  it,  which  will  be  in 
violation  of  such  ethical  standards  or  regulations  as  may  be  deter- 
mined by  the  President,  by  regulation  or  otherwise. 

That  letter  is  the  last,  sir,  and  that  is  included  for  the  record. 

The  Chairman.  Very  well.  It  may  be  printed  in  the  record  at 
this  point. 

(The  document  referred  to  follows :) 

Amekican  Federation  of  Labor  and  Congress 

OP  Industrial  Organizations, 
Washington,  D.  C,  May  27, 1958. 
To  the  Officers  of  all  State  and  City  Central  Bodies. 

Dear  Sir  and  Brother  :  Rule  24  of  the  rales  governing  State  and  local  central 
bodies  provides  that  no  central  body  "shall  authorize  or  permit  the  solicitation 
of  any  advertising  in  its  name  or  for  publication  in  any  periodical,  program, 
or  other  publication  issued  or  endorsed  by  it  which  will  be  in  violation  of  such 
ethical  standards  or  requirements  as  may  be  determined  by  the  President  by 
regulation  or  otherwise." 

It  has  recently  come  to  my  attention  that  the  trade-union  movement  is  suffer- 
ing unfavorable  and  adverse  publicity  through  the  actions  of  advertising  solici- 
tors who  are  not  adhering  to  the  high  ethical  standards  which  the  AFL-CIO  has 
established. 

Specifically,  advertising  solicitors  have  been  accepting  ads  for  union  periodi- 
cals and  publications  from  nonimion  and  antiunion  employers,  as  well  as  anony- 
mous advertising  from  purported  "friends  of  labor." 

Obviously,  advertisements  from  nonunion  employees  do  not  belong  in  a  labor 
publication  and  it  is  just  as  clear  that  a  legitimate  "friend  of  labor"  would 
want  his  signature  on  an  advertisement  he  placed. 

Both  types  of  ads  violate  the  ethical  standards  of  the  AFL-CIO.  Therefore, 
in  conformity  with  the  intent  of  the  rules  governing  State  and  local  central 
bodies  and  in  accordance  with  the  powers  vested  in  me,  I  hereby  order  and 
direct : 

That  all  periodicals,  programs,  or  other  publications  issued  by,  or  authorized 
by,  AFL-CIO  State  and  local  central  bodies  cease  and  refrain  from — 

1.  Using  advertisements  of  employers  who  are  not  100  percent  unionized  by 
AFLf-CIO  unions ;  and 

2.  Using  advertisements  which  are  not  signed. 
This  order  is  effective  immediately. 

Fraternally  yours, 

George  Meant,  President. 

Mr.  Wentwortii.  It  is  my  understanding  that  all  correspondence 
pertaininc:  to  this  matter  and  all  available  records  of  the  AFL  and  the 
AFL-CIO  have,  at  the  request  of  the  committee,  been  made  available 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11831 

to  staff  members  of  this  committee.  It  is  our  hope  that  tlie  activities  of 
this  committee  will  serve  to  end  once  and  for  all  the  illicit  activities  of 
the  Trade  Union  Courier  and  all  other  publications  that  operate  in 
an  improper  manner  which  have  done  so  much  to  harm  the  trade  union 
movement. 

The  CiiAiRMAX.  Thank  you  very  much. 

Mr.  Wentworth,  you  close  by  saying  "It  is  our  hope  that  the  activities 
of  this  committee  will  serve  to  end  once  and  for  all"  these  practices 
engaged  in  also  by  the  Trade  Union  Courier  and  other  publications. 

Maybe  this  committee  can  highlight  the  evil  that  is  associated  with 
these  sorts  of  practices,  but  apparently  you  folks,  in  good  faith,  have 
been  trying  to  stop  it  now  for  several  years  and  have  not  succeeded.  I 
am  wondering  if  you  are  prepared  to  submit  to  the  committee  a  sugges- 
tion or  recommendation  with  respect  to  legislation  that  might  have  a 
tendency  to  discourage  such   practices. 

Mr.  Wentworth.  Sir,  I  am  not  prepared  at  this  time  to  offer  any 
suggestion. 

The  Chairman.  I  think  the  committee  would  welcome  suggested 
remedies,  legislative  remedies,  to  deal  with  this  sort  of  a  racket.  You 
have  become  the  victim  of  it,  or  your  union  does,  your  organization, 
because  its  name  is  used,  with  the  implication  given  out  that  you 
are  endorsing  and  supporting  it,  and  that  the  purchase  of  an  ad  in  the 
paper  will  meet  with  the  approval  and  possibly  be  appreciated  by 
the  International  AFL  and  CIO,  which  is  false,  according  to  your 
testimony,  and  according  to  the  documents  you  have  submitted. 

Mr.  Wentworth.  Yes,  sir. 

The  Chairman.  On  the  other  hand,  there  are  a  number  of  citizens, 
business  people,  who  are  made  the  victims  and  who  otherwise  would 
not  have  purchased  an  ad,  no  doubt,  except  they  thought  they  were 
favoring  or  in  some  way  contributing  to  the  welfare  of  the  AFL- 
CIO. 

It  looks  to  me  like  it  is  a  kind  of  a  rotten  game  that  ought  to  be 
stopped. 

Mr.  Wentworth.  We  agree,  Senator. 

The  Chairman.  I  agree  witli  the  sentiments  you  have  expressed  here 
on  behalf  of  the  AFL-CIO.  Now  we  are  looking  for  a  remedy,  and  if 
your  organization  or  Mr.  Meany  has  some  suggestions,  I  believe  the 
committee  would  be  glad  to  receive  them. 

Are  there  any  questions  ? 

Senator  Ervin.  No  questions. 

Mr.  Wentworth,  I  would  like  to  commend  your  organization,  how- 
ever, for  the  assistance  and  coming  before  the  committee,  cooperating 
for  the  committee  as  you  are  doing. 

Mr.  Wentworth.  Thank  you  very  much. 

The  Chairman.  Call  the  next  witness. 

Mr.  Waldman.  Mr.  Chairman,  in  connection  with  the  question  you 
asked  the  witness 

The  Chairman.  Wait  a  minute.  The  Chair  has  been  pretty  indul- 
gent all  morning  with  respect  to  counsel's  comments.  What  is  the 
purpose  of  counsel  addressing  the  Chair  ? 

Mr.  Waldman.  I  address  the  Chair  to  place  in  the  record  an  answer 
to  the  question  that  the  Chair  asked,  that  the  Trade  Union  Courier,  I 
am  informed  by  their  general  manager,  did  not  receive  a  copy  of  any 
of  the  letters  to  which  the  previous  witness  referred. 


11832  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  Well,  that  is  information.  Your  statement  will 
remain  in  the  record,  but  it  is  not  sworn  testimony.  I  do  not  know 
whether  they  did  receive  or  did  not. 

Mr.  Waldmax.  If  the  Chair  is  interested,  I  proffer  the  sworn  testi- 
mony of  the  <^eneral  manager  who  is  sitting  here  now,  if  the  Chair 
wishes  to  have  that. 

The  Chairman.  All  right.  Come  here  a  minute.  We  will  put 
this  in  the  record. 

TESTIMONY  OF  BERT  EADDOCK— Eesumed 

The  Chairman.  Did  you  receive  any  of  these  letters  from  the 
AFL-CIO  regarding  the  practices  which  your  organization  and  pub- 
lication w^ere  engaged  in  ? 

Mr.  Raddock.  No,  sir. 

The  Chairman.  May  I  say  to  you  that  if  these  practices  were  en- 
gaged in  as  indicated  by  this  testimony,  it  should  not  have  been  neces- 
sary for  you  to  receive  any  notice. 

Mr.  Raddock.  I  agree  with  you  there,  sir. 

The  Chairman.  You  should  have  desisted  from  it  without  any 
notice  or  warning.     You  should  never  have  begun  it  in  the  first  place. 

Senator  Ervin.  Your  organization  of  officers,  however,  received  a 
€opy  of  the  complaint  filed  before  the  Federal  Trade  Commission,  and 
you  were  acquainted  in  that  litigation  with  the  charges  placed  in  that 
complaint,  Avere  you  not? 

Mr.  E,addock.  We  were,  sir,  and  in  the  first  hearings  the  Trade 
Union  Courier  was  completed  exonerated.  I  don't  think  that  this 
was  mentioned  this  afternoon  by  Mr.  Wentworth.     That  was  skirted. 

Senator  Ervin.  What  about  the  last  hearing  ? 

Mr.  Eaddock.  We  may  get  into  that  in  the  course  of  these  hear- 
ings, sir. 

I  believe  that  this  committee  is  very  much  interested  in  the  develop- 
ment of  both  sides  of  the  story.  From  us,  I  believe  you  will  get  the 
true  picture,  sir. 

Senator  Ervin.  Mr.  Wentworth  stated  that  this  litigation  before 
the  Federal  Trade  Commission  was  finally  taken  into  the  court,  and 
that  the  court  of  appeals 

Mr.  Haddock.  It  was  taken  into  court  by  us,  sir. 

Senator  Ervin.  The  representatives  of  the  Trade  Union  Courier 
appealed  from  the  ruling  of  the  Federal  Trade  Commission,  to  the 
circuit  court  or  court  of  appeals,  and  the  court  of  appeals  confirmed 
the  judgment  adverse  to  the  Trade  Union  Courier. 

Is  that  true? 

Mr.  Raddock.  Yes,  sir,  that  is,  sir. 

Senator  Ervin.  It  looks  like  you  may  have  won  a  skirmish  but 
you  lost  the  war. 

Mr.  Raddock.  The  matter  has  not  ended  yet,  sir,  as  f:ir  as  we  are 
concerned. 

The  Chairman.  All  right. 

Mr.  Kennedy.  Is  this  matter  still  in  litigation  before  the  courts 
and  the  Federal  Trade  Commission  ? 

Mr.  Raddock.  Not  at  the  moment,  sir. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11833 

Mr.  Kennedy.  Then  there  has  been  a  final  decision  on  it,  has  there 

not? 

Mr,  Raddock.  There  has  been  a  final  decision  by  a  circuit  court. 
But  insofar  as  we  are  concerned,  this  matter  has  not  ended. 

Senator  Ervin.  Have  you  applied  to  the  Supreme  Court  of  the 
United  States  for  certiorari  to  review  the  court  of  appeals  ruling? 

Mr.  Raddock.  Not  yet,  sir. 

The  Chairman.  Has  the  time  expired  ? 

Mr.  Kennedy.  The  decision  came  down  on  May  10,  1956,  about  2 
years  ago. 

The  CiiAiRiMAN.  Well,  I  think  the  time  has  expired  for  that. 

Mr.  Raddock.  For  justice?  I  don't  believe  the  time  has  expired 
for  justice,  Mr.  Chairman. 

The  Chairman.  He  who  seeks  justice  must  pursue  it  sometimes 
with  diligence. 

Mr.  Raddock.  Do  you  mean  there  is  a  time  limit  on  that,  on  justice? 

The  Chairman.  There  is  a  time  limit  if  you  expect  to  secure  it  in  the 
courts ;  yes.  There  are  statutes  of  limitations,  and  there  are  times  pre- 
scribed within  which  you  must  proceed.  Otherwise,  by  failing  to  do 
so,  you  legally  acquiesce  in  the  final  decision  or  the  decision  from 
which  you  could  have  appealed. 

Mr,  Kennedy.  There  was  some  question  raised  at  that  time  about 
the  fact  as  to  whether  you  were  endorsed  by  2,000  unions  throughout 
the  country.  I  noticed  that  your  paper  still  states  that  you  are  en- 
dorsed by  2,000  AFL-CIO  unions.  Is  that  correct?  At  the  present 
time  are  you,  in  fact,  endorsed  by  2,000  AFL-CIO  unions? 

Mr.  Raddock.  I  believe  your  staff  has  all  of  the  endorsements. 

Mr.  Kennedy.  You  want  to  volunteer  some  things. 

Mr.  Raddock.  I  believe  it  is  more  than  2,000. 

Mr.  Kennedy.  Is  the  answer  to  the  question  that  you  are,  in  fact, 
at  the  present  time,  endorsed  by  more  than  2,000  unions  in  the  country  ? 

Mr.  Raddock.  I  believe  it  is,  sir. 

Mr,  Kennedy,  Do  you  state  that,  unequivocally  ? 

Mr,  Raddock.  Well,  I  would  have  to  count  them  at  the  moment. 

Mr,  Kennedy,  Well,  2,000  or  more. 

Mr.  Raddock.  You  must  remember,  sir,  that,  since  your  staff  first 
took  the  contents  of  our  files,  there  have  been  some  developments  in 
the  AFL-CIO  where  a  number  of  unions  have  been  expelled.  We 
have  not  been  able  to  ascertain  as  yet,  in  the  midst  of  all  these  hearings 
and  discussions  with  your  staff,  as  to  what  the  picture  is  at  the  moment. 
But,  give  or  take  some,  Mr.  Kennedy,  if  it  is  necessary  to  implement 
the  2,000  with  2,000  more,  we  shall  make  them  available  to  this  com- 
mittee. 

Mr.  Kennedy.  When  you  say  give  or  take  some,  how  many  do  you 
give  ? 

Mr.  Raddock.  Howmany  will  you  take,  sir? 

Senator  ER^^N.  You  can't  add  very  much  to  truth.  That  is  why 
we  are  trying  to  find  out  what  the  truth  is. 

Mr.  Raddock.  Well,  we  have  taken  a  great  deal.  Senator,  up  to 
now,  but  we  don't  intend  to  take  this  much  longer.  It  is  about  time 
that  we  did  something  about  it,  I  don't  want  to  make  speeches  here 
today,  but  I  trust,  inllie  course  of  these  hearings,  all  of  this  will  be 
developed. 


11834  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  Just  a  moment.  I  hope  what  you  have  said  is  not 
intended  as  a  veiled  threat  against  this  committee. 

Mr.  Raddock.  No,  sir;  I  am  not  talking  about  this  committee.  I 
am  talking  about  those  organizations  and  people  who  have  sought  to 
do  a  hatchet  job  on  this  organization. 

The  Chairman.  All  right.     Proceed. 

Mr.  Kennedy.  We  might  put  into  the  record  how  many  unions  at 
the  present  time  endorse  this.  We  have  Mr.  Dmme  here,  who  has 
made  a  study  of  the  records  and  who  has  contacted  the  various  unions. 

TESTIMONY  OF  ROBERT  DUNNE— Resumed 

Mr.  Kennedy.  Does  it  state  on  the  cover  of  the  Trade  Union  Courier 
that  they  are  endorsed  by  more  than  2,000  AFL-CIO  unions? 

Mr.  Dunne.  Yes ;  it  does. 

The  Chairman,  Do  we  have  copies  of  an  issue  in  our  files? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  Let  the  issue  he  refers  to,  or  one  or  more  of  them, 
be  made  exhibit  10,  for  reference,  so  it  can  be  referred  to,  if  there  is 
any  question  about  it. 

Mr.  Dunne.  Make  it  the  December  7  issue,  1956. 

The  Chairman.  December  7,  1956  ? 

Mr.  Dunne.  Yes,  sir ;  because  we  will  need  it  later. 

Mr.  Kennedy.  Was  the  same  statement  made  in  1957? 

Mr.  Dunne.  Yes.    I  have  seen  1958  issues.    I  don't  have  a  copy. 

Mr.  Kennedy.  The  1958  issues  also  state  they  are  endorsed  by 
2,000? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  Let  the  copies  you  have  here  be  made,  in  bulk,  ex- 
hibit 10  for  reference. 

(The  documents  referred  to  were  marked  "Exhibit  No  10"  for 
reference,  and  may  be  found  in  the  files  of  the  select  committee.) 

The  Chairman.  If  you  procure  a  copy  of  a  1958  issue  having  the 
same  representation  in  it,  it  may  be  added  to  those  that  are  included 
in  this  exhibit. 

Mr.  Kennedy.  Mr.  Dunne,  have  you  made  a  check  to  find  out  how 
many  unions,  in  fact,  have  endorsed  the  Trade  Union  Courier? 

Mr.  Dunne.  Yes,  sir.  We  took  the  original  evidence  submitted 
by  the  Trade  Union  Courier  during  the  extensive  hearings  held  by 
the  Federal  Trade  Connnission  in  1952. 

At  that  time,  certain  photostatic  copies  of  letters  of  endorsement 
were  submitted  in  evidence,  and  including  group  endorsements  by 
some  internationals.  There  was  a  maximum  total  of  3,212  unions 
represented.  We  have  made  demands  from  tlie  Trade  Union  Courier 
for  any  additions  or  drops  from  that,  and  none  have  been  forthcoming 
until  this  morning  when,  perhaps  three  more  unions  were  included. 

As  a  result  of  the  efforts  of  the  AFL^CIO  in  1955,  certain  of  these 
endorsements  were  withdrawn.  We  have  tabulated  the  material  and, 
as  of  May  1958,  last  month,  when  we  completed  this  study,  there  are 
2  central  bodies,  representing  21  unions,  1  international,  representing 
346  unions. 

Mr.  Kennedy.  What  international  union  is  that  ? 

Mr.  Dunne.  That  is  Charlie  Johnson's  section  of  the  United 
Brotherhood  of  Carpenters,  the  first  district. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11835 

Mr,  Kennedy.  So,  where  that  1  group  endorsed  it,  they  give  the 
endorsement  for  the  whole  346  ? 

Mr.  Dunne.  There  was  a  letter  signed  by  Charlie  Johnson  which 
was  not  withdrawn ;  yes,  sir. 

Mr.  Kennedy.  So,  all  346  unions  are  under  the  direction  of  Charlie 
Johnson  in  tlie  New  York  area  ? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kj:nnedy.  That  gives  them  346  because  of  the  letter  of  Charlie 
Johnson.    How  many  more  ? 

Mr.  Dunne.  A  maximum  of  50  others.  Actually,  about  45  of  those 
were  never  contacted  because  we  could  not  locate  them. 

Mr.  Kennedy.  You  had  21  unions  of  central  bodies  ? 

Mr.  Dunne.  21  unions  represented  by  central  bodies. 

Mr.  Kennedy.  How  many  central  labor  bodies  are  there,  two? 

Mr.  Dunne.  Yes,  sir. 

Mr.  Kennedy.  And  they  make  up  21  unions  ? 

Mr.  Dunne.  That  is  right. 

IVIr.  Kennedy.  So  that  is  346,  plus  21,  and  then  you  give  them  as 
individual  unions  50? 

Mr.  Dunne.  Yes,  sir.  We  gave  them  the  benefit  of  the  doubt  in 
every  case.  "WHiere  we  did  not  contact,  we  assumed  the  endorsement 
still  existed. 

Mr.  Kennedy.  So  including  all  of  Charlie  Johnson,  that  makes  a 
maximum  of  417,  then,  is  that  right? 

Mr.  Dunne.  That  is  right,  sir. 

^Ir.  Kennedy.  And  this  paper  states  that  it  is  officially  indorsed 
by  2,000  AFL-CIO  unions  in  the  United  States  and  Canada? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  This  paper,  from  which  counsel  read,  is  the  one 
issued  dated  Friday,  December  21,  1956.  You  say  you  have  seen  the 
1958  issue  of  the  paper,  and  that  it  carries  the  same  statement? 

Mr.  Dunne.  Yes,  sir. 

IMr.  Kennedy.  We  have  a  mimeographed  breakdown  on  it. 

The  Chairman.  This  mimeographed  breakdown  you  have  before 
you  is  one  you  have  compiled,  have  you,  in  investigating  this  matter  ? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  It  gives  the  details  of  the  unions  that  have  given 
their  indorsements  and  those  that  have  not  ? 

^Ir.  Dunne.  That  is  right.  It  compares  the  status  as  of  the  Fed- 
eral Trade  Commission  hearing  in  1952  with  today. 

The  Chairman.  That  may  be  made  exhibit  No.  11,  for  reference. 

(The  document  referred  to  was  marked  "Exhibit  No.  11"  for  refer- 
ence, and  may  be  found  in  the  files  of  the  select  committee.) 

Senator  Ervin.  Your  analysis  of  the  records  submitted  by  the  Trade 
Union  Courier  tends  to  sustain  their  contention  that  at  the  time  of  the 
beginning  of  the  proceedings  before  the  Federal  Trade  Commission 
in  1952  they  did  claim,  rightfully  claim,  the  indorsement  was  of  ap- 
proximately 3,212  unions? 

Mr.  Dunne.  Of  over  2,000 ;  yes,  Senator.  The  complaint  was  not 
sustained  ever  bj-  the  Federal  Trade  Commission  on  that  point. 

They  were  restrained  from  certain  other  activities. 

Senator  ER\^N.  In  other  words,  the  Federal  Trade  Commission  on 
that  point  sustained  the  position  of  the  Trade  Union  Courier  ? 


11836  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Di'XNE.  That  is  right. 

Senator  Ervin.  And  the  ruling  was  on  other  matters  ? 

Mr.  Dunne.  That  is  right,  such  as  the  methods  of  soliciting. 

Mr.  Kennedy.  The  adverse  rulings  were  on  the  Trade  Union 
Courier  describing  itself  as  the  official  paper  of  the  AFL. 

Mr.  Dunne.  That  is  right. 

Mr.  Kennedy.  They  were  also  describing  themselves  as  the  official 
paper  of  the  AFL,  and  the  Federal  Trade  Commission  moved  against 
them  on  that,  and  also  on  certain  practices  that  they  were  indulging  in 
in  order  to  obtain  ads. 

Isn't  that  right,  Mr.  Dunne  ? 

Mr.  Dunne.  That  is  right.  The  practice  of  billing  people  who  had 
not  given  a  firm  order  for  an  ad. 

Mr,  Kennedy.  We  are  going  now  into  the  activities  of  certain  of  the 
solicitors  of  the  Trade  Union  Courier  in  obtaining  ads  from  employers 
throughout  the  United  States.  I  would  like  to  call  in  that  connection 
Mr.  John  D.  Stevenson. 

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

Mr.  Stevenson.  I  do. 

TESTIMONY  OF  JOHN  D.  STEVENSON 

The  Chairman.  State  your  name,  your  place  of  residence,  and  busi- 
ness or  occupation  ? 

Mr.  Stevenson.  John  D.  Stevenson.  My  residence  is  264  Fairlawn 
Drive,  Columbus,  Ohio.  My  occupation  is  vice  president  and  secre- 
tary of  the  Dobson-Evans  Co.,  also  of  Columbus,  Ohio. 

The  Chairman.  What  is  that  company's  business  ? 

Mr.  Stevenson.  Our  business  is  paper  converters.  We  convert  pa- 
pers for  schools. 

The  Chairman.  You  what  ? 

Mr.  Stevenson.  We  buy  a  roll  of  paper  and  manufacture  it  into 
notebook  fillers,  writing  tablets,  stenographer's  notebooks,  and  that 
type  of  work. 

The  Chairman.  What  is  your  connection  with  it  ? 

Mr.  Stevenson.  Vice  president  and  secretary. 

The  Chairman,  Do  you  waive  counsel  ? 

Mr.  Stevenson.  I  do, 

Mr.  Kennedy.  ]Mr.  Stevenson,  hoAv  many  employees  do  you  have  ? 

Mr.  Stevenson.  Approximately  100. 

Mr.  Kennedy.  Are  you  organized  or  unorganized? 

Mr.  Stevenson.  We  are  unorganized. 

Mr.  Kennedy.  Your  employees  are  not  members  of  any  labor  union  ? 

Mr.  Stevenson.  That  is  riglit,  sir. 

Mr.  Kennedy.  Your  father  liad  been  in  the  company? 

Mr.  Stevenson.  He  was. 

Mr.  Kennedv.  He  had  been  ai)pr()ached  by  the  Ti-ade  Union  Courier 
and  took  an  ad? 

Mr.  Stevenson.  Tluit  is  right,  sir. 

Mr,  Kennedy.  He  died  and  then  you  were  approaclied  in  1956  also 
by  the  Trade  Union  Courier? 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11837 

Mr.  Stevenson.  That  is  rij^ht. 

Mr.  IvENNEDY.  By  whom  were  you  approaclied  at  that  time? 

Mr.  Stevenson.  I  believe  it  was  a  Mr.  Koota. 

Mr.  Kennedy.  You  were  apf)roached  around  July  of  1956? 

Mr.  Stevenson.  That  is  right. 

Mr.  Kennedy.  Can  you  tell  the  committee  what  statements  or  re[)- 
resentations  were  made  to  you  at  that  time,  about  taking  an  ad? 

Mr.  Stevenson.  It  was  a  long  distance  call  originating  from  Xew 
York  City.  The  caller  identiHed  himself  as  being  the  AP"L-CIO. 
There  was  a  move  to  eliminate  communism  from  the  unions,  and  he 
suggested  we  take  an  ad  to  go  along  with  the  union,  the  national,  in 
eliminating  communism  from  the  union. 

Mr.  Kennedy.  What  was  your  reaction  to  that  ? 

Mr.  Stevenson.  The  first  reaction  was  to  check  the  record  and  see 
if  we  had  taken  any  ad  with  the  organization  before.  AVe  had.  On 
the  basis  of  their  statement  of  who  they  were  and  what  they  repre- 
sented, I  took  another  ad. 

Mr.  Kennedy.  They  stated  at  that  time  that  the}-  were  in  fact  the 
official  national  publication  for  the  AFL-CIO  ? 

Mr.  Stevenson.  I  believe  so,  yes.     The  implication  was  there. 

]\f r.  Kennedy.  So  you  took  an  ad  for  $100  ? 

Mr.  Stevenson.  That  is  right. 

Mr.  Kennedy.  Did  you  receive  any  further  telephone  calls  from  Mr. 
Koota  ? 

Mr.  Stevenson.  We  received  another  one  in  the  fall  of  that  year, 
requesting  another  ad.  We  had  changed  the  policy  of  our  organ- 
ization between  the  time  of  the  ad  I  placed  in  July  and  the  fall  of 
that  year,  in  which  we  required  all  solicitations  for  advertising  to 
clear  the  Better  Business  Bureau.  We  so  stated  or  I  so  stated  to  the 
gentleman  on  the  phone,  that  it  was  necessary  for  that  to  happen. 

That  was  the  last  of  the  phone  conversation,  and  about  a  week  later 
we  received  a  galley  proof  and  started  receiving  bills. 

jMr.  Kennedy.  You  mean  you  told  him  you  were  not  going  to  take 
an  ad  and  he  sent  you  in  a  bill  anyway  ? 

Mr.  STE^'ENS0N.  That  is  right. 

Mr.  Kennedy.  That  was  one  of  the  specific  practices  that  was  ruled 
on  by  the  Federal  Trade  Commission,  Mr.  Chairman.  The  Federal 
Trade  Commission  found  that  this  organization,  the  Trade  Union 
Courier,  was  billing  individuals,  even  though  they  did  not  take  an  ad. 

You  found  that  this  happened  to  you  in  1956  ^ 

Mr.  Stevenson.  Yes,  sir. 

Mr.  Kennedy.  You  told  them  you  did  not  want  an  ad  and  they 
sent  a  bill  in  anyway  ? 

Mr.  Stevenson.  That  is  right. 

Mr.  Kennedy.  Did  vou  hear  from  them  again  after  they  sent  the 
bill  in?  "  ^       ^ 

Mr.  Stem3NSOn.  Quite  a  few  times  we  received  quite  a  few  letters 
and  statements,  and  received  some  phone  calls  in  regard  to  the  pay- 
ment of  the  bill.  .  •  1  1  • 

Mr.  Kennedy.  Did  you  have  a  telephone  conversation  with  him  tliat 
you  recorded  yourself  ? 

Mr.  Steatenson.  Yes,  sir. 

Mr.  Kennedy.  Did  vou  have  such  a  telephone  conversation  ( 


11838  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Stevenson.  Yes,  sir. 

Mr.  Kennedy.  Is  this  when  they  called  back  and  said  they  wanted 
their  money  ? 

Mr.  Stevenson.  Yes,  sir. 

Mr.  Kennedy.  You  have  turned  that  over  to  the  committee  ? 

Mr.  Stevenson.  Yes,  sir. 

Mr.  Kennedy.  All  right. 

The  Chairman.  Has  that  been  transcribed  ? 

Mr.  Kennedy.  Yes. 

The  Chairman.  Do  you  have  a  transcription  of  it  ? 

Mr.  Stevenson.  I  turned  it  over  to  the  committee. 

The  Chairman.  Would  you  check  this  document  and  see  if  it  is  an 
accurate  transcription  of  the  recording  you  made  ? 

(The  document  was  handed  to  the  witness.) 

The  Chairman.  That  is  a  recording  of  the  time  you  were  called 
and  asked  to  pay  the  bill. 

Mr.  Stevenson.  It  appears  to  be  the  correct  item,  sir.  I  have  not 
checked  the  whole  thing. 

The  Chairman.  Well,  look  at  it  imtil  you  are  satisfied. 

Mr.  Stevenson.  Yes,  this  is  it. 

The  Chairman.  The  staff  has  the  machine  set  up  and  the  recording. 

You  follow  it  as  it  is  played  and  testify  as  to  the  accuracy  of  it. 
It  may  be  printed  into  the  record  at  this  point  if  you  say  it  is 
accurate. 

All  right,  proceed. 

( A  tape  recording  was  played  at  this  point.) 

Mr.  Kennedy.  Mr.  Stevenson • 

The  Chairman.  Did  you  follow  the  record  as  it  was  played  ? 

Mr.  Stevenson.  I  did,  sir. 

The  Chairman.  Is  the  transcription  that  you  have  before  you 
accurate  ? 

Mr.  Stevenson.  Yes,  sir. 

The  Chairman.  It  may  be  printed  in  the  record  at  this  point. 

(The  transcription  referred  to  follows :) 

Man's  Voice.  Hello. 
Woman's  Voice.  Mr.  Stevenson? 
Man's  Voice.  Speaking. 
Woman's  Voice.  One  moment  please,  sir. 
One  moment  for  Mr.  Koota,  sir ;  they're  trying  to  get  him. 
( Inaudible  voices  in  background. ) 

Woman's  Voice.  Thank  you,  Mr.  Koota.    One  moment  please. 
Mr.  Stevenson.  Ah — what  company  is  this,  ma'am? 
Woman's  Voice.  Oh,  it's  personal  call,  sir. 

Mr.  Stevenson.  Oh — oh,  O.  K.  ^ 

(Mr.  Stevenson  away  from  phone  :  "Mr.  Koota's  a  personal  call.   ) 
(Inaudible  voices  in  background  on  receiving  end.) 
Man's  Voice.  Yeah. 
Woman's  Voice.   (Inaudible.) 
Man's  Voice.  Hello. 
Mr.  Stevenson.  Hello. 
Man's  Voice.  Mr.  Stevenson? 

Mr.  Stevenson.  Yes,  sir.  .     ,       . 

Man's   Voice.  Stevenson— Dave   Koota,   with   the  Courier  of  the   American 
Federation  of  Labor  unions.    How  are  you,  Mr.  Stevenson? 
Mr.  Stevenson.  Oh,  fine.    And  you,  sir? 
Mr.  Koota.  Good.    And  how  are  things  coming  along? 
Mr.  Stevenson.  Oh,  pretty  good. 
Mr.  Koota.  Anything  I  can  do  for  you? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11839 

Mr.  Stevenson.  No.    I  think  everything;:  is  under  control. 

Mr.  K00T4.  Fine.  I'll  tell  you  what  I  called  you  for,  Stevenson.  I've  been 
away  for  a  few  months.  I  just  happened  to  get  back  and  they  tell  me  that  little 
ad  you  took  in  November,  Stevenson,  you  haven't  paid  for  as  yet. 

Mr.  Stevenson.  Uh  uh. 

Mr.  KooTA.  What  did  you  do,  overlook  itV 

Mr.  Stevenson.  No,  we  haven't  overlooked  it. 

Mr.  KooTA.  Uh  uh. 

Mr.  Stevenson.  Ah — had  consultation  with  the  local  Federation  of  Labor, 
also  Better  Business  Bureau,  and  the  Federal  Trade  Commission. 

Mr.  KooTA.  Uh  uh. 

Mr.  Stevenson.  And — ah — I  think  we're  going  to  continue  to  overlook  it. 

Mr.  KooTA.  You  are,  huh  'i 

Mr.  Stevenson.  Yes,  sir. 

Mr.  KooTA.  I  don't  think  it's  fair,  Stevenson.  Whatever  they  told  you  was 
just  a  lot  of  lies,  that's  all.  What  could  they  have  told  you,  Stevenson,  that 
could  prevent  you  from  sending  in  the  money?  Something  that  you  have 
obligated  yourself  for.  I  mean  it  isn't  just  right  for  you  to  tell  me  those  things. 
You  have  to  know  a  little  more,  Stevenson.  What  could  they  have  told  you, 
Stevenson  ? 

Mr.  Stevenson.  Well,  we  just  read  the  Federal  Trade  Commission  report  is  all. 

Mr.  KooTA.  Right.     Did  you  read  the  Federal  Trade  Commission  report? 

Mr.  Stevenson.  Yes,  sir. 

Mr.  KooTA.  Did  you  understand  it  thoroughly? 

Mr.  Stevenson.  Oh,  I  think  so. 

Mr.  Koota.  All  right :  now,  if  you  understood  it  thoroughly  then  you'd  know 
one  thing,  Stevenson,  that  we  for  a  period  of  5  years  went  on  trial  with  that 
case  and  at  the  end  of  the  case  they  said  that  the  Trade  Union  Courier  is  offi- 
cially endorsed  by  the  American  Federation  of  Labor,  and  the  Trade  Union 
Courier  is  the  finest  labor  paper  in  the  world.  That  was  the  decision  given  by 
the  Federal  Trade  Commission.  The  American  Federation  of  Labor  right  after 
that  picked  it  up  and  appealed  the  case.  They  didn't  like  the  decision  that  was 
handed  down,  and  it  was  kicked  around  for  2  more  years  in  order  to  give  the 
American  Federation  of  Labor  some  hand — something — they  had  to  give  them 
something  so  they  could  drop  the  matter  completely.  So  they  said  the  Trade 
Union  Courier  is  to  stop  saying  that  they  are  the  American  Federation  of  Labor. 

Now,  Stevenson,  it's  only  a  little  bit  of  a  technicality  that  don't  mean  anything 
at  all.  There  isn't  any  newspaper  in  this  world — there  isn't  one  in  this  world 
that  is  put  out  by  the  American  Federation  of  Labor.  Did  you  know  that, 
Stevenson? 

Mr.  Stevenson.  No,  sir. 

Mr.  KooTA.  There  isn't  a  paper  in  the  world  that's  put  out  by  the  American 
Federation  of  Labor.  Every  paper  that's  put  out  is  endorsed  by  the  American 
Federation  of  Labor  unions.  That's  what  it  is.  You've  probaljly  had  hundreds 
of  people  come  to  you,  your  local  people,  and  say,  "We're  the  American  Federa- 
tion of  Labor."     They  are  completely  wrong,  because  nobody  is  the  A.  F.  of  L. 

Thus,  when  I  talk  to  you,  Stevenson,  I  tell  you  this  is  the  Trade  Union  Courier, 
American  Federation  of  Labor  unions.  I  do  not  say  I'm  the  American  Federa- 
tion of  Labor. 

So,  what  they  did  is,  they  picked  up  that  little  technicality,  because  nobody 
is  the  A.  F.  of  L.  and  they  said — and  in  the  final  analysis  on  the  appeal,  the 
American  Federation  of  Labor  says  to  the  Trade  Commission  that  we  cannot 
say  we're  the  A.  F.  of  L.  which  we  have  never  done  before.  We've  been  publish- 
ing a  paper  for  20  years,  Stevenson,  and  the  paper  will  be  published  long  after 
you  and  I  are  gone  because  it  is  the  finest  labor  paper  in  the  world.  So  every- 
thing— when  you  say  to  me  Federal  Trade  Commission — if  you  read  it  properly 
you  can  see,  Stevenson,  that  we  have  been  harassed  for  fi  years  at  a  tremendous 
cost  to  fight  for  something  which  we  thought  was  absolutely  right  and  we  came 
out  on  top  in  the  clear.     That's  what  it  amounts  to. 

These  things  are  being  misinterpreted  all  the  way  through.  Every  one  of  them, 
because  what  they're  trying  to  do  is  this.  After  all,  Stevenson,  any  organization 
that  becomes  big  makes  a  lot  of  enemies.  I  don't  care  who  it  is  or  what  it  is.  As 
you  grow  you  make  enemies,  because  the  little  fellow  begins  t'O  look  upon  you 
with  scorn,  and  they  say,  "These  guys,  damn  the  guy.  who  the  hell  are  they  that 
they  should  be  so  big."    And  they  get  together  and  they  try  to  figure  out,  "Well, 

21243 — 58— pt.  .31 5 


11840  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

how  can  we  hurt  them?"  And  they  go  and  use  every  conceivable  method  to  hurt 
you. 

It'll  happen  to  the  biggest  companies.  But  yet  they  keep  on  going;  they  push 
those  things  aside.  Sure,  Stevenson,  we've  lost  a  few  of  our  friends.  Mind  you, 
I  only  say  a  few. 

Mr.  Stevenson.  Uh  uh. 

Mr.  KooTA.  People  that  just  didn't  go  further  but  just  simply  were  being  in- 
fluenced. But  I'll  tell  you  this,  Stevenson,  that  99  percent  of  our  people  have 
stuck  with  us  because  they  know  exactly  what  it  means.  So  when  some  busi- 
ness manager  or  some  newspaper  salesman  comes  to  you  from  Columbus  and 
tells  you  not  to  do  anything  with  the  Trade  Union  Courier  and  flaunts  that 
Trade — Federal  Trade  Commission  decision  in  front  of  your  place  and  goes 
ahead  and  makes  you  misunderstand  the  whole  thing,  here  is  the  motive : 
Either  the  business  manager  has  a  piece  of  the  newspaper  and  wants  to  be 
sure  that  he  gets  it  all  for  himself,  or  some  salesman  who  don't  care  what 
methods  he  uses,  comes  along  and  says,  "Why  give  it  to  the  Trade  Union 
Courier?  They're  just  a  lot  of  phonies.  Here's  the — here's  the  decision  by 
the  Trade — by  the  Federal  Trade  Commission."  And  he  tries  to  influence  you 
to  give  it  to  him. 

But  if  we  weren't  as  big  as  we  are,  Stevenson,  would  the  American  Federa- 
tion of  Labor  go  through  so  much  time  and  have  such  prominent  men  go  on  the 
stand  to  testify  against  the  Trade  Union  Courier  if  we  weren't  something  of 
importance,  Mr.  Stevenson? 

Mr.  Stevenson.  Well,  I  couldn't  answer  that,  be • 

Mr.  KooTA.  Seriously,  would  they  take  their  time  out  and  bother  and  take  big 
men  that  have  traveled  all  over  the  country  to  appear  as  witnesses  unless  we 
were  something  of  importance,  Stevenson?  I  mean,  wouldn't  your  commonsense 
tell  you  that  we  had  to  be  important  for  them  to  do  something  like  that? 

Mr.  Stevenson.  Well,  if  somebody  had  a  thorn  in  their  side,  they  quite  pos- 
sibly might  do  all  that. 

Mr.  KooTA.  Not  a  thorn  in  their  side.  The  only  thorn  in  their  side  is  one 
thing — that  a  lot  of  these  business  managers  in  some  of  these  cities  have  had  a 
good  thing  for  many  years.  They've  had  a  piece  of  these  newpa — you  probably — 
what  you  read  in  the  paper  today,  Stevenson,  about  all  this  racketeering  in 
labor.  Sooner  or  later  other  things  will  be  coming  up,  but  you'll  find  that  these 
business  managers  have  had  a  good  piece  of  that  paper  for  years  and  have 
made  a  hell  of  a  lot  of  money  with  it  and  they  never  like  to  have  anybody  else 
come  in  that's  going  to  spoil  their  thing.     That's  what  it  is.   Stevenson. 

Mr.  Stevenson.  Well,  that's  the  way  it's  going  to  be  with  us. 

Mr.  KooTA.  What's  that? 

Mr.  Stevenson.  Huh?    Nonpayment. 

Mr.  KooTA.  You're  not  going  to  pay  for  it? 

Mr.  Stevenson.  No,  sir. 

Mr.  KooTA.  O.  K.,  my  friend.    Thanks  for  your  time. 

Mr.  Stevenson.  Thank  you. 

Mr.  Kennedy.  This  was  a  bill  that  was  sent  into  you  ? 

Mr.  Stevenson.  That  was  on  the  one  that  we  did  not  give  them  the 
order. 

Mr.  Kennedy.  They  sent  the  bill  in  anyway  ? 

Mr.  Stevenson.  Yes,  sir. 

Mr.  Kennedy.  This  conversation  came  after  they  had  written  a 
number  of  letters  ? 

Mr.  Stevenson.  That  is  ri^ht. 

Mr.  Kennedy.  While  Mr.  Stevenson  is  still  here,  Mr.  Chairman,  I 
wonld  like  to  call  Mr.  Koota. 

Tlie  Chairman.  Come  forward,  Mr.  Koota. 

You  do  solemnlv  swear  the  evidence  you  shall  ^ive  before  this  Sen- 
ate select  committee  shall  be  the  truth,  the  whole  truth,  and  nothing 
but  the  truth,  so  help  you  God  ? 

iNIr.  KooT.A.  I  do. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11841 

TESTIMONY  OF  DAVID  KOOTA,  ACCOMPANIED  BY  COUNSEL, 

JEROME  LEWIS 

The  Chairman.  State  your  name,  your  place  of  residence,  and  your 
business  or  occu])ation. 

Mv.  KooTA.  David  Koota,  1615  Avenue  I,  Brooklyn,  N.  Y.,  salesman 
for  the  Trade  I'nion  Courier. 

The  CiiAimiAx.  You  are  what? 

jNIr.  KooTA.  A  salesman  for  the  Trade  Union  Courier. 

The  Chairmax.  Do  you  have  counsel  with  you? 

Mr.  KooTA.  Yes,  sir. 

The  CiiAiRMAX.  Identify  yourself. 

Mr.  Leavis.  Jerome  Lewis,  66  Court  Street,  Brooklyn,  N.  Y. 

Mr.  Kennedy.  How  long  have  you  worked  for  the  Trade  Union 
Courier  ? 

Mr.  KooTA.  iVpproximately  about  14  years. 

Mr.  Kennedy.  What  are  the  financial  arrangements  that  you  have 
with  them  ? 

Mr.  KooTA.  30  percent  commission. 

Mr.  Kennedy.  Of  all  the  ads? 

Mr.  Koota.  Of  everything  I  sell. 

Mr.  Kennedy.  Do  you  do  it  all  by  telephone  calls  ? 

Mr.  KooTA.  Most  of  it ;  yes. 

Mr.  Kennedy.  Most  all  of  it? 

Mr.  KooTA.  Yes. 

Mr.  Kennedy.  Does  it  happen  very  often,  Mr.  Koota,  that  you  put 
in  ads  without  getting  approval  of  the  individual  as  to  whether  he 
wants  an  ad  or  not  ? 

]Mr.  KooTA.  I  never  do. 

Mr.  Kennedy.  Mr.  Stevenson  says  that  that  is  what  happened  in 
this  case. 

Mr.  KooTA.  I  can  remember  Stevenson,  he  is  a  fine  gentleman  and  I 
don't  want  to  get  into  a  discussion  with  him.  There  might  have  been 
a  misunderstanding.  But  I  never  send  out  an  authorization  unless 
people  have  authorized  to  buy  it.  They  never  get  a  confirmation  oth- 
erwise. 

Mr.  Kennedy.  Do  you  say  Mr.  Stevenson  is  mistaken? 

Mr.  KooTA.  I  wouldn't  say  he  was  mistaken.  There  might  be  a 
misunderstanding  somewhere,  but  it  was  never  sent  out  unless  it  was 
authorized. 

Mr.  Kennedy.  How  could  it  be  a  misunderstanding  without  some- 
body being  mistaken  on  it  ? 

Mr.  KooTA.  I  don't  know.  Sometimes  people  misunderstand  one 
another. 

Mr.  Kennedy.  Did  you  misunderstand  him,  Mr.  Stevenson? 

]\Ir.  Stevenson.  Tlie  onl}'  thing  I  would  say  is  that  I  did  not  place 
an  order. 

Mr.  Kennedy.  There  was  no  question  that  you  did  not  place  an 
order  ? 

]Mr.  Stevenson.  I  did  not  place  one. 

Mr.  Kennedy.  That  was  because  you  had  talked  with  the  better 
business  bureau? 


11842  IMPROPER    ACTIVITIES    EST    THE    LABOR    FIELD 

Mr.  Stevenson.  We  had  had  a  policy  change  in  our  corporation 
in  which  all  advertisements  had  to  be  approved  by  the  better  business 
bureau.     We  were  following  that. 

Mr.  Kennedy.  Mr.  Koota  ? 

Mr.  KooTA.  I  can  only  tell  you  this,  Mr.  Kennedy.  I  never  send 
any  confirmation  out  unless  I  get  a  definite  O.  K.  from  a  person. 

Mr.  IvENNEDY.  Mr.  Koota,  did  your  brother  work  for  the  Trade 
Union  Courier? 

Mr,  KooTA.  Yes. 

Mr.  Kennedy.  What  was  his  name  ? 

Mr.  KooTA.  Eichard  Koota. 

Mr.  Kennedy.  How  long  has  he  worked  for  the  Trade  Union 
Courier  ? 

Mr.  KooTA.  Well,  he  started  there  about  the  same  time  I  did.  I 
know  he  left  several  times  and  came  back.  I  don't  know  exactly  what 
the  times  would  be. 

Mr.  Kennedy.  Had  you  both  been  in  the  penitentiary  for  swin- 
dling, just  prior  to  the  time  you  came  to  work  for  the  Trade  Union 
Courier  ? 

Mr.  KoOTA.  I  can't  speak  for  him.     I  was. 

Mr.  Kennedy.  And  don't  you  know  that  he  was  also,  that  he  came 
out  of  the  penitentiary  to  go  to  work  for  the  Trade  Union  Courier? 

Mr.  KooTA.  Yes. 

Mr.  Kennedy.  Is  he  still  working  for  the  Trade  Union  Courier  ? 

Mr.  KooTA.  No,  sir. 

Mr.  Kennedy.  Where  is  he  working  now  ? 

Mr.  KooTA,  I  don't  know. 

Mr.  Kennedy.  Does  he  also  use  the  name  Rogers  ? 

Mr.  KoOTA.  Yes,  sir. 

Mr.  Kennedy.  Isn't  he  working  for  the  International  Labor  Eecord 
now? 

Mr.  KooTA.  I  wouldn't  know. 

Mr.  Kennedy.  Didn't  he  found  that  paper,  the  International  Labor 
Eecord  ? 

Mr.  KooTA.  Did  he  ?    I  wouldn't  know. 

Mr.  Kennedy.  But  he  does  use  the  name  Eogers ;  does  he  not  ? 

Mr.  KooTA.  Yes.   That  I  know. 

Mr.  Kennedy.  Would  you  recognize  his  voice,  Mr.  Koota,  if  you 
heard  it  ? 

Mr.  KooTA.  Do  you  mean  on  a  recording  ? 

Mr.  Kennedy.  Yes. 

Mr.  KooTA.  I  may  not. 

Mr.  Kennedy.  Mr.  Chairman,  we  have  learned  or  ascertained  that 
his  brother  is  now  working  for  the  International  Labor  Eocord, 
which  does  not  have  anything  to  do  directly  with  the  Trade  Union 
Courier.  But  Mr.  Koota's  brother  did  work  for  the  Trade  Union 
Courier,  and  there  was  another  conversation  that  Mr.  Stevenson  had 
with  the  other  Mr.  Koota.  We  have  been  looking  into  the  operation 
of  some  of  these  papers  and  magazines  generally,  and  T  think  it  would 
be  helpful  to  understand  the  whole  problem  if  we  also  played  this 
recording  that  Mr.  Stevenson  took. 

The  Chairman.  Do  you  have  a  transcription  of  the  recording? 

Mr.  Kennedy.  Yes,  sir ;  we  do. 


IMPROPER    ACTIVITIES   IN    THE    LABOR    FIELD  11843 

The  Chairman.  Mr.  Stevenson,  you  follow  the  transcript  as  the 
recording  is  played.  You  can  verify  at  the  conclusion  of  it  whether 
it  is  accurate.    That  is,  whether  the  transcription  is  accurate. 

All  right,  proceed  with  the  record. 

(At  this  point,  a  tape  recording  was  played.) 

The  Chairivian.  All  right,  Mr.  Stevenson,  do  you  recognize  this 
transcription  as  the  transcription  of  the  recording  you  had  with  Mr. 
Rogers  ? 

Mr.  Ste\t.nson.  Yes,  sir. 

The  Chairman.  It  may  be  printed  in  the  record  at  this  point. 

(The  document  referred  to  follows :) 

Man's  Voice.  This  is  Mr.  Rogers  with  the  International  Labor  Record,  the 
American  Federation  of  Labor.     How  are  you. 

Mr.  Stkvknson.  Fine.     And  you? 

Mr.  Rogers.  I  called  to  thank  you  very  much  for  the  help  you  have  been  giving 
us  in  the  A.  F.  of  L.     Can  I  do  something  for  you? 

Mr.  Stevenson.  No,  sir ;  I  don't  believe  so. 

Mr.  Rogers.  Well,  I  don't  mind  telling  you  the  records  show  that  you  been  a 
pretty  good  friend  of  ours. 

Mr.  Stevenson.  Umhuh. 

Mr.  Rogers.  I  have  been  through  your  neighborhood  here  about  2  weeks  ago 
and  I  talked  to  some  of  the  boys  out  there  and  they  hand  me  a  report  that  you 
are  regarded  as  a  good  friend  of  organized  labor.    Did  you  know  that? 

Mr.  Stevenson.  No,  sir ;  I  did  not. 

Mr.  Rogers.  Not  that's  its  going  to  make  any  money  for  you  but  (inaudible). 

Mr.  Stevenson.  VTell,  thank  you. 

Mr.  Rogers.  May  I — may  I  kind  of  tell  you  this,  Mr.  Stevenson,  that  if  there 
isn't  anything  that  I  can  do  for  you  today,  would  you  please  just  accept  the  in- 
vitation that  any  day,  week,  month  that  there's  anything  you  ever  need  or  want, 
would  you  just  ask  for  it? 

Mr.  Stevenson.  All  right,  sir.     Will  do. 

IMr.  Rogers.  Mr.  Stevenson,  I  don't  know  whether  you  happened  to  see  this  in 
the  papers,  but  this  happened  just  the  other  day.  We  passed  a  resolution  down 
at  headquarters  that  we  will  not  permit  any  more  strikes  throughout  the  United 
States  of  America.     What  do  you  think  about  that? 

Mr.  Stevenson.  Aw — that  would  be  interesting  to  see.  Westinghouse  has  got 
a  nice  one  here  in  town  right  now. 

Mr.  Rogers.  What's  that? 

Mr.  Stevenson.  Westinghouse  has  a  nice  one  here  in  town  right  now. 

Mr.  Rogers.  Oh,  yes.  Now  that's  what  brought  it  about.  We're  having  too 
many  strikes  and  down  at  the  meeting  just — this  happened  just  the  other  day. 
It  was  decided  that  we  discontinue  strikes  throughout  the  United  States.  The 
policy  now  will  be :  We're  going  to  make  an  appeal  to  the  workers  that  they  give 
you  fellows  an  honest  day's  work  for  an  honest  day's  pay,  and  we're  going  to 
ask  you  people,  the  bosses,  to  respect  the  rights  of  the  workers.  That's  only 
fair. 

Mr.  Stevenson.  Umhuh. 

Mr.  Rogers.  And  in  the  event  of  a  disagreement  we're  going  to  adopt  a  policy 
of  arbitration,  mediation  and  conciliation.     No  more  walking  off  the  job. 

Mr.  Stevenson.  I  see. 

Mr.  Rogers.  Mr.  Stevenson,  we're  spending  $2^^  million  to  put  this  thing 
over.     We  don't  mind  spending  the  2i/^  because  we'll  get  it  back 

Mr.  Stevenson.  Umhuh. 

Mr.  Rogers.  And  before  we  get  it  back  you  people  have  got  to  make  it  first. 

Mr.  Stevensons  Umhuh. 

Mr.  Rogers.  But  I  assure  you,  Mr.  Stevenson,  that  I'm  going  to  quote  now 
from  one  of  your  top  men  in  America.  Mr.  Bernard  Baruch,  who  claims  that  due 
to  our  program  the  next  5  years  will  bring  more  prosperity  than  we've  ever  seen 
before  in  the  history  of  the  country. 

Mr.  Stevenson.  Humm. 

Mr.  Rogers.  And  I'm  proud  to  say  that  I'm  part  of  the  movement. 

Mr.  Stevenson.  Umhuh. 

Mr.  Rogers.  Mr.  Stevenson,  there  isn't  any  question  In  our  mind  that  if  we 
can  get  the  men  to  work,  let's  say  diligently,  keep  production  going  smoothly, 


11844  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

the  time  will  come  when  we  can  begin  to  lower  the  cost  of  production,  and 
you  people  want  that  just  as  much  as  we  do.  Mr.  Stevenson,  in  order  to  do  the 
job  we're  contacting  both  organizations,  A.  F.  of  L.-CIO,  and  we're  going  to 
take  the  International  Labor  Record.  The  paper  will  contain  the  editorials,  the 
copy  which  will  explain  to  the  workers  what  they  must  do  in  order  to  get  rid 
of  strikes  in  America. 

Mr.  Stevenson.  Umhuh. 

Mr.  Rogers.  In  this  paper,  Bill,  we've  prepared  a  piece  of  copy  for  you. 
Underneath  the  copy  we  do  not  show  your  name.    Can  you  hear  me? 

Mr.  Stevenson.  Yes,  sir. 

Mr.  Rogers.  Which  means  that  you're  not  going  to  make  a  red  cent  out  of 
this.  Bill,  but  we  ask  you  to  do  it  for  two  reasons :  No.  1,  do  it  because  you're 
a  good  friend  of  ours;  No.  2,  you  fellows  don't  want  strikes,  do  you? 

Mr.  Stevenson.  Nope. 

Mr.  Rogers.  Because  I — I  assure  you,  Bill,  that  if  our  program  is  successful 
by  85  percent,  I'm  almost  positive  that  you  and  I  can  retire  within  a  period  of 
5  years  from  today. 

Mr.  Stevenson.  That  sounds  good. 

Mr.  Rogers.  Let  me  ask  you  this,  Bill.  How  come  that  you  never  called 
us  for  any  favors? 

Mr.  Stevenson.  I  haven't  felt  it  was  necessary. 

Mr.  Rogers.  Well,  I'm  glad  to  hear  that.  May  you  never  call  me,  Mr.  Steven- 
son  

Mr.  Stevenson.  Umhuh. 

Mr.  Rogers.  But  may  I  tell  you  this :  that  if  the  time  comes  and  you  have  an 
occasion  to  call  me,  if  I  do  only  half  as  well  for  you  as  I've  done  for  my  friends 
throughout  the  United  States,  vrhen  the  Christmas  holidays  come  around 
don't  forget  I  smoke  good  cigars. 

Mr.  Stevenson.    (Laughter)  All  right. 

Mr.  Rogers.  Let  me  ask  you  this.  Bill,  how  many  people  now  do  you  employ? 

Mr.  Stevenson.  Ah — I  don't  know.     This  is  our  peak  period 

Mr.  Rogers.  Oh. 

Mr.  Stevenson.  And  I'm  not  sure  what  that  is  right  now. 

Mr.  Rogers.  Just  about  roughly.  I  just  want  to  see  whether  it  coincides 
with  my  figures. 

Mr.  Stevenson.  Ah,  around  a  hundred. 

Mr.  Rogers.  Well,  the  boys  gave  me  a  hundred  and  forty.  Where  did  they 
get  that  from? 

Mr.  Stevenson.  Well,  that's — that  might  be,  counting  everybody  else. 

Mr.  Rogers.  AVell,  I  was  out  in  Columbus,  that's  when  I  was  out  there. 

Mr.  Stevenson.  T'nhuh. 

Mr.  Rogers.  But  one  thing  I  am  happy  to  tell  you,  Bill,  that  the  boys  out 
there  gave  me  a  report  saying  that  Mr.  William  A.  Stevenson  is  a  recognized 
friend  of  organized  labor.     Keep  it  that  way  for  5  more  years,  Mr.  Stevenson. 

Mr.  Stevenson.  Well,  now,  wait  a  minute.     You  got  the  wrong  Stevenson. 

Mr.  Rogers.  AVhy? 

Mr.  Stevenson.  Mr.  W.  A.  Stevenson  died  a  year  ago  last  April. 

Mr.  Rogers.  Yeah.     This  is  Bill,  isn't  it? 

Mr.  Stevenson.  No.     Bill  died  a  year  ago  in  April,  and  a 

Mr.  Rogers.  This  is  Mr.  Stevenson? 

Mr.  Stevenson.  My  name  is  Stevenson  also. 

Mr.  Rogers.  Listen,  Mr.  Stevenson,  let  me  give  you  the  prices  on  this.  Do  the 
best  yon  can,  will  you  please? 

Mr.  Stevenson.  Well  the — we've  got  a — the  board  of  directors  here  has  issued 
a  policy  that  all  advertising  that  we  do  has  to  be  cleared  by  them. 

Mr.  Rogers.  By  whom? 

Mr.  Stevensox.  Our  board  of  directors.  So  if  you  want  to  send  in  a  request,  a 
written  request  outlining  everything,  I'm  sure  we  can  take  it  up  with  them  and 
see  what  they  say. 

Mr.  Rogers.  Let  mo  ask  you  this,  Mr.  Stevenson. 

Mr.  Stevenson.  Yes. 

Mr.  Roger  :.  Can  you  do  anything  by  yourself? 

Mr.  Stevenson.  No,  sir. 

Mr.  Rogers.  You  can't. 

Mr.  Stevenson.  No,  sir. 

Mr.  Rogers.  Who  is  the  man  that  knows  the  Courier,  because  I  do  happen  to 
know  that — that  you  fellows  placed  an  ad  with  the  Trade  Union  Courier. 


IMPROPER    ACXniTIKS    IN    THE    LABOR    FIELD  11845 

Mr.  Stevensox.  Ah — Mr.  Willinms. 
Mr.  Rogers.  Oh,  thi.s  is  Mr.  Williams. 
Mr.  Stevensox.  Mr.  Williams  or  Mr.  Wycliff. 

^Ir.  Rogers.  Oh,  well,  I  didn't  know  that.     Is  Mr.  Williams  there  now? 
Mr.  Stevensox.  No,  he  is  uot.     They  are  both  out;  they  will  both  be  back  in 
Monday. 

Mr.  Rogers.  That's  Mr.  Williams  and  who? 
Mr.  Stevexsox.  Wycliff. 

Mr.  Rogers.  Thanks  very  much,  Mr.  Stevenson. 
Mr.  Stevexsox.  Thank  you. 

The  CiiAiKMAX.  Mr.  Koota,  did  you  recognize  his  voice? 

Mr.  KooTA.  I  can  definitely  say  it  is  not  mine,  because  I  never  use 
terms  of  that  kind. 

The  CHAiRifAX.  It  wasn't  alleged  to  be  yours. 

Mr.  Koota.  I  beg  your  pardon  ? 

The  CiiAiRMAx.  It  is  not  alleged  to  be  your  voice. 

Mr.  Kooi'A.  I  really  would  not  know. 

The  CiiAiRMAX.  You  didn't  go  under  the  name  of  Rogers? 

Mr.  KooTA.  I  did  for  a  short  period  of  time. 

The  Chairman.  You  did  ? 

Mr.  KooTA.  Yes,  sir. 

The  Chairmax.  Well,  at  this  particular  time,  were  you  going  under 
the  name  of  Kogers? 

Mr.  KooTA.  Xo,  sir. 

The  CHAiR:\rAX.  Do  you  recognize  your  brother's  voice  in  that  much 
conversation  ? 

Mr.  KooTA.  It  could  sound  possible.  From  this  telephone  record- 
ing here 

The  Chairman.  What  do  you  mean  it  could  sound  possible  ? 

Mr.  KoOTA.  It  sounds  familiar.  That  is  about  all.  But  I  could 
not  say  definitely. 

The  Chairman.  As  whose  voice? 

Mr.  KooTA.  It  might  be  my  brother's  voice  and  it  might  not.  I  can't 
be  too  sure. 

The  Chairman.  AVell,  I  will  not  press  you  any  further. 

Proceed. 

Mr.  Kennedy.  Mr.  Chairman,  I  might  say  that  Mr.  Dunne  can 
offer  some  enlightenment  on  the  question  of  whose  voice  this  is. 

TESTIMONY  OF  EOBERT  DUNNE— Resumed 

Mr.  Dunne.  We  obtained  information  from  District  Attorney 
Hogan's  office  in  New  York  County.  They  were  conducting  an  in- 
vestigation of  tlie  International  Labor  Record  in  New  York  City,  and 
they  informed  me  that  Mr.  Rogers  operating  out  of  that  office  was 
Dick  Koota. 

The  Chairman.  All  right. 

Mr.  Kennedy.  That  is  all  of  Mr.  Stevenson. 

The  Chairman.  Thank  you  very  much,  Mr.  Stevenson. 

TESTIMONY  OF  DAVID  KOOTA— Resumed 

Mr.  Kennedy.  Mr.  Koota,  did  you  know  when  you  contacted  Mr. 
Stevenson  that  his  employees  were  not  even  members  of  a  labor  organ- 
ization ? 

]Mr.  KooTA.  I  would  not  remember  that. 


11846  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy,  You  never  checked  out  those  things  at  all? 

Mr.  KooTA.  No,  sir. 

Mr.  IvENNEDY.  Did  you  tell  these  firms  when  you  called  them  that 
you  understood  that  they  were  good  friends  of  the  A.  F.  of  L.-CIO  ? 

Mr.  KoOTA.  I  might  have.     I  don't  remember  whether  I  did  or  not. 

Mr.  Kennedy.  Wliat  information  would  you  have  for  making  such 
a  statement  ? 

Mr.  KooTA.  I  don't  quite  follow  you  on  that. 

Mr.  Kennedy.  Wliat  information  would  you  have  when  you  told 
these  individuals  or  these  officers  in  these  firms  that  you  understood 
that  they  were  good  friends  of  labor  unions  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Kennedy.  I  think  he  knows  that,  counsel. 

Mr.  Lewis.  Except  that  you  are  misquoting  what  he  said.  He  said 
he  doesn't  remember  making  the  statement. 

Mr.  KJENNEDY.  I  am  just  asking  a  question. 

Mr.  Lewis.  He  said  a  moment  ago  he  doesn't  remember  making  the 
statement,  and  now  you  have  turned  around  and  asked  on  what  basis 
he  made  that  statement. 

Mr.  Kennedy.  Could  I  have  the  answer  read  ? 

(The  pending  answer  was  read  by  the  reporter,  as  requested.) 

The  Chairman.  What  is  the  question  ? 

Mr.  Kennedy.  Did  you  in  fact  tell  them  that  you  understood  they 
were  good  friends  of  the  AFI^-CIO  ? 

Mr.  KooTA.  I  don't  remember  saying  it. 

Mr.  Kennedy.  Do  you  deny  that  you  said  it  ? 

Mr.  Koota.  I  wouldn't  deny  that  I  said  it.    I  just  don't  think 

Mr.  Kennedy.  Do  you  think  it  is  possible  that  you  said  it  ? 

Mr.  KooTA.  It  might  be  possible.    I  don't  know. 

Mr.  Kennedy.  How  would  it  be  possible  for  you  to  say  it  if  you 
didn't  even  check  to  fijid  out  if  their  emploj^ees  were  members  of  labor 
organizations  ? 

Mr.  Koota.  A  lot  of  people  that  I  called  were  people  that  I  have 
gotten  from  other  labor  papers.  In  other  words,  I  at  one  time  got 
hold  of  a  paper  from  Columbus,  Ohio,  a  labor  paper  there,  and  I 
might  have  called  the  people  from  that  labor  paper.  They  took  an 
ad  in  the  local  labor  paper  there,  so  I  assumed  that  they  were  friendly 
toward  labor.     That  is  all. 

Mr.  Kennedy.  Did  you  tell  people  that  you  had  friends  in  the  right 
places  ?    Did  you  tell  people  things  like  that  ? 

Mr.  KooTA.  I  don't  ever  remember  saying  that. 

Mr.  Kennedy.  Do  you  deny  that  you  have  said  that  ? 

Mr.  KooTA.  I  wouldn't  deny  it. 

Mr.  Kennedy.  Mr.  Chairman,  we  have  another  recording  here  which 
Mr.  Dunne  will  introduce,  based  on  an  affidavit.  Again,  these  are  re- 
cordings taken  by  the  recipient  of  the  telephone  calls. 

Here  is  an  affidavit  from  the  individual  who  got  the  call,  INIr. 
Chairman. 

The  Chairman.  This  affidavit  is  from  Mr.  Youngblood. 

Mr.  Kennedy.  He  is  witli  the  Southern  Steam  Co.,  and  lie  makes  jail 
and  prison  equipment. 

The  Cttairman.  In  San  Antonio,  Tex. 

This  affidavit  may  be  made  exhibit  No.  12,  for  reference.  (The 
document  referred  to  was  made  exhibit  No.  12  for  reference  and  may 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11847 

be  found  in  the  files  of  the  select  committee.)     The  pertinent  parts 
are: 

I  am  president  of  the  Southern  Steel  Co.,  which  company  constructs  jails, 
prisons,  and  prison  equipment.  As  we  have  many  conversations  with  our  sales- 
men, contractors,  architects,  engineers,  and  others,  which  conversations  are 
material  to  the  transaction  of  our  business,  it  being  important  that  we  have  an 
accurate  record  of  such  conversations,  I  have  procured  a  dictaphone  which  is 
attached  to  the  telephone  for  recording  these  business  conversations.  The  con- 
versation with  a  man  who  called  himself  Dave  Koota  was  recorded  by  this 
I)rocess. 

I  had  never  heard  of  Mr.  Koota,  and  I  had  no  idea  whatsoever  as  to  what 
would  be  the  substance  of  his  conversation. 

In  this  affidavit  he  states  that  he  has  turned  over  that  recording  to 
the  committee.    That  will  identify  the  recording,  the  affidavit  will. 

You  may  proceed  to  play  the  recording. 

(At  this  point,  a  tape  recording  was  played.) 

The  Chairmax.  I  followed  this  transcript  with  the  record.  The 
Chair  states  that  it  is  accurate.  In  view  of  the  affidavit  of  the  man  who 
participated  in  the  conversation  and  recorded  it,  it  may  be  printed 
in  the  record  at  this  point. 

(The  document  referred  to  follows :) 

CONVEKSATION  BETWEEN  HULL  YoUNGBLOOD,  Sr.,  AND  DaVE  KoOTA,  WHO 

Called  Mabch  13,  1958, 10  :  4o  a.  m. 

is  on  the  line. 

Operator.  Is  this  Mr.  H.  Youngblood,  Sr.? 

Mr.  Youngblood.  Y'es. 

( )PERATOR.  Thank  you. 

Mr.  Youngblood.  Who  is  Mr.  Koota? 

Mr.  Koota.  Hello. 

Mr.  Youngblood.  Hello.    Youngblood,  Sr. 

Mr.  Koota.  Youngblood,  this  is  Dave  Koota,  with  the  Courier,  the  American 
Federation  of  Labor  unions. 

Mr.  Youngblood.  Uhuh. 

Mr.  Koota.  How  are  you.  Mr.  Youngblood? 

Mr.  Y'oungblood.  All  right. 

Mr.  Koota.  Fine.    Anything  I  can  do  for  you? 

Mr.  Youngblood.  I  don't  think  so  ;  not  that  I  know  of. 

Mr.  Koota.  Well,  I  say  it  for  one  reason,  Mr.  Youngblood,  because  we've  always 
regarded  you  a  friend. 

Mr.  Youngblood.  Well.  I  think  we  are. 

Mr.  Koota.  Youngblood,  you  know  we've  had  our  big  convention.  At  the  con- 
vention there  was  one  very  important  thing  came  up  that  we  are  going  to  work 
on.  and  that  is  to  get  Comnmnists  out  of  organized  labor. 

Mr.  Youngblood.  Huh,  Hmmmmm. 

IMr.  Koota.  What  do  you  think  of  it? 

Mr.  Youngblood.  Well,  I  think — ah — I  think  they — they — I  think  that's  the 
element  that  has  given  you  the  trouble. 

Mr.  Koota.  Definitely.  I'll  tell  you  this,  Youngblood.  It's  gotten  to  a  point 
now  where  not  only  did  those  Communists  get  into  labor,  they've  gotten  into 
our  schools,  our  churches,  and  even  into  our  State  Department. 

Mr.  Youngblood.  Uhuh. 

Mr.  Koota.  And  unless  we  do  something,  Youngblood,  it's  going  to  aft'ect  us  all 
in  a  big  way. 

Now,  Youngblood,  you've  always  rated  a  friend,  and  if  there's  anything  at  all 
that  I  could  ever  do  for  you,  I'll  always  work  with  you  100  percent.  Now,  Hull, 
all  of  our  good  friends  in  management,  those  we  have  always  respected,  are 
working  along  with  us.  They're  taking  a  space  in  our  big  convention  paper  to 
help  us  out  with  the  expen.se,  but  I  want  you  to  know  this,  Hull,  that  if  I  ask 
you  to  take  a  little  money  out  of  your  pocket  to  help  me.  the  time  will  come 
when  I'll  prove  to  you,  Hull,  that  we've  got  darn  big  pockets  ourselves. 


11848  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

I'll  always  work  a  favor  back  to  you  in  dollars  and  cents,  and  when  I  do, 
Hull,  you'll  find  that  ifs  good  to  have  friends  in  the  right  places.  Do  I  make 
myself  clear,  Hull? 

Mr.  YouNGBLOOD.  Yeah. 

Mr.  KooTA.  Will  you  work  with  me,  Hull  ? 

Mr.  YouNGBLOOD.  AVhat — in  what  way  do  you  want  me  to  do  it? 

Mr.  KooTA.  We  want  you  to  sponsor  a  piece  of  anti-Communist  copy  in  our 
convention  paper.  We're  going  to  spend  a  lot  of  money  on  this,  Hull,  and  I 
don't  mind  telling  you  that  our  good  friends,  those  we  have  always  respected,  are 
behind  us. 

Hull,  I'll  tell  you  what  the  copy  is  that  we've  prepared  for  your  company. 
Would  j'ou  be  interested  in  hearing,  Hull? 

Mr.  YouNGBLOOD.  Well,  I'll  tell  you  what  I'd  rather  you  do,  if  you  will.  As  a 
matter  of  fact,  this  is  a  thing  that  really  is  something  that  I  don't  ordinarily 
attend  to  ;  we — these  matters  of  this  kind. 

Can't  you  send  me  a  transcript  of  what  you  want  us  to  sponsor?  And  you  can 
tell  me  now  about  what  the  cost  is? 

Mr.  KooTA.  Hull,  the  only  reason  I  called  you  by  phone  instead  of  sending  you 
a  letter,  Hull,  is  because  my  executive  committee  is  setting  everything  up,  and 
we're  going  to  go  to  press.  Otherwise,  I  would  have  sent  you  a  letter,  Hull,  and 
I  would  have  saved  myself  the  expense  of  the  call ;  and  I'll  tell  you  this,  Hull,  if 
it  weren't  for  that  fact 

Mr.  YouNGBLOOD.  Well,  how  much  does  it  cost,  Koota? 

Mr.  KooTA.  I'll  give  you  this — I'll  giA'e  you  the  copy  that's  being  used,  Hull, 
and  let  me  know  what  you  think  of  it. 

Mr.  YouNGBLOOD.  All  right. 

Mr.  KooTA.  The  caption  on  this  says  "It  Can  Happen  Here." 
•  "There  are  approximately  55,000  official  members  of  the  Communist  Party  in 
the  United  States.  There  are  thousands  of  additional  members  whose  names 
are  not  carried  on  the  party  rolls  because,  acting  as  disciplined  fifth  columnists 
of  the  Kremlin,  they  have  wormed  their  way  into  key  positions  in  Government 
offices,  trade  unions,  and  other  positions  of  public  trust.  These  people  are 
working  day  and  night  to  overthrow  your  Government.  The  average  American 
says,  'It  can't  happen  here,'  but  there  were  millions  of  other  complacent  men 
and  women  in  the  covmtries  all  over  the  globe  who  said  the  same  thing  and 
lived  to  see  their  nations  communized.  These  are  either  dead  or  living  in 
Communist  slavery.  There  is  no  longer  enough  to  say,  'It  can't  happen  here' — 
we  must  not  let  it,  here. — Sponsored  by  Hull  Youngblood  or  the  Southern  Steel 
Co." 

That's  the  copy.     What  do  you  think  of  it,  Hull? 

Mr.  YOUNGBLOOD.  Well,  it — just  to  read  it — I  mean  have  you  read  it  to  me, 
it  sounds  all  right. 

Mr.  KooTA.  That's  exactly  what  it  is,  Hull. 

Mr.  Youngblood.  What  do  you  think  it'.s — what's  the  cost? 

Mr.  Koota.  They're  going  to  be  put  up  in  different  sizes,  Hull.  These  copies 
run  from  a  thousand  dollars  a  full  page — they  run  down  proportionately  to  $600 
the  half  a  page,  $350  the  quarter  of  a  page,  and  $200  the  eighth  of  a  page,  and 
a  hundred  the  complimentary,  Hull. 

Mr.  Y^OUNGBLOOD.  Yeah. 

Mr.  Koota.  If  I  might  make  a  suggestion  to  you,  Hull,  people  like  yourself 
are  taking  a  quarter  of  a  page. 

Mr.  YouNGBLOOD.  And  how  much  is  a  quarter  of  a  page? 

Mr.  Koota.  !?350,  Hull. 

Mr.  Youngblood.  Well,  now — as  I  told  you,  we  have  a  little — every  Tuesday 
morning — I  don't  know  how  we're  going  to  work  this  thing.  We  have  a  little 
rule  here  in  our  business  that  on  all  matters  like  this,  that  every  Tuesday  morn- 
ing we  go  over  the  list  of  things  that  we  are  asked  to  contribute  to. 

Mr.  Koota.  Only  thing  is,  one  trouble,  Hull.  I'll  interrupt  at  this  particular 
time,  Hull,  but,  as  I  told  you,  the  only  reason  for  the  call  was  that  we're  going 
to  go  to  press,  and  I'll  tell  you  this,  Hull. 

There's  always  been  damn  nice  things  said  about  you  and  your  organization, 
because  you'll  find,  Hull,  that  I  don't  like  to  ask  you  to  do  these  things.  I 
•would  have  rnther  done  you  10  favors  than  ask  1.  because  it's  a  thankless  job 
and  a  miserable  job,  at  its  best.  But  I  don't  mind  coming  to  a  fellow  like  you. 
TTull,  because  I  know  that  one  of  these  days  I'm  going  to  be  in  a  position  to  do 
you  some  good,  and  when  T  do,  Hull,  you'll  always  get  the  best  of  it  because 
you'll  always  get  a  dollar  back  for  every  nickel  you  spend  with  me. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11849 

Mr.  TouNGBLOOD.  Well,  now 

Mr.  KooTA.  Hull  Youngblood,  I'll  never  forget  a  friend. 

Mr.  Youngblood.  Well,  now  let  me  tell  you  what — I'll  see  if  I  can't  pull  this 
crowd  together  this  afternoon  or  in  the  moi'ning,  and  wire  you. 

Mr.  KooTA.  Hull,  you  know  I'm  due  to  he — I'm  due  to  be  in  Washington.    As 
a  matter  of  fact,  I'm  just  staying  here  finishing  up  a  few  things. 

Mr.  YouKGBLOOD.  Well,  what— tell  me  again  what  you  told  me  in  the  beginning. 
What  is  the — who  is  the  organization  you  represent? 

Mr.  KooTA.  It's  the  American  Federation  of  Labor-CIO  unions,  Hull. 

^Iv.  Youngblood.  American  Federation  of  Labor-CIO  unions  V 

Mr.  KooTA.  That's  right.  And  it's  going  to  be  a — [inaudible] — convention 
paper. 

Mr.  Youngblood.  And  what — what  are  your  initials? 

Mr.  KooTA.  Dave.    The  first  name  is  Dave.    Dave  Koota. 

Mr.  Youngblood.  How  do  you  spell  it? 

Mr.  KooTA.  K-o-o-t-a,  Hull. 

Mr.  Youngblood.  K-o-o-t-a? 

Mr.  KooTA.  That's  correct. 

Mr.  Youngblood.  What's  your  address? 

Mr.  KooTA.  Pardon  me? 

Mr.  Youngblood.  What  is  your — what  address  in  New  York? 

Mr.  KooTA.  145  East  32d  Street. 

Mr.  YouNGBrx)OD.  143  East  32d? 

Mr.  KooTA.  That's  correct. 

Mr.  Youngblood.  What  do  they  call  this — this — the  paper? 

Mr.  Koota.  It's  the  Courier,  Hull. 

Mr.  Youngblood.  The  Courier? 

Mr.  KooTA.  That's  correct. 

Mr.  Youngblood.  Well.  I'll  tell  you  what  I'll  do.  I'm — as  I  said  this  is  things 
that  I  don't  ordinarily  mess  with.  I  can't  possibly  do  anything  on  it,  Koota, 
until — at  the  earliest,  this  afternoon. 

Mr.  KooTA.  Hull. 

Mr.  Youngblood.  Yeah? 

Mr.  KooTA.  I'm  asking  you  to  make  an  exception  for  me,  Hull 

Mr.  Youngblood.  I  can't  do  it. 

Mr.  KooTA.  Because  if  you  ever  came  to  me 

Mr.  Youngblood.  Well,  I'm  on  the  tele — I'm  on  the — I've  got — I'm  working 
for  this  company,  just  exactly  like  you're  working  for  that  paper.  I've  got  certain 
obligations 

Mr.  KooTA.  Ah,  come  on,  Hull. 

Mr.  Youngblood.  And  I'm — I 

Mr.  KooTA.  If  you're  going  to  tell  me  things  like  that,  Hull,  it  don't  make  sense 
to  me.  You  are  the  Southern  Steel  Co.,  Hull,  and  if  you  want  to  work  with  me — 
good  enough,  Hull.  But  I  mean — I  want  you  to  level  with  me,  because  I'll  always 
level  with 

(End  of  belt  No.  1.) 
(Beginning  of  belt  No,  2:) 

Mr.  Youngblood.  With  contributions  and  criticisms  later,  and  we  had  an  un- 
derstanding, and  I  can't  violate  that  because  I  made  the  rule  and  I  agreed  to 
abide  by  it,  and  I — the — all  I  can  do 

Mr.  Koota.  Hull,  this  is  one  favor  ;  that's  all. 

Mr.  Youngblood.  I  can't — you  just  might  as  well  save  your  money.  I  can't 
do  it,  unless  and  until  I  can  at  least  get  this  crowd  together  after  lunch.  I  can 
wire  you  this  afternoon  and  let  you  know  whether  I  can  or  not,  but  that's  the 
best  I  can  do. 

Mr.  Koota.  Will  you  call  me  back  by  telephone,  Hull? 

Mr.  Youngblood.  I'll  either  call  you  or  wire  you.  I  got — I  wrote  your  address 
down.  I  can  do  it  one  way  or  the  other.  If  I  say  yes,  to  the  tune  of  $3r>0 ;  that's 
what  you're  talking  about,  isn't  it? 

Mr.  Koota.  Yeah.  Well,  I've  got  to  complete — if  you  can't  do  350,  you  can 
do  200. 

Mr.  1'oungblood.  Well,  I'll  talk  with  them,  and  I  will  communicate  with  you 
this  afternoon,  either  by  telegram  or  by  long  distance. 

Mr.  Koota.  O.  K.  You  have — you  want  to  mark  my  phone  number  down, 
Hull? 


11850  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  YouNGBLOOD.  Yeah. 
Mr.  KooTA.  It's  Oregon  9- 


Mr.  YouNGBLOOD.  Oregon,  what? 

Mr.  KooTA.  Oregon  9 

Mr.  YouNGBLOOD.  Yeah? 

Mr.  KooTA.  3600. 

Mr.  YOUNGBLOOD.  3600? 

Mr.  KooTA.  Right. 

Mr.  YouNGBLOOD.  New  York  City? 

Mr.  KooTA.  Yeah  ;  Dave  Koota. 

Mr.  YouNGBLOOD.  All  right,  Dave. 

Mr.  Koota.  All  right ;  I'll  hear  from  you,  Hull. 

Mr.  YOUNGBLOOD.  All  right. 

The  Chairman.  Proceed. 

Mr.  Kennedy.  Do  you  have  any  comment  ? 

Mr.  Koota.  No,  sir. 

Mr.  Kennedy.  That  is  your  voice,  is  it  not? 

Mr.  Koota.  It  sounds  like  it. 

Mr.  Kennedy.  Who  are  some  of  the  big  friends,  the  friends  that  you 
had  in  the  right  places  ? 

Mr.  KooTA.  I  wouldn't  know,  offhand. 

Mr.  Kennedy.  "Whom  did  you  have  in  mind  ? 

Mr.  Koota.  Nobody,  particularly. 

Mr.  Kennedy.  Are  you  a  member  of  a  union  yourself  ? 

Mr.  KooTA.  Not  now. 

]\Ir.  Kennedy.  Were  you  at  the  time  you  had  this  conversation  ? 

Mr.  Koota.  I  don't  remember  when  I  had  it— no ;  not  at  that  time. 

Mr.  Kennedy.  Yf  hen  was  the  last  time  you  remember  being  in  the 
union  ? 

Mr.  KooTA.  About  3  or  4  years  ago. 

Mr.  Kennedy.  What  did  you  refer  to  as  "our  big  convention 
paper"  ? 

Mr.  KooTA.  Well,  there  is  always  a  convention  around  someplace, 
so  we  usually  put  a  convention  paper  out,  or  a  special  edition.  It  is 
just  a  special  selling  point;  that  is  all  it  is. 

Mr.  Kennedy.  Who  is  on  your  executive  committee — "My  executive 
committee  is  setting  everything  up"  ? 

Mr.  KooTA.  It  is  just  an  expression  that  I  used.  You  can't  just 
tell  people  to  take  these.  You  have  to  sell  them  to  them.  That  is 
all.  I  have  bought  different  appliances  where  people  told  me  different 
things,  and  it  wasn't  as  it  was  told  to  me. 

The  Chairman.  Do  you  mean  you  sold  witli  false  representation? 

Mr.  Koota.  No,  sir. 

The  Chairman.  Well,  was  that  a  true  representation  of  facts  ? 

Mr.  Koota,  I  don't  know  how  to  explain  it.     It  is  my  way  of  selling. 

The  Chairman.  Your  way  of  selling.     All  right;  proceed. 

Mr.  Kennedy.  "Who  is  the  organization  you  represent?"  and  your 
answer  is,  "It  is  the  American  Federation  of  Labor-CIO  unions, 
Hull."     That  was  not  correct  either,  was  it?     Right? 

Mr.  Koota.  I  didn't  understand  the  question,  INIr.  Kennedy. 

Mr.  Kennedy.  You  were  asked,  "Who  is  the  organization  you  repre- 
sent?" and  your  answer  was,  "It  is  the  American  Federation  of 
Labor-CIO  unions,  Hull." 

Mr.  KooTA.  Well,  I  probably  understood  him  to  say,  "^Vliat  unions 
do  you  represent?"    That  is  all. 

Mr.  Kennedy.  That  is  not  what  he  said. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11851 

Mr.  KoOTA,  Well,  ma3'be  I  understood  him  to  say  that. 

Mr.  Kexnedt.  You  represented  Max  liaddock,  the  Trade  Union. 
Courier  ? 

IMr.  KooTA.  That  is  right. 

Mr.  Kenxkdy.  You  don't  represent  labor  unions? 

Mr.  KooTA.  I  might  have  misunderstood  him,  Mr.  Kennedy.  There 
could  have  been  a  misunderstanding  there.  I  don't  weigh  every  word 
I  say.     I  could  not  possibly  weigh  every  word  I  say. 

Mr.  Kennedy.  That  is  very  obvious.  AVe  have  some  more  here  for 
you.     Where  was  this  call  made  from  ? 

Mr.  KooTA.  Where  was  it  made  from  ? 

Mr.  Kennedy.  Yes. 

Mr.  KooTA.  From  the  office  that  I  work  in. 

Mr.  Kennedy.  In  New  York  City;  is  that  right? 

Mr.  KooTA.  That  is  right. 

Mr.  Kennedy.  Mr.  Chairman,  Mr.  Hull  Youngblood,  Sr.,  making 
these  jail  supplies,  had  200  employees,  all  of  which  were  nonunion. 

The  Chairman.  He  states  that  there  in  his  affidavit? 

Mr.  Kennedy.  He  does. 

Do  you  remember  talking  to  Mr.  George  McNeff,  president  of 
Falcon  Manufacturing  Co.,  Dallas,  Tex? 

Mr.  Koota.  I  wouldn't  remember,  Mr.  Kennedy. 

Mr.  Kennedy.  You  stated  to  him  that  you  always  regarded  him  as 
a  friend.     Do  you  remember  that  ? 

jMr.  Koota.  I  don't  remember  the  account.  I  have  a  lot  of  accounts. 
I  couldn't  remember  who  they  are. 

Mr.  Kennedy.  Did  you  always  regard  him  as  a  friend  ? 

Mr.  KooTA.  I  regard  everybody  as  a  friend  that  I  talk  to. 

The  Chairman.  We  have  the  affidavit  here  of  Mr.  George  A. 
McXeff,  identifying  this  recording  of  a  conversation  had  with  the 
witness.     The  affidavit  will  be  made  exhibit  No.  13. 

(The  document  referred  to  was  marked  "Exhibit  No.  leS"  for  refer- 
ence and  may  be  found  in  the  files  of  the  select  committee.) 

The  Chairman.  You  may  proceed  with  the  recording. 

(At  this  point,  a  tape  recording  was  played) . 

The  Chairman.  The  Chair  followed  the  recording  for  accuracy,  it 
appears  to  be  accurate.  The  transcription  of  the  recording  may  be 
printed  in  the  record  at  this  point. 

(The  document  referred  to  follows.) 

Telephoxe  Conversation — November  21,  1957,  Between  Mr.  Dave  Koota  op 
THE  Trade  Union  Courier  and  Mr.  George  A.  McXeff,  President,  Falcon 
Manufacturing  Co.,  Inc.,  Dallas,  Tex. 

McNeff.  Hellij, 

Koota.  Mr.  McNeff? 

McNeff.  Yes. 

Koota.  This  is  Dave  Koota  with  the  Courier,  the  American  Federation  of 
Labor  iinioiLs.     How  are  you,  Mr.  McNeil? 

McNeff.  All  right,  fine. 

Koota.  All  right,  anything  I  can  do  for  you,  sir? 

McNeff.  Just  tell  me  why  you  called. 

Koota.  Where  I'm  calling? 

McNebt.  Yes. 

Koota.  I'm  calling  you  from  New  York,  Mr.  McNeff. 

McNeff.  Oh,  I  see. 

Koota.  The  reason  I'm  calling  is  because  you  have  always  been  regarded  a 
friend. 


11852  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

McNeff.  Mm  hmm. 

KooTA.  Now,  sir,  we  liave  had  our  big  convention. 

McNeff.  Mm  hmm. 

KooTA.  We're  going  to  put  out  a  convention  paper  for  the  American  Federation 
of  Labor  unions. 

McNeff.  Mm  hmm. 

KooTA.  In  our  convention  paper,  we  are  going  to  go  all  out  to  get  every  Com- 
munist out  of  organized  labor. 

]McNeff.  Uh  huh. 

KooTA.  What  do  you  think  of  it,  Mr.  McNeff? 

Mr.  McNeff.  Well,  that  sounds  like  a  real  admirable  objective. 

KooTA.  I'll  tell  you  this,  Mr.  McNeff.  It's  gotten  to  a  point  now  where  not 
only  did  those  Communists  get  into  labor,  they  got  into  our  schools,  our  churches, 
and  even  into  our  State  Department.  And  unless  we  do  something,  Mr.  McNeff, 
it's  going  to  ai^ect  us  all  in  a  bad  way. 

McNeff.  You're  absolutely  right  about  that. 

KooTA.  Now,  we've  always  regarded  you  a  friend,  and  if  there  is  anything  I 
can  do  for  you,  I'll  always  work  with  you  100  percent. 

McNeff.  Mm  hmm. 

KooTA.  McNeff,  all  of  our  good  friends  in  management,  those  we  have  always 
respected,  are  working  along  with  us.  They're  taking  a  space  in  our  big  conven- 
tion paper  to  help  us  out  with  the  expense.  But  I  want  you  to  know  this,  sir, 
that  if  I  ask  you  to  take  a  little  money  out  of  your  pocket,  to  help  me,  the  time'll 
come  when  I'll  prove  to  you,  Mr.  McNefif,  that  we  have  darn  big  pockets  ourselves. 

McNeff.  Mm  hmm. 

KooTA.  I'll  always  work  a  favor  back  to  you  in  dollars  and  cents,  and  when  I 
do,  you'll  find  that  it's  good  to  have  friends  in  the  right  places.  Do  I  make 
myself  clear,  sir? 

McNeff.  You  sure  do. 

KooTA.  WiU  you  work  with  me,  Mr.  McNeflf  ? 

McNeff.  I  don't  see  how  we  could  avoid  it. 

KooTA.  McNeff,  I'm  going  to  tell  you  what  the  charges  are.  I'm  going  to  ask 
you  to  support  me  as  generously  as  you  can. 

McNeff.  All  right. 

KooTA.  These  copies  run  from  $1,000  a  full  page. 

McNeff.  Mm  hmm. 

KooTA.  They  run  down  proportionately,  $600  the  half  a  page,  $.350  the  quarter 
of  a  page,  $200  the  eighth  of  a  page,  and  $100  the  complimentary  size. 

McNeff.  I  see. 

KooTA.  If  I  might  make  a  suggestion  to  you,  Mr.  McNeff,  I'd  say  that  people 
like  yourself  are  taking  a  quarter  of  a  page. 

McNeff.  Mm  hmm. 

KooTA.  Can  we  count  on  you  for  that,  sir? 

McNeff.  Well,  who  do  we  pay  that  to,  or  how  is  that 

KooTA.  You  will  get  a  bill  and  a  letter  of  thanks  directly  from  the  main  or- 
ganizntion,  Mr.  McNeff. 

McNeff.  Now,  is  this  the  American  Federation  of  Labor? 

KooTA.  No,  it's  going  to  go  to  the  paper,  the  Trade  Union  Courier,  which  rep- 
resents the  American  Federation  of  Labor-CIO  unions. 

McNeff.  Uh  huh.  Well,  couldn't  we  just  make  our  checks  payable  to  the 
AFL  here 

KOOTA.  No- 


McNeff.  And  have  them  forward  it  to  you? 

KooTA.  No  :  the  check  will  be  payable  to  the  Trade  Union  Courier. 

McNeff.  Oh,  I  see. 

KooTA.  That's  the  paper  that  represents.  You  see,  the  AFL  doesn't  directly 
take  anything  from  people.  It's  the  AFL-CIO  paper,  the  Trade  Union  Courier, 
which  is  running  this  campaign. 

McNeff.  I  see. 

KooTA.  Do  you  follow  me,  Mr.  McNeff? 

McNeff.  Uh  huh. 

KooTA.  So  yon  will  get  a  bill  directly  from  the  main  organization.  My  name, 
my  address,  and  my  phone  number  will  be  there.  If  anything  should  ever  come 
up,  Mr.  McNeff,  if  I  can  ever  do  you  good,  if  you  come  to  me,  I'll  always  be  as 
nice  to  you  as  you  were  to  me. 

McNeff.  Well,  now,  is  that  paper  published  down  here?  I  menn,  does  it  get 
down  here? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11853 

KooTA.  It's  a  national  paper,  Mr.  McNeff.  It's  circulated  all  through  the 
area. 

McNeff.  I'h  huh.    And  that's  the  official  paper  of  the  AFL-CIO ? 

KooTA.  Right.  You'll  see  it  right  on  the  bill  when  you  get  it.  It's  officially 
ondor-sed  by  over  2,000  American  Federation  of  Labor-CIO  unions  in  the  United 
States  and  Canada.    Good  enough,  Mr.  McNeff  ".■' 

McNeff.  Well,  I'll  have  to  clear  it  with  our  committee  that  passes  on  such 
things,  but  very  likely. 

KooTA.  Well,  the  only  reason  I've  called  you  by  phone,  Mr.  McNeff,  is  because 
my  executive  committee  is  setting  everything  up.    We're  going  to  go  to  press. 

McNeff.  Mm  hmm. 

KooTA.  Otlierwiso,  I  would  have  sent  you  a  letter,  and  I  would  have  saved 
myseif  the  expense  of  the  call. 

McNeff.  Mm  hmm. 

KooTA.  So,  Mr.  McNeff,  as  I  say,  we  are  going  to  go  to  press.  Very  frankly, 
Mr.  McNeff,  there's  a  lot  of  things  I  know  about  you,  but  I  don't  know  the  size 
of  your  pocketbook. 

McNeff.  Mm  hmm. 

KooTA.  So,  Mr.  McNeff,  whatever  size  you  feel  that  you  can  approve  is  O.  K. 
with  me.  But  I  definitely  want  to  commit  myself  with  my  executive  committee 
for  what  spacing  we  can  put  you  down  for. 

McNeff.  Well,  I'm  sorry  to  say  that  I  cannot  give  you  a  definite  answer  until 
I  can  clear  it  with  the  committee.  W"e  have  these  meetings  once  a  week,  and  it 
won't  be  until  Monday  that  we  can  get  an  O.  K.  on  it.  We're  on  a  sort  of  austerity 
program,  and  we've  got  a  real  lid  on  such  expenditures.  But  you  might  drop  me  a 
note  on  it,  and  I'll  bring  it  up  here  Monday ;  and  if  it  passes,  why,  I'm  sure  it 
will,  why,  we'll  go  along  with  you. 

KooTA.  What  would  you  want  me  to  do?  Just  send  you  off  a  letter,  is  that 
what  you  mean? 

McNeff.  Yes,  that's  right. 

KooTA.  Just  short,  you  mean?   Just  right  to  the  point? 

McNeff.  That's  right.  That's  all.  And  I'll  bring  it  up  here,  and  I'm  sure  we 
can  get  it  through. 

KooTA.  Just  sort  of  a  memorandum,  like? 

McNeff.  That's  right. 

KooTA.  I  see.  Thank  you,  sir. 

The  Chaikman.  I  may  ask  the  witness  this  question :  Did  you  recog- 
nize your  voice  in  this  recording  ? 

Mr.  KooTA.  It  sounds  like  my  voice. 

The  Chairman.  Actually,  you  have  this  line  pretty  well  memorized, 
don't  you  ?  I  saw  very  little  variation  between  this  and  the  preceding 
recording,  except  on  points  of  interruption.  You  have  your  little  speil 
memorized,  do  you?    Or  do  you  just  read  it  right  before  you? 

Mr.  KooTA.  Xo ;  I  don't  read  it. 

The  Chairman".  You  have  it  memorized  pretty  well? 

Mr.  KooTA.  Just  about. 

The  Chairman.  Do  you  practice  on  it  ?  You  sound  just  about  the 
same  this  time  as  you  did  before.    Do  you  practice  on  the  emphasis  ? 

Mr,  KooTA.  No,  sir. 

The  Chapman.  O.K. 

Mr.  Kexnedt.  You  had  a  script  before  you,  did  you  not  ? 

Mr.  KooTA.  No,  sir. 

Mr.  Kennedy.  You  never  did  ? 

Mr.  KooTA.  No,  sir. 

Mr.  Kennedy.  And  these  words  in  many  cases  are  exactly  the  same  ? 

For  instance,  "I'll  always  work  a  favor  back  to  you  in  dollars  and 
cents,  and  when  I  do,  you'll  find  it's  good  to  have  friends  in  tlie  right 
places.    Do  I  make  myself  clear,  sir?" 

There  are  many  instances  such  as  that,  where  the  wording  is  exact. 

"I'll  always  work  a  favor  back  to  j^ou." 


11854  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  KooTA.  Well,  in  these  particular  cases,  they  just  about  run 
similar. 

Mr.  Kennedy.  You  had  a  script,  did  you  not  ? 

Mr.  KooTA.  No,  sir. 

Mr.  Kennedy.  In  a  number  of  recordings  of  other  solicitors,  they 
followed  almost  the  same  pattern,  said  almost  the  same  thing. 

Mr.  KooTA.  That  I  wouldn't  know,  Mr.  Kennedy. 

Mr.  Kennedy.  I  see. 

The  Chairman.  Let  me  ask  you  a  question:  Did  your  bosses  in 
the  Courier  know  that  this  was  the  kind  of  appeal  you  were  making 
to  secure  ads  ? 

Mr.  KooTA.  When  you  say  bosses,  who  do  you  mean  ? 

The  Chairman.  Well,  I  don't  know.  Who  are  they  ?  Who  are  your 
bosses  ?    Who  do  you  work  for  ? 

Mr.  KooTA.  Well,  Mr.  Pickman  the  sales  manager. 

The  Chairman.  Mr.  Pickman. 

Mr.  KooTA.  If  you  talk  about  Mr  Raddock,  they  very  seldom  were 
in  the  salesroom.    As  a  matter  of  fact,  hardly  any 

The  Chairman.  Did  they  know  you  were  making  this  kind  of  ap- 
peal to  get  ads  ? 

Mr.  KooTA.  No,  I  don't  think  they  did.  I  don't  think  they  ever 
knew  what  I  was  saying. 

The  Chairman.  Did  they  seem  to  care  ? 

Mr.  KoOTA.  Well,  I  don't  think  they  interested  themselves  enougli 
in  that  particular  room. 

The  Chairman.  They  weren't  interested  in  that  particular? 

Mr.  Koota.  No,  they  would  only  occasionally  say  "Be  sure  you  sell 
it  clean"  and  that  was  all. 

The  Chairman.  Did  you  think  that  you  were  selling  it  clean  in  this 
kind  of  appeal? 

Mr.  KooTA.  Well,  he  never  heard  this. 

The  Chairman.  I  said  did  you  regard  that  you  were  selling  it  clean 
with  that  kind  of  appeal  ? 

Mr.  KooTA.  I  don't  know.    I  think  it  was  clean. 

The  Chairman.  Do  you  think  it  was  clean  to  tell  them  a  line  like 
that? 

Mr.  KooTA.  Well,  Senator,  I  really  don't  know  what  to  say  in  this 
particular  case  here.  I  know  that  there  are  salesmen— I  was  just  a 
salesman  there,  and  I  tried  to  use  the  best  sales  ability  I  could.  That 
was  all. 

The  Chairman.  All  right. 

Mr.  Kennedy.  Mr.  Koota,  you  were  making  false  representations  to 
these  individuals.    There  is  no  question  about  that. 

You'll  find  it  is  goofl  to  have  friends  in  the  riglit  places. 

What  did  you  mean  by  that  ? 

Mr.  KoOTA.  Just  an  expression,  that  is  all. 

Mr.  Kennedy.  You  are  identifying  yourself  with  the  AFI^CIO 
and  tlien  saying  it  Avould  be  good  to  give  an  ad  because  you  would  have 
friends  in  the  right  places. 

Ml-.  KooTA.  "Well,  I  don't  know,  T  Imvc  lind  people  call  me  up  from 
time  to  time.  This  is  wliat  I  am  identifying  as  friends.  I  have  had 
poo|)1e  come  up  and  tell  me  difl'ei-ent  matters  happening  Avith  difl'erent 
unions  and  I  tell  them  to  the  best  of  my  ability  what  the  best  steps 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11855 

■would  be.  I  have  had  people  come  into  New  York  and  ask  me  to  get 
them  theater  tickets 

Mr.  Kennedy.  Was  that  what  you  had  in  mind  when  you  called 
Mr.  JNIcNeff,  president  of  the  Falcon  Manufacturing  Co.,  and  Mr, 
Youngblood,  the  ])resident  of  the  Southern  Steel  Co.,  that  you  would 
get  tliem  tickets  wlien  tliey  would  come  to  Xew  York  ? 

Mr.  KooTA.  I  had  nothing  like  that  in  mind,  Mr.  Kennedy. 

Mr.  Kennedy.  Did  you  have  friends  in  New  York  that  would  get 
them  tickets? 

Mr.  KooTA.  I  had  nothing  in  mind.  Now  anything  they  would  ask 
me  for,  I  would  try  to  be  helpful. 

Mr.  Kennedy.  The  implication  was  that  you  had  friends  in  the 
AFIj-CIO  in  case  of  labor  trouble. 

Mr.  KoOTA.  I  didn't  imply  anj^thing. 

Mr.  Kennedy.  Isn't  that  what  you  said  ? 

Mr.  KooTA.  I  didn't  imply  anything,  no. 

Mr.  Kennedy.  Why  did  you  say  it  was  the  A.  F.  of  L.  paper,  the 
Trade  Union  Courier,  that  was  running  the  campaign?  That  is  a 
false  statement  of  fact.     Is  this  the  AFL  paper  ? 

Mr.  KoOTA.  It  is  endorsed  by  AFL  unions. 

Mr.  Kennedy.  Is  it  the  AFL-CIO  paper  ? 

Mr.  KooTA.  I  wouldn't  say  it  is,  no. 

Mr.  Kennedy.  You  said  it  was  in  the  telephone  conversation, 

Mr.  KooTA.  It  is  possible  sometimes  to  make  a  mistake,  Mr.  Ken- 
nedy. 

Mr,  Kennedy.  Yon  made  so  many  mistakes  in  here,  and  you  made  3 
or  -i  in  the  others.  Here  is  another  one,  ""And  that  is  the  official 
paper  of  the  AFL-CIO  ?"     And  Koota  says,  "Eight." 

Mr.  Lewis.  Will  you  finish  the  statement  ? 

Mr.  Kennedy  (reading) 

You  will  see  it  right  on  the  bill  when  you  get  it.  It's  oflScially  endorsed  by  over 
2,000  American  Federation  of  Labor  unions  in  the  United  States  and  Canada. 
Good  enough,  Mr.  McNeff  V 

Mr.  KooTA.  But  our  bills  state  that.     It  is  right  on  the  bill. 

Mr.  Kennedy.  It  is  not  the  official  paper  of  the  AFL-CIO, 

Mr,  KooTA.  It  is  officially  indorsed  by  over  2,000  unions  of  the  AFL- 
CIO. 

Mr.  Kennedy.  But  you  said  it  twice  in  here. 

Mr.  KooTA.  But  it  was  just  in  haste. 

Mr,  Kennedy,  Beyond  that,  you  tell  these  j)eople  that  you  know 
a  lot  about  that  they  are  friends.  We  find  that  this  man  has  100  em- 
ployees and  once  again  they  are  all  nonunion.  You  are  calling  all 
nonunion  companies. 

Mr.  KooTA.  As  I  say,  most  of  the  people  I  call  are  from  out  of  town 
labor  papers.  I  know  they  have  given  ads  to  labor  pa})ers  locally 
and  I  assume  they  are  friendly  organizations.  That  is  the  people  I 
call  mostly, 

Mr.  Kennedy.  Mr.  Chairman,  here  is  another  call. 

The  Chairman.  I  have  another  call  here,  a  recording  of  it.  It 
will  be  played  and  the  witness  asked  about  it. 

Proceed  to  play  this  call. 

It  is  a  telephone  conversation  of  April  24,  1958,  between  Mr,  Koota 
and  Mr,  Earle  Cabell. 

21243— oS—pt.  31 6 


11856  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

Proceed  with  the  recording. 

(At  this  point,  a  tape  recording  was  played.) 

The  Chairman.  That  was  a  little  over  a  month  ago.  Do  you  recall 
that  conversation? 

Mr.  KooTA.  It  sounds  like  my  voice,  yes. 

The  Chair3Ian.  Do  you  recall  the  conversation? 

Mr.  KooTA.  No,  really,  I  don't.  Senator. 

The  Chairman.  How  many  have  you  called  during  the  last  6  weeks  ? 

Mr.  KooTA.  How  many  people  have  I  called  ? 

The  Chairman.  Yes,  along  this  line.     That  is,  for  the  same  purpose. 

Mr.  KoOTA.  Do  you  mean  this  exact  conversation,  do  you  mean? 

The  Chairman.  No,  I  mean  calling  them  soliciting  advertising. 

Mr.  KooTA.  I  would  say  I  talk  to  approximately  20  to  25  people  a 
day. 

The  Chairman.  Do  you  remember  this  name  Cabell  ? 

Mr,  KooTA.  I  wouldn't  remember  it,  Senator.  I  can't  remember 
those  names  when  I  talk  to  so  many  people  during  the  course  of  sev- 
eral weeks. 

The  Chairman.  Do  you  deny  you  had  this  conversation  as  recorded  ? 

Mr.  KooTA.  I  don't  deny  it. 

The  Chairman.  This  recording  may  be  printed  in  the  record.  There 
is  a  telegram  supporting  it,  which  is  not  sworn  to.  But  the  witness 
does  not  deny  it.  He  says  it  sounds  like  his  voice.  The  telegram 
supporting  it  from  Mr.  Cabell  may  be  made  exhibit  No.  14. 

(The  document  referred  to  was  marked  "Exhibit  No.  14"  for  refer- 
ence and  will  be  found  in  the  appendix  on  pp.  12140,  12141.) 

(The  document  referred  to  follows :) 

Telephone  Conveesation  Apeh,  24,  1958,  Between  a  Mb.  Koota  and  Mb. 

Eaele  Cabell 

Koota.  Cabell. 

Cabell.  Yes. 

Koota.  This  is  Dave  Koota. 

Cabell.  Yes,  sir. 

Koota.  Courier,  the  American  Federation  of  Labor  unions. 

Cabell.  Uh,  huh. 

Koota.  How  are  you,  Mr.  Cabell? 

Cabell.  Very  good. 

Koota.  Fine.    Anything  I  can  for  for  you,  sir? 

Cabell.  Nothing  that  I  know  of. 

Koota.  Well,  I  say  it  for  one  reason,  because  we've  always  regarded  you  a 
friend. 

Cabell.  Uh,  huh. 

Koota.  Cabell,  we've  had  our  big  convention. 

Cabell.  Uh,  huh. 

Koota.  We're  going  to  put  out  a  convention  paper  for  the  American  Federa- 
tion of  Labor  unions. 

Cabell.  Uh,  huh. 

Koota.  In  our  convention  paper  we're  going  to  go  all  out  to  get  Communists 
out  of  organized  labor. 

Cabell.  Uh,  huh. 

Koota.  What  do  you  think  of  it,  Mr.  Cabell? 

Cabell.  Well,  I  think  that's  a  very  good  program. 

Koota.  I'll  tell  you  this,  Cabell,  it's  gotten  to  a  point  now  where  not  only  did 
those  Communists  get  into  labor,  but  they've  gotten  into  our  schools,  our  churches, 
and  even  into  our  State  Department. 

Cabell.  Uh,  huh. 

Koota.  And  unless  we  do  something,  it's  going  to  affect  us  all  in  a  bad  way. 

Cabell.  Uh,  huh. 


IMPROPER    ACTIVITIES    IX    TPIE    LABOR    FIELD  11857 

KooTA.  Cabell,  you  have  always  been  a  friend,  and  if  there's  anything,  at  all 
that  I  could  ever  do  for  you,  I'll  always  work  with  you  100  percent. 

Oabeix.  Well,  I  appreciate  that  very  much.    It's  very  kind  of  you. 

KooTA.  Cabell,  all  of  our  good  friends  in  management,  those  that  we  have 
always  respected,  are  working  along  with  us.  They're  taking  the  space  in  our 
big  convention  paper  to  help  us  out  with  the  expense. 

Cabell.  Well — I'll  tell  you,  Mr.  Koota,  I  do  not  make  any  commitments  on  a 
telephonic  basis. 

KooTA.  I  see. 

Cabell.  If  you  care  to  write  me,  giving  full  particulars  of  your  organization, 
number  of  circulation,  and  those  matters  that  are  pertinent  to  any  type  of 
advertising,  I'd  be  very  glad  to  give  it  consideration. 

Koota.  I  will  put  something  in  the  mail  to  you. 

Cahell.  So,  if  you  will  do  that,  then  I'll  certainly  give  it  consideration. 

Koota.  Thank  you,  sir. 

Cabell.  All  right. 

(End  of  telephone  conversation.) 

The  CHAiRMAisr.  Are  there  any  questions,  Senator  Ervin  ? 

Senator  Ervix.  I  have  no  question. 

The  Chairman.  Thank  you.  You  may  stand  aside.  Call  the  next 
"witness. 

The  Chair  failed  to  observe  the  time.     It  is  about  quitting  time. 

The  Chair  has  received  another  telegram  from  Mr,  Ernest  M.  High, 
of  the  Spotlight,  That  telegram  may  be  inserted  in  the  record  at  the 
conclusion  of  my  remarks  about  it  earlier  this  afternoon, 

Mr.  Kennedy.  The  other  documents  have  been  put  in  also,  have 
they,  Mr.  Chairman,  and  the  affidavit  ? 

The  Chairman,  That  was  placed  in  the  record  earlier  as  an  exhibit. 

Counsel  advises  that  we  are  making  fairly  good  progress,  and  it 
will  not  be  necessary  for  us  to  meet  in  the  morning.  Therefore,  we 
will  stand  in  recess  until  2  o'clock  tomorrow,  and  we  will  resume  hear- 
ings in  this  room  at  that  time, 

"(Whereupon,  at  -4:  25  p,  m,  the  hearing  was  recessed,  to  reconvene 
at  2  p.  m.  Thursday,  June  5, 1958.  At  this  point,  the  following  mem- 
bers were  present :  Senators  McClellan  and  Ervin.) 


INVESTIGATION   OF   IMPROPER  ACTIVITIES  IN  THE 
LABOR  OR  MANAGEMENT  FIELD 


THURSDAY,   JUNE   5,    1958 

United  States  Senate, 
Select  Committee  on  Improper  Activities 

IN  the  Labor  or  Management  Field, 

Washington^  D.  C. 

The  select  committee  met  at  2 :  30  p.  m.,  pursuant  to  Senate  Resolu- 
tion 221,  aofreed  to  January  29,  1958,  in  room  457  of  the  Senate  Office 
Building,  Senator  John  L.  McClellan  (chairman  of  the  select  com- 
mittee) presidin^r. 

Present:  Senator  John  L.  McClellan,  Democrat,  Arkansas;  Senator 
Sam  J.  Ervin,  Jr.,  Democrat,  North  Carolina, 

Also  present :  Robert  F.  Kennedy,  chief  counsel ;  Jerome  S.  Adler- 
man,  assistant  chief  counsel ;  Paul  J.  Tiernej^,  assistant  counsel ;  Robert 
E.  Dunne,  assistant  counsel;  John  J.  McGovern,  assistant  counsel; 
Charles  E.  Wolfe,  accountant,  GAO;  Francis  J.  Ward,  accountant, 
GAO ;  Karl  Deibel,  accountant,  GAO ;  Ruth  Young  Watt,  chief  clerk. 

The  Chairman.  The  committee  will  be  in  order, 

(Members  of  the  committee  present  at  the  convening  of  the  session 
were:  Senators  McClellan  and  Ervin.) 

The  Chairman.  Before  we  call  the  next  witness,  the  Chair  will 
make  this  brief  statement.  I  have  today  received  from  Mr.  Winfield 
S.  Chasmar,  president  of  local  284:,  the  following  telegram : 

Jersey  City,  N.  J. 
Senator  John  McClellan, 

Chairman,  Special  Committee  on  Lalyor  and  Management  Activities, 
Senate  BwUding,  Washington,  D.  C: 
Immediate  action  being  instituted  to  recover  moneys  invested  in  World  Wide 
Press.  Original  investment  made  in  good  faith  to  promote  cause  of  labor  journal- 
ism. Failure  to  pay  interest  on  investment  and  general  bad  faith  now  evident 
makes  action  necessary  to  protect  welfare  of  our  members.  Appreciate  your 
acknowledging  this  action  in  the  record  of  your  hearings. 

The  Chair  acknowledges  it  so  that  those  who  read  the  record  may 
know  that  in  the  course  of  these  hearings  we  get  some  constructive 
results  long  before  we  do  make  our  report.  I  am  very  glad  to  see  that 
action  taken.  I  hope  the  money  is  recovered,  and  that  it  is  then  di- 
rected to  its  original  purpose,  and  that  is  to  serve  the  welfare  and  in- 
terest of  the  laboring  men  for  whom  it  was  collected  and  received 
in  the  first  instance. 

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

11859 


11860  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  Mr.  Chairman,  we  are  now  going  into  a  new  facet 
of  Mr.  Haddock's  operations,  and  the  operations  of  the  World  Wide 
Press,  and  we  are  going  into  the  relationship  of  Mr.  Raddock  and  his 
corporation  or  companies  with  the  Brotherhood  of  Carpenters,  and 
I  would  like  to  call  as  our  first  witness  Mr.  Karl  Deibel  of  the  com- 
mittee staff,  and  Mr.  Paul  Tierney. 

The  Chairman.  Will  you  be  sworn,  gentlemen.  Do  you  solemnly 
swear  that  the  evidence  you  shall  give  before  this  Senate  Select  Com- 
mittee shall  be  the  truth,  the  whole  truth,  and  nothing  but  the  truth,  so 
help  you  God  ? 

Mr.  Deibel.  I  do. 

Mr.  Tierney.  I  do. 

TESTIMONY  OF  PAUL  J.  TIERNEY  AND  KAEL  S.  DEIBEL 

The  Chairman.  You  on  my  left,  state  your  name,  and  your  place 
of  residence,  and  your  business  or  occupation. 

Mr.  Tierney.  My  name  is  Paul  J.  Tierney  and  I  reside  at  Bethesda, 
Md.,  and  I  am  an  assistant  counsel  of  the  committee. 

Mr.  Deibel.  My  name  is  Karl  S.  Deibel ;  I  am  a  supervisory  auditor 
of  St.  Louis  Office  of  the  United  States  General  Accounting  Office,  and 
I  reside  at  6136  Wanda,  St.  Louis,  Mo. 

The  Chairman.  All  right,  the  Chair  assumes  you  waive  counsel 
and  so  proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  JMr.  Deibel,  how  long  have  you  been  with  the  GAO  ? 

Mr.  Deibel.  Approximately  3I/2  years. 

Mr.  Kennedy.  How  long  have  you  been  assigned  to  this  committee? 

Mr.  Deibel.  Approximately  6  months. 

Mr.  Kennedy.  Mr.  Deibel,  you  have  been  working  on  the  accounts 
of  the  International  Brotherhood  of  Carpenters  ? 

Mr.  Deibel.  Yes,  sir. 

Mr.  Kennedy.  And  that  is  out  with  headquarters  in  Indianapolis ; 
is  that  correct  ? 

Mr.  Deibel.  That  is  correct. 

Mr.  Kennedy.  You  have  also  been  working  on  some  of  the  records 
of  Mr.  Max  Raddock? 

Mr.  Deibel.  That  is  right. 

Mr.  Kennedy.  And  certain  companies  in  which  lie  has  an  interest; 
is  that  right? 

Mr.  Deibel.  That  is  right. 

Mr.  Kennedy.  Can  you  tell  the  committee  the  amount  of  funds  that 
have  been  expended  by  the  International  Brotherhood  of  Carpenters 
and  its  subordinate  bodies  in  connection  with  the  work  of  Mr.  ]Max 
Raddock  and  his  companies  ? 

Mr.  Deibel.  Our  examination  has  indicated  that  for  the  past  4 
years 

Mr.  Kennedy.  What  period  is  that  ? 

Mr.  Deibel.  This  is  1954  through  1957,  the  brotherhood  and  its 
related  organizations  have  put  into  Mr.  Raddock  and  his  organiza- 
tion some  $519,900. 

The  Chairman.  How  much  is  that  ? 

Mr.  Deibel.  $519,900.  Now,  this  is  made  up  of  various  items.  We 
have  an  exhibit  here. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11861 

The  Chairman.  Do  you  have  a  breakdown  of  what  the  items  are  ? 

Mr.  Deibel.  That  is  rijrht. 

The  Chairman.  "Would  you  make  those  available  to  the  chairman, 
please  ? 

Mr.  Deibel.  Yes,  sir. 

(A  document  was  handed  to  the  chairman.) 

The  Chairman.  You  verify  this  mimeographed  document,  do  you  ? 

Mr.  Deibel.  Yes,  Senator. 

The  Chairman.  You  did  the  work  in  compiling  these  figures? 

Mr.  Deibel.  Yes,  sir,  this  is  the  result  of  our  examination  of  the 
records  of  the  brotherhood,  the  various  related  organizations  of  the 
brotherhood,  and  also  of  the  books  and  records  of  Mr.  Raddock  and 
his  organizations. 

The  Chairman.  This  is  a  very  brief  memorandum,  and  it  may  be 
printed  in  the  record  at  this  point. 

(The  document  is  as  follows :) 

Total  moneys  paid  by  United  Brotherhood  of  Carpenters  to  Maxwell  C.  Raddock, 
or  his  firms,  from  1954  to  1951 

Subscriptions  to  Trade  Union  Courier $120,  677 

Portrait  of  an  American  Labor  Leader :   William  L.  Hutcheson 310,  COO 

For  carpenters  regional  conferences  and  75th  anniversary  banquet 82,  348 

For  air  transportation  and  hotels 6,  862 

Total 519,887 

Out  of  the  above  total,  $466,378  was  paid  Raddock,  et  al.,  by  the  international 
offices. 

;Mr.  Kennedy.  You  have  broken  this  down  into  general  categories. 

Mr.  Deibel.  Yes,  sir. 

^Ir.  Kennedy.  The  first  category  is  the  subscriptions  to  the  Trade 
Union  Courier  ? 

Mr.  Deibel.  That  is  right. 

Mr.  Kennedy.  Could  you  tell  us  how  that  operated  ? 

Mr.  Deibel.  This  $120,677  shown  in  subscriptions  to  Trade  Union 
Courier  represents  subscriptions  taken  by  the  international  or  the 
brotherhood  at  their  Indianapolis  office,  as  well  as  subscriptions  by 
the  locals  in  the  New  York  area.  These  locals  are  1456,  which  is 
dock  and  pier  workers,  1536,  which  is  Timberman's  local,  and  2947 
which  is  the  Hollow  Metal  Door  local. 

As  of  February  1958,  these  organizations  were  subscribing  to  Mr. 
Eaddock's  Trade  Union  Courier  in  the  number  of  11,325. 

Mr.  Kennedy.  How  much  of  that  was  by  the  international  ? 

Mr.  Deibel.  Of  the  11,000,  there  was  roughly  5,550  by  the  interna- 
tional. 

Mr.  Kennedy.  And  for  that  subscription,  that  was  paid  out  of 
union  dues  money,  is  that  right  ? 

Mr.  Deibel.  Yes,  sir. 

Mr.  Kennedy.  So  this  whole  $120,677  is  all  out  of  union  funds  ? 

Mr.  Deibel.  That  is  correct,  sir. 

Mr.  Kennedy.  Xow,  is  there  anything  further  on  that,  that  you 
want  to  add  ? 

Mr.  Deibel.  Xo,  I  believe  that  takes  care  of  it. 

Mr.  Kennedy.  Xow,  the  second  item  is  the  Portrait  of  an  Ameri- 
can Labor  Leader :  "William  L.  Hutcheson,  what  is  that  ? 


11862  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Deibel,  That  represents  the  payments  to  Mr,  Raddock  and 
his  organizations  directly  for  the  printing  of  the  book  called,  A 
Portait  of  an  American  Labor  Leader,  and  the  payments  have  been 
spread  over  a  period  of  time,  and  they  represent  $310,000, 

The  Chairman.  Is  that  all  paid  by  the  international  ? 

Mr.  Deibel.  That  is  all  paid  by  the  international;  yes,  sir. 

Mr.  Kennedy.  We  are  going  into  that  matter  in  some  detail,  but  I 
just  want  to  get  the  general  categories  in  the  record  at  the  present 
time. 

Then  the  third  category  is  for  the  Carpenters  regional  conference 
and  75th  anniversary  banquet? 

Mr.  Deibel.  That  is  correct.  In  1956  the  Carpenters  were  observ- 
ing their  75th  anniversary,  and  relative  to  this  Mr.  Raddock  per- 
formed certain  services  in  the  spring  of  11)56  thi-oughout  the  coun- 
try. Various  district  conferences  were  held  by  the  Carpenters,  and  Mr. 
Raddock  performed  services  here  in  the  fall  of  1956.  A  banquet  was 
held  here  in  Washington,  D.  C,  at  which  time  IMr.  Raddock  himself 
performed  services. 

The  total  billings  of  Mr.  Raddock  and  the  amount  paid  by  the 
International  totaled  $82,300. 

The  Chairman.  Was  that  paid  over  a  period  of  a  year  ? 

Mr.  Deibel.  Yes,  sir ;  there  was  some  $38,000  paid  in  May  of  1956, 
and  $43,000  paid  in  November  of  1956. 

The  Chairman.  In  other  words,  all  of  the  services  were  performed 
within  a  year  ? 

Mr.  Deibel.  That  is  correct,  Senator. 

The  Chairman.  What  kind  of  services,  does  the  record  indicate  ? 

Mr.  Deibel.  Yes,  sir,  Mr.  Raddock  performed  such  things  as  prepa- 
ration of  programs,  preparation  of  speeches,  he  had  banners  made, 
and  he  had  invitations,  and  tickets  and  took  care  of  the  publicity  for 
these  conferences,  and  also  for  the  banquet. 

The  Chairman.  All  right,  go  ahead. 

Mr.  Kennedy.  Was  that  to  include  a  salary  for  Mr.  Raddock  for 
these  services  ? 

Mr.  Deibel.  The  understanding  that  we  have  from  ]Mr.  Richardson 
is  that  it  was  not  to  include  a  salary. 

Mr.  Kennedy.  That  was  just  his  expenses  ? 

Mr.  Deibel.  It  was  to  be  for  his  expenses,  that  is  correct. 

Mr.  Kennedy.  Did  he  submit  any  vouchers  or  any  support  for  this 
$82,000  ? 

Mr.  Deibel.  Mr.  Raddock  submitted  two  invoices,  which  contained 
numerous  paragraphs  of  wi-itings.  However,  there  was  only  one 
amount  which  appeared  on  each  invoice,  and  that  was  the  total  amount 
of  the  invoice.  These  paragraphs  of  writings  consisted  of  an  outline 
of  the  reason  for  the  charges,  such  as  for  printing  of  the  programs  and 
the  tickets,  and  the  telephone  service  that  was  necessary,  messenger 
service,  and  such  other  items. 

However,  the  only  amount  that  appeared  on  each  of  his  billings 
was  the  total  amount. 

Mr.  Kennedy.  He  didn't  give  a  breakdown  of  how  much  he  spent 
on  telephones  and  how  much  he  spent  on  making  these  mats,  and  how 
much  he  spent  on  the  programs  ? 

Mr.  Deibel.  That  is  correct. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11863 

Mr.  Kennedy.  Do  you  have  those  invoices  ?  We  plan  to  put  them 
in  the  record  at  a  later  time. 

Mr.  Deibel.  Yes,  I  do  have  a  copy  of  those. 

Mr.  IvENNEDY.  I  think  we  mi^ht  go  into  them  a  little  bit  now. 

Mr.  Deibel.  Would  you  like  parts  of  them  read? 

Mr.  IvENNEDY.  Yes,  would  you  read  some  parts  showing  how  this 
$82,000  was  arrived  at? 

Mr.  Deibel.  Here  is  the  billing  of  IMay  25, 1956,  and  now  Mr.  Ead- 
dock  sent  this  billing  over  the  heading  of  the  American  Institute  of 
Social  Sciences,  Inc.,  one  of  Mr.  Raddock's  organizations. 

Mv.  Kennedy.  American  Institute  of  Social  Sciences,  Inc.  ? 

Mr.  Deibel.  Yes,  sir. 

Mr.  Kennedy.  What  is  that  ? 

Mr.  Deibel.  This  is  an  organization,  as  we  understand  it,  that  was 
organized  to  publish  books,  and  I  believe  its  main  understanding  to 
this  date  has  been  in  connection  with  the  Portrait  of  an  American 
Labor  Leader. 

Mr.  Kennedy.  What  is  the  connection  between  what  it  does  and  its 
title,  do  you  know  ? 

Mr.  Deibel.  The  connection  is  supposed  to  be  the  books  that  he 
will  publish  that  are  related  to  social  sciences. 

Mr.  Kennedy.  And  the  only  work  they  have  done  so  far  that  you 
know  of  is  the  book  of  Mr.  Hutcheson  ? 

Mr.  Deibel.  I  believe  that  is  their  major  work. 

Mr.  Kennedy.  All  right. 

Mr.  Deibel.  This  billing  of  May  25,  1956,  which  is  written  to  the 
United  Brotherhood  of  Carpenters,  222  Michigan  St.,  Indianapolis, 
Ind.,  and  the  first  paragraph  states,  "Programing,  services  in  connec- 
tion with  the  regional  conferences  of  the  United  Brotherhood  of  Car- 
penters and  Joiners  of  America  in  between  quadrennial  conventions 
in  Boston,  Mass.,  Toronto,  Canada,  and  Philadelphia,  Pa.,  and  Seattle, 
Wash.,  and  San  Francisco,  Calif.,  and  Wichita,  Kans.,  Lakeland,  Fla., 
and  Chicago,  111. 

Agenda  for  regional  75th  anniversary  celebration,  VP  appearances,  guberna- 
torial proclamations,  picture  in  press  coverage,  general  and  labor  staff,  expenses. 

I  will  read  one  more  paragraph  and  I  think  it  is  interesting : 

For  use  of  personnel,  salaries,  and  fees,  and  for  telephones,  local-long  distance 
and  telegrams,  messengers,  car  expenses,  postage,  deliveries  to  daily  press, 
labor  and  periodicals. 

Now,  he  continues  this  general  presentation  for  some  5  or  6  para- 
graphs, at  which  time  he  concludes — 

All  above  for  a  period  from  April  7,  1956,  to  May  25,  1956,  total  outlay  in  ac- 
cordance, $38,890. 

Mr.  Kennedy.  There  is  no  breakdown  at  all  as  to  how  he  spent  that 
money,  is  that  right  ? 

Mr.  Deibel.  No,  sir. 

Mr.  Kennedy.  There  is  nothing  from  the  records  in  the  Carpenters 
to  show  or  indicate  that  these  were  expenses  that  he  actually  incurred  ? 

Mr.  Deibel.  No,  sir.  We  asked  the  officials  of  the  Carpenters 
Brotherhood  if  there  were  any  additional  supporting  documents  that 
would  enable  us  to  verify  the  accuracy  of  this  billing,  and  they  were 
unable  to  produce  any  documents. 

Mr.  Kennedy.  That  is  $30,000  for  what  period  of  time  ? 


11864  IMPROPER    ACTIVITIES    I]M^    THE    LABOR    FIELD 

Mr.  Deibel.  This  is  for  the  period  April  7  through  May  25,  1056. 

Mr.  Kennedy.  There  are  no  vouchers  other  than  that  ? 

Mr.  Deibel.  That  is  correct. 

Mr.  Kennedy.  What  about  the  other,  that  goes  up  to  make  the 
$82,000  ? 

Mr.  Deibel.  The  other  billing  is  dated  November  28, 1956,  also  from 
American  Institute  of  Social  Sciences,  Inc.,  and  also  addressed  to  the 
United  Brotherhood. 

May,  June,  July,  August,  September,  October,  and  through  November  25.  19.o6, 
for  cash  outlay  in  connection  with  regional  75th  anniversary  celebrations,  pre- 
75th  jubilee  dinner  arrangement,  and  programing  and  services,  and  preparation 
and  terminations  and  completion  date. 

Then  he  goes  to  his  various  types  of  expenses  such  as — 

For  secretarial,  research  staff  salaries,  expenses  for  full-time  and  part-time 
assistance,  for  long  distance,  local,  and  transit  phone  expenses,  home  and  office, 
telegraph,  messenger,  and  boy  services. 

We  have  approximately  10  paragraphs  of  the  same  type  of  ter- 
minology which  is  concluded  with  the  line — 

Total  outlay  for  period  as  above  mentioned,  $43,455. 

Mr.  Kennedy.  What  was  the  period  again  for  that  ? 
Mr.  Deibel.  This  is  a  period  from  May  1956  through  November  25, 
1956.  y  ^ 

Mr.  Kennedy.  So  once  again  as  in  the  case  of  the  $38,000,  there  are 
no  vouchers  submitted  whatsoever  to  support  that  ? 

Mr.  Deibel.  That  is  right.  We  also  requested  any  additional  sup- 
porting documentation  the  brotherhood  might  have  concerning  this 
billing,  and  we  Avere  told  that  there  were  no  other  documents. 

Mr.  Kennedy.  We  will  go  into  that  in  a  little  bit  more  detail  at  a 
later  time. 

There  is  also  another  item  for  $6,862. 

Mr.  Deibel.  This  is  for  air  transportation  and  hotels.  During  the 
district  conferences  and  also  the  T5th  anniversaiy,  jNIr.  Eaddock's 
hotel  bills,  and  Mr.  Grossman,  who  is  an  assistant,  and  also  Lorrain 
Grarz,  who  is  on  his  staff — their  bills  were  paid  directly  by  the  Car- 
penters. In  addition,  Mr.  Raddock  was  given  an  airline  transporta- 
tion credit  card  upon  which  he  flew  from  his  New  York  office  to  the 
various  locations  of  district  conferences,  and  also  to  Washington,  D.  C, 
and  the  total  of  these  transportation  and  hotel  bills  was  $6,900. 

Mr.  Kennedy.  In  addition  to  the  expenses  that  he  received  in  the 
amount  of  $82,000,  for  this  work  he  received  his  hotel  and  travel  ex- 
penses and  the  hotel  and  travel  expenses  of  any  assistants  that  might 
be  with  him  were  paid  during  that  period  of  time? 

Mr.  Deibel.  Yes,  sir. 

Mr.  Kennedy.  He  didn't  have  to  pay  that  out  of  the  $82,000? 

Mr.  Deibel.  That  was  paid  in  addition  to  the  $82,000. 

Mr.  Kennedy.  So  that  the  grand  total  was  $519,887? 

Mr.  Deibel.  That  is  correct. 

Mr.  Kennedy.  Mr.  Tierney,  I  would  like  to  ask  you 

Senator  Ervin.  Before  you  go  from  that,  I  would  like  to  ask  a  ques- 
tion. That  first  bill  for  upwards  of  $38,000  covers  from  April  7  to 
May  what? 

Mr.  Deibel.  May  25,  Senator. 


niPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11865 

Senator  ER\ax,  In  other  \yords,  in  48  days,  Mr.  Kaddock  was  paid 
over  $38,000  for  ostensibly  48  days  of  service? 

Mr.  Deibel.  That  is  correct,  sir. 

Senator  Ervin.  And  nothing  in  the  world  to  substantiate  the  serv- 
ices except  those  generalities  embodied  in  those  two  documents  you 
have  identified? 

Mr.  Deibel.  That  is  correct  at  the  Carpenters  Brotherhood  level. 
We  have  done  some  work  at  Mr.  Raddock's  side  of  the  business  and 
I  believe  we  will  get  into  that  a  little  later. 

Mr.  Kennedy.  As  long  as  we  are  touching  on  it — do  you  have  those 
records  there? 

Mr.  Deibel.  Those  records  are  not  here. 

Mr.  Kennedy.  Then  could  we  wait  on  that? 

Senator  ER\^N.  Yes. 

Mr.  Kennedy.  As  far  as  the  Carpenters  themselves  are  concerned, 
the  international,  that  is  all  of  the  documentation  they  had  to  support 
the  payment  of  this  amount  of  money  ? 

Mr.  Deibel.  That  is  correct.  The  $6,800  for  air  transportation  and 
hotels,  Mr.  Kennedy,  it  is  our  understanding  that  at  these  conferences 
and  at  the  75th  anniversary,  Mr.  Raddock  was  also  engaged  in  pushing 
his  book.  The  Portrait  of  An  American  Labor  Leader,  and  some  of 
these  expenses  may  be  more  closely  related  to  the  book  than  to  the 
75th  anniversary. 

Mr.  Kennedy,  But  they  were  expenses  paid  ? 

Mr.  Deibel.  They  were  expenses  paid  by  the  Carpenters  Brother- 
hood. 

Mr.  Kennedy.  Xow,  Mr.  Chairman,  we  are  going  into  some  detail 
in  the  writing  of  the  book. 

Mr.  Tierney,  when  was  the  book  Portrait  of  an  American  Labor 
Leader :  William  L.  Hutcheson,  first  ordered? 

Mr.  Tierney.  Mr.  Raddock  first  made  his  proposal  to  write  this 
book  apparently  in  early  December.  Our  jfirst  record  is  a  letter  of 
December  8,  1953,  at  which  time  he  confirmed  an  agreement  which 
had  already  been  reached  to  the  effect  that  he  would  produce  6,000 
books,  would  write  the  book,  publish  the  book,  and  furnish  6,000  copies 
by  the  Brotherhood's  next  coming  convention  which  was  in  November 
1954,  for  a  total  of  $25,000. 

Mr.  Kennedy.  So  that  I  understand,  he  was  going  to  write  the 
book,  publish  the  book,  publish  6,000  copies  of  the  book,  and  have 
them  available  for  the  convention  of  the  Carpenters  in  November  1954, 
which  was  12  months  later,  is  that  right  ? 

Mr.  Tierney.  That  is  right. 

Mr.  Kennedy.  For  that  work  he  was  to  get  paid  $25,000  ? 

Mr.  Tierney.  Right,  sir. 

Mr.  Kennedy.  You  have  a  letter  dated  what ;  December  8  ? 

Mr.  Tierney.  December  8, 1953. 

Mr.  Kennedy.  And  that  sets  forth  those  facts  ? 

Mr.  Tierney.  That  is  right. 

Mr.  Kennedy.  Mr.  Chairman,  could  we  have  that  offered  as  an  ex- 
hibit? 

Senator  Ervin.  It  will  be  received  as  an  exhibit,  exhibit  No.  15. 

(The  document  referred  to  was  marked  "Exhibit  No.  15"  for  ref- 
erence, and  may  be  found  in  the  files  of  the  select  committee.) 


11866  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  Let  the  record  show  that  I  am  present,  but  that 
Senator  Ervin  is  acting  in  my  behalf. 

Mr.  Kennedy.  I  would  like  to  call  Mr.  Ben  Kushner  and  Max  Perl- 
man. 

Senator  Ervin.  Do  you  and  each  of  you  solemnly  swear  that  the  evi- 
dence 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.  Kushner.  I  do. 

Mr.  Perlman.  I  do. 

TESTIMONY  OF  BEN  KUSHNER  AND  MAX  PEELMAN 

Mr.  Kennedy.  Mr.  Kushner,  would  you  give  your  name,  your  full 
name,  your  address,  and  your  occupation  ? 

Mr.  Kushner.  Ben  Kushner,  6938  218th  Street,  Bayside,  N.  Y.  I 
am  a  papercutter  and  bookbinder  at  World  Wide  Press,  in  Congers, 
N.  Y. 

Mr.  Kennedy.  Mr.  Perlman,  would  you  give  us  your  full  name  and 
your  address  and  occupation  ? 

Mr.  Perlman.  Max  Perlman,  780  Astor  Avenue,  Bronx,  N.  Y., 
pressroom  foreman,  World  Wide  Press. 

Mr.  Kennedy.  Mr.  Kushner,  you  spell  your  name  K-u-s-h-n-e-r  ? 

Mr.  Kushner.  That  is  right,  sir. 

Mr,  Kennedy.  And  you  have  been  employed  at  World  Wide  Press 
since  June  of  1953  ? 

Mr.  Kushner.  That  is  right. 

Mr.  Kennedy.  You  also  act  as  the  shipping  and  receiving  clerk  at 
World  Wide  Press? 

Mr.  Kushner.  I  do,  sir. 

Mr.  Kennedy.  And  you  operate  the  papercutting  department;  is 
that  right  ? 

Mr.  Kushner.  Yes,  sir. 

Mr.  Kennedy.  In  that  position,  you  would  be  familiar  with  the 
work  that  is  going  on  in  the  "V^'"orld  Wide  Press,  as  far  as  the  printing 
of  any  books ;  is  that  right  ? 

Mr.  Kushner.  That  is  right,  sir. 

Mr.  Kennedy.  You  would  be,  personally,  familiar  with  the  work 
that  is  going  on  in  World  Wide  Press  in  connection  with  that? 

Mr.  Kushner.  Yes,  sir. 

Mr.  Kennedy.  Mr.  Kushner,  when  was  the  first  activity  toward 
printing  the  book,  Portrait  of  An  American  Labor  Leader :  William 
L.  Hutch eson,  at  the  World  Wide  Press  ? 

Mr.  Kushner.  To  the  best  of  my  knowledge,  about  Thanksgiving 
of  1957. 

Mr.  Kennedy.  November  of  1957  ? 

Mr.  Kushner.  Yes,  sir. 

Mr.  Kennedy.  Mr.  Chairman,  I  would  like  to  point  out  that,  accord- 
ing to  the  information  that  we  have,  Mr.  Tierney's  testimony,  tlie  book 
was  ordered  in  November  of  1953. 

Was  tliat  the  time  that  the  paper  was  ordered  for  the  printing  of 
the  book  ? 

Mr.  Kushner.  Yes,  sir. 

Mr.  Kennedy.  Around  Thanksgiving  of  1957  ? 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11867 

Mr.  KusHNER.  Yes,  sir. 

Mr.  Kennedy.  Was  it  explained  to  you  at  that  time  that  there  was 
a  rush  job  that  was  needed,  that  was  necessary  ? 

Mr.  KusHNER.  Well,  I  would  say  that  we  were  going  to  push  it 
through,  sir. 

Mr.  Kennedy.  Was  it  understood  that  it  was  a  rush  job? 

Mr.  KusHNER.  Yes,  sir. 

Mr.  Kennedy.  I  might  also  say,  Mr.  Chairman,  that  the  committee 
started  its  investigation  of  this  matter  on  November  12  of  1957.  We 
first  went  into  the  records  of  the  Brotherhood  of  Carpenters  on  No- 
vember 12,  1957.  The  first  books  that  were  printed,  were  they  hard- 
cover books  or  were  they  books  of  so-called  chrome-type  books  or  pa- 
perbound  books  ? 

Mr.  KusHNER,  The  first  ones  were,  as  we  call  them,  soft  cover,  I 
believe. 

Mr.  Kennedy.  Soft-cover  books? 

Mr.  KusHNER.  Yes,  sir. 

Mr.  Kennedy.  That  is,  this  kind  of  a  book  [indicating]  ? 

Mr.  Kushner.  Yes,  sir. 

Mr.  Kennedy.  How  many  books  were  you  printing  at  that  time? 

Mr.  Kushner.  I  believe  it  was  12,000  or  14,000.  I  don't  remember 
the  exact  amount. 

Mr.  Kennedy.  How  long  would  it  take  for  you  to  print  that  book? 

Mr.  Kushner.  About  2  or  3  weeks. 

Mr.  Kennedy.  So,  that  would  take  you  up  until  sometime  in  De- 
cember of  1957 ;  is  that  right. 

Mr.  Kushner.  Yes,  sir. 

Mr.  Kennedy.  Did  you  bind  the  book  yourself  at  World  Wide 
Press  ? 

Mr.  Kushner.  No,  sir ;  not  that  one. 

Mr.  Kennedy.  Those  would  be  sent  out,  is  that  right,  to  be  bound  ? 

Mr.  Kushner.  The  first  one  was  sent  out  to  be  bound. 

Mr.  Kennedy.  The  records  show  that  the  order  that  was  placed  for 
binding  was  December  18,  1957.  Would  that  fit  into  the  time  that 
you  understand  it  to  be  ? 

Mr.  Kushner.  Yes,  sir. 

Mr.  Kennedy.  And  the  books  were  sent  out  for  binding  at  the  end 
of  December  and  early  January  1958  ? 

Mr.  Kushner.  That  is  correct,  sir. 

Mr.  Kennedy.  After  you  printed  or  ran  off  some  12,000  or  14,000 
copies  of  this  book,  did  you  take  steps  to  print  any  other  books? 

Mr.  Kushner.  Yes.    We  started  a  hard-cover  issue,  sir. 

Mr.  Kennedy.  When  would  that  be,  that  you  started  the  hard-cover 
issue? 

Mr.  Kushner.  Well,  roughly,  about  December  15  or  18;  about  that 
date. 

Mr.  Kennedy.  And  how  many  copies  of  those  books  did  you  run 
off? 

Mr.  Kushner.  I  don't  know. 

(The  witnesses  conferred.) 

Mr.  Kushner.  About  10,000. 

Mr.  Kennedy.  I  think  tlie  record  shows  10,000.  That  was  the  first 
time  you  started  running  hard-cover  books  in  the  plant,  is  that  right? 


11868  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

Mr.  KusHNER.  Yes,  sir. 

Mr.  Kennedy.  The  record  shows  that  you  received  the  paper  for 
these  hard-cover  books  on  December  26,  1957.  Would  that  be  about 
the  time  ? 

Mr.  KusHNER.  If  the  record  shows  that,  that  would  be — my  memory 
might  be  faulty  about  the  exact  date. 

Mr.  Kennedy.  But  your  recollection  was  that  it  was  around  Christ- 
mas time,  is  that  right  ? 

Mr.  KusHNER.  That  is  right. 

Mr.  Kennedy.  How  long  did  you  take  with  that,  printing  the  hard- 
cover books  ? 

Mr.  Kushner.  I  believe  that  was  about  2  or  3  weeks  also. 

Mr.  Kennedy.  That  would  also  fit  into  the  schedule  that  we  have. 
It  was  on  January  23,  1958,  that  the  books  were  then  sent  out  to  be 
bound  as  hard-cover  books. 

Mr.  Kushner.  That  is  right. 

Mr.  Kennedy.  They  were  sent  out  to  be  bound  ? 

Mr.  Kushner.  That  is  right,  sir. 

Mr.  Kennedy.  Was  that  in  the  middle  of  January  1958  ? 

Mr.  Kushner.  That  is  right,  sir. 

Mr.  Kennedy,  Did  you  then  print  some  more  paper-cover  books? 

Mr.  Kushner.  We  did. 

Mr.  Kennedy.  How  many  more  of  those  did  you  print,  approxi- 
mately ? 

Mr.  Kushner.  I  think  about  15,000.     I  am  not  sure. 

Mr.  Kennedy.  That  started  after  you  had  finished  the  hard  cover? 

Mr.  Kushner.  Yes,  sir. 

Mr.  Kennedy.  So  that  would  start  at  the  end  of  January,  is  that 
right? 

Mr.  Kushner.  That  is  right. 

Mr.  Kennedy.  So  that  would  again  take  about  3  weeks  ? 

Mr.  Kushner.  That  is  right. 

Mr.  Kennedy.  So  jon  finished  those  somewhere  around  the  middle 
of  February  1958  ? 

Mr,  Kushner.  That  is  correct. 

Mr.  Kennedy.  Do  you  know  if  arrangements  were  made  from  an 
outside  concern  to  print  some  books,  some  hard-cover  books  ? 

Mr.  Kushner.  I  know^  there  were  some  such  arrangements  made, 
but  specifically  I  don't  know  about  it. 

Mr.  Kennedy.  Do  you  know  when  those  arrangements  were  made  ? 

Mr.  Kushner.  No,  sir. 

Mr.  Kennedy,  Just  so  that  I  get  it  straight,  from  the  time  you  went 
to  work,  no  books  were  printed  at  World  Wide  Press  entitled  "Portrait 
of  an  American  Labor  Leader:  William  L.  Hutcheson,*'  from  the  time 
you  went  to  work  until  November  of  1957  ? 

Mr.  Kushner.  As  far  as  I  know,  no  books  were  printed. 

Mr.  Kennedy.  And  the  magnitude  of  the  job  was  such  that  you 
would  have  to  know  about  it  if  it  was  going  on,  is  that  right  ? 

Ml-.  Kushner.  Yes,  I  would. 

Mr.  Kknnedy.  Now,  Mr.  Perlnian,  wlien  did  you  go  to  work  for 
World  Wide  Press? 

Mr.  l^ERLMAN.  Approximately  6  years  ago. 

Mr.  Kennedy.  About  January  of  1955  2 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11869 

Mr.  Perlman.  No,  6  years  ago.    About  1952. 

Mr.  Kennedy.  1952? 

Mr.  Perlman.  Yes,  sir. 

Mr.  Kennedy.  You  Avorked  as  a  foreman- 


Mr.  Perlman.  Xot  all  the  time,  but  only  for  the  past  2  years. 

Mr.  Kennedy.  That  is  about  since  January  of  1955  ? 

Mr.  Perlman.  That  is  right. 

Mr.  Kennedy.  In  that  position,  you  handled  the  actual  printing  of 
the  Hutcheson  book,  is  that  right  ? 

Mr.  Perlman.  That  is  correct,  sir. 

Mr.  Kennedy.  When  did  the  printing  of  the  Hutcheson  book  start 
at  "World  Wide  Press  ? 

Mr.  Perlman.  Approximately  about  Thanksgiving  of  1957. 

The  Chairman.  Do  you  mean  that  none  of  these  books  were  printed 
at  the  World  Wide  Press  plant  until  November  1957  ? 

Mr.  Perlman.  That  is  right,  sir. 

The  Chairman.  All  right. 

Mr.  Kennedy.  And  the  dates  that  we  have  gone  through  with  Mr. 
Kushner  about  the  time  of  the  binding  in  late  December  1957,  does 
that  fit  into  your  recollection  as  to  what  occurred  ? 

Mr.  Perlman.  Pretty  near,  that  is  right,  sir. 

Mr.  Kennedy.  And  then  the  paper  for  the  hard  books  was  ordered 
at  the  end  of  December  1957  ? 

Mr.  Perlman.  Yes,  sir. 

Mr.  Kennedy.  So  those  were  the  first  hard  books  that  were  printed 
at  the  World  Wide  Press  ? 

Mr.  Perlman.  That  is  correct. 

Mr.  Kennedy.  And  they  weren't  ordered  until  the  end  of  December 
1957? 

Mr.  Perlman.  That  is  correct. 

Mr.  Kennedy.  And  you  printed  those  hard  bound  books  in  Janu- 
ary, and  were  finished  at  the  end  of  January  1958,  is  that  right,  and 
were  sent  out  at  that  time  to  be  bound  ? 

Mr.  Perlman.  That  is  right,  sir. 

Mr.  Kennedy.  Then  you  printed  also  some  soft  cover  books  again? 

Mr.  Perlman.  That  is  correct. 

Mr.  Kennedy.  So  altogether  in  your  plant,  you  printed  about  29,000 
soft  cover  and  10,000  hard  cover,  is  that  right  ? 

Mr.  Perlman.  That  is  right. 

Mr.  Kennedy.  And  this  all  occurred  after  or  started  around  Thanks- 
giving 1957? 

]Mr.  Perlman.  That  is  right. 

Mr.  Kennedy.  Did  you  understand  this  was  a  rush  job  at  that  time 
also  ? 

]Mr.  Perlman.  Yes. 

The  Chairman.  Do  you  know  what  prompted  the  rush  ? 

Mr.  Perlman.  I  beg  your  pardon. 

The  Chairman.  You  say  it  became  a  rush  job  in  January  of  this 
year,  I  believe,  or  December  of  last  year  and  January  of  this  year. 

Mr.  Peri,man.  Yes,  it  was.    We  only  had  one  press  to  print  it  on, 
so  it  would  take  quite  some  time.    So  we  were  pushing  it  through. 
The  Chairman.  Do  you  know  what  caused  the  rush  ? 
Mr.  Perlman.  I  really  don't  know,  sir. 


11870  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  All  right. 

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

The  Chairman.  Do  you  have  anything  further,  Senator  Ervin  ? 

Senator  Ervin.  No  questions. 

The  Chairman.  All  right,  gentlemen.  You  may  stand  aside. 
Thank  you  very  much. 

Mr.  Kennedy.  Mr.  Chairman,  we  have  a  chart  we  wish  to 
discuss  now. 

The  Chairman.  The  chart  may  be  brought  around. 

Mr.  Kennedy.  Can  you  see  it  all  right? 

The  Chairman.  I  have  a  copy  before  me  here. 

Mr.  Kennedy.  Mr.  Chairman,  as  the  witnesses  testified,  the  first 
books  were  ordered  in  December  of  1953.  On  January  8,  1954,  the 
first  $25,000  was  paid.  That  was  for  the  writing  and  the  publishing 
of  these  6,000  copies  of  the  books.  Mr.  Raddock  then  got  in  touch 
with  the  Carpenters  and  said  that  he  needed  another  $25,000.  This 
was  also  paid  to  him  in  order  to  assist  him  in  his  research.  We  will 
have  some  testimony  about  the  amount  of  money  involved  even  as  of 
this  time.  He  was  to  finish  the  book,  according  to  the  contract  and 
the  arrangement  that  he  had,  and  have  the  6,000  copies  available  by 
November  of  1954. 

That  was  giving  him  a  period  of  about  1  year  from  tlie  time  that 
it  was  ordered.  He  failed  to  meet  the  deadline.  He  had  not  pro- 
duced any  books  by  November  of  1954.  Then  it  was  decided  that  he 
should  print  some  more  books,  and  the  Carpenters  made  arrangements 
to  pay  him  some  $200,000  to  print  50,000  books.  Mr.  Haddock  was 
going  to  charge  the  Carpenters,  his  friends,  $4  a  book.  That  was 
50,000  books  at  $4  each.  He  was  then  going  to  take  the  books  an'l 
mail  them  out  to  various  libraries,  schools,  labor  officials,  et  cetera, 
throughout  the  country. 

It  was  understood  at  that  time  that  he  would  be  paid  $100,000,  as 
an  initial  downpayment,  and  then  he  would  be  paid  the  second 
$100,000  after  he  had  printed  56,000  books  and  delivered  them. 

The  significant  part  is  that  he  received  $50,000  on  January  31,  1955. 

The  Chairman.  Up  to  that  time  he  had  produced  no  book  at  all  ? 

Mr.  Kennedy.  That  is  correct. 

The  Chairman.  And  the  original  contract  was  to  get  books  in  pro- 
duction with  $25,000? 

Mr.  Kennedy.  Yes.     And  then  he  had  been  paid  an  extra  $25,000. 

The  Chairman.  To  get  them  in  production  b}'  when  ? 

Mr.  Kennedy.  November  1954. 

Tlie  Chairman.  November  1954? 

Mr.  Kennedy.  Tliat  is  correct. 

The  Chairman.  And  by  November  1954  there  were  no  books? 

Mr.  Kennedy.  No  books.  And  he  was  paid  another  $50,000  on 
February  14,  lt)55.  So  by  this  time  he  had  received  $150,000.  One 
of  tlie  significant  points  here  is  that  tlie  contract  to  pay  him  this  extia 
money  was  made  on  February  14,  1955.  But  he  received  $50,000  of 
union  funds  back  on  January  31,  1955,  some  2  weeks  prior  to  the  time 
they  had  even  made  an  agreement  to  pay  him  any  money.     The  first 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11871 

$100,000  was  to  be  paid,  as  I  said,  as  a  downpayment  for  the  book. 

The  second  $100,000  was  not  to  be  paid  until  he  had  delivered  the 
books.  He  was  to  deliver  these  books  by  March  31,  1955.  Despite 
the  fact  that  he  still  had  not  delivered  any  books,  the  other  $50,000 
was  paid  to  him,  now  makin<2:  a  total  of  $200,000  without  the  delivery 
of  any  books,  and  he  had  made  the  contract  some  16  months  before. 

By  November  30,  1955,  they  paid  him  another  $50,000,  so  he  now 
had  $250,000,  and  he  finally  produced  r»,000  books. 

The  Chairman.  He  had  received  $250,000  over  a  period  of  nearly 
2  years  before  a  book  was  produced  ? 

Ml'.  Kennedy.  That  is  right. 

The  Chairman.  It  lacks  a  month  and  8  days  of  being  2  years,  is 
that  correct  ? 

Mr.  Kennedy.  Yes.  December  8  was  the  date,  so  it  is  about  9  days 
under  2  years. 

Senator  Ervin.  And  the  original' contract  was  to  produce  6,000 
books  for  $25,000. 

Mr.  Kennedy.  That  is  correct. 

The  Chairman.  So  by  the  time  he  had  gotten  $250,000,  he  had  pro- 
duced 5,000  books,  whereas  the  original  contract  was  to  produce  6,000 
books  for  $25,000  ? 

Mr.  Kennedy.  That  is  correct. 

The  Chairman.  All  right. 

Mr.  Kennedy.  So  as  of  November  30,  1955,  some  2  years  after  the 
contract  was  made,  he  had  received  $250,000  to  produce  56,000  books 
and  he  was  in  default  by  51,000  books '. 

The  Chairman.  I  think  that  states  it.  He  had  received  $250,000 
and  had  only  produced  5,000  books. 

Mr.  Kennedy.  Right. 

The  Chairman.  All  right,  proceed. 

Mr.  Kennedy.  Evidently  because  of  this  kind  of  a  record,  the  Car- 
penters thought  he  was  doing  a  line  job,  so  on  February  24,  1956,  the 
Carpenters  paid  him  $50,000  more  to  produce  10,000  additional  books 
at  $5  a  copy.  The  price  had  gone  up  from  $4  a  copy  to  $5  a  copy. 
They  ordered  10,000  more  books,  Mr.  Chairman,  when  as  yet  he  had 
not  even  1  ived  up  to  the  agreement  he  made  2  years  before. 

The  Chairman.  He  had  not  yet  even  produced  6,000,  the  original 
order  ? 

Mr.  Kennedy.  No.  So  they  gave  him  another  $50,000  to  produce 
the  books  at  $5  a  copy.  In  March  1956,  he  took  a  major  step  forward 
and  produced  3,100  books,  making  a  total  then  of  8,100  books.  Because 
of  this,  on  January  9,  1957,  the  Carpenters  paid  him  another  $10,000 
to  produce  2,000  more  books,  again  at  $5  a  copy. 

The  Chairman.  How  many  had  he  actually  produced  by  then  ? 

Mr.  Kennedy.  8,100  books,  and  this  was  some  3  years  after  the 
contract  had  been  made. 

The  Chairman.  All  right. 

Mr.  Kennedy.  Then  in  June  of  1957,  he  produced  another  10,000 
books. 

The  Chairman.  That  made  18,100. 

Mr.  Kennedy.  18,100  books  as  of  June  1957. 

21243— 58— pt.  31 7 


11872  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  That  is  3%  years  from  the  time  of  the  original 
contract. 

Mr.  Kennedy.  Yes.  We  began  our  investigation  on  November  12, 
1957,  and  then  he  started  producing  a  great  number  of  books.  Starting 
in  December  of  1957,  according  to  the  testimony,  he  produced  16,000 
copies  of  these  paperback  books  in  his  plant. 

Then  he  made  arrangements  in  his  plants  and  elsewhere,  farmed  out 
in  January-February  1958,  to  produce  40,000  clothbound  copies  and 
then  in  February  1958  he  produced  another  13,000  books,  cloth-covered 
books. 

The  Chairman.  What  was  the  total  ordered  ?  Originally  there  were 
to  be  how  many  ? 

Mr.  Kennedy.  69,000 ;  and  he  produced  as  of  the  time 

The  Chairman.  In  other  words,  all  of  the  orders  for  books  aggre- 
gate 69,000.    How  many 

Mr.  Kennedy.  68,000,  Mr.  Chairman. 

The  Chairman.  68,000.  How  many  had  been  produced  up  to  the 
time  the  committee  started  its  investigation  ? 

Mr.  Kennedy.  18,100.  At  the  time  we  began  our  investigation, 
which  is  some  4  years  after  the  book  had  been  ordered,  he  was  in 
default  some  49,000,  and  he  had  been  paid  $".12,000.     It  ;=  nil  cloar? 

Senator  Ervin.  All  of  which  reminds  me  of  the  book  entitled  "Wliat 
Price  Glory." 

The  Cha  irman.  How  many  books  have  actually  been  produced  and 
delivered  up  to  now  ? 

Mr.  Kennedy.  58.100  clothbound,  hsird-cover  books,  a'^d  $29,000 
soft  books.  He  is  still  in  default  about  10,000,  almost  10,000,  of  the 
hard-cover  books. 

The  Cttairman,  In  other  words,  the  contract  is  not  v^t  co^^pleted. 

Mr.  Kennedy.  No.  He  has  made  a  lot  of  these  clothbound  books. 
Mavbp  he  feels  f^^^f  29.000  clo^hh^upd  books  make  up  for  10,000  hard- 
bound books.    This  is  all  out  of  union  funds. 

The  Chairman.  Since  the  committee  started  its  investigation,  has 
there  been  any  more  money  paid  him  ? 

Mr.  Kennedy.  No  :  I  think  they  stopped  paying  him. 

The  Chairman.  When  we  started  the  investigation,  the  union 
stopped  paying  him  money  and  he  started  producing. 

Mr.  Kennedy.  Thi«  is  *^hf^  book  on  tho  -P'^vmer  president  of  the 
Carpenters,  and  the  father  of  the  present  president. 

The  Chairman.  This  copy  of  the  soft-bound  volume  may  be  made 
exhibit  16  This  is  a  paperbound  volume  and  it  may  be  made  exhibit 
16,  for  reference. 

(The  document  referred  to  was  marked  "Exhibit  16"  for  reference, 
and  mav  be  found  in  the  files  of  the  select  committee.) 

Mr.  Kennedy.  Did  you  examine  the  index  ? 

The  Chairman.  I  don't  know  whether  this  occurs  in  all  of  them 
or  not.  }mi<  it  may  be  noted  in  this  particular  volume — is  that  true  in  the 
other  one  ? 

Mr.  Kennedy.  There  were  two  different  runs  of  it,  one  of  the  13 
and  on^  of  the  16. 

The  Chairman.  They  have  the  index  upside  down.  That  may  be 
some  indication  of  the  quality. 

(The  document  referred  to  follows :) 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 


11873 


Chronology  of  payments  to  Maxwell  C.  Raddock  by  Carpenters  for  production 
of  book.  Portrait  of  an  American  Labor  Leader:  William  L.  Hutcheson 


Date 

Money 

paid  by 

Carpenters 

to  Raddock 

Purpose 

Quantity 
of  books 
actually 

produced 

Comment 

Jan.  8, 1954. 

$25,000 
25,000 

To  write  and  publish  book,  and 
furnish   6,000   copies   for   inter- 
national convention  in  Novem- 
ber 1954. 

Advance  for  additional  research 

May  18,  1954 

Jan.  31,  1955 

50,000 
60,000 

50,000 
50,000 

For  delivery  of  50,000  books,  at 
$4  each,  to  be  mailed  by  Rad- 
dock to  colleges,  libraries,  etc., 
by  Mar.  31,  1955. 

On  this  date,  Raddock  executes 
performance  agreement  to  fur- 
nish 50,000  books  and  bound  list 
of  recipients  by  Mar.  31,  1955,  as 
condition  precedent  to  Carpen- 
ters paying  him  ,$100,000  balance 
on  50,000-book  order. 

3d     instalment    on    50,000-book 
order.    Payment  made  despite 
Raddoek's    nonperformance    of 
Feb.  14,  1955,  agreement. 

4th  and  final  installment  on  50,000- 
book  order.    Paid  despite  Rad- 
doek's nonperformance. 

To  produce  56,000  books     

meet  November 
deadline  for 
production  of 
book. 

Feb.  14,  1955 

Mar.  31,  1955 

Raddock  in  de- 

Nov. 31,  1955 

5,0C0 

fault  on  delivery 
of  56,000  books  as 
of  Mar.  31,  1955. 

Total  as  of  Nov. 

250, 000 
50,000 

5,000 

Raddock  In  de- 

31, 1955. 
Feb.  24,  1956 

According    to    brotherhood    gen- 
eral   president,   this   for   10,000 
additional  books  at  price  of  $5 
per  copy. 

fault  by  51,000 
books. 
This  payment  of 
$50,000  made  at  a 
time  when  Rad- 
dock had.already 
been  paid 
$250,000  and  in 
default  51,000 
books. 

March  1956 

3,100 

Jan.  9,  1957 

10,000 

For  2,000  books,  at  price  of  $5  copy. 

This  payment  of 
$10,000  made  at  a 
time  when  Rad- 
dock had  already 
been  paid 
$300,000  and  in 
default  57,900 
books. 

June  1957 

10,000 

To  produce  68,000  books 

Total  as  of  June 

310,  000 

18,100 

1957. 

Nov.  12,  1957,  staff 
commences  investiga- 
tion of  Carpenters: 
November-Decem- 

Raddock In 
default  49,900 
copies  of  book. 

Raddock  produces 
16,000  copies  of 
cheap  paper- 
back books. 

Produces  40,000 

ber  1957. 
January-February 

1958. 
February  1958 

cloth-bound 
books. 
Produces  13,000 

copies  of  cheap 

paper-back 

books. 

11874  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

The  Chairman,  xill  right.     Call  the  next  witness. 

Mr.  Kennedy.  Mr.  Stahley  Thompson. 

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

Mr.  Thompson.  I  do. 

TESTIMONY  OF  STAHLEY  THOMPSON 

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

i\Ir.  Thompson.  Stahley  Thompson,  212  East  49th  Street,  New  York 
City,  president,  Stahley  Thompson  Associates. 

The  Chairman.  Do  you  waive  counsel,  Mr.  Thompson  ? 

Mr.  Thompson.  Yes,  I  do. 

The  Chairman.  Thank  you.     Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  Mr.  Thompson,  what  is  your  company? 

Mr.  Thompson.  We  are  graphic  designers  and  producers  of  books 
for  clients,  such  as  industry,  and  publishers. 

Mr.  Kennedy.  Could  you  speak  a  little  louder,  please  ? 

Mr.  Thompson.  We  design  and  produce  books  for  clients,  industry, 
and  publishers. 

Mr.  Kennedy.  And  your  first  name  is  Stahley  ? 

Mr.  Thompson.  Yes. 

Mr.  Kennedy.  Thompson,  T-h-o-m-p-s-o-n  ? 

Mr.  Thompson.  That  is  correct. 

Mr.  Kennedy.  And  you  are  Stahley  Thompson  Associates,  Inc.? 

Mr.  Thompson.  Yes,  sir. 

Mr.  Kennedy.  141  East  25th  Street,  New  York  City? 

Mr.  Thompson.  That  is  correct. 

Mr.  Kennedy.  Mr.  Thompson,  did  Mr.  Raddock  approach  you  to 
do  some  work  for  him  in  1955  ? 

Mr.  Thompson.  Yes.  As  a  matter  of  fact,  we  were  approached  to 
l^roduce  the  book.  An  American  Labor  Leader,  by  Mr.  Raddock  in  ap- 
proximately October  1955. 

Mr.  Kennedy.  Your  company  in  fact  produced  the  8,100  copies  of 
the  book  that  were  ])rinted  up  until  June  of  1957? 

Mr.  Thompson.  That  is  true.  They  were  produced  in  2  blocks,  the 
first  printing  of  5,000  copies  from  type  and  the  second  printing  of,  I 
think  it  was,  3,100  or  3,200  copies  from  plates. 

Mr.  Kennedy.  But  he  made  a  contract  with  you  to  produce  those 
books  ? 

Mr.  Thompson.  Yes. 

Mr.  Kennedy.  Could  you  tell  us  what  the  discussions  were  originally 
about  how  many  books  would  be  involved?  When  did  he  first  ap- 
proach you? 

Mr.  Thompson.  Well,  actually,  that  is  a  rather  strange  story,  be- 
cause he  approached  us  through  one  of  our  former  employees,  who 
liad  designed  the  book  jacket  for  this  Portrait  of  an  American  Labor 
Tjeader  sometime  earlier  as  a  free-lance  basis. 

He  approached  us  from  Mr.  Kamp;  I  would  say  it  was  either  in 
September  or  October  1955,  on  a  proposition  of  producing  an  advance 
run  of  5,000  copies  of  this  book  to  meet  some  special  event  of  the 
Carpenters'  Union. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11875 

Mr.  IvENNEDT.  I  think  the  records  show  a  letter  that  we  have  from 
Mr.  Kamp  to  Mr.  Kaddock  in  May  of  1955. 

Mr.  TiioMPSOX.  It  might  have  been  as  early  as  that. 

Mr.  Kennedy.  That  date  is  not  essential,  but  that  was  actually 

The  Chairman.  Let  the  Chair  interrupt  for  a  moment.  One  of  the 
hard-bound  volumes  will  be  made  exhibit  17  for  reference. 

(The  document  referred  to  was  marked  "Exhibit  17"  for  reference 
and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Kjsnnedy.  But  it  was  during  the  middle  of  1955  ? 

Mr.  Thompson.  Yes.    It  was  in  that  period. 

Mr.  IvENNEDY.  Did  he  tell  you  at  that  time  how  many  books  he 
wanted  produced  ? 

Mr.  Thompson.  Yes.  He  spoke  of  2  runs  at  that  time,  1  run  of  5,000 
copies,  an  advance  run,  which  were  to  be  ready  for  some  special  opera- 
tion, something  of  the  Carpenters,  of  the  union,  and  a  secondary  run 
of  approximately  60,000  to  65,000  books. 

Mr.  Kennedy.  Mr.  Thompson,  if  he  came  to  you  and  decided  to  go 
ahead  with  the  60,000  books,  60,000  or  65,000  books,  and  you  were  to 
do  the  production  of  the  book,  he  was  to  just  hand  you  a  manuscript, 
and  you  were  then  to  produce  the  book,  a  hard-covered  book  and  send 
it  out  to  a  list  of  names  that  he  might  furnish  to  you  or  perhaps  the 
Carpenters  would  furnish  to  j^ou,  how  much  would  you  be  willing  to 
have  done  this  job  for  the  Carpenters  for? 

Mr.  Thompson.  Well,  actually,  Mr.  Raddock  furnished  the  type  on 
this  job,  but  if  we  had  done  this  job  complete  from  a  manuscript, 
based  on  65,000  copies,  and  mailed  it  from  furnished  labels,  that  is, 
furnished  by  any  organization 

Mr.  Kennedy.  That  is  the  usual  procedure,  isn't  it? 

Mr.  Thompson.  Yes ;  that  is  the  usual  procedure.  Labels  are  gen- 
erally furnished.  I  think  it  would  have  cost  approximately  $1.25 
complete.    I  did  work  up  a  few  figures  here. 

The  Chairman.  Is  that  for  the  hard-bound  copy  ? 

Mr.  Thompson,  Yes,  sir. 

The  Chairman.  The  most  expensive  ? 

Mr.  Thompson.  Yes,  sir. 

The  Chairman.  $1.25  apiece  would  have  been  the  price? 

Mr.  Thompson.  Actuallv,  the  figures  I  have  here  come  to  $1,106. 

Mr.  Kennedy.  $1.10? 

Mr.  Thompson.  $1.106 ;  yes. 

The  Ch^virman.  But  you  are  making  some  allowances  ? 

Mr.  Thompson.  Yes.  And  this  includes  about  a  10-percent  markup, 
which  would  be  our  fee. 

The  Chairman.  In  other  words,  you  would  make  a  10-percent 
profit? 

Mr.  Thompson.  Yes,  sir. 

Mr.  Kennedy.  You  would  have  been  willing  to  do  it  for  the  Carpen- 
ters at  $1.10  a  copy,  and  that  would  be  the  production  of  the  book  and 
sending  it  out ;  is  that  right  ? 

Mr.  Thompson.  Yes.  I  think  that  would  be  about  the  normal  cost 
for  a  book  like  this. 

Mr.  Kennedy.  That  would  include  a  profit  for  you  ? 

Mr.  Thojipson.  Yes,  sir. 

ISIr.  Kennedy.  Aiid  that  would  include  the  mailing  costs,  and  the 
packaging  ? 


11876  IMPROPER    ACTIVITIES    EST    THE    LABOR    FIELD 

Mr.  Thompson.  Yes.  I  allowed  in  this  figure  approximately  20 
•cents  for  postage. 

Mr.  Kennedy.  And  that  is  included  in  the  $1.10  ? 

Mr.  Thompson.  That  is  right,  actually,  we  furnished  a  quotation 
to  Mr.  Raddock  of  approximately  75  cents  a  copy  complete,  exclusive 
of  cartoons,  mailing  and  so  forth. 

Mr.  Kennedy.  You  told  him  at  that  time  that  you  would  be  willing 
to  do  this  run  for  75  cents  a  copy  ? 

Mr.  Thompson.  Yes.  Actuallj^,  it  is  less  than  that,  because  this 
75.6  cents  I  have  includes  composition,  and  the  composition  was  fur- 
nished. 

Mr.  Kennedy.  But  you  told  him  at  that  time  that  you  could  do  it 
for  75  cents  a  copy  ? 

Mr.  Thompson.  Yes.  I  believe  you  have  a  copy  of  one  of  our  pro- 
posals there,  showing  the  costs. 

The  Chairman.  I  hand  you  here  a  photostatic  copy  of  what  pur- 
ports to  be  a  proposal  on  the  book,  the  title  of  which  is  "Portrait  of 
an  American  Labor  Leader,"  which  appears  to  be  dated  the  21st  of 
October  1955.    I  will  ask  you  to  examine  it  and  state  if  you  identify  it. 

(The  document  was  handed  to  the  witness.) 

Mr.  Thompson.  Yes,  sir. 

The  Chairman.  Is  that  a  copy  of  the  proposal  your  company  sub- 
mitted to  Mr.  Eaddock  ? 

Mr.  Thompson.  Yes,  sir. 

The  Chairman.  That  copy  may  be  made  exhibit  No.  18. 

(The  document  referred  to  was  marked  "Exhibit  No.  18"  for  ref- 
erence and  will  be  found  in  the  appendix  on  p.  12142.) 

Mr.  Kennedy.  What  is  the  figure  that  you  quote  on  there? 

Mr.  Thompson.  74.3  cents. 

Mr.  Kennedy.  That  would  be  for  the  production  of  the  book  ?  That 
would  be  for  the  production  of  the  book?  That  would  not  include 
sending  the  book  out  ? 

Mr.  Thompson.  No. 

Mr.  Kennedy.  It  is  about  25  cents  more  to  send  the  book  out;  is 
that  right? 

Mr.  Thompson.  This  is  merely  paper,  presswork,  and  binding,  in^ 
eluding  new  dies  for  stamping.  Mr.  Raddock  changed  the  dies  on 
the  second  edition. 

Mr.  Kennedy.  Actually,  one  of  your  other  propositions,  when  you 
were  approached  in  early  1955,  that  you  could  do  it  for  64  cents  a 
copv ;  is  that  right  ? 

Mr.  TiTo^ipsoN.  Yes.  I  frankly  don't  remember  all  these  figures, 
but  T  lelieve  you  have  copies  of  everything  here. 

Mr.  Kexnedy.  63.8  cents. 

The  Chairman.  I  hand  you  here  what  purports  to  be  another  pro- 
posal, an  earlier  one  made  by  your  company  for  the  printing  of  this 
book  on  May  12,  1955,  together  with  a  copy  of  the  letter  of  transmittal 
of  the  proposal.  Will  you  examine  it,  please,  nnd  state  if  you  identify 
the  proposal  nnd  the  transmittal  letter  attached? 

(Tlip  documents  were  handed  to  the  witness.) 

Mr.  Tttompron.  Yes,  sir. 

The  Chairman.  They  may  be  made  exhibit  No.  19. 


IMPROPER    ACTIVITIES    IN   THE    LABOR    FIELD  11877 

(The  documents  referred  to  were  marked  "Exhibit  No.  19  for 
reference  and  will  be  found  in  the  appendix  on  pp.  12143,  12144.) 

The  Chairman.  What  was  your  proposal  at  that  time ;  that  ia,  the 
price  of  the  book  ? 

Mr.  Thompson.  Our  proposal  for  50,000  copies  at  this  time  was 
63.8  cents.  The  reason  for  the  difference  in  this  price  and  that  price 
is  this  is  })ased  on  binding  in  a  Novelex  material,  which  is  a  less  ex- 
pensive material  and  does  not  contain  the  same  number  of  illustrations 
and  the  wrapping  of  the  illustrations  and  binding  as  the  other  one 
does. 

The  Chairman.  In  other  words,  the  two  prices  actually  compare 
favorably  with  respect  to  the  kind  of  work  you  were  to  do? 

Mr,  TnoivrpsoN.  Yes,  sir. 

But  the  specifications  on  this  are  different. 

The  Chairman.  That  does  not  mean  there  had  been  an  increase  in 
price.  It  just  meant  that  the  latter  proposal  was  on  a  little  better  pro- 
duction ? 

Mr.  Thompson.  Yes,  sir.  There  may  have  been  a  small  labor  in- 
crease at  that  time.  I  don't  recall.  But  it  is  mainly  because  of  the 
specifications. 

Mr.  Kennedy.  Of  course,  if  you  only  did  five  thousand  or  six  thou- 
sand, or  a  small  number  of  books,  it  would  cost  far  more  per  copy, 
would  it  not  ? 

Mr.  Thompson.  Yes,  sir,  because  the  makereadies  and  the  prelimi- 
nary work,  the  costs  for  that  would  be  covered  over  a  smaller  number 
of  copies,  and,  thus,  your  unit  cost  would  be  higher. 

Mr.  Kennedy.  But  you  see,  Mr.  Chairman,  that  Mr.  Kaddock  dis- 
cussed the  larger  number  of  books  with  him,  the  60,000  books,  and  by 
that  time,  at  the  time  the  approach  had  been  made  to  Mr.  Thompson, 
the  carpenters  had  already  agreed  to  purchase  and  have  produced 
some  60,000  copies. 

The  Chairman.  A  copy  of  the  chart  will  be  printed  in  the  record 
at  the  point  where  Mr.  Kennedy  concluded  his  remarks  of  explanation. 

Mr.  Kennedy.  In  addition  to  the  74  cents  that  we  were  talking 
about  for  the  hard-cover  book,  you  would  have  about  25  cents  or  27 
cents  for  postage  and  handling ;  is  that  right  ? 

Mr.  Thompson.  Yes.  As  a  matter  of  fact,  on  that  previous  exhibit, 
I  noticed  that  we  have  a  quotation  on  the  bottom  of  that  which  shows 
914  cents  for  cartoning,  inserting,  delivering  to  post  office,  so  if  you 
took  your  74  cents  and  added  10  cents  to  it,  it  would  only  be  75  cents, 
and  with  $1.10,  you  would  have  35  cents  for  postage,  more  than 
ample. 

Mr.  Kennedy.  So  $1.10  would  be  a  sufficient  sum  to  charge,  and  you 
would  have  done  the  work  for  $1.10  a  book  ? 

Mr.  Thompson.  Yes. 

INIr.  Kennedy.  And  that  would  have  been  the  handling  of  the  book 
and  sending  it  out  ? 

Mr.  Thompson.  Yes,  sir. 

Mr.  Kennedy.  "With  the  carpenters  or  someone  else  providing  the 
tapes,  the  names  to  whom  it  was  to  be  sent  ? 

Mr,  Thompson.  The  Dick  strips,  yes. 

Mr,  Kennedy.  And  those  strips  can  be  purchased,  can  they  ? 


11878  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Thompson.  Actually,  they  are  generally  purchased  from  list 
houses.  You  purchase  a  mailing  list  from  a  company  that  specializes 
in  that,  and  they  will  furnish  you  either  labels  or  Dick  strips,  which 
are  imprinted  and  you  apply  them  to  the  carton  or  to  the  magazines 
and  mail  them  out. 

It  is  rare  that  those  lists  are  released  by  the  companies  that  own 
them. 

Mr.  IvENNEDY.  Did  you  do  it  for  $1.10  a  book?  That  would  be  a 
total  cost  to  the  carpenters  if  they  had  contracted  directly  to  you,  of 
some  $74,800 ;  is  that  right,  for  the  68,000  books  ? 

Mr.  Thompson.  Yes.    That  would  be  correct. 

Mr.  Kennedy.  Then  let's  call  that  $75,000.  So  if  we  give  them  the 
$50,000  initially  given  to  him  for  research,  plus  the  $75,000  which 
would  give  Mr.  Raddock  a  profit  in  sending  the  books  out,  that  would 
be  a  total  cost,  a  maximum,  of  $125,000 ;  isn't  that  right  ? 

Mr.  Thompson.  That  is  right. 

Mr.  Kennedy.  That  is  what  the  figures  show.  Thus,  looking  at  the 
figures  here  as  to  what  Mr.  Raddock  received  for  the  work  that  he  did 
on  this  book,  what  would  your  conclusion  be,  Mr.  Thompson? 

Mr.  Thompson.  It  is  rather  embarrassing.  I  thing  he  did  very 
well  on  it. 

Senator  Ervin.  Your  conclusion  would  be  that  writing  a  biography 
at  such  a  standard  of  pay  would  be  a  pretty  good  business  to  follow ; 
wouldn't  it? 

Mr.  Thompson.  You  could  retire  rapidly. 

Senator  Ervin.  I  am  sorry  I  didn't  get  into  that  kind  of  work. 

Mr.  KJENNEDY.  That  is  a  profit  over  and  above  your  profit  of  some 
$185,000? 

Mr.  Thompson.  Yes,  it  is  quite  substantial. 

Mr.  Kennedy.  Let  us  just  talk  about  the  $50,000  originally.  Isn't 
even  that  figure  a  considerable  amount  of  money  to  get  for  the  re- 
search and  the  writing  and  printing  of  6,000  copies  of  a  book  ? 

Mr.  Thompson.  Well,  that  Mr.  Counsel,  pretty  much  depends  on 
the  organization.  As  a  matter  of  fact,  a  great  deal  of  our  work  is 
with  individuals  and  companies  that  do  this  type  of  book,  such  as 
Northwestern  University.  We  have  done  a  series  of  books  for  them, 
and  for  various  large  corporations,  and  I  know  it  depends  again  on 
the  author  and  the  type  of  work  that  is  expected. 

Some  authors  receive  a  great  deal  of  money  because  of  their  name, 
and  the  quality  of  the  type  of  book  they  will  publish.  Others  receive 
very  little.  I  have  known  of  some  books  of  320  pages  that  were 
written  for  as  little  at  $750.  I  can  cite  an  example,  because  I  talked 
to  Dr.  Williamson  of  Northwestern  University  about  this  just  before 
the  meeting,  and  I  asked  him  what  it  cost  to  do  a  book  for  a  large 
corporation  in  the  Middle  West  which  we  produced  for  them.  This 
is  a  very  large  industry. 

Dr.  Williamson  is  head  of  the  business  book  department  of  North- 
western University  and  they  specialize  in  writing  biographies  and 
histories  of  corporations.  This  book  which  was  approximately  twice 
the  size  of  this  book,  the  liistory  of  a  company  in  ^Milwaukee,  took  at 
least  2  years  of  researcli  and  about  8  to  9  months  to  produce,  and  a 
very  expensive  production  job  incidentall.y,  and  Dr.  Williamson 
stated  on  the  plione  that  that  book,  the  research  and  the  writing  cost 
less  than  $25,000. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11879 

The  Chairman.  That  is  a  book  twice  the  size  of  this  ? 

Mr.  Thompson.  Yes,  it  is  an  8i/^  by  11  book  and  it  is  about  1"20 
pages,  or  448  pages.     I  don't  remember  the  exact  number  of  pages. 

Tlie  Chairman.  And  the  research  on  that  book  cost  less  than 
$25,000. 

Mr.  Thompson.  The  research  and  writing,  which  is  done  by  the 
staff  of  Northwestern  University,  and  Northwestern  University  have 
a  staff. 

The  Chairman.  Here  it  cost  at  least  $50,000,  and  one  one  knows 
how  much  it  cost  here. 

Mr.  Thompson.  xVctually,  it  depends.  You  can  cite  other  cases. 
There  was  a  large  company  in  New  Haven  that  had  a  book  written  by 
a  very  prominent  author  and  they  paid  him  $25,000  to  write  the  book. 
So  you  see,  those  things  are  hard  to  judge,  and  they  will  vary  all  over 
the  lot,  depending  on  the  market. 

Mr.  Kennedy.  That  doesn't  vary  very  much.  If  you  have  a  very 
prominent  author — certainly  Mr.  Raddock  wasn't  in  that  category, 
was  he  ?     And  still  they  only  paid  this  prominent  author  onlv  $25,000. 

Mr.  Thompson.  Actually,  if  I  remember  correctly,  Mr.  Raddock 
had  mentioned  that  he  had  done  another  book,  a  book  previous  to  this. 

Mr.  Kennedy.  Do  you  know  what  the  name  was  ? 

Mr.  Thompson.  I  don't  recall  the  name,  but  I  think  it  had  to  do 
with  the  Butchers  Union,  and  I  don't  remember  what  it  was.  I  was 
shown  a  copy  and  it  was  a  small  book  however. 

Mr,  Kennedy.  Isn't  that  the  book  called  I  the  Union  by  Joe 
Belsky,  who  is  a  vice  president  of  the  Butchers? 

Mr.  Thompson.  Frankly,  I  don't  recall. 

The  Chairman.  Let  me  try  to  get  this  profit  pinpointed  here. 

Now,  based  on  your  figures  and  your  check  on  what  it  would  cost  to 
do  the  research,  write  the  book,  publish  and  print  68,000  copies  of  it, 
based  on  what  you  offered  to  do  the  work  for,  and  what  you  find  you 
could  have  got  the  book  written  for,  what  do  you  say  it  would  have 
cost? 

Mr.  Thompson.  "Well,  sir,  under  the  specifications  of  this  book  and 
everything  else,  if  we  were  approached  to  do  a  book  like  this,  I  think 
that  everything  could  be  covered  with  a  profit  that  would  be  above 
our  standard  charges,  for  $125,000. 

The  Chairman.  You  could  do  it  for  $125,000,  everything? 

^Ir.  Thompson.  We  would  welcome  the  opportunity,  frankly. 

The  Chairman.  Sir. 

Mr.  Thompson.  We  would  welcome  the  opportunity,  and  make  a 
^■ery  substantial  profit  on  it. 

The  Chairman.  You  would  accept  it  without  any  negotiated  con- 
tract on  that  basis ;  would  you  ? 

Mr.  Thompson.  That  is  right. 

The  Chairman.  If  it  was  offered  to  you  ? 

Mr.  Tho:mpson.  Yes,  sir. 

The  Chairman.  Well,  that  leaves  $185,000  profit.  $185,000  is  more 
profit  than  there  was  expense ;  is  that  correct  ? 

Mr.  Kennedy.  That  is  over  and  above  the  regular  profit. 

Mr.  Thompson.  That  is  the  way  it  appears  but  I  don't  know  what 
the  expenses  were,  outside  of  what  has  been  testified  to. 

Mr.  Kennedy.  I  was  talking  about  if  you  were  practical  and 
economical,  and  you  used  just  ordinary  business  judgment. 


11880  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr,  Thompson.  That  is  the  way  it  appears. 

Mr.  Kennedy,  Thank  you. 

So  tliat  we  understand,  that  is  $185,000  better  than  the  regular 
profit.     That  is  not  just  profit. 

The  Chairman.  That  would  be  the  profit  over  and  above  what 
others  would  do  it  for  and  make  a  profit  ? 

Mr.  Thompson.  Yes,  sir ;  I  think  that  is  right. 

Senator  Ervin.  That,  as  we  call  it  in  North  Carolina,  would  be 
clover. 

The  Chah^man.  I  would  say  it  was  a  four-leaf  clover,  too. 

All  right,  proceed. 

Mr.  Kennedy.  When  did  you  receive  the  plates  and  the  type  to 
print  the  book  ? 

Mr.  Thompson.  "Well,  actually  we  received  the  type,  I  believe,  it  was 
in  November  of  1956  that  we  received  the  actual  type,  which  was  set. 

Mr.  Kennedy.  November  of  1955,  isn't  that  ? 

Mr.  Thompson,  That  is  right,  I  am  sorry. 

Mr.  Kennedy.  You  kept  that  for  how  long  ? 

Mr.  Thompson.  For  approximately  a  year. 

Mr.  Kennedy.  I  would  like  to  have  these  letters  made  exhibits. 

The  Chairman.  I  hand  you  a  letter  or  photostatic  copy  of  two  let- 
ters dated  November  23,  1956,  addressed,  the  first  one,  to  Miss  R. 
Quasha,  Trade  Union  Courier  Publishing  Corp.,  of  New  York,  which 
appears  to  be  signed  by  Peter  Grant,  over  the  printed  name  of  Stahley 
Thompson  Associates.   That  is  the  first  letter. 

The  next  one  is  dated  November  28,  1956,  addressed  to  Mr.  Melvin 
Friedman,  Book  Production  Co.,  Brookyln,  N.  Y.,  and  it  has  only 
the  typewritten  signature  of  Stahley  Thompson  Associates. 

The  third  one  is  dated  November  27,  1956,  and  again  it  is  to  Miss 
Rhoda  Quasha,  Trade  Union  Courier  Publishing  Corp.,  and  it  has 
the  typewritten  authorship  of  Stahley  Thompson  Associates.  I  wish 
you  would  examine  the  three  letters,  photostatic  copies  of  which  I  pre- 
sent to  you,  and  state  if  you  identify  them. 

(Documents  were  handed  to  the  witness.) 

Mr.  Thompson.  Yes. 

The  Chairman.  You  identify  them  ? 

Mr.  Thompson.  Yes,  sir. 

The  Chairman.  They  may  be  exhibits  20,  A,  B,  and  C. 

(Documents  referred  to  were  marked  "Exhibits  No,  20,  A,  B,  and 
C,"  for  identification  and  will  be  found  in  the  appendix  on  pp.  12145- 
12147,) 

The  Chairman,  You  may  interrogate  the  witness  about  the  letters. 

Mr.  Kennedy.  These  letters  show,  do  they  not,  that  you  had  the 
plates  between  November  of  1955  and  November  of  1956? 

Mr.  Thompson.  Yes,  sir. 

Mr.  Kennedy.  And  that  no  books  could  have  been  printed  in  any 
otlior  place,  otlier  than  in  your  own  shop  wliile  you  had  the  prints? 

Mr.  Thompson.  They  couldn't  have  been  printed  with  these  illustra- 
tions, and  we  held  the  type  because  we  had  difficulties  collecting  our 
monev.  actually. 

Mr.  Kennedy.  You  had  difficulties  collecting  money  from  Mr,  Rad- 
dock? 

Mr,  Thompson,  Yes,  sir, 

Mr,  Kjennedy,  How  much  money  was  involved  ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11881 

Mr.  Thompson.  Well,  it  finally  went  down  to  $300,  whicli  we  wrote 
off  as  a  loss  and  released  the  plates,  and  that  is  why  the  $385,000  looks 
so  large  to  me. 

The  Chairman.  Out  of  this  $310,  you  had  to  take  a  $300  loss? 

Mr.  Thompson.  We  finally  did,  sir. 

Mr.  Kennedy.  He  refused  to  pay  you  ? 

Mr.  Thompson.  Well,  there  was  a  great  deal  of  discussion  about  it, 
and  I  don't  remember  about  it,  but  we  decided  it  wasn't  worth  the 
problem,  and  so  we  released  the  type  to  him. 

Mr.  Kennedy.  Was  there  also  a  question  raised  about  producing  the 
book  in  a  nonunion  shop  ? 

Mr.  Thompson.  Well,  actually  that  was  part  of  an  early  conversa- 
tion, and  one  of  the  conversations  with  Mr.  Raddock  and  his  office,  and 
he  mentioned  the  fact  that  a  friend  of  his  in  the  binding  business  asked 
why  we  didn't  use  a  certain  plant  in  Massachusetts.  I  said,  "Well,  I 
didn't  think  it  was  a  plant  to  us  because  it  was  a  nonunion  plant,"  and 
he  said,  "Well,  the  prices  would  be  cheaper,  wouldn't  they?"  and  I 
said,  "Yes,  but  we  wouldn't  use  the  plant."  Not  for  this  book,  and 
although  we  do  work  in  that  plant,  and  I  don't  want  to  infer  we  don't. 
But  on  this  book  we  wouldn't  and  that  was  the  conversation. 

Mr.  Ivennedy.  He  was  even  urging  you  to  get  the  book  produced 
in  a  nonunion  shop,  where  it  would  be  cheaper? 

Mr.  Thompson.  I  can't  say  he  was  urging,  but  the  suggestion  was 
there. 

Mr.  Kennedy.  He  was  suggesting  that  to  you  ? 

Mr.  Thompson.  It  seemed  that  way  at  the  time,  and  I  know  I  was 
a  little  amazed. 

The  Chairman.  The  Chair  presents  to  you  what  purports  to  be 
photostatic  copy  of  a  letter  dated  June  12, 1956,  on  World  Wide  Press 
Syndicate,  Inc.  stationery,  and  it  is  addressed  to  you,  and  it  is  signed, 
"Maxwell  C.  Raddock,"  and  I  hand  you  this  letter  and  ask  you  if  you 
identify  the  photostatic  copy. 

(A  document  was  handed  to  the  witness.) 

Mr.  Thompson.  I  recall  this  very  well,  sir. 

The  Chairman.  You  recall  that  very  well  ? 

Mr.  Thompson.  Yes,  sir. 

The  Chairman.  You  received  the  letter  ? 

Mr.  Thompson.  Yes,  sir. 

The  Chairman.  That  letter  may  be  made  exhibit  No.  21. 

(The  document  referred  to  was  marked  "Exhibit  No.  21,"  for 
identification  and  will  be  found  in  the  appendix  on  p.  12148.) 

;Mr.  Kennedy.  That  letter  states  that  he  was  writing  to  you,  that 
he  was  disturbed  that  he  had  heard  that  the  printing  might  be  done 
in  a  nonunion  shop,  is  that  right  ? 

Mr.  Thompson.  That  is  true,  but  we  sent  certifications  actually 
from  the  unions  of  the  plant,  and  the  only  thing  we  could  not  certify 
was  whether  or  not  the  composition  had  been  set  in  a  union  plant, 
because  we  did  not  set  the  composition,  but  everything  else  on  that 
book  was  done  under  the  union  label. 

Mr.  Kennedy.  Now,  Mr.  Chairman,  the  only  point  is  that  that 
shows  in  June  of  1956,  you  pointed  out  to  an  associate  that  Mr.  Had- 
dock had  originally  urged  upon  you  or  suggested  that  you  use  a 
nonunion  shop,  and  it  is  on  letter  to  that  effect. 


11882  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

Mr.  Thompson.  I  didn't  know  it  was  in  the  file. 

The  Chairman.  The  Chair  hands  you  a  photostatic  copy  of  a  letter 
of  June  13,  1956,  addressed  to  Mr.  Melvin  Friedman,  and  it  appears 
to  have  been  signed  by  your  company,  and  will  you  examine  it  and 
state  if  you  identify  it. 

( A  document  was  handed  to  the  witness. ) 

Mr.  Thompson.  Yes,  sir. 

The  Chahiman.  Did  your  firm  dispatch  that  letter  ? 

Mr.  Thompson.  Yes,  sir. 

The  Chahiman.  It  may  be  made  exhibit  No.  22. 

(The  document  referred  to  was  marked  "Exhibit  No,  22,"  for 
identification  and  will  be  found  in  the  appendix  on  p.  12149.) 

The  Chairman.  In  that  letter  j^ou  were  pointing  out  to  Mr.  Fried- 
man that  it  had  been  suggested  by  Mr.  Raddock  that  you  give  this 
printing  of  the  book  to  a  nonunion  plant.    Is  that  not  correct  ? 

Mr.  Thompson.  That  is  correct,  and  I  didn't  realize  that  I  had 
written  that,  but  it  is  true. 

The  Chairman.  In  other  words,  at  that  time  you  were  carrying  on 
correspondence  with  others  in  which  you  mentioned  the  suggestion 
had  been  made  to  you  about  having  the  book  printed  in  a  nonunion 
plant. 

Mr.  Thompson.  Mr.  Friedman  is  the  man  who  actually  produced 
the  book  for  us,  and  we  have  no  printing  equipment,  and  we  act  as 
consultants,  and  it  was  at  Mr.  Friedman's  plant. 

The  Chairman.  Mr.  Friedman's  plant  is  a  union  plant  ? 

Mr.  Thompson.  Yes,  sir. 

The  Chairman.  But  you  were  pointing  out  to  him  it  had  been 
suggested  that  the  work  be  done  in  a  noiumion  plant  ? 

Mr.  Thompson.  That  is  right. 

Mr.  Kennedy.  Then,  Mr.  Chairman,  just  on  the  collecting  of  money, 
I  have  this  letter. 

The  Chairman.  You  say  there  is  an  amount  of  a  little  over  $300  that 
you  finally  had  to  write  off  ?  ^^^^ 

Mr.  Thompson.  Yes,  sir,  as  I  recall,  and  I  don't  remember  the  exact 
figures,  sir. 

The  Chairman.  Did  you  try  to  collect  it  by  letter  and  by  telephone  ? 

Mr.  Thompson.  I  think  we  tried  every  way  possible,  includmg  our 
attorney. 

The  Chairman.  And  who  is  Miss  R.  Quasha  ? 

Mr.  Thompson.  Well,  Miss  Quasha  was  Mr.  Raddock's  secretary, 
and  she  was  the  only  other  person  we  spoke  to. 

The  Chairman.  You  had  a  telephone  conversation  with  her? 

Mr.  Thompson.  Yes,  sir,  and  numerous  times  we  had  been  promised 
checks  and  we  hadn't  received  them. 

The  CiFATHMAN.  I  hand  you  here  a  photostatic  copy  of  a  letter  of 
June  27.  1956,  addressed  to  the  lady,  which  seems  to  have  been  dis- 
patched !>y  you  and  your  associates,  and  will  you  examine  that  copy 
and  stat/e  if  you  identify  it  ? 

(A  document  was  handed  to  the  witness.) 

Mr.  Thompson.  Yes,  sir. 

The  Chairman.  It  may  be  made  exhibit  No.  23. 

(Document  referred  to  was  marked  "Exhibit  No.  23"  for  identifica- 
tion, and  will  be  found  in  the  appendix  on  p.  12150.) 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11883 

The  Chairman.  In  that,  you  were  pointing  out  that  you  hoped 
they  would  keep  their  promise  and  send  you  the  check  for  $338  ? 

Mr.  THOiirsoN.  Yes,  sir. 

The  Chaikman.  So,  your  testimony  is  pretty  well  documented 
with  respect  to  your  experience  in  this  work  ? 

Mr.  Thompson.  It  seems  to  be. 

The  Chairman.  All  right. 

Mr.  Kennedy.  There  is  just  one  last  matter,  Avhich  is  of  some  im- 
portance, that  I  would  like  to  ask  you  about.  How  long  would  it 
have  taken  you  to  have  printed  up  this  book  if  the  Carpenters  had 
come  to  you  and  said  they  wanted  48,000  copies  ? 

Mr.  TiioMrsoN.  I  think,  Mr.  Counsel,  the  simplest  way  to  answer 
that  question  is  to  give  you  the  standard  procedure  in  the  publishing 
business.  The  average  book  in  publishing,  and  that  is  not  a  special 
book  but  an  average  book  in  publishing,  you  allow  6  montlis  for  pro- 
duction, which  includes  about  4  months  for  actual  composition  and 
presswork  and  binding,  and  2  months  for  promotion  and  distribution. 
That  is  to  the  various  bookstores  and  so  forth. 

So,  6  months  should  have  been  ample  time  from  completed  manu- 
script, that  is.  However,  this  book  was  first  rushed  through  post 
haste,  and  we  actually  borrowed  paper  from  one  of  our  other  clients  to 
get  it  through  fast.     That  was  the  first  run  of  this. 

Mr.  Kennedy.  You  could  have  gotten  this  printed  up,  after  you 
received  the  manuscript,  in  about  6  months? 

Mr.  Thompson.  Six  months  maximum,  I  believe. 

Mr.  IvENNEDY.  For  the  whole  68,000? 

Mr.  Thompson.  Yes.  Actually,  the  quantity  doesn't  make  much  dif- 
ference, because  the  presses  run  fairly  fast,  and  you  can  turn  out  the 
copies. 

The  Chairsian.  So  we  have  here  a  3i/^-year  job,  and  still  not  quite 
finished,  or  we  will  call  it  finished.  I  am  sorry.  It  is  a  4i'^-year  job, 
and  it  took  414  years  to  do  what  could  have  been  done  by  efficiency  of 
operation  and  diligence  in  6  to  8  months'  time.  Is  that  a  fair  state- 
ment? 

Mr.  Thompson.  I  believe  so,  because  that  would  be  fairly  standard 
practice. 

Mr.  Kennedy.  It  doesn't  include  the  writing. 

The  Chairman.  But  without  including  the  writing? 

Mr.  Thompson.  Yes,  sir ;  that  is  exclusive  of  writing. 

Mr.  Kennedy.  At  about  35  or  40  percent  of  the  cost.  Now,  Mr. 
Chairman,  we  have  here  just  the  records  that  indicate  how  much  was 
paid  for  the  8,100  books  that  were,  in  fact,  printed,  and  we  might 
want  to  have  these  as  exhibits. 

The  Chairman.  I  hand  you  here  four  photostatic  copies  of  what  ap- 
pear to  be  statements  or  documents  from  your  files  regarding  the  port- 
trait  of  an  American  labor  leader,  and  the  author  is  Maxwell  Kaddock, 
and  I  believe  that  appears  on  each  one  of  these  pliotostatic  copies  that 
I  hand  you.  I  will  ask  you  to  examine  them  and  state  if  you  identify 
them,  and  then  state  what  they  are  and  what  they  represent. 

(Document  was  handed  to  the  witness.) 

Mr.  Thompson.  These  are  the  actual  estimate  sheets  showing  the 
broken-down  cost  that  we  furnish  to  all  of  our  clients,  and  these  were 
furnished  to  Mr.  Raddock  on  the  first  printing  and  the  second  print- 
ing of  the  book.     They  are  exact  copies  of  our  records. 


11884  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

The  Chairman.  They  may  be  made  exhibit  24,  A,  B,  C,  and  D. 

(Documents  referred  to  were  marked  "Exhibit  No.  24,  A,  B,  C,  and 
D"  for  identification;  and  may  be  fomid  in  the  files  of  the  select 
committee.) 

The  Chairman.  Are  there  any  other  questions  ?  Are  there  any  other 
thoughts  that  you  have  that  might  be  helpful  to  the  committee? 

Mr.  Thompson.  Not  that  I  Imow  of. 

The  Chairman.  Is  there  any  views  you  would  like  to  give  the  work- 
ing people  who  pay  their  dues  about  how  to  secure  better  and  quicker 
results? 

Mr.  Thompson.  I  am  afraid,  sir,  I  wouldn't  be  in  a  position  to  offer 
them  advice. 

The  Chairman.  All  right. 

The  committee  will  try  in  its  comments  to  give  some  advice  about 
it.  Thank  you  very  much,  Mr.  Thompson,  and  you  have  been  quite 
helpful,  and  we  appreciate  the  splendid  cooperation  you  have  given 
the  committee. 

Mr.  Thompson.  Thank  you. 

(At  this  point,  the  following  members  were  present:  Senators  Mc- 
Clellan  and  Ervin.) 

Mr.  IvENNEDY.  Mr.  Chairman,  I  now  wish  to  call  Mr.  Paul  Tierney 
to  put  in  some  documents  in  connection  with  the  book. 

The  Chairman.  Come  forward,  Mr.  Tierney. 

TESTIMONY  OF  PAUL  TIERNEY— Resumed 

The  Chairman.  Mr.  Tierney,  you  have  been  previously  sworn, 
have  you  ? 

Mr.  TiERNET.  I  have,  Mr.  Chairman. 

The  Chairman.  You  have  in  your  possession  certain  documents  re- 
lated to  the  subject  matter  now  under  inquiry  ? 

Mr.  Tierney.  I  do,  Mr.  Chairman. 

The  Chairman.  Will  you  present  those  documents  for  the  purpose 
of  their  being  made  exhibits,  and  identify  and  verify  them,  please? 

Mr.  Tierney.  These  are  photostatic  copies  of  documents,  Mr.  Chair- 
man, relating  to  the  negotiations  and  dealings  between  Raddock  and 
the  United  Brotherhood  of  Carpenters  on  the  book. 

The  Chairman.  Between  Mr.  Raddock  and  the 

Mr.  Tierney.  United  Brotherhood  of  Carpenters. 

The  Chair^vian.  And  the  TTnited  Brotherhood  of  Carpenters? 

Mr.  Tierney.  That  is  correct. 

The  Chairman.  What  does  it  consist  of :  correspondence  and  other 
documents  ? 

Mr.  Tierney.  It  consists  of  executive  board  minutes,  payments 
made  to  Mr.  Raddock  and  correspondence,  as  well  as  the  agreements 
between  Mr.  Raddock  and  the  Carpenters. 

The  Chairman.  You  have  the  contracts,  the  agreements,  you  have 
those  also? 

Mr.  Tierney.  I  do. 

The  Chairman.  As  you  present  each  document,  identify  it,  please, 
sir. 

Mr.  Tierney.  I  will.  The  first  document  is  a  sample  of  a  letter 
dated  December  24,  1953,  from  Mr.  Albert  Fisher,  who  was  then  gen- 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11885 

€ral  secretary  of  the  brotherhood,  to  various  executive  board  members, 
seeking  their  approval  on  the  book  proposal.  He  wrote  all  of  the  ex- 
ecutive board  members  and  he  received  a  response  favoring  the  book 
as  proposed. 

The  Chairman.  Does  the  document  contain  the  responses  also? 

Mr,  TiERNEY.  It  contains  the  responses. 

The  Chairman.  That  document,  the  letter  to  the  executive  board 
members  and  their  replies,  may  be  made  exhibit  No.  25,  A,  B,  C,  D,  and 
such  other  letters  of  the  alphabet  as  are  necessary  to  identify  each 
document  separately. 

Mr.  Tiernet.  I  might  point  out  that  in  the  letter  to  the  executive- 
board  members,  they  were  advised  that  the  program  as  originally 
envisaged  involved  a  payment  of  $25,000  which  would  include  the 
production  of  6,000  copies  of  the  biography,  which  was  in  accordance 
with  the  original  agreement  Raddock  had  with  the  brotherhood. 

The  Chairman.  That  would  include  writing  the  book,  doing  the 
research,  publishing  and  printing  6,000  copies  ? 

Mr.  Tierney.  That  is  correct. 

The  Chairman.  That  was  the  original  contract,  $25,000? 

Mr.  Tiernet.  That  is  correct. 

The  Chairman.  6,000  copies  at  $25,000? 

Mr.  Tierney.  That  is  right. 

The  Chairman.  But  that  included 

Mr.  Tierney.  "Writing,  and  publishing  and  printing. 

The  Chairman.  The  research,  tlie  writing,  the  composition,  and 
everything. 

Mr.  Tierney.  That  is  correct. 

(The  document  referred  to  was  marked  "Exhibit  No.  25-A-G"  for 
reference  and  may  be  found  in  the  files  of  the  Select  committee.) 

Mr.  Kennedy.  That  conforms  to  the  letter  that  Mr.  Raddock  wrote 
originally  ? 

Mr.  Tiernet.  That  is  correct. 

Mr.  Kennedy.  And  that  was  in  the  letter  of  December  8  ? 

Mr.  Tierney.  Yes,  sir. 

Next  is  a  photostatic  copy  of  a  check  payable  to  Maxwell  Raddock 
in  the  amount  of  $25,000  on  January  8,  1954,  which  was  the  amount 
by  the  brotherhood  to  Mr.  Raddock  of  the  $25,000  we  have  just  dis- 
cussed. 

The  Chairman.  In  other  words,  the  full  contracts  for  the  produc- 
tion of  the  book  and  6,000  volumes  of  it? 

Mr.  Tierney.  That  is  correct. 

The  Chairman.  That  may  be  made  exhibit  No.  26. 

Mr.  Tierney.  Accompanying  this  check.  Mr.  Chairman,  is  Mr.  Rad- 
dock's  acknowledgment  of  receipt  of  the  check. 

The  Chairman.  They  will  be  marked  "Exhibits  26A  and  B." 

(The  documents  referred  to  were  marked  "Exhibits  Nos.  26A  and 
B"  for  reference  and  will  be  found  in  the  appendix  on  pp.  12151- 
12152.) 

Mr.  Tierney.  These  are  excerpts  from  four  separate  executive  board 
meetings  of  the  brotherhood  relating  to  the  book.  The  fiist  is  a 
meeting  of  February  22,  1954,  at  which  time  the  executive  board  was 
acquainted  with  the  book  proposal  generally.  There  were  no  specifics 
involved,  at  least  according  to  the  minutes  there  are  no  specifics  set 
forth  in  the  minutes.  They  were  generally  acquainted  with  the  pro- 
gram in  the  wording.    Then  in  the  meeting  of  May  9, 1954,  the  execu- 


11886  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

tive  board  was  advised  that  satisfactory  progress  was  being  made 
with  respect  to  this  book. 

The  Chairman.  What  date  is  that? 

Mr.  TiERNEY.  May  9, 1954. 

The  Chairman.  That  was  4  months  after  the  contract  was  made  ? 

Mr.  Tierney.  That  is  correct. 

The  Chairman.  All  right. 

Mr.  Tierney.  On  February  10, 1955,  the  executive  board  points  out 
that  at  the  convention  of  November  1954  a  resolution  was  passed  to 
disseminate  this  book  "in  a  suitable  form  to  interested  members  and 
the  general  public,  libraries  and  educational  institutions  throughout 
the  world."  In  effect,  the  convention  did  approve  the  dissemination 
of  the  book. 

The  Chairman.  All  right. 

Mr.  Tierney.  Then  the  meeting  of  February  20,  1956,  which  was 
approximately  3  months  after  the  book  had  finally  appeared,  and  the 
board  was  advised  of  the  fine  reception  of  the  book. 

The  Chairman.  Those  documents  may  be  made  exhibit  No.  27. 

(The  documents  referred  to  were  marked  "Exhibits  No.  27"  for  ref- 
erence and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Tierney.  That  is  all. 

The  Chairman.  Have  you  any  other  documents  ? 

Mr.  Tierney.  Yes,  sir. 

The  Chairman.  All  right. 

Mr.  Tierney.  This  document,  Mr.  Chairman,  concerns  the  second 
$25,000  payment  which  was  made  by  the  brotherhood  to  Mr.  Haddock 
for  additional  research.  The  only  record  with  respect  to  any  approval 
of  this  particular  payment  was  a  hand  memo  pad  piece  of  paper  witJi 
handwritten  notes  on  it,  which  reads  "Maxwell  C.  Haddock,  May  18, 
1954,  $25,000." 

The  Chairman.  That  conforms  to  your  chart,  does  it? 

Mr.  Tierney.  That  is  correct. 

The  Chairman.  That  referred  to  the  second  payment  of  $25,000? 

Mr.  Tierney.  The  second  payment  of  $25,000.  Then  there  is  a  note 
here  which  has  not  been  explained.  "Telephone  conversation  with 
Charles  Johnson  9  :  30  a.  m.  for  M.  A.  H." 

Charles  Johnson  is  a  member  of  the  executive  board  of  the  brother- 
liood  and  M.  A.  H.  are  the  initials  of  Mr.  Maurice  A.  Hutcheson,  the 
general  president. 

The  Chairman.  That  may  be  made  exhibit  28. 

(The  document  referred  to  was  marked  "Exhibit  No.  28"  foi-  refer- 
ence and  will  be  found  in  the  appendix  on  p.  12153.) 

Mr.  Tierney.  The.  next  exhibit  is  a  check  payable  to  Mr.  Max  Rad- 
dock  from  tlie  brotlierhood  in  the  amount  of  $25,000  dated  May  18, 
1954,  which  is  the  $25,000  paid  to  Mr.  Kaddock  for  the  additional 
researcli. 

The  CiiAimrAX.  That  may  be  made  (wliibit  Xo.  20. 

(Tlie  document  referred  to  was  marked  "Exhibit  No.  29"  for  refer- 
ence and  will  be  fomul  in  the  appendix  on  p.  12154.) 

The  (^}iaiuman.  It  seems  that  that  notation  on  the  previous  ex- 
liibit  was  made  10  days  after  the  clieck  had  been  issued. 

Mr.  Tierney.  I  am  sorry.     Both  dates  are  May  18  the  same  date. 

Tlie  Chairman.  They  are  both  the  same?  I  understood  you  to  say 
May  28.     The  dates,  then,  correspond  ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11887 

Mr.  TiERNEY.  Yes,  sir,  May  18. 

Mr.  Kennedy.  That  is  the  only  record,  thougli,  those  handwritten 
notes,  to  indicate  that  the  brotherhood  had  approved  of  the  second 
$25,000? 

Mr.  Tierney.  That  is  right. 

Mr.  Kennedy.  I  think  that  is  of  some  interest,  Mr.  Chairman. 
This  is  the  document  which  was  used  to  substantiate  another  $25,000. 

The  Chairman.  They  had  originally  approved  $25,000  by  the  board 
of  directors  giving  their  consent  by  letter? 

Mr.  Tierney.  That  is  correct. 

The  Chairman.  But  you  find  nothing  to  approve  the  second  pay- 
ment of  $25,000  except  the  notations  to  which  you  have  referred  and 
which  have  been  made  exhibit  No.  28  ? 

Mr.  Tierney.  That  is  correct. 

The  Chairman.  You  may  ])roceed.  This  is  the  only  document  that 
you  found,  if  I  recall,  regarding  the  second  payment? 

Mr.  Tierney.  That  is  correct,  Mr.  Chairman. 

The  Chairman.  That  is,  in  pencil  written  memorandum  or  pen- 
written  memorandum,  plus  the  check  for  $25,000  ? 

Mr.  Tierney.  Yes,  sir. 

The  Chairman.  All  right.     Proceed. 

Mr.  IvENNEDY.  Do  We  know  who  that  was  written  by  ? 

Mr.  Tierney.  Yes,  Mr.  Fisher. 

Mr.  Kennedy.  Who  was  the  secretary-treasurer  at  the  time? 

Mr.  Tierney.  Who  was  general  secretary. 

The  next  document  is  handwritten  minutes  dated  February  14, 1955, 
of  a  conference  of  a  committee  appointed  by  President  Hutcheson  to 
meet  with  Mr.  Raddock  and  the  author  of  the  biography  on  William 
L.  Hutcheson. 

Present  at  this  conference,  according  to  the  initials,  was  O.  W.  B., 
which  was  Mr.  O.  W.  Blaier,  a  vice  president;  Al  E.  F.,  Albert  E. 
Fisher,  general  secretary ;  Frank  C,  Frank  Chapman,  general  treas- 
urer; and  C.  J.  Jr.,  Charles  Johnson,  Jr.,  general  executive  board 
member ;  and  Mr.  Raddock. 

The  importance  of  this  particular  exhibit,  Mr.  Chairman,  is  that  it 
records  the  minutes  of  the  meeting  of  a  committee  of  four  representa- 
tives of  the  Carpenters  concerning  this  agreement  to  pay  Raddock 
$200,000  for  50,000  books. 

The  Chairman.  That  document  may  be  made  exhibit  No.  30.  (The 
document  referred  to  was  marked  "Exhibit  No.  30"  for  reference  and 
may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Tierney.  I  would  like  to  read  from  it.  It  would  probably  be 
worthwhile  to  read  the  entire  document. 

(1)  Decided  March  31,  1955,  will  be  publishing  date  of  the  book,  in  other 
words,  deadline  for  the  publication. 

The  deadline,  therefore,  has  been  moved  up  from  November  1954  to  March  31, 
1955. 

(2)  Discussion  of  moneys  already  paid  to  Mr.  Raddock  (Chicago  GEB 
meeting). 

O.  W.  B.  (that  is  Mr.  Blaier)  recalled  conferences  with  Mr.  R.iddock  and 
residential  general  officers  at  general  office  prior  to  the  Chicago  board  meeting 
where  Raddock  explained  to  the  residential  board  officers  the  need  for  receiving 
$16,000  to  $25,000  more  for  research. 

This  was  reviewed  by  the  general  execiative  board  in  Chicago  and  according 
to  minutes  made  by  General  Secretary  A.  E.  F.  (Albert  E.  Fisher)  in  accordance 

2124.3 — 5S— pt.  31 S 


11888  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

with  memory  of  board  member  present  at  that  meeting,  the  present  situation  is 
as  follows : 

The  first  $25,000  paid  to  Mr.  Raddock  was  toward  purchase  of  6,000  copies 
of  book. 

The  $25,000  from  Chicago  meeting  was  toward  research  expenses  and  no  com- 
mitment for  more  books. 

(3)  Discussion  of  payments  of  further  moneys  to  Mr.  Raddock. 

Committee  agreed  to  make  payment  to  Mr.  Raddock  of  $100,000  to  apply  to- 
ward the  purchase  of  the  50,000  books  authorized  at  Chicago  general  executive 
board  meeting. 

Balance  of  $100,000  to  be  paid  after  the  United  Brotherhood  of  Carpenters 
receives  the  56,000  copies  of  book  or  such  number  distributed  in  accordance  with 
understanding. 

In  other  words,  before  Mr.  Raddock  was  to  receive  the  balance  of 
$100,000,  the  condition  precedent  was  the  production  of  56,000  books 
by  the  Carpenters  or  the  distribution  of  the  same. 

Also  Mr.  Raddock  to  furnish  the  general  secretary,  A.  E.  F.,  that  is  Mr.  Fisher 
with  a  bound  list  of  names  and  addresses  to  whom  copies  of  the  book  is  being 
forwarded. 

In  return  for  advance  of  this  $100,000,  of  the  initial  $100,000,  Mr.  Raddock  is 
placing  in  hands  of  the  general  executive  board  a  promissory  document  with  re- 
spect to  the  fulfillment  of  the  above. 

The  promissory  document  they  were  referring  to  is  this  performance 
agreement  dated  February  14,  1955,  in  which  Raddock  acknowledges 
receipt  of  $100,000  paid  in  advance  in  part  payment  of  order  for 
50,000  copies  of  said  book  at  $4  per  copy,  inclusive  of  mailing  and 
handling. 

Upon  publication  and  shipment  notices  by  author  and  publisher,  the  United 
Brotherhood  shall  pay  to  Raddock  &  Bros,  the  balance  of  $100,000,  it  being  agreed 
that  the  contract  will  be  performed  by  March  31,  1955. 

The  Chaikman.  That  document  may  be  made  exhibit  No.  31. 

(The  docmrient  referred  to  was  marked  "Exhibit  No.  31"  for  refer- 
ence and  will  be  found  in  the  appendix  on  p.  12155.) 

Mr.  TiERNEY.  In  other  words,  by  this  agreement,  Mr.  Raddock  has 
agreed  to  produce  the  books  by  March  31,  1955,  and  also  produce  a 
list  of  the  recipients  of  this  book  to  the  brotherhood.  Otherwise,  he 
Avould  not,  according  to  the  agreement,  receive  the  $100,000  balance 
which  was  due  him. 

The  Chairman.  That  is  the  extra  $100,000  ? 

Mr.  TiERNEY.  Yes,  sir. 

The  Chairman.  All  right. 

Mr.  TiERNEY.  The  next  exhibits  are  four  checks,  Mr.  Chairman. 
The  first  is  dated  January  31,  1955,  payable  to  Raddock  &  Bros,  for 
$50,000 ;  the  next  is  dated  February  14,  1955,  in  the  amount  of  $50,000 
payable  to  Haddock  &  Bros.;  the  next  is  dated  March  31,  1955,  in  the 
aniount  of  $50,000  payable  to  Raddock  &  Bros.;  and  the  fourth  is 
November  29,  1955,  in  the  amount  of  $50,000,  payable  to  Raddock 
&Bros. 

The  Chairman.  The  four  checks  may  be  made  exhibit  No.  32-A,  B, 
C,andD. 

(The  documents  referred  to  were  marked  "Exhibits  Nos.  32-A,  B, 
C,  and  D  for  reference  and  will  be  found  in  the  appendix  on  pp.  12156- 
12160.) 

Mr.  TiERNEY.  That  comprises  the  $200,000  paid  to  Raddock  for 
the  production  of  50,000  books. 

The  Chairman.  It  amounts  up  to  that  time  to  $250,000. 

Mr.  TiERNEY.  That  is  right. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11889 

The  Chairman.  That  is  the  $200,000  plus  the  two  $25,000  pre- 
viously paid? 

Mr.  TiERNEY.  Yes,  sir. 

The  Chairman.  All  right.   It  is  $250,000  up  to  now. 

Mr.  Tierney.  The  next  exhibit  is  a  letter  dated  February  24, 1956,  to 
Mr.  M.  C.  Raddock  from  Mr.  Maurice  A.  Hutcheson,  general  president 
of  the  brotherhood,  enclosing  a  check  in  the  amount  of  $50,000  for 
the  additional  purchase  of  copies  of  the  book  Portrait  of  an  American 
Labor  Leader :  William  L.  Hutcheson. 

So  this  is  an  additional  $50,000  which  makes  the  total  $300,000 
paid  as  of  February  24, 1956. 

The  Chairman.  What  is  attached  to  the  letter  ? 

Mr.  Tierney.  Attached  to  the  letter  is  a  check  in  the  amount  of 
$50,000  dated  February  24, 1956,  payable  to  World  Wide  Press  Syndi- 
cate, one  of  Mr.  Raddock's  firms. 

The  Chairman.  The  check  may  be  made  exhibit  33  and  the  letter 
may  be  made  exliibit  oo-A. 

(The  documents  referred  to  were  marked  "Exhibits  33  and  33-A" 
for  reference  and  will  be  found  in  the  appendix  on  pp.  12161-12162.) 

Mr.  Tierney.  Also  in  this  connection  is  an  authorization  slip  author- 
izing the  payment  of  this  particular  check  dated  February  24,  1956, 
andO.K.'dbyMAH. 

The  Chairman.  That  may  be  made  exhibit  33B. 

(The  document  referred  to  was  marked  "Exhibit  33B"  for  refer- 
ence and  will  be  found  in  the  appendix  on  p.  12163.) 

Mr.  Kennedy.  We  just  have  a  few  more,  Mr.  Chairman,  and  one 
more  witness. 

Mr.  Tierney.  Next  is  a  letter  dated  December  13,  1956,  from  Mr. 
Albert  E.  Fisher  to  Mr.  Haddock,  requesting  an  additional  2,000  copies 
of  the  book  to  make  up  back  orders  that  Mr.  Fisher  had  received. 

Mr.  Kennedy.  The  next  exhibit,  Mr.  Chairman,  is  of  some  interest. 

The  Chairman.  That  may  be  made  exhibit  No.  34. 

(The  document  referred  to  was  marked  "Exhibit  No.  34"'  for  refer- 
ence and  may  be  found  in  the  files  of  the  Select  Committee.) 

Mr.  Kenndy.  The  next  exhibit  is  in  connection  with  Mr.  Raddock's 
attitude  toward  the  Carpenters. 

Mr.  Tierney.  This  is  a  letter  dated  December  28,  1956,  to  Mr. 
Hutcheson,  Mr.  Fisher  had  died  2  days  previously.  This  is  in  re- 
sponse to  Mr.  Fisher's  letter. 

Mr.  Kennedy.  Mr.  Fisher  had  requested  2,000  books.  They  had  a 
backlog.  The  record  sliows  he  wanted  some  books  to  send  out,  and, 
of  course,  Mr.  Raddock  was  way  behind  in  the  delivery  of  the  books. 
This  is  the  letter  that  Mr.  Raddock's  secretary  wrote  to  tell  him  what 
he  should  do. 

Mr.  Tierney.  The  letter  is  to  Mr.  Hutcheson,  dated  December  28, 
1956,  signed  by  Rhoda  Quasha,  Mr.  Raddock's  secretary,  which  reads: 

Per  instructions  from  Mr.  Maxwell  C.  Raddock,  we  have  shipped  exactly  2,000 
books  per  the  list  furnished  by  the  late  Mr.  Albert  E.  Fisher,  general  .secretary 
of  the  United  Brotherhood. 

A  bill  for  these  copies  is  herein  inclosed. 

The  bill  was  $5  per  book,  the  full  price  of  the  book,  or  $10,000. 
She  goes  on  to  say  that — 

Mr.  Raddock  did  advise  us  that  you  and  he  had  discussed  a  reduced  rate  as  soon 
as  you  authorized  a  very  substantial  order. 


11890  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

As  soon  as  he  authorized  a  very  substantial  order.  As  of  this  time, 
they  had  ordered  66,000  books. 

Mr.  Kennedy.  And  they  had  only  produced  8,100,  is  that  right  ? 
Mr.  TiERNEY.  That  is  correct,  as  of  December  28, 1956. 

Naturally,  we  can't  apply  the  same  reduction  to  the  above-mentioned  shipment 
since  these  were  printed  at  a  considerably  higher  cost  to  us.  As  a  matter  of  fact 
that  depletes  our  present  inventory  of  Mr.  Haddock's  book,  except  for  about 
1,000  or  so  copies. 

As  of  this  time,  Mr.  Chairman,  Mr.  Raddock  had  produced  8,100 
books,  and  as  Mr.  Thompson  had  testified,  had  he  at  that  time  asked 
him  to  produce  the  60,000  books,  he  could  have  obtained  them  for  74 
cents  a  copy. 

The  Chairman.  Are  these  the  first  books  delivered  after  the  81,000? 

Mr.  TiERNEY.  These  are  from  the  8,100. 

The  Chairman.  8,100, 1  meant. 

JMr.  TiERNEY.  Yes. 

llie  Chairman.  This  2,000  tliat  is  involved  in  this  letter,  that  are 
referred  to,  is  a  part  of  the  8,100  books? 

Mr.  TiERNEY.  They  would  necessarily  have  to  come  from  the  8,100, 
because  only  8,100  books  had  been  produced  as  of  that  time. 

The  Chairman.  And  that  left  about  1,000  more,  so  I  suppose  5,000, 
maybe,  had  been  distributed  prior  to  that  time  ? 

Mr.  TiERNEY.  They  had. 

Mr.  Kennedy.  Here,  Mr.  Tierney,  he  is  ordering  2,000  more  books 
for  $10,000? 

Mr.  Tierney.  That  is  correct. 

Mr.  Kennedy.  And  there  is  going  to  charge  a  greater  price  because 
he  said  that  the  carpenters  had  not  ordered  sufficient  numbers. 

Mr,  Tierney.  They  had  not  as  yet  ordered  in  quantity. 

Mr.  Kennedy.  He  charged  them  another  $10,000  and  had  never  pro- 
duced all  the  books.  The  books  were  printed  back  in  March  1956.  He 
had  not  produced  all  the  books  by  June  of  1957. 

The  Chairman.  But  these  are  the  books  in  the  original  production 
of  8,100  copies. 

INIr.  TiERNEY.  That  is  right. 

The  Chahjman.  So  there  had  been  no  increased  cost  on  these  books. 
They  had  already  been  printed  way  back  at  an  earlier  date. 

Mr.  Tierney.  That  is  right. 

The  Chairman.  Yet  the  price  went  up. 

Mr.  Tierney.  Yet  the  price  went  up. 

The  Chairman.  That  may  be  made  exhibit  No.  35. 

(The  document  referred  to  was  marked  "Exhibit  No.  35"  for  refer- 
ence and  will  be  found  in  the  appendix  on  pp.  12164—12165.) 

Mr.  Kennedy.  Tliis  is  the  last  one. 

Mr.  Tierney.  This  is  tlie  letter  dated  January  9,  1957,  from  Mr. 
INIaurice  Hutcheson,  general  president  of  the  brotherhood,  to  Max- 
well Raddock,  enclosing  the  check  for  $10,000  for  these  books  in  ac- 
cordance with  the  bill  submitted  in  the  letter. 

Also  attached  to  the  letter  is  a  check  dated  January  9,  1957,  in  the 
amount  of  $10,00,  payable  to  the  American  Institute  of  Social  Science, 
Inc.  Attached  to  that  is  an  authorization  slip  dated  January  9,  1957, 
in  the  amount  of  $10,000,  O.  K.'d  by  MAH. 

The  Chairman.  Tliose  three  items  may  be  made  exhibits  35A,  B, 
and  C. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11891 

(The  documents  referred  to  were  marked  "Exhibits  Nos.  35A,  B,  and 
C  for  reference  and  will  be  found  in  the  appendix  on  pp.  12166- 
12168.) 

Mr.  Kennedy.  Mr.  Tierney,  under  the  contract  and  under  the  ar- 
rangement, ISIr.  Raddock  was  to  produce  these  books  for  the  Car- 
penters, is  that  right  ? 

Mr.  Tierney.  That  is  correct. 

Mr.  Kennedy.  And  then  these  books  were  to  be  sent  out  to  libraries, 
schools,  union  officials  throughout  the  country  ? 

Mr.  Tierney.  That  is  correct. 

Mr.  Kennedy.  By  the  payment  of  this  money,  the  Carpenters  had 
paid  for  the  books,  had  they  not  ? 

Mr.  Tierney,  They  had. 

Mr.  Kennedy.  And  that  is  for  aU  of  these  books  that  are  on  this 
schedule,  the  Carpenters  had  paid  for  them  ? 

Mr.  Tierney.  68,000  books. 

Mr.  Kennedy.  In  that  comiection,  Mr.  Chairman,  I  would  like  to 
call  just  one  witness,  Mr.  Madden. 

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

Mr.  Madden.  I  do. 

TESTIMONY  OF  JOSEPH  MADDEN 

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

Mr.  Madden.  Joseph  Madden,  329  Stegman  Parkway,  Jersey  City ; 
secretary-treasurer  of  the  Heavy  and  General  Laborers  Union,  Local 
472. 

The  Chairman.  Do  you  waive  counsel,  Mr.  Madden  ? 

Mr.  Madden.  Yes,  sir. 

The  Chairman.  Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  How  long  have  you  been  secretary-treasurer  of  local 
472? 

Mr.  Madden.  Since  1937. 

Mr.  Kennedy.  How  long  have  you  known  Mr.  Maxwell  Haddock  ? 

Mr.  Madden.  Approximately  12  years  or  so. 

Mr.  Kennedy.  Did  he  approach  you  in  approximately  May  of  1957 
about  assisting  him  in  the  distribution  of  the  book  on  Mr.  William  L. 
Hutcheson  ? 

Mr.  Madden.  Yes,  sir. 

Mr.  Kennedy.  He  did  ? 

Mr.  Madden.  Yes,  sir. 

Mr.  Kennedy.  ^Vhat  did  he  want  you  to  do  at  that  time  ? 

Mr.  Madden.  He  asked  me  if  our  local  union  would  send  some  books 
out  to  some  libraries  and  prep  schools,  high  schools  and  colleges.  It 
was  the  life  of  Mr.  Hutcheson.  I  told  him  at  that  time  that  I  would 
take  it  up  with  our  executive  board  in  our  union,  and  the  following 
month  I  did  and  we  took  75  books. 

Mr.  Kennedy.  All  right. 

The  Chairman.  Seventy-five  ? 

Mr.  Madden.  Yes,  sir. 

Mr.  Kennedy.  Seventy-five  copies  of  the  book? 

Mr.  Madden.  Yes,  sir. 

Mr.  KJENNEDY.  He  gave  you  those  books  ? 


11892  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Madden.  No,  sir. 

Mr.  Kennedy.  You  had  to  pay  for  the  books? 

Mr.  Madden.  The  75  books  were  to  be  mailed  to  these  prep  schools 
and  so  on. 

Mr.  Kennedy.  But  the  union  paid  for  them  ? 

Mr.  Madden.  Yes,  sir. 

Mr.  Kennedy.  Some  $5  apiece  ? 

Mr.  Madden.  $.5  apiece,  $375. 

The  Chairman.  Do  you  mean  $375  that  your  union  had  to  pay  to 
get  75  copies  to  distribute  them  in  libraries  ? 

Mr.  Madden.  Yes,  sir. 

The  Chairman.  And  high  schools  and  so  forth  ? 

Mr.  Madden.  Yes,  sir. 

The  Chairman.  I  thought  that  was  the  original  purpose  of  the  pub- 
lication, and  that  they  were  paid  for  or  purchased  primarily  for  that 
purpose.     Did  you  know  these  books  had  already  been  paid  for  once? 

Mr.  Madden.  No.     I  didn't  know  anything  about  them. 

The  Chairman.  You  didn't  know  that  he  had  already  received  over 
$300,000? 

Mr.  Madden.  I  don't  know  anything  about  them. 

The  Chairman.  You  are  learning  about  it  then  ? 

Mr.  Madden.  Yes,  sir. 

The  Chairman.  I  hand  you  here  the  check,  a  photostatic  copy  of  the 
check,  I  presume  issued  by  your  local,  to  pay  for  these  books.  It  is 
dated  March  4,  1957.  It  is  in  the  amount  of  $375  and  appears  to  be 
signed  by  you.  Will  you  examine  this  photostatic  copy  and  state  if 
you  identify  it  ? 

(The  document  was  handed  to  the  witness.) 

Mr.  Madden.  Yes,  sir. 

The  Chairman.  Is  that  the  check  you  issued  in  payment  of  the 
books  for  your  union  ? 

Mr.  Madden.  Yes,  sir. 

The  Chairman.  That  check  may  be  made  exhibit  No.  36. 

(The  document  referred  to  was  marked  "Exhibit  No.  36"  for  refer- 
ence, and  will  be  found  in  the  appendix  on  p.  12169.) 

Mr.  Kennedy.  After  you  paid  the  $375,  did  Mr.  Kaddock  furnish 
you  a  list  of  the  institutions  to  which  he  was  sending  the  copy  of  the 
book? 

Mr.  Madden.  Yes,  sir. 

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

(The  document  was  handed  to  the  witness.) 

Mr.  Madden.  Yes,  sir. 

The  Chairman.  That  may  be  made  exhibit  No.  36A. 

(The  document  referred  to  was  marked  "Exhibit  No.  36 A"  for  refer- 
ence, and  may  be  found  in  the  files  of  the  selected  committee.) 

Mr.  Kennedy.  While  Mr.  Madden  is  here,  I  would  like  to  ask  Mr. 
Tierney  a  question,  Mr.  Chairman. 

The  Chairman.  All  right. 

Mr.  Kennedy.  Mr.  Tierney,  did  Mr.  Raddock  furnish  to  the  inter- 
nation,  after  we  began  our  investigation  a  list  of  the  institutions  and 
individuals  to  whom  he  had  sent  copies  of  the  books  ? 

Mr.  Tierney.  That  is  correct,  gentlemen. 


i 


IMPROPER    ACTIVITIES   IN    THE    LABOR    FIELD  11893 

Mr.  Kennedy.  And  these  were  institutions  to  whom  he  had  sent  the 
book  in  accordance  with  his  agreement  with  the  Carpenters? 

Mr.  TiERNEY.  That  is  correct. 

Mr.  Kennedy.  Have  we  made  a  spot  check  of  the  list  he  furnished 
to  Mr.  Madden  and  the  list  furnished  to  the  Carpenters,  to  determine 
if  there  was  a  duplication  ? 

Mr.  Tierney.  Yes.   We  have  the  same  list  here. 

Mr.  Kennedy.  Do  we  find  there  is  in  many  instances,  a  duplication 
in  the  list  that  he  furnished  to  Mr.  Madden,  for  which  they  paid  $5 
a  copy  and  the  list  that  they  furnished  the  international  ? 

Mr.  Tierney.  Yes,  sir,  we  did. 

Mr.  Kennedy.  We  know,  beyond  that,  that  the  Carpenters  paid  for 
all  of  these  books  originally  anyway  ? 

Mr.  Tierney.  That  is  correct. 

Mr.  Kennedy.  That  was  in  accordance  with  the  agreement  ? 

Mr.  Tierney.  Yes,  sir. 

The  Chairman.  Do  we  know  whether  they  sent  two  copies  to  the 
institutions  on  this  list  ? 

Mr.  Tierney.  We  don't  know,  Mr.  Chairman,  whether  or  not  the 
schools  actually  received  two  copies ;  no. 

The  Chairman.  We  just  know  that  he  reported  on  2  different  lists, 
2  different  sources  to  which  he  had  sent  the  book  ? 

Mr.  Tierney.  Yes.  On  the  list  he  furnished  the  Carpenters,  there  is 
a  list  of  those  for  which  the  Carpenters  paid,  and  we  found  the  same 
schools  on  that  list  as  we  found  on  the  list  furnished  to  Mr.  Madden, 
for  which  his  local  paid. 

Senator  Erven.  Mr.  Madden,  as  I  understand,  you  are  secretary- 
treasurer  of  local  474,  of  what  is  properly  called  the  Hod  Carriers 
Union  ? 

Mr.  Madden.  Yes,  sir. 

Senator  Ervin.  And  Mr.  Raddock  came  to  you  and  made  a  proposi- 
tion that  your  local  should  buy  75  of  these  books  at  $5  apiece,  and 
that  he  would  distribute  them  to  approximately  75  different  schools 
and  institutions  in  New  Jersey  ? 

Mr.  Madden.  That  is  correct. 

Senator  Ervin.  And  you  thought  it  was  a  good  thing,  your  local 
did.  and  made  the  purchase? 

Mr.  Madden.  Yes,  sir. 

Senator  Ervin.  Then  you  found  out,  later,  that  the  same  proposition 
had  been  made  to  the  Carpenters,  and  that  the  Carpenters  had  also 
paid  for  books,  or  at  least  you  found  out ■ 

Mr.  Madden.  No;  I  just  heard  that  here  today.  This  is  the  first  I 
heard  of  it. 

Senator  Ervin.  I  see. 

Mr.  Kennedy.  I  might  ask  Mr.  Deibel,  who  has  already  been  sworn, 
a  couple  of  questions. 

The  Chairman.  All  right ;  Mr.  Madden,  thank  you  very  much. 

TESTIMONY  OF  KARL  E.  DEIBEL— Resumed 

Mr.  Kennedy.  From  a  review  of  the  records  of  Mr.  Raddock,  and 
hiri  various  companies,  did  you  find  that  he  charged  some  schools  and 
institutions  for  the  books  that  he  sent  them  ? 


11894  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr,  Deibel.  Yes,  Mr.  Kennedy.  We  examined  the  records  of  the 
American  Institute  of  Social  Science,  these  records  including  sales  in- 
voices and  cash-receipt  books  and  bank  statements.  In  fact,  we  found 
that  139  books  were  sold  to  libraries,  colleges,  and  bookstores  up 
through  June  of  1957,  in  addition  to  the  75  books  that  were  sold  to  Mr. 
Madden,  of  local  472. 

Mr.  Kennedy.  How  much  were  they  sold  for  ? 

Mr.  Deibel.  They  were  sold  at  various  prices  from  $3.33  up  to  the 
$5  figure. 

Mr.  Kennedy.  These  were  the  same  books  that  the  Carpenters  had 
already  purchased;  is  that  right? 

Mr.  Deibel.  Yes,  sir. 

Mr.  Kennedy.  And  paid  either  $4  or  $5  a  copy  ? 

Mr.  Deibel.  Correct.  We  have  various  invoices  recording  the  bills 
to  public  libraries,  colleges,  and  so  forth. 

The  Chairman.  He  not  only  got  the  $310,000,  but  he  collected  double 
on  a  number  of  them. 

Mr.  Deibel.  That  is  correct. 

The  Chairman.  Do  you  know  how  many  ? 

Mr.  Deibel.  We  have  not  made  a  check  of  the  list  that  was  fur- 
nished to  the  international  against  this. 

The  Chairman.  It  is  not  necessary  that  a  complete  check  be  made, 
but  have  you  made  a  sufficient  check  so  that  you  know  that  that  be- 
came a  practice  wherever  he  could  do  it,  that  he  sold  them  ? 

Mr.  Kennedy.  He  testified  there  were  over  100. 

Mr.  Deibel.  That  is  correct.  Senator. 

The  Chairman.  Is  there  anything  further? 

Mr.  Kennedy.  I  don't  believe  so. 

The  Chairman.  The  Chair  believes  that  will  be  enough  for  today, 
so  we  will  stand  in  recess  until  10 :  30  tomorrow  morning. 

We  will  reconvene  in  room  457.    The  committee  stands  in  recess. 

(Whereupon,  at  4:  25  p.  m.,  the  committee  recessed,  to  reconvene  at 
10 :  30  a.  m.,  Friday,  June  6, 1958.  At  this  point,  the  following  mem- 
bers were  present:  Senators  McClellan  and  Ervin.) 


INVESTIGATION  OF  IMPROPER  ACTIVITIES    IN  THE 
LABOR  OR  MANAGEMENT  FIELD 


FEIDAY,   JUNE  6,    1958 

United  States  Senate, 
Select  Committee  on  Improper  Activities 

IN  THE  Labor  or  Management  Field, 

Washington^  D.  C. 

The  select  committee  met  at  10 :  30  a.  m.,  pursuant  to  Senate  Resolu- 
tion 221,  agreed  to  January  29,  1958,  in  room  457  of  the  Senate  Office 
Building,  Senator  John  L.  McClellan  (chairman  of  the  select  com- 
mittee) presiding. 

Present:  Senator  John  L.  McClellan,  Democrat,  Arkansas;  Sena- 
tor Sam  J.  Ervin,  Jr.,  Democrat,  North  Carolina;  Senator  Frank 
Church,  Democrat,  Idaho;  and  Senator  Karl  Mundt,  Republican, 
South  Dakota. 

Also  present:  Robert  F.  Kennedy,  chief  counsel;  ,>erome  S.  Adler- 
man,  assistant  chief  counsel;  Paul  J.  Tierney,  assistant  counsel; 
Robert  E.  Dunne,  assistant  counsel;  John  J.  McGovern,  assistant 
counsel;  Charles  E.  Wolfe,  accountant,  GAO;  Francis  J.  Ward,  ac- 
countant, GAO;  Karl  Deibel,  accountant,  GAO;  and  Ruth  Young 
Watt,  chief  clerk. 

(At  the  reconvening  of  the  committee,  the  following  members  were 
l)resent:  Senators  McClellan,  Church,  and  Ervin.) 

The  Chairman.  The  committee  will  be  in  order. 

Mr.  Kennedy.  Mr.  Chairman,  I  just  want  to  call  Mr.  Tierney  for 
a  couple  of  minutes  to  get  some  documents  into  the  record. 

TESTIMONY  OF  PAUL  J.  TIEKNEY— Kesumed 

The  Chairman.  All  right ;  Mr.  Tierney  has  been  sworn. 

Mr.  Kennedy.  Mr.  Tierney,  we  have  had  some  discussions  about  the 
book  on  Mr.  William  Hutcheson,  and  the  books  that  were  printed 
at  the  World  Wide  Press,  the  printing  plant  of  Mr.  Kaddock. 

Do  you  have  the  documents  there  showing  the  invoices  on  the  paper 
that  was  ordered  by  World  Wide  Press? 

Mr.  Tierney.  I  do,  Mr.  Kennedy. 

Mr.  Kennedy.  The  paper  used  in  printing  the  book  ? 

Mr.  Tierney.  Yes. 

Mr.  Kennedy.  The  invoice  for  the  first  lot  of  paper  is  dated  Novem- 
ber 26,  is  that  right,  1957  ? 

Mr.  Tierney.  Invoice  No.  23789,  1957,  from  the  Congress  Card  & 
Paper  Co.  to  World  Wide  Press,  invoicing  them  for  paper,  English 
finisli  paper  sold  to  World  Wide  Press. 

Mr.  Kennedy.  May  we  have  that  made  an  exhibit,  Mr.  Chairman? 

The  Chairman.  It  may  be  made  exhibit  37. 

11895 


11896  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

(Tlie  document  referred  to  was  marked  "Exhibit  No.  37"  for  refer- 
ence and  may  be  found  in  the  files  of  the  select  committee. ) 

Mr.  Kenxedy.  That  was  the  paper  used  in  the  printing  of  the 
Krome  books? 

Mr.  TiERNEY.  That  is  right,  the  first  edition.  Now  I  have  invoice 
24061,  dated  December  2,  1957,  from  Congress  Card  &  Paper  Co.  to 
World  Wide  Press,  for  Krome  Kote,  which  is  used  in  conjunction 
with  the  printing  of  that  particular  edition  of  the  book. 

The  Chairman.  That  may  be  made  exhibit  37-A. 

(The  document  referred  to  was  marked  "Exhibit  No.  37-A"  for 
reference  and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  TiERNEY.  And  invoice  No.  24293  dated  December  5,  1957,  from 
the  Congress  Card  &  Paper  Co.  for  English  finish  paper  and  Krome 
Kote,  used  in  conjunction  with  the  printing  of  this  particular  book. 

The  Chairman.  That  may  be  made  exhibit  37-B. 

(The  document  referred  to  was  marked  "Exhibit  No.  37-B"  for 
reference  and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Kennedy.  After  that  paper  was  used  in  connection  with  the 
books,  the  Krome-covered  books,  the  World  Wide  Press  made  arrange- 
ments to  have  these  books  bound ;  is  that  right  ? 

Mr.  TiERNEY.  A  third  of  them. 

Mr.  Kennedy.  The  order  for  the  binding  of  a  third  of  them  was 
placed  on  December  18 ;  is  that  right? 

Mr.  TiERNEY.  *As  far  as  the  binding  for  the  books,  the  third  bound, 
it  was  placed  later  than  December  18.  It  was  placed  around 
December  26  or  27. 

Mr.  Kennedy.  Do  you  have  the  document  there  ? 

Mr.  TiERNEY.  No,  we  don't  have  the  document  on  that  particular 
binding.  The  documents  we  have  relate  to  the  binding  of  the  second 
10,000  books,  Mr.  Kennedy,  the  pages  of  which  were  printed  at  World 
Wide  Press. 

Mr.  Kennedy.  What  is  the  date  of  that  ? 

Mr.  TiERNEY.  That  is  December  26,  for  which  the  order  for  the 
paper  came  in.     The  order  for  the  binding  was  January  23,  1958. 

Mr.  Kennedy.  Wasn't  there  an  order  for  the  binding  also  on 
December  18,  with  the  M  &  K  Bindery,  the  records  showing  the  order 
was  placed  December  18? 

Mr.  TiERNEY.  I  don't  have  that — 

Mr.  Kennedy.  In  our  record,  it  is  No.  35.     You  don't  have  that? 

Mr.  TiERNEY.  We  have  that  particular  exhibit,  but  the  date  isn't  on 
it ;  the  date  isn't  on  that  particular  order,  Mr.  Kennedy. 

Mr.  Kennedy.  IIow  did  we  reach  the  conclusion  it  was  December 
18? 

Mr.  TiERNEY.  It  was  later  that  that,  Mr.  Kennedy.  It  was  later 
than  December  18. 

Mr.  Kennedy.  Well,  let's  go  along.  Do  you  have  an  exhibit  there 
for  the  ordering  of  the  paper  for  the  hard-bound  books  ? 

Mr.  TiERNEY.  Yes. 

Mr.  Kennedy.  Summarize  it,  please. 

Mr.  TiERNEY.  It  is  an  invoice  from  the  i\.merican  Book  Stratford 
Co.,  for  white  eggshell  paper  in  the  amount  of  $2,995,  dated  December 
26.1957. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11897 

Mr.  Kennedy.  So  it  shows  the  paper  for  the  hard-bound  book  was 
not  ordered  until  the  day  after  Christmas,  December  26,  1957  ? 
Mr.  TiERNEY.  That  is  correct. 

The  Chairman.  That  may  be  made  exhibit  No.  37-C. 
(The  document  referred  to  was  marked  ''Exhibit  No.  37-C"  for  ref- 
erence and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Kennedy,  What  about  the  binding  of  those  books  ?  Have  you 
an  order  on  that  ? 

Mr.  TiERNEY.  Yes.  On  those  books,  we  have  here  a  copy  of  a  cus- 
tomer's order  card  which  we  obtained  from  American  Book  Stratford, 
which  shows  that  the  order  for  the  binding  of  those  books  was  placed 
on  January  23, 1958. 

Mr.  Kennedy.  January  what? 
Mr.  TiERNEY.  23,  1958. 

Mr,  Kennedy.  So  those  books  were  not  ordered  to  be  bound  until 
that  date? 

Mr.  TiERNEY.  That  is  correct. 

Mr,  Kennedy.  And  then  also  on  that  date  do  you  have  an  exhibit 
showing  that  some  30,000  more  books  were  ordered  from  the  same 
company,  January  23  ? 

Mr.  TiERNEY.  That  is  right,  on  January  23,  as  shown  on  the  same 
order  card. 

The  Chairman.  These  documents  may  be  made  exhibit  37  with  thef 
proper  letter  attached  to  them. 

(The  document  referred  to  was  marked  "Exhibit  No.  37A  through 
E",  reference  may  be  found  in  the  files  of  the  select  committee.) 
Mr.  Kennedy.  Is  that  all  ? 

Mr.  TiERNEY.  We  also  have,  Mr.  Kennedy,  a  telegram  which  we 
received  from  American  Book  Stratford  Press  showing  when  the 
paper  ordered  for  the  hard-bound  books,  the  insides  of  which  were 
printed  at  World  Wide  Press,  was  delivered  to  American  Press. 
Mr.  Kennedy.  What  is  that  date  ? 

Mr.  TiERNEY.  The  date — the  first  part  of  the  order  was  delivered  on 
December  26, 1957.    A  second  part  of  the  order  on  December  31,  1957, 
and  the  final  part  of  that  order  on  January  7, 1958. 
Mr.  Kennedy.  All  right. 

The  only  point  of  all  of  this,  Mr.  Chairman,  is  to  show  that  all  of 
this  activity  took  place  well  after  our  investigation  started.  That  is 
all,  Mr,  Tierney  ? 

Mr,  TiERNEY.  We  also  have  a  copy  of  delivery  records  of  American 
Book  Stratford  which  show  the  dates  of  the  deliveries  of  all  the  books 
which  were  printed  by  American  Book  Stratford,  manufactured  by 
tliem,  for  World  Wide  Press. 

(Tlie  document  referred  to  was  marked  "Exhibit  No.  37E"  for 
reference  and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  TiERNEY.  We  also  have  here  complete  invoices  or  billings  to 
World  Wide  Press  for  books  which  were  manufactured  by  American 
Book  Stratford. 

Mr.  Kennedy.  I  think  we  have  the  important  dates  in  now. 
Mr.  TiERNEY.  All  right. 

The  Chairman.  Those  documents  may  be  made  part  of  exhibit  37 
and  lettered  accordingly. 

Mr.  TiERNEY.  Also  we  have  an  affidavit,  executed  by 


11898  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  I  will  put  that  in  later. 

Mr.  TiERNEY.  All  right. 

Mr.  Kennedy.  Mr.  Chairman,  not  only  does  it  show  that  they  started 
their  deliveries  of  the  books  after  the  investigation  started,  but  that 
they  realized  that  they  had  been  derelict  by  the  intense  activity  that 
took  place  of  making  some  40,000  clothbound  books  and  some  29  Krome 
cover  books  during  this  period  of  time  immediately  after  our  investi- 
gation began. 

The  Chairman.  Call  your  next  witness. 

Mr.  Kennedy.  Mr.  Kuhn. 

The  Chairman.  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.  Kuhn.  I  do. 

TESTIMONY  OF  JOSEPH  KUHN,  ACCOMPANIED  BY  COUNSEL 
SEYMOUR  WALDMAN 

Tlie  Chairman.  State  your  name,  your  place  of  residence,  and  busi- 
ness or  occupation. 

Mr.  Kuhn.  Joseph  Kuhn,  18  Victor  Drive,  Irvington-on-the- 
Hudson,  N.  Y.   Printing-production  man. 

The  Chairman.  Printing-production  what  ? 

Mr.  Kuhn.  Man.   I  am  a  printing-production  manager. 

The  Chairman.  You  are  m  the  printing-production  business  ? 

Mr.  Kuhn.  That  is  right. 

The  Chairman.  You  have  counsel. 

Would  you  identify  yourself  for  the  record,  please  ? 

Mr.  Waldman.  Waldman  &  Waldman,  305  Broadway,  New  York 
City,  N.  Y.,  by  Seymour  Waldman. 

The  Chairman.  Proceed,  Mr.  Kennedy. 

Mr.  KJENNEDY.  Mr.  Kuhn,  you  were  working  for  the  World  Wide 
Press  in  what  period  of  time  ? 

Mr.  Kuhn.  From  May  of  1957  to  May  2  of  1958. 

Mr.  Kennedy.  What  was  your  position  there  ? 

Mr.  Kuhn.  Superintendent,  plant  superintendent. 

Mr.  Kennedy.  What  ? 

Mr.  Kuhn.  Plant  superintendent. 

Mr.  KJENNEDY.  While  you  were  there,  from  May  1957  to  May  1958, 
were  there  some  books  printed  up  on  William  L.  Hutcheson? 

Mr.  Kuhn.  Yes. 

Mr.  Kennedy.  When  did  that  start?    When  did  the  printing  start? 

Mr.  Kuhn.  The  printing  in  our  own  plant  ? 

Mr.  Kennedy.  Yes. 

Mr.  Kuhn.  The  printing  in  our  own  plant,  to  my  best  recollection, 
was  started  in  the  latter  part  of  October,  or  the  beginning  of  Novem- 
ber. But  since  I  had  the  conference  with  you  yesterday,  Mr.  Kennedy, 
I  checked  with  New  York,  and  the  suppliers  of  the  paper,  when  the 
deliveries  were  made,  being  that  you  placed  such  importance  upon  the 
dates,  whether  it  was  the  beginning  of  November  or  in  October,  and 
I  received  the  information  from  the  particular  suppliers,  and  I  find 
that  the  paper  was  delivered  into  World  Wide  Press  around  the  25th 
of  November. 


lAIPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11899 

Mr.  Kennedy.  The  25th  of  November  ? 

Mr.  KuHN.  That  is  correct. 

Mr.  KJENNEDY.  So  you  began  the  printing  after  the  paper  was 
delivered  ? 

Mr.  KuHN.  We  started  the  production  prior  to  that,  because  it  is 
necessary  in  printing  a  book  that  a  lot  of  preliminary  work  go  into 
it,  such  as  layout,  laying  out  the  forms. 

Mr.  Kennedy.  But  you  did  not  start  the  printing  of  any  books 
until  the  end  of  November  of  1957 ;  isn't  that  right  ? 

Mr.  KuiiN.  The  actual  presswork  did  not  start  until  the  paper  was 
in  the  house. 

Mr.  Kennedy.  1957. 

Mr.  Kuhn.  That  is  right. 

Mr.  Kennedy.  Originally  you  had  told  me,  did  you  not,  that  this 
started — when  I  first  interviewed  you  in  the  office — you  said  this 
started  in  October  1956  ? 

Mr.  Kuhn.  I  told  you  to  the  best  of  my  knowledge  at  that  time. 

Mr.  Kennedy.  Since  that  time 

Mr.  Kuhn.  Since 

Mr.  Kennedy.  You  have  refreshed  your  recollection  ? 

Mr.  Kuhn.  I  haven't  refreshed  my  recollection.  I  have  checked 
with  the  delivery  of  the  paper,  being  that  such  importance  was  placed 
on  the  date,  the  exact  date.  I  called  New  York  right  after  I  left  your 
office. 

Mr.  Waldman.  Excuse  me,  Mr.  Chairman,  there  is  a  phone  call 
that  I  think  Mr.  Kennedy  is  interested  in.  May  we  suspend  for  a 
minute  until  I  can  take  it  ? 

The  Chairman.  We  will  suspend  for  a  minute. 

(Brief  recess.) 

(At  the  taking  of  the  recess,  the  following  members  were  present: 
Senators  McClellan,  Church,  and  Ervin.) 

(At  the  reconvening  of  the  committee,  the  following  members  were 
present :  Senators  McClellan,  Church,  and  Ervin.) 

The  Chairman.  The  committee  will  come  to  order. 

Proceed,  Mr.  Counsel. 

Mr.  Kennedy.  Mr.  Chairman,  the  problem  has  been,  in  conversa- 
tions with  Mr.  Kulm  and  certain  other  officials  of  the  company,  to  try 
to  get  the  actual  facts  regarding  the  production  of  the  books.  It  has 
been  maintained  hy  officials  of  the  company,  Mr.  Max  Raddock  and 
Mr.  Kuhn  up  until  yesterday,  that  there  was  production  of  the  book 
prior  to  the  time  our  investigation  began.  We  have  been  trying  to  pin 
down  the  facts  on  that.  That  is  one  of  the  reasons  that  Mr.  Kuhn 
was  called,  because  there  was  so  much  effort  being  made  to  try  to 
make  it  appear  that  the  production  of  the  book  was  started  prior  to 
the  investigation  beginning. 

I  have  some  documents  here  that  I  would  like  to  show  you,  Mr. 
Kuhn,  in  that  connection.  I  would  like  to  have  you  identify  them,  if 
you  will. 

The  Chairman.  I  hand  you  two  photostatic  copies  of  a  letter,  one 
dated  October  8, 1957,  the  other  dated  August  7,  1957.  The  letters  are 
addressed  to  American  Book,  Stratford,  New  York,  and  appear  to  be 
signed  by  you.    Please  examine  them  and  state  if  you  identify  them. 

(The  document  was  handed  to  the  witness.) 

(The  witness  conferred  with  his  counsel.) 


11900  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  KuHN.  Yes,  sir. 

The  Chairman.  Do  you  identify  these  letters  ? 

Mr.  KuHN.  Yes,  sir. 

The  Chairman.  The  one  dated  August  7,  1957,  may  be  made  ex- 
hibit 88,  and  the  one  of  October  8,  1957,  will  be  made  exhibit  38A. 

(The  documents  referred  to  were  marked  "Exhibits  38  and  38 A" 
for  reference  and  will  be  found  in  the  appendix  on  pp.  12170-12171.) 

The  Chairman.  Mr.  Kuhn,  did  you  receive  a  reply  to  the  letters  of 
August  7, 1957,  and  October  8j  1957  ? 

Mr.  Kuhn.  I  don't  recall,  sir. 

The  Chairman.  Sir? 

Mr.  Kuhn.  I  don't  recall. 

The  Chairman.  I  hand  you  a  photostatic  copy  of  a  letter  purporting 
to  be  a  reply  to  these  two  letters  that  you  have  testified  about.  I  ask 
you  to  examine  this  photostatic  copy  of  the  reply  and  see  if  you  identify 
it. 

(The  document  was  handed  to  the  witness.) 

(The  witness  conferred  with  his  counsel.) 

Mr.  Kuhn.  Yes,  sir. 

Tlie  Chairman.  That  letter  may  be  made  exhibit  38B. 

(The  document  referred  to  was  marked  "Exhibit  No.  38B"  for  ref- 
erence and  will  b3  found  in  the  appendix  on  p.  12172.) 

The  Chairman.  The  letter  of  August  7, 1957,  states : 

This  will  oonfirra  our  order  for  the  binding  of  10,000  copies  of  Portrait  of  an 
American  Labor  Leader. 

The  one  of  October  8,  says : 

This  will  confirm  our  order  for  you  to  supply  text  paper,  for  printing  of  the  text 
and  complete  binding  of  30,000  copies  of  the  Portrait  of  an  American  Labor 
Leader. 

The  letter  received  in  reply,  which  you  identify,  and  which  was  made 
exhibit  38B,  reads  as  follows : 

This  is  to  acknowledge  receipt  of  your  orders  for  the  binding  of  10.000  copies, 
and  also  the  printirg  and  binding  of  30,000  copies,  of  your  book  Portrait  of  an 
American  Labor  Leader. 

The  letter  acknowledging  the  or<3ers  is  dated  January  22,  1958,  and 
the  letter  further  states :  "* 

We  note,  however,  that  the  10,000  order  is  dated  August  7,  1957,  and  the  30,000 
order  is  dated  October  8.  1957.  As  you  know,  these  orders  were  received  by 
us  on  January  21.  1958,  and  I  presume  that  these  dates  were  overlooked  by  you 
when  you  signed  the  order. 

This  letter  is  from  the  American  Book  Stratford  Press,  Inc.  Can 
you  give  us  any  explanation  of  why  you  dated  these  letters  back  when 
yon  sent  them? 

Mr.  KmiN.  Offhand  I  don't  recall  iust  M-hy  they  were  dated  previ- 
ouslv.  There  may  be  the  possibility  that  the  discussions  had  come  up 
at  that  particular  time  and  that  those  letters  were  dated  as  of  the 
original  time  of  discussions. 

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

The  CiiATT'MAN.  It  is  perfectly  o})vions  that  the  letters  were  not  re- 
ceived, according  to  this,  until  January  21,  yet  one  of  them  is  dated 
back  as  fnr  as  August.  This  clearly  indicates  that  no  order  had  been 
given  until  the  letter  was  received  on  January  21,  and  that  the  orders 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11901 

were  not  given  at  the  time  the  letters  were  dated.  Does  it  not  clearly 
indicate  that? 

Mr.  KuiiN.  So  it  seems,  according  to  those  letters,  sir. 

The  C!iiAiRMAN.  And  that  is  a  fact,  is  it  not  ? 

Mr.  Kuiix.  That  the  orders  were  not  given  at  tliat  time,  sir? 

The  CiiAiRMAX.  That  the  orders  were  not  given  on  the  date  of  these 
letters,   but   were  given  here,   the  date  of  January   21. 

Mr.  KuiiN.  They  were  not  given  on  the  date  of  the  original  letters; 
no,  sir. 

The  Chairman.  And  they  were  not  received,  and  you  know  that, 
they  were  not  received  until  the  21st  of  January,  as  this  letter  states. 

Mr.  KuiiN.  That  is  right. 

The  Chairman.  What  was  tlie  reason  for  dating  these  letters  back, 
except  for  the  fact  that  you  were  under  investigation  by  this  com- 
mittee ? 

Mr.  KuHX.  I  don't  recall  just  exactly  what — 

The  Chairman.  You  can't  recall  any  other  reason  ? 

Mr.  KuHN.  No,  sir. 

The  Chairman.  So  that  must  be  the  reason  ? 

Mr.  KuHN.  I  cannot  assume  that,  sir.     I  don't  know. 

The  Chairman.  Sir  ? 

Mr.  KuHN.  I  don't  know,  sir. 

The  Chairman.  You  don't  know.    All  right  proceed. 

Mr,  Kennedy.  Mr.  Chairman,  I  would  like  to  just  point  out  once 
again  that  it  amounts  to  a  conspiracy  on  the  part  of  Mr.  Kuhn  and 
whoever  instructed  him  to  write  these  letters  and  date  them  back 
prior  to  the  time  our  investigation  began. 

Tlie  Chairman.  Who  instructed  you  to  handle  the  matter  that  way, 
Mr.  Kuhn  ? 

You  were  an  employee.  Who  instructed  you  to  handle  this  matter 
that  way  ? 

Mr.  Kuhn.  I  don't  recall.  The  only  instructions  I  took  were  from 
Mr.  Raddock. 

The  Chairman.  Mr.  Raddock  ? 

Mr.  Kuhn.  That  is  correct. 

The  Chairman.  Do  you  recall  him  having  instructed  you  to  han- 
dle the  matter  in  this  manner  and  date  the  letters  back  so  it  would 
appear  that  the  orders  had  been  given  before  the  investigation  started? 

Mr.  Kuhn.  I  don't  recall  the  exact  conversations. 

The  Chairman.  Do  you  recall  some  conversations  about  it? 

Mr.  Kuhn.  There  may  be  a  possibility,  but  I  don't  recall 

The  Chairman.  You  said  you  did  not  recall  the  exact  conversa- 
tion. 

Mr.  Kuhn.  That  is  right. 

The  Chairman.  What  part  of  the  conversation  do  you  recall  ? 

Mr.  Kuhn.  I  don't  recall  a  particular  conversation  regarding  that. 
I  did  not  put  too  much  emphasis  on  the  amount  of  conversation  in  re- 
gard to  the  book  outside  of  the  fact  of  having  to  get  the  publication 
out. 

The  Chairman.  Don't  you  want  to  be  completely  frank  and  candid 
about  it  and  say  you  did  receive  orders  to  handle  it  that  way  because 
an  investigation  was  on  ?     Isn't  that  the  truth  ? 

Mr.  Kuhn.  I  couldn't  answer  that,  to  say  that  that 


11902  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

Tlie  Chairman.  You  don't  deny  it,  do  you? 

Mr.  KuHN.  I  don't  deny  it ;  no,  sir. 

The  Chairman.  All  right. 

Mr.  Kennedy.  Mr.  Chairman,  that  will  be  all  for  this  witness. 
These  letters  are  of  great  significance.  As  the  witness  admits,  even  up 
until  yesterday  he  was  maintaining  that  these  books  were  being  pub- 
lished or  printed  prior  to  the  investigation.  Of  course,  he  corrects 
the  record  today.  But  we  have  another  witness  we  would  like  to  call 
now,  Mr.  Terkeltaub,  who  appeared  before  the  committee  in  executive 
session,  and  who  testified  that  approximately  20,000  of  these  books 
were  published  prior  to  our  investigation. 

The  Chairman.  All  right,  Mr.  Kuhn,  you  may  stand  aside  for  the 
present. 

Call  Mr.  Terkeltaub. 

Do  you  solemnly  swear  the  evidence  you  shall  give  before  this  Se- 
ate  Select  Committee  shall  be  the  truth,  the  whole  truth,  and  nothing 
but  the  truth,  so  help  you  God  ? 

Mr.  Terkeltaub.  I  do. 

TESTIMONY  OF  JULIUS  TERKELTAUB,  ACCOMPANIED  BY 
COUNSEL,  JEROME  LEWIS 

The  Chairman.  State  your  name,  your  place  of  residence,  and  busi- 
ness or  occupation. 

Mr.  Terkeltaub.  Julius  I.  Terkeltaub,  270  North  Broadway,  Yonk- 
ers.  N.  Y. 

The  Chairman.  Do  you  have  counsel  present  ? 

Mr.  Terkeltaub.  I  do,  sir. 

The  Chairman.  Did  you  state  your  occupation  ? 

Mr.  Terkeltaub.  I  am  presently  salesman  and  night  production  man 
for  World  Wide  Press  Syndicate. 

The  Chairman.  How  long  have  you  been  with  this  publication? 

Mr.  Terkeltaub.  I  have  been  with  this  printing  plant  since  its  in- 
ception in  1951. 

The  Chairman.  Counsel,  identify  yourself  for  the  record,  please. 

Mr.  Lewis.  Jerome  Lewis,  66  Court  Street,  Brooklyn,  N.  Y. 

Mr.  Chairman,  with  your  permission,  may  I  read  into  the  record  a 
short  statement  given 

The  Chairman.  May  I  see  the  statement,  please  ? 

Mr.  Lewis.  I  gave  the  original  to  Mr.  Tierney  yesterday  morning. 

The  Chairman.  This  is  signed  by  the  witness  ? 

Mr.  Lewis.  Yes,  sir. 

The  Chairman.  It  was  delivered  to  the  committee  in  proper  time. 
The  witness  may  read  it. 

Mr.  Lewis  (reading)  : 

At  the  executive  session  held  on  February  19, 1958,  I  testified  that  2.000  to  3,000 
books,  Portrait  of  an  American  Labor  Leader :  William  Levi  Hutcheson,  were 
printed  in  1955  and  between  10,000  to  25,000  books  in  1956.  And  approximately 
20,000  books  were  mailed  out  in  1955  and  1956 ;  that  several  thousand  were  left 
over  and  not  mailed.  I  wish  to  correct  the  aforesaid  testimony,  which  is  errone- 
ous, and  to  the  best  of  my  recollection  now  state  that  in  the  latter  part  of  1955, 
about  9,500  books  were  printed  in  Vermont  and  shipped  to  World  Wide  Press 
Syndicate,  Inc. 

We  distributed  these  books  in  1955  and  1956.  No  books  were  printed  at  the 
World  Wide  plant  in  1955  and  1956.    Due  to  the  fact  that  World  Wide  did  a  tre- 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11903 

mendous  amount  of  printing  for  the  American  Institute  of  Social  Science,  Inc., 
in  1956,  relating  to  regional  conferences  of  the  United  Brotherhood  of  Carpenters 
and  Joiners  of  America,  and  the  celebration  of  their  75th  anniversary,  I  in- 
advertently mistook  this  printing  which  occurred  in  1956  to  be  the  printing 
of  the  books  in  1956. 

Mr.  Lewis.  May  I  note  for  the  record  that  this  statement  was  dated 
June  5,  1958,  and  turned  over  to  Mr.  Tierney  of  the  staff  yesterday 
morning. 

The  Chairman.  The  Chair  ascertained  that  the  rule  had  been  com- 
plied with,  that  it  had  been  delivered  to  the  committee  a  day  in  ad- 
vance.   It  shows  on  the  face  of  it  the  date  it  was  delivered. 

Mr.  Lewis.  Thank  you. 

The  Chairman.  Proceed. 

Mr.  Kjennedy.  Mr.  Chairman,  I  would  like  to  point  out  that  Mr. 
Terkeltaub  appeared  in  the  executive  hearing  and  testified  for  ap- 
proximately 2  hours  and  was  asked  in  detail  questions  about  the  print- 
ing of  this  book,  and  testified  on  a  number  of  occasions — for  instance, 
on  page  42,  where  he  was  asked  the  question — 

Were  any  of  them  printed  in  your  place  in  1955, 

and  his  answer  was — 

Well,  let  us  go  back  year  by  year.  Were  any  of  them  actually  printed  in 
the  World  Wide  Press  in  1955? 

Mr.  Terkeltaub's  answer  was  "Yes." 

Question :   How  many  were  printed  in  1955? 

Answer :   Several  thousand. 

Question  :   Would  that  be  2,000? 

Answer  :  2,000  or  3,000.    I  don't  know  the  exact  figures. 

Question  :  How  many  were  printed  m  1956? 

Answer :  In  1956,  I  would  say  it  exceeded  1955,  because  it  was  late  1955  that 
we  started. 

Question  :  That  is  fine,  but  how  many  were  printed  in  1956? 

Answer  :   It  ran  into  thousands.    I  couldn't  say. 

Question :  Were  there  another  couple  of  thousand  in  1956? 

Answer  :  I  would  say  it  would  probably  be  10,000,  15,000,  or  20,000,  somewhere 
in  that  area. 

That  was  completely  untrue.  You  didn't  start  printing  the  books, 
and  the  books  were  not  printed,  until  1958  ? 

Mr.  Terkeltaub.  We  printed  outside.  The  first  batch  were  printed 
in  Vermont. 

Mr.  Kennedy.  There  is  no  question  about  that.  You  also  testified 
to  the  fact  that  there  were  9,000  other  books  printed  outside  your 
plant.  You  were  specifically  asked  on  this  occasion  and  on  others 
whether  books  were  printed  in  j'our  plant,  and  you  did  not  tell  the 
truth  to  the  committee  at  that  time.  You  told  them  that  the  books 
started  being  printed  in  1955,  you  printed  on  through  1956,  and  you 
printed  on  through  1957,  and  that  is  all  completely  untrue.  You  knew 
it  was  untrue  at  tlie  time  you  testified,  Mr.  Terkeltaub;  isn't  that 
correct  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Kennedy.  You  knew  at  the  time  you  testified  to  this  fact? 

Mr.  Terkeltaub.  I  may  have  been  telling  an  untruth,  but  it  was  a 
question  of  all  this  confusion. 

Mr.  Kjennedy.  There  wasn't  any  confusion.  You  were  asked  very 
clearly  about  these  questions. 

21243—58 — pt.  31 9 


11904  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Terkeltatjb.  You  asked  me  to  rely  on  my  memory,  sir. 

Mr.  Kennedy.  It  doesn't  tax  your  memory  very  much  if  the  print- 
ing of  books  don't  start  until  1958,  which  is  about  a  month  or  two 
prior  to  the  time  you  are  starting  to  testify,  and  you  say  they  started 
back  in  1955. 

Mr.  Terkeltaub.  Sir,  we  started  production  on  this  book  in  1954. 

Mr.  Kennedy.  You  didn't  print  any  books  in  your  plant. 

Mr.  Terkeltaub.  We  didn't  print  any  books  in  our  plant  in  all 
that  period. 

Mr.  Kennedy.  How  could  you  start  the  production  of  the  book  in 
1954? 

Mr.  Terkeltaub.  Well,  the  preparation  of  setting  the  book  in  type 
had  to  be  done  somewhere. 

Mr.  Kennedy.  When  was  the  book  written  ? 

Mr.  Terkeltaub.  The  book  was  completed  in  1955,  from  what  I 
recall. 

Mr.  Kennedy.  Then  how  could  you  start  printing  the  book  in  1954  ? 

Mr.  Terkeltaub.  What  is  that,  sir  ? 

Mr.  Kennedy.  How  could  you  start  printing  the  book  in  1954  ? 

Mr.  Terkeltaub,  I  didn't  say  anything  about  j)rinting  the  book  in 
1954.     I  said  production  was  underway  in  1954. 

Mr.  Kennedy.  How  could  you  start  producing  the  book,  with  pro- 
duction underway  in  1954,  if  it  wasn't  written  until  1955  ? 

Mr.  Terkeltaub.  The  thing  is,  while  the  book  is  being  written,  type 
is  being  set.  That  is  understandable  in  any  man's  language.  When 
a  chapter  is  finished,  it  is  being  set  by  people  on  the  machines. 

Mr.  Kennedy.  Mr.  Terkeltaub,  in  any  man's  language,  when  you 
are  asked  a  question  of  whether  any  books  are  printed,  and  you  say 
several  thousand  were  printed  in  1955  and  between  10,000,  15,000  and 
20,000  in  1956,  and  there  are  none  printed,  that  isn't  telling  the  truth. 
When  you  testified  to  it  under  oath,  there  is  a  criminal  penalty  at- 
tached to  it. 

Mr.  Terkeltaub.  I  understand  that,  and  I  am  telling  the  committee 
here,  sir,  that  I  made  an  error. 

Mr.  Kennedy.  You  come  in  here  and  tell  the  committee  after  the 
investigation  and  the  hearings  begin.  This  is  true  of  the  whole  in- 
vestigation of  this  matter.  We  haven't  gotten  documents  from  your 
place.  These  documents  that  we  introduced  tlu-ough  ]\Ir.  Kuhn  were 
never  in  the  files  of  the  World  Wide  Press.  Falsification  of  the  docu- 
ments.    Then  you  come  in  and  testify  falsely  before  the  committee. 

The  Chairman.  Do  you  have  any  other  explanation  of  it? 
(The  witness  conferred  with  his  counsel.) 

The  Chairman.  Have  you  any  further  explanation? 

Mr.  Terkeltaub.  I  have  none,  sir. 

The  Chairman.  This  is  the  pro])lem  we  have :  We  get  you  folks  in 
here,  and  mc  have  the  experience  over  and  over  again  of  getting  wit- 
nesses in,  interrogating  them,  soinetimes  taking  their  testimony  in 
executive  session,  and  they  give  us  all  the  trouble  they  can  by  not  tell- 
ing the  facts  as  they  know  them  to  be. 

Obviously,  it  is  an  attemi)t  to  mislead  the  connnittee.  Then  we  go 
out  and  make  the  investigation  and  get  the  facts,  get  the  truth,  and 
wlien  the  witness  finds  out  we  have  it,  then  they  come  in  and  do  like 
you  did  tliis  morning,  retract  their  testimony  and  say  you  made  an 
error.     That  just  gets  exasperating,  to  have  to  sit  here  and  do  this  hard 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11905 

■work  and  get  people  in  and  place  them  under  oath,  then  have  them 
testify  falsely  to  put  us  to  a  great  deal  of  trouble. 

Mr.  Lewis.  Mr.  Chairman,  may  I  say  this:  Before  any  testimony 
was  adduced  3'esterday,  we  had  submitted  our  statement  in  the  morn- 
ing. The  hearing  started  at  2  o'clock  yesterday.  So,  the  witness  did 
not  know  what  was  going  to  be  testified  to  by  the  other  witnesses  yes- 
terday. This  is  a  voluntary  statement  due  to  the  fact  that  he  had  made 
a  mistake,  and  when  he  did  testify  at  the  executive  session  it  was  to 
the  best  of  his  ability  and  recollection. 

The  Chairman.  I  do  not  want  to  argue  anything  with  you,  but, 
from  the  very  beginning  of  this  particular  investigation,  we  have  met 
with  these  sort  of  tactics,  and  it  makes  the  work  of  the  committee 
doubly  hard.  We  just  have  to  work  that  much  harder  to  get  the  truth, 
when  the  truth  could  be  given  to  us  very  simply  and  quickly. 

This  Avitness  has  had  from  last  February  19,  the  time  he  testified. 
He  has  been  up  there,  in  the  employ  of  that  company.  He  has  been 
there  working.  If  he  made  an  honest  mistake  it  would  have  been 
quite  easy  for  him  to  check  the  records  and  learn  that  he  had  made 
a  mistake,  and  he  could  have  acquainted  the  committee  with  it  long 
before  now.  But  now  he  waits  until  we  have  completed  the  investi- 
gation, and  we  have  gone  out  and  dug  up  these  records,  and  now  he 
comes  in  with  the  statement  of  having  made  an  error. 

Proceed. 

Mr.  Kennedy.  Once  again,  Mr.  Chairman,  they  did  not  start  pro- 
ducing the  hard-cover  books  until  January  1958,  some  2  months  prior 
to  the  time  he  testified  before  the  committee. 

Mr.  Terkeltaub.  I  wish  to  correct  you,  counselor.  We  printed 
the  first  books  in  1955. 

The  Cttair^^ian.  You  say  "we." 

Mr.  Kennedy.  Who  is  "we"  ? 

Mr.  Terkeltaub.  World  Wide  Press  had  them  printed  outside  in 
1955.    Let's  keep  the  record  clear. 

]Mr.  Kennedy.  We  will  keep  the  record  clear.  You  were  asked 
specifically  about  the  books  printed  in  the  plant. 

Ml-.  Terkeltaub.  I  say  now  that  we  did  not  print  the  books  in  1955. 

Mr.  Kennedy.  In  executive  session  you  were  asked  when  they 
printed  them  in  World  Wide  Press.  The  first  time  you  started  print- 
ing them  in  World  Wide  Press  was  January  1958,  just  2  months  prior 
to  the  time  you  testified ;  or  1  month.  You  said  they  had  been  printing 
them  for  3  years.    You  could  not  forget  that. 

Mr.  Terkeltal-b.  CouJiselor,  I  will  also  say  this,  that  production 
has  been  going  on  at  World  Wide  Press  in  connection  with  the  book. 

JNIr.  Kennedy.  That  is  not  the  question. 

]\[r.  Terkeltaub.  Just  one  moment,  please.  In  connection  with  the 
book  since  early  1955,  and  this  I  would  like  to  have  on  the  record.  AVe 
will  not  say  that  we  did  not  do  anything  toward  the  end  production 
of  the  book  in  all  that  period.   Work  was  done  on  it. 

Mr.  Kennedy.  It  is  pretty  important  for  a  book  to  get  it  printed. 

The  Chairman.  All  right.    Let's  proceed. 

Mr.  Kennedy.  In  connection  with  the  documents,  Mr.  Chairman, 
I  would  like  to  ask  this  witness  about  this  document. 

The  Chairman.  I  hand  you  a  photostatic  copy  of  a  letter,  or  what 
appears  to  be  a  carbon  copy  of  a  letter,  dated  March  1, 1956,  addressed 


11906  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

to  Mr.  Albert  E.  Fisher,  general  secretary,  United  Brotherhood  of 
Carpenters  and  Joiners.  It  is  signed  by  Julius  Taub,  manager,  World 
Wide  Press  Syndicate,  Inc.  I  ask  you  to  examine  that  letter  and  state 
if  you  identify  it. 

(The  document  was  handed  to  the  witness.) 

(The  witness  conferred  with  his  counsel.) 

The  Chairman.  Do  you  identify  the  letter  ? 

Mr.  Terkeltaub.  I  do,  sir. 

The  Chairman.  The  letter  may  be  made  exhibit  39.     . 

(The  document  referred  to  was  marked  "Exhibit  No.  39"  for  ref- 
erence, and  will  be  found  in  the  appendix  on  p.  12173.) 

The  Chairman.  This  letter  states : 

Mr.  Fisher,  we  acknowledge  herewith  your  order  for  the  payment  covering 
additional  copies  of  Krome  Kote  edition  "Portrait  of  an  American  Labor 
Leader  :  William  L.  Hutcheson,"  at  $3.50  per  copy. 

Per  agreement  with  the  author  on  behalf  of  Raddock  and  brothers,  and  World 
Wide  Press  Syndicate,  we  will  henceforth  bill  you  direct  for  all  bulk  orders  in 
excess  of  10,000  copies.  Clothbound  editions  in  the  same  quantities  will  be 
charged  out  to  you  at  $4  per  copy. 

Small  orders,  we  were  advised  by  the  author,  must  be  handled  directly  through 
American  Institute  of  Social  Science.  The  $50,000  payment  acknowledged  here 
covering  approximately  14,500  copies,  will  be  put  into  production  within  90  days, 
and  will  be  kept  in  regular  inventory  for  you  to  draw  upon  as  you  require. 
There  will,  of  course,  be  no  storage  charges  added  by  us,  and  shipment  orders 
will  be  filled  as  heretofore. 

The  significance  of  this,  I  assume,  is  that  you  agreed  in  this  letter, 
or  your  company  did  in  this  letter,  of  March  1,  1956,  to  immediately 
print  10,000  copies. 

No,  to  immediately  print  14,500  copies  within  the  next  90  days.  In 
other  words,  they  should  have  been  produced  by  August  1956. 

Mr.  Kennedy.  There  is  a  greater  significance,  Mr.  Chairman,  to  this 
letter.    It  is  dated  March  1, 1956. 

Wlien  did  you  write  this  letter? 

Mr.  Terkeltaub.  It  must  have  been,  to  the  best  of  my  recollection, 
the  date 

Mr.  Kennedy.  Did  you  write  this  letter  on  or  about  March  1,  1956? 

Mr.  Terkeltaub.  I  did,  sir. 

Mr.  Kennedy.  And  you  point  out  in  here  that  you  are  confirming 
an  order  for  these  Krome  Kote  editions  of  "Portrait  of  an  American 
Labor  Leader"  ? 

Mr.  Terkeltaub.  To  the  best  of  my  knowledge,  yes,  sir. 

Mr.  Kennedy.  On  whose  instructions  did  you  write  that  letter? 

Mr.  Terkeltaub.  On  Mr.  Raddock's  instructions. 

Mr.  Kennedy.  Why  wasn't  this  letter  in  the  regular  files  of  the 
World  Wide  Press? 

Mr.  Terkeltaub.  I  don't  know  where  you  got  the  copy  of  it.  You 
must  have  gotten  it  from  the  World  Wide  Press. 

Mr.  Kennedy.  This  was  one  of  the  documents  that  was  produced  a 
little  later;  we  came  up  with  this  document.  It  was  said  that  it  was 
in  Mr.  Raddock's  own  personal  file. 

Mr.  Terkeltaub.  Then  that  is  where  it  must  have  been. 

Mr.  Kennedy.  Isn't  it  a  fact  that  the  Carpenters  never  ordered  the 
cheaper  edition  of  the  book,  and  this  letter  was  printed  in  order  to 
once  again  fabricate  the  files  in  existence  in  World  Wide  Press  ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR   FIELD  11907 

Mr.  Terkeltaub.  I  wouldn't  answer  that  question,  sir,  not  the  way 
it  is  put. 

Mr.  Kennedy.  You  will  answer  the  question.    Is  it  true 

Mr.  Terkeltaub.  Not  the  way  you  are  phrasing  it,  sir. 
Mr.  Kennedy.  Is  this  letter  part  of  a  conspiracy  to  fabricate  the 
files  of  World  Wide  Press  ? 

Mr.  Terkeltaub.  You  want  me  to  agree  to  a  conspiracy  ? 
Mr.  Kennedy.  No.   I  want  you  to  answer  the  question. 
Mr.  Terkeltaub.  Then  I  can't  answer  the  question. 
Mr.  Kennedy.  On  what  grounds? 

Mr.  Terkeltaub.  On  the  grounds  you  are  inferring  there  was  a 
conspiracy. 

Mr,  Kennedy.  I  am  just  asking  you  the  question. 
Mr.  Terkeltaub.  I  will  refuse  to  answer  the  question,  sir. 
The  Chairman.  You  are  going  to  be  ordered  to  answer  the  question. 
The  question  is :  Was  this  letter  placed  in  the  files  of  the  World  Wide 
Press  simply  to  fabricate  the  files,  to  make  it  appear  that  the  letter 
was  written  at  a  time  and  date  when  it  was  not  written  ? 
Mr.  Terkeltaub.  I  don't  know. 
The  Chairman.  All  right. 
Mr.  Kennedy.  You  signed  the  letter. 

Mr.  Terkeltaub.  I  admit  to  signing  the  letter.  I  admit  to  writing 
the  letter. 

Mr.  Kennedy.  When  did  you  write  the  letter  ? 

Mr.  Terkeltaub.  If  it  is  dated  March  1,  1956, 1  must  have  written 
it  on  that  date. 

Mr.  Kennedy.  That  doesn't  necessarily  follow.  Mr.  Kuhn's  letters 
were  dated  August  7  and  October  8,  and  he  didn't  write  the  letters 
on  those  dates.    When  did  you  write  this  letter? 

Mr.  Terkeltaub.  I  am  saying  that  I  must  have  written  it  on  that 
date. 

Mr.  Kennedy.  Did  you  in  fact  write  this  letter  on  or  about  March 
1,1956? 

Mr.  Terkeltaub.  To  the  best  of  my  knowledge  and  recollection,  I 
did. 

Mr.  Kennedy.  Did  you  send  it  out  on  or  about  March  1, 1956? 
Mr.  Terkeltaub.  To  the  best  of  my  recollection,  yes. 
Mr.  Kennedy.  Mr.  Chairman,  we  have  some  further  testimony, 
indicating  that  this  letter  is  also  a  fraud  and  fabrication. 

The  Chairman.  Are  there  any  other  questions  of  this  witness  ? 
Mr.  Kennedy.  That  is  all  for  now. 

The  Chairman.  You  may  stand  aside  for  the  present.  Call  the  next 
witness. 

Mr.  Lewis.  Is  the  witness  excused  ? 
The  Chairivian.  No  ;  he  better  remain  here  today.  _ 
Mr.  Kennedy.   Who  was  your  secretary  during  this  time  ? 
Mr.  Terkeltaub.  Do  you  mean  my  office  girl  ? 
Mr.  Kennedy.  Yes. 
Mr.  Terkeltaub.  Miss  Barbara  Koval. 
Mr.  Kennedy.  Did  you  dictate  this  letter  to  her  ? 
Mr.  Terkeltaub.  I  did  not. 

Mr.  Kennedy.  Aren't  B.K.  her  initials  on  the  bottom? 
Mr.  Terkeltaub.  This  is  a  habit  of  mine.    Are  you  continuing  to 
questioning  ? 


11908  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  I  am  asking  you  a  question.   What  is  the  habit  ? 

Mr.  Terkeltaub.  What  is  that,  sir  ? 

Mr.  Kennedy.  What  is  the  habit  of  yours  ? 

Mr.  Terkeltaub.  My  habit  is,  you  see  that  that  is  a  carbon  copy 
of  a  letter,  and  you  find  a  sigTiature.  When  I  pull  my  copies  out  of 
the  typewriter,  out  of  habit,  force  of  habit,  I  use  the  two  initials  and 
my  own  initials  in  the  corner.  I  do  my  own  typing  and  my  own 
composition  of  letters. 

Mr.  Kennedy.  You  type  the  initials  on  the  bottom  ? 

Mr.  Terkeltaub.  Yes,  sir. 

Mr.  Kennedy.  Even  when  you  don't  dictate  to  the  girl  ? 

Mr.  Terkeltaub.  That  is  right. 

Mr.  Kennedy.  And  this  has  the  initials,  Mr.  Chairman,  J.  I.  T. — is 
that  you,  Mr.  Julius  Taub  ? 

Mr.  Terkeltaub.  Yes. 

Mr.  Kennedy.  Then  it  has  the  initials  of  the  stenographer,  B.  K. 
You  didn't  dictate  this  ? 

Mr.  Terkeltaub.  I  did  not  dictate  it. 

Mr.  Kennedy.  You  just  put  her  initials  down  there,  is  that  right? 

Mr.  Terkeltaub.  That  is  right. 

Mr.  Kennedy.  That  is  very  interesting. 

The  Chairman.  This  girl  B.  K. — what  is  her  name  ? 

Mr.  Terkeltaub.  Barbara  Koval. 

The  Chairman.  Is  she  a  stenographer  ? 

Mr.  Terkeltaub.  I  don't  think  she  ever  took  any  shorthand ;  no,  sir. 

Mr.  Kennedy.  That  is  all. 

The  Chairman.  All  right.     You  may  stand  aside  for  the  present. 

Call  the  next  witness. 

Mr.  Kennedy.  Miss  Keen,  please. 

The  Chairman.  Be  sworn,  please.  Do  you  solemnly  swear  the  evi- 
dence you  shall  give  before  this  Senate  select  committee  shall  be  the 
truth,  the  whole  truth,  and  nothing  but  the  truth,  so  help  you  God  ? 

Miss  Keen.  I  do. 

TESTIMONY  OF  ROSEMARY  KEEN 

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

Miss  Keen.  I  am  Rosemary  Keen.  I  live  at  522  North  Oakland, 
Indianapolis,  Ind.,  and  I  am  a  secretary  to  the  United  Brotherhood  of 
Carpenters. 

The  Chairman.  Secretary  to  whom  ? 

Miss  Keen.  I  was  secretary  to  Mr.  Fisher. 

The  Chairman.  Of  the  Carpenters'  Union? 

Miss  Keen.  Yes,  sir. 

The  Chairman.  All  right.     Do  you  waive  counsel  ? 

Miss  Keen.  I  waive  counsel. 

The  Chairman.  Thank  you  veiy  much ;  all  right. 

Mr.  Kennedy.  Mr.  Fisher  was  the  general  secretary  of  the  Car- 
penters, is  that  right? 

Miss  Keen.  Yes,  sir. 

Mr.  Kennedy.  Tliat  is,  until  his  death  in  when  ? 

Miss  Keen.  1956,  December  22. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11909 

Mr.  Kennedy.  Now  Mr.  Richard  Livingston  is  the  general 
secretary  ? 

Miss  Keen.  Yes,  sir. 

INlr.  Kennedy.  Mr,  Fisher,  during  his  lifetime,  had  some  dealings 
with  Mr.  Ruddock  in  connection  with  this  book,  did  he  not? 

Miss  Keen.  That  is  right. 

Mr.  Kennedy.  Did  he  express  a  good  deal  of  concern  regarding  the 
nonproduction  of  the  book  ? 

Miss  Keen.  He  was  somewhat  concerned  about  it ;  yes. 

Mr.  Kennedy.  Did  he,  on  occasion,  get  in  touch  with  Mr.  Raddock 
regarding  the  production  of  the  book  ? 

Miss  Keen.  Through  correspondence. 

Mr.  Kennedy.  He  did  have  correspondence  with  Mr.  Raddock,  re- 
questing that  the  book  be  produced  in  greater  numbers,  is  that  right? 

Miss  Keen.  I  don't  definitely  recall  that. 

Mr.  Kennedy.  What  was  the  correspondence  about,  then  ? 

Miss  Keen.  Well,  what  I  remember  mostly  about  was  concerning 
records  and  things  of  that  nature,  furnishing  records. 

Mr.  Kennedy.  Was  there  also  some  correspondence  to  the  effect  that 
the  book  was  not  being  produced  on  schedule  ? 

Or  to  that  general  effect  ? 

Miss  Keen.  Well,  I  can't  definitely  remember  that,  sir. 

Mr.  Kennedy.  Was  there  correspondence  about  the  fact  that  he 
should  furnish  the  list  to  whom  he  was  supposed  to  be  sending  the 
book? 

Miss  Keen.  That  is  right. 

Mr.  Kennedy.  Did  he  express  concern  to  you  on  occasion  that  Mr. 
Raddock  had  not  been  producing  this  book  ? 

Miss  Keen.  Not  the  book,  but  the  list  that  he  was  concerned  about. 

Mr.  Kennedy.  Miss  Keen,  was  he  concerned  at  all  during  this 
period  of  time  about  the  fact  that  the  book  was  not  being  produced  on 
schedule,  and  lists  were  not  being  furnished  ? 

Miss  Keen.  Yes ;  he  was  concerned. 

Mr.  Kennedy.  Did  he  on  occasion  talk  to  Mr.  Hutcheson  about  this 
matter  ? 

Miss  Keen.  He  talked  to  him  about  the  book — I  mean  as  to  what 
particular  matter  I  don't  recall. 

Mr.  Kennedy.  Well,  did  he  express  to  you  the  concern  about  the 
book,  and  did  he  tell  you  that  he  was  going  to  talk  to  Mr.  Hutcheson 
about  the  book,  and  about  the  fact  that  the  book  had  not  been 
produced  ? 

Miss  Keen.  I  don't  definitely  recall  that  particular  conversation. 

Mr.  Kennedy.  What  do  you  recall  about  the  book  that  he  said  he 
was  going  to  discuss  with  Mr.  Hutcheson  ? 

Miss  Keen.  Well,  I  don't  recall  particularly  on  the  book.  As  to 
our  records 

Mr.  Kennedy.  Miss  Keen,  I  will  say  this,  you  have  forgotten  a  lot 
in  24  hours.    I  discussed  this  with  you  in  my  office  yesterday. 

Miss  Keen.  Yes. 

Mr.  Kennedy.  You  said  he  discussed  the  book  with  Mr.  Raddock 
and  the  fact  that  he  was  concerned  over  the  book  not  having  been 
produced,  and  you  said  that  he  also  discussed  this  matter  in  general 
terms  with  Mr.  Hutcheson  and  the  fact  that  the  book  was  not  pro- 
duced .   You  told  me  that  24  hours  ago. 


11910  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Miss  Keen.  I  don't  remember  telling  you  that  exactly.  I  said  I 
remembered  him  discussing  the  book  with  Mr.  Hutcheson,  but  as  to 
exactly  what  the  conversation  was,  I  don't  know. 

Mr.  Kennedy.  Didn't  I  also  ask  you  about  whether  Mr.  Fisher  had 
expressed  concern  about  the  production  of  the  book  ? 

Miss  Keen.  I  believe  you  did.    I  am  not  real  sure, 

Mr.  Kennedy.  Didn't  you  tell  me  yesterday  that  he  did  express  con- 
cern on  a  number  of  occasions  ? 

Miss  Keen.  He  expressed  concern  about  our  records. 

Mr.  Kennedy.  Miss  Keen,  I  can't  understand  this.  You  were  inter- 
viewed first  by  our  investigator  some  months  ago,  in  which  you  made 
these  statements.  You  were  interviewed  by  me  yesterday.  You  said 
that  he  expressed  concern  not  only  to  Mr.  Raddock,  but  that  he  on  oc- 
casion told  you  that  he  was  going  to  see  Mr,  Hutcheson  about  it,  and 
that  Mr.  Hutcheson,  when  he  had  this  conversation  with  him — you 
didn't  tell  me  this  yesterday,  but  you  told  our  investigator  prior  to 
that — that  Mr.  Hutcheson  just  dismissed  the  matter.  All  of  this  you 
have  forgotten  in  the  last  few  days  ? 

Miss  Keen.  I  haven't  forgotten.  I  don't  remember  having  gone 
through  that. 

Mr,  Kennedy.  Do  you  remember  having  these  discussions  with  us? 

Miss  Keen.  Yes,  sir,  but  I  don't  memorize  everything  that  was  said. 

The  Chairman.  I  hand  you  exhibit  No,  39,  a  letter  dated  March  1, 
1956,  written  to  Mr,  Albert  E,  Fisher,  and  signed  by  Julius  Taub.  I 
asked  you  to  examine  this  letter  and  state  if  you  identify  it  or  if  you 
ever  saw  it  before, 

( The  document  was  handed  to  the  witness, ) 

Miss  Keen.  I  never  saw  this  letter. 

The  Chairman.  Did  you  handle  the  correspondence  for  Mr.  Fisher  ? 

Miss  Keen.  Yes,  sir. 

The  Chairman.  Did  you  also  do  the  filing  of  the  correspondence? 

Miss  Keen.  Yes,  sir. 

The  Chairman.  Was  such  a  letter  ever  received,  to  your  knowledge? 

Miss  Keen.  To  my  knowledge  it  was  not  received. 

The  Chairman.  This  letter,  I  believe,  was  produced  by  Mr.  Taub  ? 

Mr.  Kennedy.  It  was  produced  ultimately  by  Mr.  Raddock.  We 
went  through  the  regular  books  and  records  of  World  Wide  Press. 
As  I  said,  a  great  number  of  the  documents  were  missing.  Subse- 
quently, Mr.  Raddock  produced  some  documents,  and  this  was  one  of 
them,  which  he  stated  had  been  in  his  own  personal  files.  The  signifi- 
cance of  this  letter,  Mr.  Chairman,  is  that  Mr.  Raddock  was  producing 
all  of  these  cheap  kinds  of  books,  and  this  letter  makes  it  appear  that 
he  wrote  to  the  Carpenters  confirming  an  order  by  Mr,  Fisher  to 
produce  a  lot  of  cheap  paper-covered  books. 

That  is  the  significance  of  the  letter. 

That  letter  was  never  in  the  records,  Mr,  Tierney  can  testify  to 
that.  Have  you  been  through  the  records  of  the  Carpenters,  and  is 
there  such  a  letter  in  the  records  of  the  Carpenters  ? 

Mr,  Tierney,  No  ;  there  is  not.  The  original  of  that  letter  is  not 
in  the  records  of  the  Carpenters. 

The  Chairman.  Had  the  letter  been  received,  in  the  course  of  your 
duties  would  it  have  come  to  your  attention  for  filing? 

Miss  Keen.  Yes,  sir. 


IMPROPER    ACTIVITIES    IN   THE    LABOR    FIELD  11911 

The  Chairman.  You  say  it  was  never  received? 

Miss  Keen.  To  my  knowledge  it  was  never  received. 

The  Chairman.  All  ri^^ht. 

Mr.  Kennedy.  You  handled  all  the  mail,  all  the  correspondence 
coming  in,  in  your  position  ? 

Miss  Keen.  That  is  right. 

The  Chairman.  I  will  ask  you :  Had  that  letter  been  received,  it 
would  have  been  in  its  proper  file  in  your  office  ? 

Miss  Keen.  Yes,  sir. 

The  Chairman.  Our  investigator  says  that  he  has  searched  the 
files,  and  no  letter  appears  in  the  files,  the  original  letter  does  not  ap- 
pear there.    You  have  never  seen  such  a  letter  ? 

Miss  Keen.  No,  sir :  I  have  not  seen  that  letter. 

Mr.  Kennedy.  Could  we  have  her  identify  these  letters,  Mr.  Chair- 
man ?  These  are  letters  from  Mr.  Fisher,  but  Mr.  Fisher  being  dead, 
I  would  like  to  put  them  into  the  record  through  her. 

The  Chairman.  I  hand  you  another  photostatic  copy  of  a  letter  ap- 
parently to  Mr.  Fisher,  signed  by  Maxwell  C.  Raddock,  dated  Decem- 
ber 10,  1956.  I  will  ask  you  to  examine  that  letter  and  state  if  you 
identify  it  as  a  letter  that  was  received  at  your  office. 

(The  document  was  handed  to  the  witness.) 

Miss  Kj:en.  This  letter  was  received  by  Mr.  Fisher. 

The  Chairman.  It  was  received.     It  may  be  made  exhibit  No.  40. 

(The  document  referred  to  was  marked  "Exhibit  No.  40"  for  refer- 
ence and  will  be  found  in  the  appendix  on  p.  12174.) 

The  Chairman.  Now  I  hand  you  a  photostatic  copy  of  a  letter  dated 
December  13,  1956,  addressed  to  Mr.  Maxwell  C.  Raddock,  and  ap- 
parently signed  by  Albert  Fisher.  I  will  ask  you  to  examine  it  and 
state  if  you  recall  that  letter  and  can  identify  it. 

(The  document  was  handed  to  the  witness.) 

Miss  Keen.  This  letter  was  written  by  Mr.  Fisher. 

The  Chairman.  Was  it  dictated  to  you  ? 

Miss  Keen.  Yes,  sir. 

The  Chairman.  And  you  transcribed  it? 

Miss  Keen.  That  is  right. 

The  Chairman.  So  you  recall  it.  Then  that  letter  may  be  made 
exhibit  40-A. 

(The  document  referred  to  was  marked  "Exhibit  No.  40A"  for  ref- 
erence and  will  be  found  in  the  appendix  on  p.  12175.) 

Mr.  Kennedy.  I  am  going  to  try  to  work  this  matter  out.  When 
the  lists  were  not  forthcoming,  was  that  an  indication  to  Mr.  Fisher 
in  conversations  that  you  had  with  him,  that  the  book  was  not  being 
produced  on  schedule  ? 

Miss  Keen.  I  don't  know,  sir. 

Mr.  Kennedy.  Why  was  he  concerned  about  getting  the  lists? 

Miss  Keen.  He  wanted  to  see  to  whom  the  book  had  been  mailed. 

Mr.  Kennedy.  Did  he  have  the  feeling  that  the  book  wasn't  going 
out  to  all  those  it  was  supposed  to  go  to  ? 

Miss  Keen.  Yes. 

Mr.  Kennedy.  He  did  have  ? 

Miss  Keen.  Yes. 

Mr.  Kennedy.  He  did  have  some  concern  about  that ;  is  that  right  ? 

Miss  Keen.  He  did  have  some  concern ;  yes,  sir. 


11912  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  About  the  fact  that  the  book  was  not  going  to  peo- 
ple it  was  supposed  to  go  ? 

Miss  Keen.  Yes,  because  he  had  not  received  that  list. 

Mr.  Kennedy.  Was  he  concerned,  then,  that  possibly  the  book 
wasn't  being  produced  as  it  was  supposed  to  be  ? 

Miss  Keen.  Well,  that  I  don't  recall. 

Mr.  Kennedy.  Did  he  tell  you  that  he  was  going  to  express  his 
concern  to  Mr.  Hutcheson  about  the  fact  that  people  weren't  getting 
the  books  that  were  supposed  to  get  the  books  ? 

Miss  Keen.  I  don't  remember  that  definitely ;  no. 

Mr.  Kennedy.  Well,  you  said  that  he  discussed  the  list  with  Mr. 
Hutcheson. 

Miss  Keen.  Yes. 

Mr.  Kennedy.  If  he  was  going  to  discuss  the  list,  according  to  the 
conversations  that  he  had  with  you,  he  was  going  to  discuss  the  fact 
that  individuals  who  were  supposed  to  get  the  books  did  not  get  the 
books  ? 

Miss  Keen.  Well,  it  would  follow,  I  presume,  but  I  don't  know 
definitely  that  he  discussed  that. 

Mr.  Kennedy.  All  right. 

The  Chairman.  This  letter  that  you  took,  that  was  addressed  to 
Mr.  Raddock,  in  reply  to  his  letter  of  December  1,  I  will  not  take 
time  to  read  all  of  it,  but  it  clearly  indicates  that  Mr.  Fisher  was  very 
imhappy  with  the  relationship  between  the  Carpenters  and  Mr.  Rad- 
dock.    It  starts  off  and  says — 

In  reply  to  your  letter  of  December  10,  I  am  sure  the  committee  of  the  general 
executive  board  will  be  pleased  to  learn  the  entire  list  will  be  completed  before 
the  end  of  this  month  and  be  in  our  hands  without  fail.  I  have  just  noticed 
with  great  interest  your  other  comments,  and  it  is  not  a  question  of  chastising 
or  being  disagreeable,  but  just  a  matter  of  determination  on  behalf  of  the 
committee  to  obtain  this  information,  to  vphich  they  are  rightfully  entitled  in 
order  to  make  a  complete  report  to  the  general  executive  board. 

So  he  was  complaining  that  Mr.  Raddock  was  not  performing  ac- 
cording to  his  contract,  isn't  that  true  ? 

Miss  Keen.  Yes,  sir. 

The  Chairman.  And  Mr.  Raddock  was  refusing  or  hesitating  or 
delaying  in  some  way  the  submitting  of  a  list  of  those  to  whom  he  had 
mailed  the  book.     That  is  what  this  is  about,  is  it  not  ? 

Miss  Keen.  That  is  right. 

Mr.  Kennedy.  Mr.  Chairman,  he  states  in  here  that  he  was  going 
to  send  the  list  in  almost  immediately,  and  at  the  time  we  had  our 
interviews  with  the  Carpenters  in  January  of  1958,  the  list  still  had 
not  been  submitted.  It  was  not  submitted,  actually,  until  after  our 
executive  session  on  February  19, 1958. 

The  Chairman.  Are  there  any  further  questions?  If  not,  thank 
you  very  much. 

Miss  Keen.  You  are  welcome. 

The  Chairman.  Call  the  next  witness. 

Mr.  Kennedy.  Mr.  Graeber. 

The  Chairman.  Do  you  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.  Grabber.  I  do. 


IMPROPER   ACTIVITIES    IN    THE    LABOR    FIELD  11913 

TESTIMONY  OF  ISAQUE  GRAEBER 

The  Chairman.  State  your  name,  your  place  of  residence,  and  busi- 
ness or  occupation. 

Mr.  Grabber.  My  name  is  Isaque  Graeber.  I  live  at  2272  Strauss 
Street,  Brooklyn,  N.  Y.  I  am  an  author,  educator,  and  at  present 
director  of  education  of  the  American  Institute  of  Social  Science. 

The  Chairman.  Thank  you  very  much.  Do  you  waive  counsel, 
Doctor? 

Mr.  Graeber.  Yes ;  I  do,  Senator. 

The  Chairman.  Proceed, 

Mr,  Kennedy.  How  long  have  you  worked  for  World  Wide  Press 
or  Social  Science  ?    What  is  it  ? 

Mr.  GRiVEBER.  The  American  Institute  of  Social  Science,  Inc. 

Mr.  IvENNEDT.  How  long  have  you  worked  there  ? 

Mr.  GRiVEBER,  The  American  Institute  itself  was  organized,  I  think 
in  the  year  1956,  about  2  years  ago,  for  serious  studies,  but  I  was 
engaged  prior  to  that.  I  have  been  with  the  firm,  with  the  Raddock 
firm,  since  November  1953. 

Mr,  Kennedy.  The  American  Institute  of  Social  Science  is  owned 
by  JNIax  Raddock  ? 

Mr,  GiL\EBER.  I  was  one  of  the  subscribers  and  founders,  and  Mr. 
Raddock  is  the  president,  I  assume. 

Mr.  Kennedy.  What  is  your  position  there  ? 

Mr.  Graeber.  My  position  is  I  am  director  of  research. 

Mr.  Kennedy.  Are  you  on  a  salary  there  ? 

^Ir.  Grabber,  I  am  on  a  salary,  definitely. 

Mr,  Kennedy,  You  worked  on  the  Portrait  of  an  American  Labor 
Leader,  Dr.  Graeber  ? 

Mr.  Gil^eber,  Well,  the  credit  line  is  given  me  in  the  preview  to 
understanding,  that  is,  the  introductory  statement  to  the  work.  I  am 
there  classified,  this  is  my  byline,  as  the  director  of  research. 

Mr.  Kennedy.  What  is  your  salary  there,  about  $100  a  week  ? 

Mr.  Gr-\eber.  My  salary  is  $125  a  week. 

Mr.  Kennedy.  How  much  was  it  at  the  time  ? 

Mr.  Grabber,  $125. 

Mr.  Kennedy.  At  that  time  ? 

Mr.  Grabber.  Yes. 

Mr,  Kennedy.  You  did  work  on  the  book  ? 

Mr,  Grabber,  Well,  as  I  said,  my  credit  line  is — it  is  very  clear — it 
is  that  of  director  of  research, 

Mr,  Kennedy.  As  a  matter  of  fact,  did  you  write  most  of  the  book? 

Mr,  Grabber,  The  answer  is  "No." 

Mr.  Kennedy.  Did  you  tell  our  investigators  that  you  had,  in  fact, 
written  most  of  the  book  ? 

Mr.  Grabber.  I  did  not. 

Mr.  Kennedy.  Were  you  interviewed  by  Mr.  Dunne  and  Mr. 
Tierney? 

]\f  r.  Grabber.  I  was. 

Mr.  Kennedy,  "\^nien  they  told  you  thnt  they  had  that  information, 
did  you  ask  them  how  they  knew  that  you  had  written  the  book  ? 

Mr,  Grabber,  Well,  at  this  stage  we  have  to  enter  into  a  very  theo- 
retical plane. 


11914  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  I  am  just  trying  to  find  out  who  wrote  the  book, 

Mr.  Grabber.  The  answer  is  "No," 

Mr.  Kennedy.  Did  you  tell  them  at  that  time  ? 

Mr.  Grabber.  I  did  not.  I  don't  think  the  gentlemen — I  was  a  lit- 
tle— I  don't  recall  at  this  time  because  the  process  of  writing  a  book  is 
a  very  complicated  one,  as  you  well  know,  or  your  brother  knows. 

Mr.  Kennedy.  Mr.  Chairman,  Mr.  Dunne  and  Mr.  Tierney  are 
present  at  this  time,  and  Mr.  Tierney  possibly  could  give  exactly  what 
Mr.  Graeber  said  to  him  when  he  spoke  to  him  about  writing  the 
book. 

Mr.  Tierney.  We  indicated  to  him  that  we  heard  he  had  ghost- 
written the  book  and  his  response  was  how  did  we  know  ?  Thereafter, 
he  was  concerned,  expressed  great  concern  over  this  matter,  and  indi- 
cated that  if  this  information  came  out,  he  might  lose  his  job  and  he 
har}  a  fnmily  and  responsibilities. 

Mt.Kennedt.  Mr.  Dunne,  have  you  been  sworn? 

Mr.  Dunne.  I  was  sworn  in  this  present  hearing;  yes,  sir.  I  re- 
member the  incident  quite  well,  and  that  is  exactly  what  happened. 

Mr.  Kennedy.  What  did  Dr.  Graeber  say  at  the  time  you  spoke  to 
him  about  ghostwriting  the  book  ? 

Mr.  Dunne.  We  asked  Dr.  Graeber  wasn't  it  a  fact  that  he  had 
written  the  book,  and  he  was  very  upset  and  wanted  to  know  where  we 
got  this  information,  and  was  distressed  that  if  this  information  came 
out  he  would  lose  his  job. 

Mr.  Kennedy.  How  long  did  you  work  on  the  book  ? 

Mr.  Grabber.  I  did  not  work  on  the  book.  Would  you  permit  me 
to  explain — if  you  will  permit  me,  I  will  explain  the  matter  in  its 
entirety. 

The  Chairman.  Explain  what  ? 

Mr.  Grabber.  May  I  explain,  Senator,  the  manner  in  which  this 
book  had  been  written  ?  I  think  it  might  shed  a  little  light,  I  think, 
on  this  whole  business  of  writing  the  book,  and  probably  also  why  the 
book  had  been  delayed,  as  far  as  I  could  see.  I  am  not  a  production 
man,  nor  am  I  am  manufacture  of  books,  but  if  you  permit  me,  Sen- 
ator, I  would  like  to  say  a  few  words. 

We  had  written  three  versions  of  this  book 

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

The  Chairman.  Just  tell  us  what  you  had  to  do  with  this  book. 

Mr.  Grabber.  I  was  the  director  of  research,  which  means  that  I 
had  been  responsible  for  assembling  all  the  materials  from  primary 
sources,  meaning  the  executive  committee  minutes  of  the  American 
Federation  of  Labor,  the  personal  records  of  Mr.  William  L.  Hutche- 
son.  It  also  meant  preparation  of  special  questionnaires  to  check 
on  special  information,  of  facts,  and  verify  facts,  and  considerable 
traveling  was  also  involved. 

There  were  a  number  of  interviews  held  with  a  number  of  labor 
leaders  all  over  the  country,  and  also  simple  folk  who  had  loiown 
William  L.  Hutcheson.  We  had  prepared,  assembled,  all  the  ma- 
terials, and  I  had  also  two  assistants  who  helped  me  with  the  secondary 
materials,  of  a  socio-economic  and  historical  nature. 

Briefs  were  prepared,  an  analysis  was  prepared,  and  these  ma- 
terials, in  turn,  were  turned  over  to  Mr.  Raddock.  The  version  is  his 
own.  We  had  written  three  versions  of  the  William  L.  Hutcheson 
book,  as  a  matter  of  fact. 


IMPROPER    ACTIVITIES   IN    THE    LABOR    FIELD  11915 

The  Chairman.  We?   Who? 

Mr.  Grabber.  The  first  version.  Well,  that  means  Mr.  Maxwell  C. 
Kaddock  and  I  wrote — actually,  the  first  version  was  written  in  col- 
laboration with  Mr.  Maxwell  C.  Raddock,  and  I  was  not  at  all  happy. 

The  Chairman.  Let's  get  it  straight  now^  this  controversy.  This 
needs  to  be  clear.    You  and  who  wrote  the  first  version  of  the  book  ? 

Mr.  Grabber.  Mr.  Maxwell  C.  Raddock. 

The  Chairman.  You  mentioned  someone  else  a  moment  ago. 

Mr.  Gr^veber.  No.   I  mentioned  we  had  two  researchers. 

The  Chairman.  Let's  see  if  we  get  this  straight.  There  have  been 
three  versions  of  the  book  written  ? 

Mr.  GRiVEBER.  That  is  correct.  Senator. 

The  Chairman.  Who  wrote  the  first  version  ? 

Mr.  Grabber.  The  first  version  was  written  by  Mr.  Maxwell  C.  Rad- 
dock and  myself.    We  were  not  at  all  happy  with  that  version. 

The  Chairman.  Who  wrote  the  second  version  ? 

Mr.  Grabber.  We  then  modified  it  and  the  second  version  was  writ- 
ten by  Mr.  Maxwell  C.  Raddock. 

The  Chairman.  Who  wrote  the  third  version  ? 

Mr.  Grabber.  The  third  version,  the  final  version,  was  written  en- 
tirely by  him,  and  he  alone  is  responsible  for  the  book. 

The  Chairman.  He  may  be  responsible  for  the  book.  But  the  ques- 
tion is  here,  according  to  the  investigators,  when  they  asked  you  about 
writing  the  book,  you  became  very  distressed  and  made  comment 
about  if  that  information  got  out,  that  you  had  been  the  ghostwriter 
of  the  book,  it  might  cause  you  to  lose  your  job  or  something,  and 
you  had  a  family. 

Mr.  Grabber.  I  think  the  interpretation  is  somewhat  lax,  if  I  may 
say  so,  Senator. 

The  Chairman.  Somewhat  what  ? 

Mr.  Grabber.  The  interpretation  of  my  emotional  reactions  to  this 
revelation  that  I  am  the  author  of  this  book  were  somewhat  misin- 
terpreted, because  I  did  express  concern  over  this  revelation,  sudden 
revelation,  that  was  given  to  me  on  that  day,  that  I  wrote  the  book. 
I  told  them  that  the  process  of  writing  a  book  was  a  very  compli- 
cated one.  That  is  about  all  that  they  could — I  mean,  to  interpret  my 
own  personal,  emotional  reaction  to  this  thing. 

The  Chairman.  Did  you  say  something  about  the  fact  that  you 
didn't  want  it  to  be  known,  because  it  might  cost  you  your  job  ?  Did 
you  make  some  remark  like  that  ? 

Mr.  Grabber.  Well,  naturally  I  was  disturbed. 

The  Chairman.  Yes. 

Mr.  Grabber.  That  is,  by  the  fact — by  this  revelation,  and  it  was 
around  this  revelation  that  my  entire  reaction  centered,  as  a  matter 
of  fact. 

The  Chairman.  It  gave  you  some  concern  ? 

Mr.  Grabber.  It  did  give  me  concern :  yes. 

The  Chairman.  You  obviously  showed  a  little  concern  ? 

Mr.  Grabber.  Yes ;  I  did. 

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

Senator  Church.  When  you  refer  to  the  term  "revelation,"  you  say 
you  were  concerned  over  the  revelation.  What  revelation,  the  state- 
ment on  the  part  of  the  investigators  that  you  had  written  the  book  ? 

Mr.  Grabber.  Yes. 


11916  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Senator  Church.  "Why  were  you  concerned  about  it  if  it  were  not 
so? 

Mr.  Grabber.  Why  was  I  concerned  ? 

Senator  Church.  Yes. 

Mr.  Graeber.  Because  it  was  not  the  fact. 

Senator  Church.  You  were  concerned  because  it  was  not  a  fact? 
If  it  was  not  the  fact,  what  concerned  you  ?    Why  were  you  concerned  ? 

Mr.  Grabber.  Well,  the  very  information  that  was  revealed  to  me 
that  I  thought  was  exaggerated,  exaggerated.  My  role  and  contribu- 
tion to  the  book  was  that  of  a  research  director,  and  when  the  in- 
formation was  given  me  by  Mr.  Tierney  and  Mr.  Dunne,  I  was  dis- 
turbed. 

Mr.  Kennedy.  Mr.  Graeber,  just  to  clear  this  point  up,  do  you  deny 
that  you  told  the  investigators  that  you  had  in  fact  written  the  book 
on  Mr.  Hutcheson  ?    Do  you  deny  that  ? 

Mr.  Grabber.  Yes. 

Mr.  Kennedy.  You  do  deny  it  ? 

Mr.  Grabber.  Yes. 

Mr.  Kennedy.  Mr,  Chairman,  Mr.  Dunne  wrote  a  memorandum, 
not  only  do  we  have  the  testimony  of  Mr.  Dunne  and  Mr.  Tierney, 
but  Mr.  Dunne  wrote  a  memorandum  immediately  after  the  interview, 
in  which  he  stated  about  Mr.  Graeber. 

The  Chairman.  Mr.  Dunne,  how  soon  after  interrogating  Mr.  Grae- 
bre  did  you  prepare  this  memorandum  ? 

Mr.  Dunne.  The  interview  took  place  on  December  19.  The  memo 
was  dated  December  20.  They  are  never  postdated.  I  either  dictated 
it  on  December  19  or  December  20.    Within  a  day. 

The  Chairman.  I  will  not  read  all  of  it.  It  was  written  by  Mr. 
Dunne,  and  it  is  dated  December  20,  1957.  I  will  not  read  it  all,  but 
it  states  among  other  things  that  "he,"  speaking  of  you — 

is  not  sure  which  of  the  Raddock  enterprises  employ  him  as  he  is  paid  in  cash 
each  Friday.  His  salary  range  has  been  between  $90  and  $110  a  week.  He  was 
very  upset  when  we  told  him  we  knew  that  he  was  the  ghostwriter  for  Raddock 
on  the  book  on  Hutcheson,  but  admitted  that  he  was. 

The  concluding  paragraph  states : 

Graeber  was  extremely  concerned  that  if  the  fact  that  he  ghostwrote  the  book 
was  made  public,  he  would  lose  immediately  the  means  of  support  for  his 
family.  He  gave  us  quite  a  lecture  on  his  views  of  the  current  investigation  by 
this  committee,  most  of  which  was  unfavorable  to  the  committee  and  its  counsel. 

Mr.  Kennedy.  Chief  counsel. 

That  is  all. 

The  Chairman.  Are  there  any  further  questions  ?  If  not,  you  may 
stand  aside.    The  committee 

Mr.  Grabber.  Senator,  may  I  take  the  liberty  of  saying  a  few  words  ? 

The  Chairman.  That  depends  on  what  you  are  going  to  say. 

Mr.  Grabber.  Well,  Senator,  I  think,  with  all  due  regard  to  the 
experiences  of  both  Mr.  Dunne  and  Mr.  Tierney,  I  am  right  now  saying 
to  you  now  and  to  everyone  concerned,  that  this  is  a  misinterpretation, 
and  this  is  not  a  factual  reproduction  of  what  I  had  said,  what  I  had 
told  Mr.  Tierney  and  Mr.  Dunne. 

I  think  they  are  too  enthusiastic,  in  my  opinion,  they  are  too  lavish 
in  their  prose,  and  they  are  not  at  all  factual. 

The  Chairman.  They  are  not  what  ? 


IMPROPER    ACTIVITIES    IN   THE    LABOR    FIELD  11917 

Mr.  Grabber.  They  are  too  lavish  in  their  writing  of  interpretation 
of  my  sociological  emotion  in  this  whole  thing.  The  only  thing  is  a 
description  of  my  concern.  This  is  a  psychological  matter.  But  the 
reproduction  of  the  facts  as  I  have  given  them  is  in  contradiction,  and 
mine  is  correct,  in  toto.  As  far  as  my  comments  about  this  committee, 
I  did  not  say  that. 

The  Chairman.  Just  a  moment.  The  Chair  is  trying  to  extend 
you  every  courtesy.  I  think  the  Chair  has  granted  you  every  oppor- 
tunity. The  Chair  stated  he  would  let  that  stand  in  the  record,  what 
you  have  said.  You  have  a  right  to  feel  that  your  remarks  were  mis- 
interpreted. You  have  a  right  to  feel  that  there  was  some  misunder- 
standing. But  all  this  talk  about  the  psychological  reaction,  I  don't 
know  what  it  was  at  that  time. 
Mr.  Grabber.  Concern. 

The  Chairman.  But  we  have  had  an  opportunity  to  observe  it  here 
today. 

Mr.  Grabber.  My  comments  on  the  committee  were  not  at  all  un- 
favorable. Again,  this  was  an  entirely  wrong  reproduction  of  the 
facts. 

The  Chairman.  You  are  saying  you  don't  like  the  committee 

Mr.  Grabber.  Not  at  all.  I  approach  it  very  objectively.  I  have 
no  prejudgments.  We  are  making  a  survey,  as  a  matter  of  fact,  right 
now,  laying  the  groundwork. 

The  Chairman.  Making  a  survey  of  the  committee  ? 
Mr.  Graeber.  Xo,  evaluating  all  of  the  materials,  as  a  matter  of  fact, 
of  this  hearing.    I  say  to  you,  Senator,  there  is  some  good. 

The  Chairiman.  That  is  a  very  intriguing  job.    I  hope  you  pursue  it 
with  pleasure. 
Mr.  Grabber.  And  with  objectivity. 
The  Chairman.  With  what? 
Mr.  Grabber.  With  cold  objectivity. 
The  Chairman.  I  don't  care  whether  it  is  cold  or  hot. 
You  will  be  excused. 

The  committee  will  stand  in  recess  until  2  o'clock. 
("Wliereupon,  at  12  :  15  p.  m.,  the  hearing  was  recessed,  to  reconvene 
at  2  p.  m.  of  the  same  day,  with  the  following  members  present:  Sen- 
ator McClellan  and  Church.) 

AFTERNOON  SESSION 

The  Chairman.  The  committee  will  come  to  order. 

(Members  present  at  the  convening  of  the  session  were :  Senators 
McClellan  and  Church.) 

The  Chairman.  Call  the  next  witness. 

Mr.  Kennedy.  Mr.  Harold  R.  Danforth. 

The  Chairman.  Will  you  be  sworn? 

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

Mr.  Danforth.  I  do. 


11918  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

TESTIMONY  OF  HAROLD  R.  DANFORTH 

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

Mr.  Danforth.  Harold  K.  Danforth,  110  West  91st  Street,  and  I 
am  a  private  investigator  at  7  East  42d  Street,  in  New  York  City. 

The  Chairman.  Do  you  waive  counsel  ? 

Mr.  Danforth.  I  do. 

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

Mr.  Kennedy.  How  long  have  you  been  a  private  investigator,  Mr. 
Danforth  ? 

Mr.  Danforth.  Since  1955. 

Mr.  Kennedy.  What  did  you  do  prior  to  that  time  ? 

Mr.  Danforth.  I  was  an  investigator  in  the  district  attorney's  of- 
fice, of  New  York  County. 

Mr.  Kennedy.  How  long  ? 

Mr.  Danforth.  For  16  years. 

Mr.  Kennedy.  Now,  Mr.  Danforth,  were  you  approached  in  May 
or  June  of  1957  by  Mr.  Max  Kaddock? 

Mr.  Danforth.  Yes ;  I  was. 

Mr.  Kennedy.  Would  you  relate  to  the  committee  what  he  wanted 
you  to  do  at  that  time? 

Mr.  Danforth.  He  appeared  at  my  office  probably  around  June  15, 
I  would  say,  and  said  that  he  wanted  to  hire  a  private  investigator  for 
the  purpose  of  helping  him  in  his,  as  he  explained  it,  public  relations. 
I  would  call  it  a  public  relations  thing,  that  he  intended  to  build  up. 
He  wished  to  represent  various  unions  and  he  said  that  he  wanted  to 
have  this  organization  which  could  service  the  unions,  and  then  help 
them  in  cleaning  up,  as  he  put  it,  their  backyard,  and  he  said  that  they 
were  interested  in  taking  care  of  ail  of  the  corruption  that  existed  in 
their  unions  and  therefore  he  felt  that  an  investigator  would  be  of 
assistance  to  them. 

Mr.  Kennedy.  Did  he  indicate  to  you  at  that  time  what  he  wanted 
or  who  he  wanted  investigated  ? 

Mr.  Danforth.  Not  at  that  time.  I  told  him  that  I  was  not  familiar 
with  the  labor  field,  and  he  suggested  that  I  familiarize  myself  with 
various  labor  leaders  such  as  Walter  Reuther,  and  Dave  Dubinsky,  and 
at  that  particular  time  those  were  the  only  two  that  I  believe  he  men- 
tioned, but  suggested  that  I  go  down  to  the  newspaper  in  the  morning 
and  go  back  over  various  things  that  had  been  written  concerning  labor 
leaders  and  the  labor  movements  over  a  period  of  years  and  to  familiar- 
ize myself  with  the  labor  situation. 

Mr.  Kennedy.  These  were  two  of  the  individuals  that  he  was  inter- 
ested in  developing  the  information  on  at  that  time  ? 

Mr.  Danforth.  That  is  right. 

Mr.  Kennedy.  And  did  he  indicate  to  you  subsequently,  at  a  sub- 
sequent meeting  that  followed  shortly  afterwards  that  there  was  any- 
one he  was  interested  in  ? 

Mr.  Danforth.  Pie  suddenly  became  interested  in  George  Meany. 

Mr.  Kennedy.  How  long  after  your  first  meeting  with  him  did  he 
become  interested  in  George  Meany  ? 

Mr.  Danforth.  Well,  I  would  say  probably  about  a  week  and  a 
half. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11919 

Mr.  KJENNEDY.  "What  was  he  interested  in  as  far  as  George  Meany 
was  concerned,  and  why  was  he  interested  in  him  ? 

Mr,  Danforth.  Well,  it  was  a  little  confusing  to  me  at  first,  because 
he  had  indicated  that  he  was  interested  in  the  American  Federation  of 
Labor,  and  I  had  thought  he  was  a  friend  of  George  Meany's,  but  he 
said  that  he  wanted  to  see  Meany  stand  up  against  Walter  Reuther,  and 
therefore  he  wanted  me  to  investigate  Meany's  background  to  see  if 
there  wasn't  something  that  could  be  given  to  his  group  in  the  Ameri- 
can Federation  of  Labor  that  they  might  use  as  he  put  it,  to  stiffen 
Meany's  backbone. 

It  was  against  Walter  Reuther  whom  he  claimed  intended  to  take 
over  all  of  the  labor  movement. 

Mr.  Kennedy.  This  was  a  question  of  getting  some  derogatory 
information  together  on  George  Meany  ? 

Mr.  Danforth.  Anything  that  I  could  get  that  would  go  a  way 
back,  as  far  back  as  I  could  go.  He  said  he  thought  there  were  a  lot 
of  things  that  Meany  had  done  that  he  would  like  to  know  about,  and 
that  he  would  get  in  touch  with  these  various  labor  leaders  within  the 
American  Federation  of  Labor  for  the  purpose  of  trying  to  get  Meany 
to  stand  up  against  Reuther.    That  is  the  way  he  put  it. 

Mr.  Kennedy.  It  would  be  a  question,  as  you  understood,  of  de- 
veloping this  derogatory  information  against  George  Meany,  and 
then  using  that  information  on  George  Meany  and  telling  him  that 
unless  he  stood  up  against  these  other  officials,  that  he  would  make 
this  information  public. 

Mr.  Danforth.  Exactly ;  yes,  sir. 

Well,  I  would  like  to  change  that.  He  didn't  say  he  would  make  the 
information  public,  but  he  did  say  that  he  wanted  it  for  the  labor 
leaders,  and  that  they  would  then  go  to  George  Meany  with  this 
information. 

Mr.  Kennedy.  Did  you  begin  to  do  some  work  on  that  for  awhile, 
anyway  ?  As  I  understand  so  we  get  the  record  straight  right  at  the 
beginning,  ultimately  or  subsequently  within  a  relatively  short  time, 
you  broke  with  him  because  of  your  questions  about  what  he  was  try- 
ing to  do ;  isn't  that  right  ? 

Mr.  Danforth.  That  is  right. 

Mr.  IvENNEDY.  You  rcfused  to  continue  in  what  he  wanted  you 
to  do? 

Mr.  Danforth.  That  is  right. 

Mr.  Kennedy.  Because  you  had  some  questions  about  what  he  was 
trying  to  do,  as  to  whether  he  was  involved  in  some  sort  of  blackmail, 
or  anything  such  as  that  ? 

Mr.  Danforth.  I  didn't  know  whom  he  represented,  and  I  couldn't 
very  well  carry  on  an  investigation,  an  honest  investigation,  without 
knowing  who  he  represented  and  what  he  wanted  to  use  it  for. 

Mr.  Kennedy.  What  did  he  indicate  as  to  who  he  represented  in 
this  matter  ?    Would  you  relate  that  to  the  committee  ? 

Mr.  Danforth.  He  never  told  me  whom  he  represented  other  than 
the  fact  that  it  was  people  or  it  would  be  labor  leaders  in  the  American 
Federation  of  Labor,  and  he  did  not  give  me  any  names,  and  said  that 
I  would  meet  them  at  sometime  or  another,  but  at  that  particular  time 
I  was  supposed  to  be  gathering  information  so  that  I  could  understand 
myself  just  what  all  of  this  labor  trouble  was  about. 

21243—58 — pt.  31 10 


11920  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  KJENNEDY.  He  was  representing  certain  of  these  labor  union 
officials,  and  you  were  to  gather  this  information  for  him,  and  then 
did  you  understand  him  to  say  that  he  was  then  going  to  become  the 
public  relations  man  for  these  labor  union  officials? 

Mr.  Danforth.  That  was  my  understanding. 

Mr.  Kennedy.  He  would  start  to  work  for  them  on  a  permanent 
basis  ? 

Mr.  Danforth.  Yes,  and  it  would  be  a  continuing  thing,  and  as  far 
as  the  investigations  that  would  be  necessary  within  their  own  unions, 
to  keep  them  clean,  that  that  is  the  work  that  I  would  do. 

Mr.  Kennedy.  Did  he  indicate  during  the  course  of  the  conversa- 
tions that  you  had  after  that,  in  June  and  July,  did  he  indicate  to  you 
as  to  who  the  good  people  were  in  the  labor  union  movement,  and  who 
the  bad  people  were  ? 

Mr.  Danforth.  Well,  he  gave  indications  as  to  people  that  he  liked 
and  people  that  he  didn't  like. 

Mr.  Kennedy.  Well,  would  you  tell  us  a  little  bit  about  that  ? 

Mr.  Danforth.  He  stated  on  several  occasions  that  he  did  not  like 
Beck.  I  asked  him  after  I  had  done  some  little  work  for  him  if  he 
knew  HofFa,  and  he  stated  that  he  knew  practically  everyone  in  the 
labor  movement  because  he  had  been  it  in  for  some  29  years  as  a  pub- 
lisher, and  he  said  that  Hoffa  was  not  a  friend  of  his,  indicating  that 
he  didn't  know  him  that  well,  but  he  did  say,  however,  that  he  con- 
sidered that  Hoffa  was  the  smartest  labor  leader  in  the  country. 

Mr.  Kennedy.  And  also  the  best  for  the  labor  movement,  did  he 
also  indicate  that  to  you  ? 

Mr.  Danforth.  Yes,  I  would  say  he  did. 

Mr.  Kennedy.  Did  he  also  say  that  another  fine  man  was  Mr. 
O'Rourke? 

Mr.  Danforth.  Yes,  sir. 

Mr.  Kennedy.  He  spoke  well  of  John  O'Rourke  ? 

Mr.  Danforth.  Yes,  he  did. 

Mr.  Kennedy.  But  he  was  critical  of  Tom  Hickey  ? 

Mr.  Danforth.  Yes. 

Mr.  Kennedy.  As  well  as  Hickey's  assistant,  John  Strong,  of  the 
Teamsters  ? 

Mr.  Danforth.  That  is  correct. 

Mr.  Kennedy.  He  said  that  they  seemed  to  have  some  tendencies 
or  Communist  tendencies  ? 

Mr.  Danforth.  He  indicated  that,  yes. 

Mr.  Kennedy.  What  about  Joe  Fay  ?     How  did  he  like  Joey  Fay  ? 

Mr.  Danforth.  Well,  he  mentioned  Joey  Fay  quite  a  number  of 
times,  and  he  said  that  he  liked  him  very  much. 

Mr.  Kennedy.  So  he  liked  Joe  Fay,  and  Jimmy  Hoffa,  and  John 
O'Ronike,  and  didn't  like  George  Meany,  Dave  Dubinsky,  Reuther, 
Tom  Hickey,  and  John  Strong? 

Mr.  Danforth.  Well,  he  didn't  like  Reuther,  and  he  didn't  like 
Dubinsky  or  Hickey  or  Strong.  As  far  as  Meany,  he  brouglit  that 
out  in  an  entirely  different  way,  of  course.  That  was  as  I  said  before, 
he  was  trying  to  stiffen  his  backbone,  so  that  he  would  stand  up  against 
Reuther. 

Mr.  Kennedy.  I  would  think  it  is  an  indication  someone  doesn't  like 
you  too  well  if  they  send  an  investigator  out  to  try  to  dig  up  informa- 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11921 

tion   on  your   background.     I   personally   would   rather   not  have 
friends  like  that  myself. 

Mr.  Danfoktii.  I  think  that  you  are  right. 

Mr.  Kennedy.  Did  he  furnish  you  himself  some  of  what  he  felt 
were  derogatory  information,  for  instance  on  George  Meany? 

Mr.  Danfortii.  Yes,  he  did. 

Mr.  Kennedy.  He  wrote  out  memoranda  for  you  himself? 

Mr.  Danforth.  That  is  right. 

Mr.  Kennedy.  And  things  tht  you  should  look  into,  and  things  that 
3'ou  should  investigate  about  Mr.  Meany  ? 

Mr.  Danfortii.  Yes,  he  did. 

Mr.  Kennedy,  Did  you  have  any  meetings  down  here  in  Washing* 
ton  on  that  ? 

Mr.  Danfortii.  No,  I  didn't.    He  called  me  from  Washington. 

Mr.  Kennedy.  Where  did  most  of  the  meetings  take  place  ? 

Mr.  Danforth.  In  New  York  City. 

Mr.  Kennedy.  Whereabouts? 

Mr.  Danforth.  He  come  to  my  office,  I  think,  perhaps  twice,  and 
then  we  had  one  meeting  at  the  Koosevelt  Hotel  and  the  other  times 
they  were  in  the  Black  Angus  Restaurant. 

Mr.  Kennedy.  That  is  the  restaurant  owned  by  the  Blocks ;  is  that 
correct  ? 

Mr.  Danforth,  That  is  correct. 

Mr.  Kennedy.  You  met  there  several  times? 

Mr.  Danforth.  Yes,  sir. 

Mr.  Kennedy.  Did  he  tell  you  at  that  time  that  he  was  also  a  friend 
of  the  Blocks  ? 

Mr.  Danforth.  I  don't  know  that  he  told  me  at  that  particular 
time,  but  he  has  told  me  that  he  was  very  friendly  with  the  Blocks, 
and  that  it  was  a  personal  thing,  and  that  he  had  known  them  for 
many  years. 

Mr.  Kennedy.  Now,  did  you  develop  information  of  a  derogatory 
nature  on  people  such  as  Sam  Berger  of  local  102? 

Mr.  Danforth.  Yes. 

Mr.  Kennedy.  And  this  was  a  man  who  was  not  friendly  with 
Dubinsky,  but  what  was  his  reaction  to  that  ? 

Mr.  Danforth.  Well,  he  said  that  he  had  known  Sam  Berger  for 
many  years,  and  he  said  he  wouldn't  want  to  see  anything  happen  to 
him,  and  he  was  a  married  man,  and  that  he  wouldn't  want  to  see  any 
harm  come  to  him  one  way  or  the  other. 

Mr.  Kennedy.  He  wasn't  interested  in  that  information? 

Mr.  Danforth.  No. 

Mr.  Kennedy.  He  wasn't  interested  in  the  information  on  Sam 
Berger  ? 

Mr.  Danforth.  No,  he  wasn't. 

Mr.  Kennedy.  Did  you  develop  any  information  on  any  Teamster 
officials,  such  as  Owen  B.  Brennan  ? 

Mr.  Danforth.  Yes,  sir. 

Mr.  Kennfj^y.  What  was  his  reaction  when  you  developed  the 
information  on  him  ? 

Mr.  Danforth.  Well,  I  showed  him  a  picture,  and  I  hope  I  have 
the  right  one,  a  picture  taken  many  years  ago,  when  he  and  several 
others  had  been  arrested  in  Detroit  concerning  something,  some  bomb- 


11922  IMPROPER    ACTIVITIES    IN    THE    K\BOR    FIELD 

ing  which  had  occurred  a  long  time  ago,  and  it  was  a  very  old  picture. 
He  said  he  wasn't  interested  in  it  one  way  or  another,  and  he  laughed, 
and  he  thought  it  was  quite  funny. 

Mr.  Kennedy.  Then  it  was  quite  clear  as  to  who  he  wanted  the 
information  on,  and  who  he  didn't  want  information  on ;  is  that  right  ? 

Mr.  Danforth.  I  would  say  so ;  yes,  sir. 

Mr.  Kennedy.  Did  you  have  any  suspicions  or  questions  then  about 
how  he  was  operating? 

Mr.  Danforth.  Well,  at  that  particular  time  I  did,  because  I 
couldn't  understand  why  if  he  disliked  Dubinsky  and  certain  informa- 
tion was  given  him  concerning  somebody  that  at  one  time  had  been 
close  to  Dubinsky,  or  had  been  employed  by  him,  that  he  wouldn't  be 
interested  in  that  also. 

Mr.  Kennedy.  Could  you  tell  us  a  little  more  about  what  your  ex- 
periences were  on  this,  and  what  you  finally  decided  to  do? 

Mr.  Danforth.  Well,  there  would  be  different  people  that  he  would 
bring  up.  For  example,  it  was  difficult  for  me  to  understand  why 
he  did  like  Joey  Fay  and  those  two  in  particular.  I  wondered  why 
it  was  that  he  liked  him,  and  apparently  wished  to  protect  them. 

Mr.  Kennedy.  Did  you  decide  then  to  leave  your  job  or  would  you 
explain  what  led  to  your  breaking  off  of  your  relationship  with  him  ? 

Mr.  Danforth.  Well,  it  was  impossible  for  me  to  continue  and  in- 
vestigate and  not  know  exactly  whom  he  represented  and  to  obtain 
evidence  on  things  or  on  people  unless  I  knew  what  it  was  to  be  used 
for  and  for  what  purpose. 

Mr.  Kennedy.  Did  this  also  get  into  Charley  Johnson  of  the  Car- 
penters, or  Maurice  Hutcheson  of  the  Carpenters  ? 

Mr.  Danforth.  He  did  mention  Hutcheson  of  the  Carpenters  on 
one  occasion,  and  that  had  something  to  do  with  a  former  Congress- 
man in  Indiana.  He  stated  that  either  the  Carpenter's  Union  had 
been  sued  by  a  man  by  the  name  of  Jacobs  and  claimed  that  Jacobs 
was  dishonest  and  said  he  would  sometime  like  to  have  me  go  there 
and  make  a  background  investigation  on  Jacobs. 

Mr.  Kennedy.  What  about  Charley  Johnson,  of  the  Carpenters  ? 

Mr.  Danforth.  I  don't  think  or  I  don't  recollect  that  he  has  ever 
mentioned  Charley  Johnson. 

Mr.  Kennedy.  Well,  did  you  talk  to  him  or  develop  any  infor- 
mation regarding  Phil  Weiss  and  Charley  Johnson  in  any  financial 
interests  they  might  have  had  in  common  ? 

Mr.  Danforth.  Yes ;  I  did. 

Mr.  Kennedy.  Then  you  did  get  into  Charley  Johnson  ? 

Mr.  Danforth.  That  is  right.  I  had  forgotten  that,  and  I  remem- 
bered the  name  of  Weiss,  and  some  of  the  others,  but  I  have  forgotten 
the  others. 

Mr.  Kennedy.  Wliat  was  his  attitude  and  reaction  toward  that? 

Mr.  Danforth.  He  didn't  appear  particularly  interested,  and  he 
said  it  was  old  stuff  and  that  there  was  nothing  to  it,  and  he  wouldn't 
even  bother  to  show  it  to  whoever  it  was  he  was  going  to  show  these 
memos  to. 

Mr.  Kennedy.  This  was  some  information  that  you  developed  that 
Charley  Johnson,  of  the  Carpenters,  a  vice  president  of  the  Carpen- 
ters, had  a  financial  interest  with  Phil  Weiss? 

Mr.  Danforth.  That  is  right. 

Mr.  Kennedy.  And  he  was  not  interested  in  that  ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11923 

Mr.  Danforth.  No. 

Mr.  Kennedy.  Well,  what  finally  brought  about  your  breaking  oflE 
of  your  relationship  with  Mr.  Raddock  ? 

Mr.  Danforth.  Well,  Mr.  Raddock  wanted  me  to  go  to  Chicago. 
There  was  a  labor  meeting  there,  and  I  left  him  at  the  airport  and 
decided  not  to  go  to  Chicago,  because  by  that  time  I  felt  that  I  did 
not  know  whom  he  represented  and  just  what  he  was  up  to,  and  so 
I  declined  to  go  along  further  with  the  case. 

Mr.  Kennedy.  "Wliat  financial  arrangements  had  you  made  origi- 
nally with  him  ? 

Mr.  Danforth.  INIr.  Raddock  had  asked  me  to  draw  up  in  memoran- 
dum form  what  I  thought  this  investigation  for  these  various  labor 
leaders  who  wanted  to  clean  up  corruption  in  their  own  unions  would 
cost  for  a  period  of  6  months. 

So,  I  drew  one  up.  I  can't  give  it  to  you  from  memory,  and  you 
have  it  there,  but  it  was  to  the  effect  that  he  should  deposit  $2,000, 
which  would  be  used  for  expenses,  and  that  a  6-month  investigation 
would  cost  approximately  $7,500,  and,  in  fact,  it  wasn't  approximate, 
but  that  was  the  amount,  $7,500,  and  I  also  made  provision  for  an- 
other investigator  at  $150  a  week  and  agreed  to  devote  a  certain 
amount  of  my  time,  quite  a  great  deal  of  it,  and  I  don't  know  whether 
it  was  75  or  80  percent,  to  this  project  which  at  that  time  I  thought 
might  be  all  right. 

(At  this  point,  the  following  members  were  present :  Senators  Mc- 
Clellan  and  Church. ) 

Mr.  Kennedy.  Did  he  agree  to  that  ? 

Mr.  Danforth.  No;  he  didn't.  Well,  he  read  it,  and  said  that  it 
would  be  acceptable.  However,  he  didn't  sign  it.  I  did  very  little 
during  the  next  2  weeks.  So,  I  asked  him  about  it  once,  and  I  didn't 
ask  him  again  because  by  that  time  in  my  own  mind  I  had  decided  not 
to  go  ahead  with  it,  as  I  couldn't  understand  just  exactly  what  he  was 
up  to  and  who  he  was  working  for. 

Mr.  Kennedy.  Did  he  give  you  any  money  ? 

Mr.  Danforth.  Yes ;  he  did. 

Mr.  KJENNEDY.  How  much  did  he  pay  you  ? 

Mr.  Danforth.  I  received  the  amount  that  I  would  have  received 
for  the  expenses.   It  was  $2,000. 

Mr.  Kennedy.  How  did  you  receive  that?  How  was  that  paid  to 
you? 

Mr.  Danforth.  I  believe  in  4  payments  of  $500  each. 

Mr.  Kennedy.  Was  that  always  in  cash  ? 

Mr.  Danforth.  That  was  in  cash. 

Mr.  Kennedy.  I  believe  it  was  $1,000  in  cash  on  or  about  June  19, 
1957,  and  two  $500  payments. 

Mr.  Danforth.  I  believe  that  is  the  way  it  was  paid ;  yes. 

Mr.  Kennedy.  Two  $500  payments  about  a  month  later;  is  that 
right  ? 

Mr.  Danforth.  That  is  right. 

Mr.  Kennedy.  And  you  discontinued  working  for  him  in  Aujrust 
of  1957? 

Mr.  Danforth.  Yes.  He  may  have  made  a  call  later  than  that,  but 
by  that  time  we  had  agreed  to  disagree,  and  that,  as  far  as  I  am  con- 
cerned, was  the  end  of  it. 


11924  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  KJENNEDY.  It  was  obvious,  after  you  started  working  for  him^ 
was  it  not,  that  he  was  not  working  for  officials  attempting  to  clean 
up  their  own  unions,  but  working  to  try  to  develop  information  on. 
these  various  officials  ? 

Mr.  Danforth.  I  think  there  is  no  doubt  about  that. 

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

The  Chairman.  Are  there  any  questions  ? 

Senator  Church.  No  questions,  Mr.  Chairman. 

The  Chairman.  How  long  were  you  employed  by  him  ? 

Mr.  Danforth.  From  about  June  15,  probably,  until  the  end  of 
August. 

The  Chairman.  What  year? 

Mr.  Danforth.  This  last  year. 

The  Chairman.  1957? 

Mr.  Danforth.  That  is  right. 

The  Chairman.  You  did  not  volunteer  to  come  here  as  a  witness, 
but  you  were  subpenaed  ? 

Mr.  Danforth.  That  is  correct,  sir. 

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

Mr.  Kennedy.  This  is  a  different  matter,  Mr.  Chairman,  and  I 
would  like  to  call,  as  the  first  witness,  Mr.  Deibel,  to  put  some  records 
in. 

The  Chairman.  All  right,  Mr.  Deibel.    Come  forward. 

TESTIMONY  OF  KARL  E.  DEIBEI^Resumed 

The  Chairman.  Will  counsel  make  a  brief  statement  of  what  is  this 
aspect  of  the  hearing  ? 

Mr.  Kennedy.  Ordinarily,  Mr.  Chairman,  we  would  have  gone  into 
this  next  week,  but  we  had  two  witnesses  that  were  here,  and  it  is  a 
relatively  short  matter.  I  thought  we  could  dispose  of  it  today. 
It  is  on  the  question  of  the  misuse  of  some  $2,000  of  union  funds.  We 
are  going  to  place  the  facts  that  we  have  into  the  record  at  this  time. 

The  Chairman.  AVhat  union  ? 

Mr.  Kennedy.  The  Carpenters,  the  same  union.  It  is  the  Inter- 
national Brotherhood  of  Carpenters. 

The  Chairman.  All  right.  This  witness  has  been  previously 
sworn.    You  may  interrogate  him. 

Mr.  Kennedy.  Mr.  Deibel,  you  made  an  investigation  of  the  records 
of  the  International  Brotherhood  of  Carpenters? 

Mr.  Deibel.  That  is  correct,  Mr.  Kennedy. 

Mr.  Kennedy.  And  there  was  a  $2,000  item  that  came  to  your  at- 
tention, an  appropriation  in  March  1957  that  came  to  your  attention ; 
is  that  correct  ? 

Mr.  Deibel.  That  is  correct. 

Mr.  Kennedy.  Would  you  tell  us  what  you  found  in  the  records 
regarding  that  $2,000  expenditure  ? 

Mr.  Deibel.  Yes,  sir.  During  our  investigation  we  noted  from 
the  brotherliood's  records  a  $2,000  appropriation  to  the  East  Central 
Indiana  District  Council  at  Columbus,  Ind.  We  obtained  the  check 
and  the  authorization  from  the  brotherhood  records  and  attempted  to 
obtain  from  those  records  some  accounting  for  this  appropriation. 


IMPROPER    ACTIVITIES    EST    THE    LABOR    FIELD  11925 

We  were  advised  by  the  brotherhood's  bookkeeper,  Mr.  King,  that  he 
had  contacted,  after  our  original  request  he  had  contacted,  Mr.  Wil- 
liams, of  the  East  Central  Indiana  District  Council,  regarding  this 
appropriation,  and  had  been  advised  that  the  funds  had  been  returned 
to  the  brotherhood  immediately  upon  their  receipt. 

They  were  received  by  Williams  in  March  of  1957.  Mr.  King 
then  stated  that  he  had  contacted  Mr.  Chapman,  who  is  the  general 
treasurer  of  tlie  brotherhood,  and  Mr.  Chapman  had  related  to  him 
that  the  funds  had  been  returned  to  Mr.  Chapman  and  placed  in  a 
compartment  in  the  safe  in  tlie  brotherhood's  offices,  and  completely 
forgotten  about.  As  soon  as  the  error  had  been  brought  to  Mr.  Chap- 
man's attention,  he  had  withdrawn  the  money  from  his  safe  and  given 
it  to  Mr.  King  who,  in  turn,  deposited  it  to  the  account  of  the 
brotherhood. 

Mr.  Kennedy.  When  was  the  error  brought  to  his  attention  ? 

Mr.  Deibel.  The  error  was  brought  on  or  about  January  15,  1958. 

Mr.  Kennedy.  And  that  was  through  your  investigation? 

Mr.  Deibel.  That  is  correct. 

]Mr.  Kennedy.  The  $2,000  that  they  claimed  had  been  returned  to 
the  International  was  never  recorded  in  the  books  of  the  International  ? 

]Mr.  Deibel.  That  is  correct. 

]\Ir.  Kennedy.  And  you  went  to  try  to  find  out  what  had  happened 
to  the  $2,000,  and  the  claim  was  made  to  you  that  it  had  been  given 
to  Mr.  Chapman  and  that  Mr.  Chapman  had  put  it  into  the  safe  and 
forgotten  about  it  ? 

Mr.  Deibel.  That  is  right.  Mr.  King  indicated  that  the  money 
had  been  returned  to  Mr.  Chapman  and  Mr.  Chapman  had  put  it  in 
the  safe  and  completely  forgot  about  it  until  Mr.  King  had  made 
the  inquiry. 

Mr.  Kennedy.  How  long  had  the  money  remained  there  ? 

Mr.  Deibel.  The  money  had  remained  there  since  March  1957, 
throng]  1  January  15, 1958. 

Mr.  Kennedy.  TVHiat  was  the  $2,000  expenditure  charged  to? 

Mr.  Deibel.  The  expenditure  was  charged  to  organizing  expenses. 
It  was  shown  in  the  March  1957  Brotherhood  Monthly  Financial 
Statement. 

Mr.  Kennedy.  Did  you  make  an  examination  of  Mr.  Chapman's 
bank  account  during  that  period  of  time  ? 

Mr.  Deibel.  Yes,  sir.  During  the  course  of  our  examination,  we 
made  a  review  of  Mr.  Chapman's  personal  account  at  the  Indiana  Na- 
tional Bank.  We  noted  that  just  previously  to  March  15 — excuse  me, 
previous  to  January  15,  that  on  January  13,  Mr.  Chapman  had  with- 
drawn from  his  account  $350  which  was  charged  to  cash.  Then  we 
observed  that  on  January  15,  Mr.  Chapman  had  drawn  a  check  to  the 
order  of  cash  for  $1,600. 

This  January  15  date  is  the  same  date  upon  which  the  funds  were 
returned  to  the  Brotherhood. 

The  Chairman.  That  indicates  then  that  the  monev  that  was  re- 
placed to  the  union  funds  came  out  of  his  personal  bank  account? 
Mr.  Deibel.  It  certainly  leads  to  that  conclusion.  Senator. 
The  Chairman.  Did  you  interrogate  him  about  the  withdrawal  of 
those  funds  ? 

Mr.  Deibel.  Mr.  Chapman  has  been  unavailable  to  the  committee. 


11926  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  You  have  not  been  able  to  locat^  him  ? 

Mr.  Deibel.  At  that  time  he  was  making  business  trips  and  also 
the  counsel  for  the  Brotherhood  has  indicated  that  they  would  jorefer 
to  wait  until  sessions  of  the  committee  for  the  committee  staff  to  inter- 
view him.  Since  that  time  he  has  become  ill,  I  believe  in  Seattle, 
Wash.,  and  currently  is  physically  unable  to  appear  before  the  com- 
mittee. 

The  Chairman.  So  you  have  not  been  able  to  interrogate  him  re- 
garding these  cash  withdrawals? 

Mr.  Deibel.  That  is  correct,  Mr.  Chairman. 

Mr.  Kennedy.  But  we  have  tried. 

Mr.  Deibel.  We  have  attempted. 

The  Chairman.  The  two  checks  and  one  was  for  how  much  ? 

Mr.  Deibel.  One  was  for  $350. 

The  Chairman.  On  the  13th? 

Mr.  Deibel.  Yes.  And  the  second  one  was  for  $1,500  on  the  15th, 
totaling  $1,950. 

The  Chairman.  Both  checks  were  for  cash  ? 

Mr.  Deibel.  That  is  correct,  sir. 

Mr.  Kennedy.  That  is  all  for  now. 

The  Chairman.  Thank  you,  sir. 

Call  the  next  witness. 

Mr.  Kennedy.  Mr.  Booth  and  Mr.  Williams. 

The  Chairman.  Be  sworn.  Do  you  and  each  of  you  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.  Booth.  I  do. 

Mr.  Williams.  I  do. 

TESTIMONY  OF  H.  M.  WILLIAMS  AND  DAVIS  BOOTH,  ACCOMPANIED 
BY  COUNSEL,  HUGH  J.  McGEE 

The  Chairman.  The  witness  on  my  left,  give  your  name,  your  ad- 
dress, and  your  business  or  occupation. 

Mr.  Williams.  H.  M.  Williams,  Columbus,  Ind.,  Rural  Route  2, 
business  agent,  INK  District  Council  of  Carpenters. 

The  Chairman.  I  was  going  to  ask  you  to  speak  a  little  louder.  I 
assume  the  reporter  got  it,  but  I  didn't  understand  you. 

All  right.    The  gentleman  on  my  right? 

Mr.  Booth.  Davis  Booth,  Route  2,  Aurora,  Ind.,  business  agent  of 
the  INK  District  of  Carpenters. 

The  Chairman.  Were  you  a  business  agent,  too  ? 

Mr.  Williams.  Yes. 

The  Chairman.  Mr.  Attorney,  identify  yourself  for  the  record, 
TDlease. 

Mr.  McGee.  Hugh  J.  McGee,  of  Washington,  D.  C,  213  C  Street, 
and  I  i-epresent  both  of  these  gentlemen. 

TheCirAiRMx\N.  Thank  you. 

Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  Mr.  Williams,  how  long  have  you  been  an  official  of 
the  Carpenters  ? 

Mr.  Williams.  As  a  business  agent  ? 

Mr.  Kennedy.  Yes. 


IMPROPER    ACTIVITIES    EN    THE    LABOR    FIELD  11927 

Mr.  Williams.  It  will  be  7  years  on  the  1st  of  July. 

Mr.  Kennedy.  What  about  you,  Mr.  Booth  ? 

Mr.  Williams.  Eight  years. 

Mr.  IvENNEDY.  Did  you  have  certain  discussions  with  Mr.  Chap- 
man on  or  about  March  1, 1957,  regarding  some  money,  Mr.  Williams? 

Mr.  Williams.  Yes. 

Mr.  Kennedy.  Would  you  relate  to  the  committee  what  occurred'* 

Mr.  Williams.  We  asked  him  for  some  assistance  for  publicity. 

The  Chairman.  You  asked  him  for  what  ? 

Mr.  Williams.  Assistance,  finances,  for  publicity. 

The  Chairman.  For  assistance  for  publicity  ? 

Mr.  Williams.  Yes. 

The  Chairman.  Well,  explain  it. 

Mr.  Williams.  We  asked  him  for  some  money  for  ads  in  news- 
papers, radio,  and  so  forth. 

The  Chairman.  All  right.    Proceed. 

]Mr.  Kennedy.  You  went  down  to  get  some  assistance  from  the 
International  Union  ? 

Mr.  Williams.  Yes. 

Mr.  Kennedy.  To  put  ads  in  the  paper  ? 

Mr.  Williams.  Yes. 

]VIr.  Kennedy.  What  was  that  in  connection  with  ? 

Mr.  Williams.  That  was  in  connection  with  the  right-to-work  law 
which  was  up  before  the  legislative  body  at  that  time. 

Mr.  Kennedy.  And  you  got  $2,000  in  cash  for  that  ? 

Mr.  Williams.  Yes. 

Mr.  Kennedy.  You  were  going  to  put  ads  in  the  paper  ? 

Mr.  Williams.  Yes,  sir. 

Mr.  Kennedy.  Why  didn't  you  just  place  some  ads  in  the  paper  and 
make  arrangements  to  have  them  send  the  bill  ? 

Mr.  Williams.  Well,  it  just  wasn't  thought  of,  I  reckon. 

Mr.  Kennedy.  Why  did  you  need  cash  to  do  that  ? 

Mr.  Williams.  I  don't  know. 

Mr.  Kennedy.  Well,  the  ads  or  publicity  would  be  a  little  late  at 
that  time,  as  they  were  voting  on  it  on  March  1. 

Mr.  Williams.  Well,  they  had  told  me  that  it  was  an  amendment 
on  it  and  it  probably  would  be  3  or  4  days  before  it  would  be  back 
on  the  floor. 

Mr.  Ej:nnedy.  It  was  in  fact  voted  on  on  March  1,  according  to  the 
newspaper  reports  at  that  time. 

Mr.  Williams.  That  is  when  we  were  at  the  general  office. 

Mr.  Kennedy.  You  went  down  there  and  got  $2,000  in  cash.  What 
did  you  do  with  the  money  ? 

Mr.  Williams.  We  took  it  back  after  the  law  passed  through  the 
senate  and  the  house. 

Mr.  Kennedy.  You  took  the  $2,000  in  cash.  Where  did  you  take 
it  back? 

Mr.  Williams.  Back  to  Frank  Chapman's  office. 

Mr.  Kennedy.  You  took  it  out  of  the  office ;  didn't  you  ? 

Mr.  Williams.  Yes. 

Mr.  KENNEDY.  Where  did  you  go  with  it  ? 

Mr.  Williams.  We  went  back  over  to  the  statehouse. 

Mr.  Kennedy.  Did  you  give  any  money  to  anybody  at  the  state- 
house ? 


11928  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Williams.  No,  sir. 

Mr,  Kennedy.  When  did  you  return  the  money  ? 

Mr.  Williams.  Within  an  hour  and  a  half  after  we  got  it. 

Mr.  Kennedy.  You  gave  it  back  to  Mr.  Chapman  ? 

Mr.  Williams.  Yes,  sir. 

Mr.  Kennedy.  You  found  the  law  had  been  passed  ? 

Mr.  Williams.  Yes. 

Mr.  Kennedy.  Why  didn't  you  go  down  to  a  newspaper  and  place 
your  ads? 

Mr.  Williams.  AVell,  we  had  to — I  imagine  there  was  25  or  30  of 
us  that  discussed  the  thing,  and  we  were  going  to  get  together  if  we 
could  secure  enough  funds  for  the  ads  and  so  forth,  and  at  that  time 
we  didn't  know  whether  we  could  get  any  money  or  not. 

Mr.  Kennedy.  Who  were  some  of  the  other  people  that  you  dis- 
cussed it  with  ? 

Mr.  Williams.  Offhand  I  don't  remember  any  of  their  names.  I 
have  seen  them  at  the  conventions  at  different  times. 

]\Ir.  Kennedy.  You  gave  the  money  back  to  Mr.  Chapman  on  the 
same  day? 

Mr.  Williams.  Yes,  sir. 

Mr.  Kennedy.  Is  that  correct,  Mr.  Booth  ? 

Mr.  Booth.  Yes,  sir;  that  is. 

Mr.  Kennedy.  The  whole  $2,000? 

Mr.  Williams.  Yes,  sir. 

Mr.  Kennedy.  Do  you  know  why  this  was  charged  on  the  books  as 
an  organizational  expense? 

Mr.  Williams.  No,  sir. 

Mr.  Kennedy.  It  certainly  would  have  been  a  legitimate  expense  if 
what  you  state  is  correct,  that  you  were  going  to  use  it  for  these  pur- 
poses of  placing  ads. 

Why  would  it  then  be  charged  to  organizational  expense? 

Mr.  Williams.  I  don't  know,  sir. 

Mr.  Kennedy.  Do  you  understand  that,  Mr.  Booth  ? 

Mr.  Booth.  No,  sir ;  I  don't. 

Mr.  Kennedy.  Do  you  know  why  when  you  brought  it  back  on 
March  1,  it  was  never  entered  into  the  books  and  records  of  the  inter- 
national ? 

Mr.  Booth.  I  don't  know  that. 

Mr.  Kennedy.  In  fact,  nobody  knew  of  its  existence  after  that  un- 
til our  investigation  began. 

Mr.  Booth.  That  was  our  knowledge  of  it. 

The  Chairman.  In  other  words,  you  thought  when  you  returned 
the  money,  or  you  assumed  at  least,  that  it  went  back  into  the  interna- 
tional treasury? 

Mr.  Booth.  I  certainly  did. 

The  Chairman.  When  did  you  first  learn  that  it  did  not? 

Mr.  Booth.  About  Januarv  of  1957, 1  imagine. 

Mr.  Kennedy.  1958? 

Mr.  Booth.  That  is  right,  yes,  1958. 

Tlie  Chairman.  Januarv  of  this  year? 

Mr.  l^ooTH.  That  is  right. 

The  Chairman.  After  the  investigators  found  it  missing? 

Mr.  Booth.  That  is  r'lixht. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11929 

The  Chairman.  Did  you  cooperate  with  the  investigators  in  giving 
the  information  you  had  about  it  ? 

Mr.  Booth.  I  certainly  did. 

The  Chairman.  Sometimes  I  think  this  committee  ought  to  operate 
on  a  commission  basis. 

Mr.  Kennedy.  Mr.  Chairman,  I  might  also  add  that  the  Brother- 
hood had  a  special  fund  for  the  purpose  of  dealing  with  legislation 
such  as  this  and  to  assist  candidates,  legally  assisting  candidates,  who 
were  against  antilabor  legislation.  It  was  called  the  nonpartisan 
committee  fund  and  educational  committee  fund.  There  were  two 
funds.  Both  of  them  had  money  in  them  at  that  time,  sufficient  money 
for  the  $2,000,  to  pay  out  the  sum  of  $2,000. 

The  Chairman.  All  right.    Is  there  anything  further  ? 

Senator  Church.  When  you  received  this  $2,000,  you  did  not  know 
from  what  account  the  money  had  been  taken  ? 

Mr.  Williams.  No,  sir;  I  did  not. 

Senator  Church.  As  far  as  you  were  concerned,  you  took  $2,000  for 
what  you  regarded  as  a  legitimate  union  purpose,  and,  when  you  found 
or  decided  that  it  ought  not  to  be  spent,  you  returned  it? 

Mr.  Williams.  Yes,  sir. 

Senator  Church.  And  it  was  not  until  the  committee  investigation 
came  along  that  you  ever  discovered  that  the  money  was  not  actually 
returned  to  the  treasury  of  the  union  ? 

Mr.  Williams.  That  is  right. 

Mr.  Kennedy.  That  is  all. 

The  Chairman.  Thank  you  very  much. 

I  believe  this  concludes  our  testimony  for  today.  The  committee 
will  resume  hearings  next  Tuesday,  at  10 :  30  in  the  morning.  In  the 
course  of  this  series  of  hearings  up  to  now,  I  think  there  has  been 
revealed  some  scandalous  conduct  on  the  part  of  a  number  of  people 
who  were  in  positions  of  trust,  who  had  a  responsibility,  and  an  obli- 
gation and  duty,  to  working  people,  to  union  members  and  to  the 
public. 

These  hearings  have  shown  without  any  question  of  doubt  that  the 
trust  reposed  in  these  persons  has  been  violated ;  that  the  union  mem- 
bers' dues  money,  funds  in  the  treasury  of  the  union,  derived  from 
dues  and  assessments,  has  been  exploited. 

I  have  not  prepared  a  statement  to  go  into  the  record,  but  I  would 
make  this  comment:  These  hearings  have  produced  some  salutary 
results,  I  believe.  We  have  learned  that  Mr,  Max  Block,  president  of 
the  Meat  Cutters'  Local  640  and  Local  342,  has  resigned  from  his  posi- 
tion with  those  unions ;  Mr.  Louis  Block,  his  brother,  who  was  trustee 
or  manager  of  the  pension  and  welfare  fund,  has  also  resigned  his 
position,  and  Mr.  Casale,  secretary-treasurer  of  one  of  the  locals,  and 
Mr.  Lippel,  secretary-treasurer  of  the  other,  have  also  resigned. 

I  am  further  advised  that  in  appearing  before  a  grand  jury,  one 
or  more  of  them  declined  to  cooperate ;  that  they  have  withheld  their 
testimony. 

Obviously  these  hearings,  and  the  work  of  this  committee,  are  pro- 
ducing results  that  inure  to  the  benefit  of  working  people. 

Tliis  job  is  not  a  pleasant  task.  It  is  one  that  is  rather  exacting 
upon  the  membership  of  the  committee.  We  have  all  of  our  other 
work  to  do  as  well  as  this  extraordinary  assignment  that  consumes  so 
much  of  our  time. 


11930  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

With  respect  to  the  book  transaction  and  the  shakedown — ^that  is 
what  it  was — in  the  solicitation  of  ads  for  the  Trade  Union  Courier, 
there  has  been  disclosed  some  of  the  most  reprehensible  conduct  that 
the  committee  has  exposed. 

This  book  deal  was  in  the  nature  of  a  conspiracy  to  rob  the  union's 
treasury.  I  have  no  doubt  that  Mr.  Kaddock  made  a  considerable 
profit  out  of  it.  I  also  have  a  strong  suspicion  that  he  didn't  get  all 
of  the  profit  in  the  deal.     There  must  have  been  a  kickback  somewhere. 

I  just  do  not  believe  that  union  officials,  intelligent  people  who  oc- 
cupy such  positions,  who  are  capable  of  being  president  of  a  great 
international  union,  would  be  so  incompetent  that  they  would  commit 
such  irresponsible  acts  in  the  handling  of  moneys  with  which  they 
are  entrusted  as  has  been  demonstrated  in  this  case. 

I  must  conclude  that  there  was  collusion  between  Mr.  Raddock  and 
some -officials  of  the  union  to,  by  this  device,  enrich  themselves  at  the 
expense  of  the  working  men  and  women  who  are  members  of  that 
union. 

I  am  hopeful  that  as  these  things  are  disclosed,  legislation  be  en- 
acted— and  I  believe  it  will  be — to  deal  with  these  acts  of  corruption 
and  deal  with  them  effectively.  I  am  also  hopeful  that  these  revela- 
tions will  have  a  deterrent  effect  and  influence  upon  others  who  may 
now  occupy  positions  of  trust  and  responsibility  in  the  union  move- 
ment from  contemplating  and  engaging  in  such  practice. 

The  primary  purpose  of  this  committee,  of  course,  is  to  get  informa- 
tion upon  which  to  legislate.  But  I  think  a  byproduct  of  its  work 
is  that  it  gives  publicity  to,  and  spotlights,  practices  that  honest  and 
decent  people  do  not  condone. 

Thus,  it  informs  the  public,  and  should  alert  membership  of  unions 
to  be  diligent  in  observing  the  work  and  the  acts  of  their  officials  to 
the  end  that  if  they  start  to  engage  in  such  practices  they  will  be  dis- 
covered and  thus  prevented  from  robbing  the  people  whose  interest 
and  whose  welfare  they  should  safeguard  and  protect. 

Do  you  have  anything  to  say  at  this  time,  Senator  Church  ? 

Senator  Church.  No,  Mr.  Chairman. 

The  Chairman.  The  committee  will  stand  in  recess  until  10:30 
next  Tuesday  morning. 

(Whereupon,  at  2 :  55  p.  m.  the  hearing  was  recessed,  to  reconvene  at 
10 :  30  a.  m.  Tuesday,  June  10, 1958,  with  the  following  members  pres- 
ent :  Senators  McClellan  and  Church.) 


INVESTIGATION  OF  IMPROPER  ACTIVITIES  IN  THE 
LABOR  OR  MANAGEMENT  FIELD 


WEDNESDAY,  JUNE  25,   1958 

United  States  Senate, 
Select  Committee  on  Improper  Activities 

IN  THE  Labor  or  JVIanagement  Field, 

Washington^  D.  C. 

The  select  committee  met  at  10  a.  m.,  pursuant  to  Senate  Resolution 
221,  agreed  to  January  29,  1958,  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 
Sam  J.  Ervin,  Jr.,  Democrat,  North  Carolina;  Senator  Barry  Gold- 
water,  Republican,  Arizona;  Senator  Carl  Curtis,  Republican,  Ne- 
braska. 

Also  present :  Robert  F.  Kennedy,  chief  counsel ;  Jerome  S.  Adler- 
man,  assistant  chief  counsel ;  Paul  J.  Tierney,  assistant  counsel ;  Robert 
E.  Dunne,  assistant  counsel;  John  J.  McGovern,  assistant  counsel; 
Charles  E.  Wolfe,  accountant,  GAO;  Francis  J.  Ward,  accountant, 
GAO ;  Karl  Deibel,  accountant,  GAO ;  Harold  Ranstad,  investigator ; 
John  Prinos,  accountant,  GAO ;  Ruth  Young  Watt,  chief  clerk. 

(At  the  convening  of  the  session,  the  following  members  were  pres- 
ent :  Senators  McClellan  and  Goldwater. ) 

The  Chairman.  The  committee  will  come  to  order. 

The  Chair  will  announce  that  we  are  this  morning  resuming  hear- 
ings in  the  matter  that  was  under  investigation  at  the  time  the  com- 
mittee last  adjourned  on  June  6. 

We  were  then  in  the  process  of  a  series  of  hearings  that  had  begun 
on  June  4,  at  which  time  the  Chair  made  an  oj^ening  statement  of  the 
nature  and  the  subject  matter  that  was  under  inquiry  relating  to  the 
World  Wide  Press  and  the  activities  of  Mr.  ]Maxwell  Raddock  and 
others  in  connection  with  that  publication,  and  also  the  Trade  Courier 
Journal,  and  a  book  that  was  published  called  Portrait  of  an  Ameri- 
can Labor  Leader :  William  L,  Hutcheson. 

The  background  for  the  testimony  today  was  laid  in  that  opening 
statement  made  on  the  4th  day  of  June. 

All  right,  Mr,  Counsel,  you  may  call  the  next  witness. 

Mr.  Kennedy.  Mr.  Max  Raddock,  Mr.  Chairman. 

Mr.  Chairman,  prior  to  the  time  he  testifies,  we  have  here  an  affi- 
davit from  Mr.  David  Pre vi  ant,  a  four-page  affidavit  that  he  would 
like  to  have  placed  into  the  record,  if  you  have  no  objection. 

The  Chairman.  Counsel  has  examined  it.  Senator  Goldwater,  do 
you  have  objection  ? 

Senator  Goldwater.  No  objection. 

11931 


11932  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman,  This  relates,  as  I  understand,  to  another  hearing. 
It  does  not  pertain  to  the  hearing  now  being  conducted. 

This  affidavit  may  be  filed  and  related  to  the  hearing  that  it  refers 
to.     It  may  be  placed  in  the  record  in  connection  with  that  hearing. 

Mr,  Kennedy,  We  had  a  statement,  Mr.  Chairman,  in  the  report,  in 
connection  with  Mr.  Previant's  relationship  with  local  102  of  the 
UAW-A,  F.  of  L.,  and  also  the  relationship  with  Mr.  Johnnie  Dio. 
This  affidavit  from  Mr.  Previant  goes  to  clarify  the  situation  regard- 
ing his  relationship. 

(The  affidavit  has  been  made  a  part  of  the  record  in  connection  with 
the  hearings  held  by  this  committee  from  July  31  through  August 
23,  1957,  and  may  be  found  in  the  files  of  the  select  committee.) 

The  Chairman.  Let  it  be  given  a  proper  number  as  an  exhibit  to 
that  record.  Please  be  sworn.  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,  Haddock.  I  do. 

TESTIMONY  OF  MAXWELL  C.  RADDOCK,  ACCOMPANIED  BY 
SEYMOTJE  WALDMAN,  COUNSEL 

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

Mr.  Haddock.  My  name  is  Maxwell  C.  Raddock.  I  reside  in  Mam- 
aroneck,  N.  Y.  I  am  a  newspaperman,  editor  of  the  Trade  Union 
Courier,  author  of  a  book  entitled  "Portrait  of  an  American  Labor 
Leader:  William  L.  Hutcheson,''  subtitled  "Saga  of  the  United 
Brotherhood  of  Carpenters  and  Joiners  of  America,  1881-1954."' 

The  Chairman.  Thank  you,  sir. 

Mr.  Eaddock,  you  have  counsel.  Will  counsel  identify  yourself  for 
the  record,  please  ? 

Mr.  Waldman.  Waldman  &  Waldman,  of  305  Broadwa}',  Xew 
York,  N.  Y.,  by  Seymour  Waldman. 

Mr.  Chairman,  at  the  outset,  may  I  request  that  the  kleig  lights  be 
turned  off  and  that  there  be  no  photographing,  either  newsreel,  tele- 
vision, movie  or  still  during  Mr.  Haddock's  testimony  ? 

The  Chairman.  Well,  we  will  turn  off'  the  lights  and  television 
based  on  the — is  that  because  the  witness  feels  that  the  lights  de- 
tract from  him  ? 

Mr.  Waldman.  This  witness  is  called  to  give  testimony  in  a  very 
serious  matter  and  this  cannot  help  but  be  distracting  and  harassing 
in  the  course  of  his  testimony. 

The  Chairman.  Do  I  understand  the  witness  is  to  cooperate  with 
the  committee  and  give  full  and  proper  answers  to  all  questions? 

Mr.  Waldman.  I  think  the  chairman  knows  in  the  light  of  the  ex- 
ecutive sessions  that  have  preceded  this  hearing,  that  on  virtually 
every  subject  matter  with  one  exception  the  witness  has  been  giving 
full  answers,  and  I  expect,  if  our  assumptions  are  correct  on  the 
course  of  these  hearings,  that  he  will  take  the  same  position  in  this 
public  session. 

The  Chairman.  T  don't  i-ecall  the  ])articular  question  in  con- 
troversy. If  witnesses  are  coo])erative  and  they  avo  sincere,  and  the 
committee  has  heretofore  sustained  the  Chair,  in  their  belief  that  the 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11933 

lifjhts  or  cameras  might  detract  or  interfere  in  any  way  in  their 
testifying  freely,  of  course,  we  have  the  rule  that  the  request  will 
be  granted. 

Where  a  witness  is  coming  in  for  the  purpose  of  reading  off  a  little 
slip  of  paper  and  taking  the  fifth  amendment,  I  don't  see  that  lights, 
cameras,  or  anything  else  can  detract  from  a  witness  doing  that. 

Mr.  Waldman.  Mr.  Chairman,  I  can  state  that  with  respect  to  all 
the  matters  covered  in  your  opening  statement,  and  I  think  they  in- 
volve four  fields  of  inquiry,  it  is  certainly  the  witness'  present  inten- 
tion to  answer  fully  on  all  of  those  items. 

The  Chairman.  We  will  proceed  without  the  lights.  "V^Hienever  the 
witness  fails  to  cooperate  with  the  committee,  the  lights  will  come  on. 

Mr.  Waldman.  May  I  also  state,  Mr.  Chairman,  that  a  statement 
was  furnished  to  the  committee  at  least  2  days  ago  that  we  requested 
that  the  witness  be  permitted  to  read  in  the  light  of  the  several  days 
of  derogatory  testimony  concerning  him. 

The  Chairman.  You  have  examined  the  statement,  Mr.  Counsel? 

Mr.  Kennedy.  Yes. 

The  Chairman.  The  Chair  has  made  it  very  clear,  when  a  witness 
fails  to  answer  questions  and  cooperate  with  the  committee,  then  your 
request  will  no  longer  be  honored.    Did  we  understand  that  ? 

5lr.  Waldman.  May  I  say,  sir,  that  the  Chair  had  outlined  a  sphere 
of  inquiry.  The  items  covered  in  the  statement  involve  all  matters 
covered  in  the  previous  public  hearings.  Certainly  the  witness  in- 
tends to  answer  fully  as  to  all  of  those  items.  There  was  one  matter 
covered  in  executive  session  after  the  previous  public  hearings.  I  don't 
think  that  slight  segment  of  the  picture  should  alter  the  witness'  right 
on  all  the  matters  covered  heretofore  in  public  hearings  on  which  he  is 
prepared  to  testify  fully. 

The  Chairman.  I  don't  want  to  quibble  about  this  thing. 

I  want  to  be  very  fair  to  the  witness,  if  he  is  sincere  in  his  request. 
But  neither  do  I  intend  to  permit  this  committee  to  be  taken  advantage 
of.    I  think  counsel  pretty  well  understands  that. 

Mr.  Waldman.  I  understand  that,  sir,  but  this  field  does  not  cover 
airy  field  of  inquiry  in  which  the  witness  is  not  prepared  to  submit  fully 
to  questioning  and  to  answering  those  questions. 

The  Chairman.  The  Chair  will  make  this  ruling  at  the  moment :  I 
am  not  going  to  silence  the  silent  radio  that  may  be  picking  up  this 
testimony,  nor  am  I  going  to  stop  the  pictures,  the  cameras,  from  mak- 
ing a  film  of  the  proceedings. 

I  will  have  the  lights  turned  out  if  they  detract  until  such  time  as 
the  witness  fails  to  cooperate  with  tlie  committee.  If  the  lights  bother 
him,  we  will  leave  the  lights  off  for  the  present. 

But  I  am  not  going  to  stop  any  mediums  of  communication  from 
covering  these  hearings.  They  are  public  hearings.  The  press  is 
present.  Radio  can  pick  up  everything  that  is  said.  I  am  not  going 
to  rule  that  out.  I  am  not  going  to  discriminate  against  television 
except  there  can  be,  and  sometimes  there  may  be,  merit  in  the  sugges- 
tion that  lights  will  distract  the  witness  from  his  ability  to  concentrate. 

So  the  lights  will  be  out  for  the  present. 

Mr.  Waldman.  May  I  say  for  the  record,  sir,  that  the  witness  objects 
to  any  radio  or  television  coverage  on  the  ground  that  the  mere  knowl- 
edge that  this  is  being  done  is  distractful  to  the  witness  and  prevents 
him  from  concentrating  properly  on  his  testimony. 


11934  IMPROPER    ACTIVITIES    IN   THE    LABOR    FIELD 

The  Chairman.  The  Chair  overrules  your  request,  subject  to  the 
action  of  the  committee.    Is  there  any  objection  to  the  Chair's  ruling? 
Senator  Goldwater.  No  objection. 

The  Chairman.  I  am  not  going  to  discriminate  against  other  medi- 
ums of  news  and  communication.  If  I  was  going  to  do  that,  then  the 
press  would  be  excluded.  I  do  not  intend  to  do  that,  so  long  as  the 
hearings  are  present.    Proceed.    You  may  read  your  statement. 

Mr.  Haddock.  Mr.  Chairman,  at  the  outset  of  my  testimony  today  I 
ask  for  the  opportunity  to  correct  certain  false  and  inaccurate  impres- 
sions about  the  companies  with  which  I  am  associated  that  have  been 
created  through  the  hearings  of  this  committee. 

I  feel  that  a  statement  ot  this  sort  is  necessary  because  of  the  unfair 
treatment  to  which  I  have  been  subjected.  Contrary  to  basic  American 
concepts  of  fair  play  and  justice,  serious  charges  have  been  made 
against  me  in  the  public  hearings  of  this  committee  before  I  have  had 
any  opportunity  to  answer  them. 

My  name  and  reputation  have  been  attacked  with  no  opportunity  for 
explanation  or  defense  on  my  part.  And  notwithstanding  the  re- 
peated accusations  of  noncooperation  on  my  part,  the  simple  fact  is 
that  I  have  never  been  confronted  with  the  evidence  against  me  prior 
to  public  hearings  and  given  a  chance  to  present  my  side. 

The  Chairman.  You  call  it  charges  against  you.     How  would  you 
expect  the  charges  to  be  made  except  by  sworn  testimony?     Instead 
of  making  the  charges  without  any  basis,  we  have  presented  the  sworn 
testimony.     You  have  been  privileged  to  hear  it  and  see  it,  and  now 
you  are  being  given  the  opportunity  to  answer  it.     If  we  don't  have 
private  conversations  with  you,  I  don't  know  what  you  have  in  mind. 
I  think  you  have  been  interrogated  from  time  to  time  and  your  co- 
operation sought.     But  anyway,  you  may  proceed.     The  record  will 
speak  for  itself. 
Mr.  Raddock.  Do  you  wish  me  to  answer  that  question,  Senator? 
The  Chairman.  If  you  want  to,  briefly. 

Mr.  Raddock.  With  the  utmost  respect  for  the  distinguished  com- 
mittee and  its  chief  counsel,  I  would  have  answered  other  questions, 
pointed  questions,  put  to  me,  if  they  had  been  put  to  me,  most  f  orth- 
rightly.  Instead,  certain  questions  which  later  were  presumably 
attested  to  at  the  public  hearings  were  not  asked  of  me,  and  they  re- 
sulted in  public  hearings.  I  feel  that  had  Chief  Counsel  Kennedy  put 
certain  questions  to  me,  perhaps  you,  Mr.  Chairman,  would  have  de- 
cided that  these  questions  should  not  have  been  aired. 

The  Chairman.  All  right.  Proceed.  We  have  a  pretty  good  rec- 
ord here,  and  if  you  can  refute  it,  your  refutation  will  be  welcome. 
I  certainly  do  not  want  to  make  a  record  here  of  perjury  and  lies. 
If  this  record  is  perjury  and  lies,  you  now  have  the  opportunity  to 
refute  it. 
Proceed. 

Mr.  Raddock  (reading)  : 

In  these  circumstances,  it  is  particularly  unfair  that  conclusions  adverse  to 
me  have  already  been  drawn,  even  before  I  have  given  my  testimony. 

In  this  statement  I  cannot,  of  course,  deal  with  every  item  of  testimony  by 
every  witness,  but  will  only  touch  on  the  highlights. 

I.  TRADE  UNION  COURIER 

1  The  impression  has  been  created  that  the  Trade  Union  Courier  has  a  very 
limited  circulation— with  bulk  distribution  only— because  the  payment  for  sub- 


IMPROPER    ACTIVITIES    IX    THE    L.\BOR    FIELD  11935 

scriptions  is  made  by  some  32  separate  labor  organizations.  The  fact  is  that 
each  issue  of  the  Courier  has  a  basic  subscription  of  over  33,000  persons  in  the 
labor  movement — including  thousands  of  key  local  union  officials,  the  makers 
of  policy  for  unions  with  hundreds  of  thousands  of  members — all  of  whom  re- 
ceive their  copies  direct  from  the  Courier.  This  is  in  addition  to  thousands  of 
extra  copies  printed  at  the  request  of  unions  for  special  occasions. 

The  fact  that  a  union  subscribes  for  thousands  of  its  members  does  not  mean 
that  these  copies  are  delivered  to  the  union.  Bulk  deliveries  are  rare  and  form 
a  very  minor  part  of  the  Courier's  regular  subscriptions.  In  the  great  majority 
of  cases,  the  union  furnishes  the  list  of  its  members  and  officers,  and  copies 
of  the  Courier  are  mailed  directly  to  the  individuals. 

Nor  is  the  Courier's  news  coverage  limited  to  those  unions  which  subscribe 
to  it  for  their  members.  For  over  23  years  the  Courier  has  been  a  prolabor 
newspaper  giving  full  news  coverage  of  the  United  States  and  Canadian  labor 
scene  and  espousing  editorially  the  traditional  policies  of  the  AFL  and  its  con- 
stituent unions.  We  are  proud  of  our  longstanding  reputation  as  America's 
leading  independent  labor  newspaper. 

2.  The  public  relations  department  of  the  AFL-CIO  has  submitted  to  the  com- 
mittee a  statement  referring  to  complaints  made  to  the  AFL  of  allegedly  im- 
proper activities  by  Trade  Union  Courier  advertising  solicitors.  It  neglects  to 
mention  that  these  complaints  came  in  the  main  from  local  union  officials  who 
are  connected  with  yearbooks  and  local  labor  papers  soliciting  advertising  in 
competition  with  the  Courier,  that  those  complainants  are  jealous  of  the  Courier's 
national  standing  with  the  labor  movement,  and  that  they  seek  the  destruction 
of  the  Courier  for  competitive,  financial  purposes. 

For  example,  the  campaign  against  the  Courier  in  Atlanta,  Ga.,  referred  to 
in  the  AFL-CIO  statement,  was  sparked  by  a  local  labor  offcial  who  was  con- 
nected with  a  local  yearbook  which  solicited  advertising.  The  criticism  of  the 
Courier  by  segments  within  the  New  York  central  labor  body  results  from  the 
fact  that  high  officials  of  that  body  put  out  an  alleged  labor  newspaper  which 
also  solicits  advertising. 

A  thorough  investigation  of  the  business  methods  of  that  paper  would,  I  am 
sure,  be  far  more  interesting  than  any  inquiry  into  the  Courier. 

(At  this  point,  Senator  Curtis  entered  the  hearing  room.) 
Mr.  Raddock  (reading)  : 

It  comes  with  ill  grace  for  the  AFL  to  cast  stones  at  the  Courier  in  the  light 
of  the  yearbook  racket  recently  disclosed,  under  which  employers  are  mulcted 
for  advertising  by  publications  sponsored  by  AFL  subdivisions.  These  publica- 
tions, imlike  the  Courier,  carry  no  news,  have  no  real  circulation,  and  wield  no 
editorial  influence. 

In  New  York,  as  this  committee  knows,  virtually  all  proceeds  of  the  State 
federation  of  labor  yearbook  lined  the  pockets  of  private  promoters.  It  is  note- 
worthy that  George  Meany,  who  attacks  the  Courier  so  bravely,  was  for  years 
the  head  of  the  New  York  State  Federation  of  Labor.  I  have  heard  no  criticism 
from  him  of  the  yearbook  operation  as  practiced  by  his  friends. 

3.  There  has  been  no  evidence  that  either  I  or  any  other  officer  of  the  Covrrier 
is  responsible  for  any  improper  advertising  methods  which  this  committee  has 
attributed  to  one  of  the  more  than  a  dozen  solicitors  employed  by  the  Courier. 

The  fact  is  that  we  have  tried  to  make  sure  that  only  correct  statements  are 
made  and  accurate  impressions  created.  Indeed,  prominently  printed  on  the 
first  or  second  page  of  every  edition  of  the  Courier  is  a  notice  labeled  "Notice  to 
Advertisers"  which  includes  the  following : 

"The  Trade  Union  Courier  disclaims  any  affiliation  with  AFL-CIO  head- 
quarters. 

"All  persons  are  advised  that  labor  publications  claiming  to  represent  American 
Federation  of  Labor  headquarters  or  exploiting  the  official  A.  F.  of  L.  emblem 
for  the  purpose  of  ad  solicitations,  are  doing  so  without  the  sanction  of  national 
AFL-CIO  headquarters,  which  itself  never  solicits  advertising." 

A  copy  of  the  Courier  containing  this  notice  is  sent  to  all  our  advertis'.rs. 

4.  The  claim  has  been  made  that  the  Courier  solicits  ads  from  antiunion  firms. 
Whoever  made  this  claim  is  apparently  ignorant  of  the  distinction  between  anti- 
imion  and  nonunion.  There  are  hundreds  of  employers  who  are  sympathetic 
to  unionism  but  whose  employees  have  never  been  organized  or  even  sought  to 

21243—58 — pt.  31 11 


11936  IMPROPER    ACTIVITIES    EST    THE    LABOR    FIELD 

be  organized  by  any  union.  I  do  not  believe  there  is  any  evidence  before  this 
committee  of  any  solicitation  of  any  firm  which  was  engaged  in  any  liind  of 
labor  dispute  with  any  union. 

I  do  not  believe  there  is  any  evidence  before  this  committee  of  any  solicitation 
of  any  firm  which  was  engaged  in  any  kind  of  labor  dispute  with  any  union. 
It  is  the  policy  of  the  Courier,  and  all  solicitors  are  so  instructed,  never  to  accept 
an  ad  from  any  employer  who  is  antiunion  or  involved  in  a  labor  dispute. 

II.    WORLD   WIDE   PKESS 

5.  In  connection  with  the  bond  issue  of  "World  Wide  Press,  the  inference  was 
raised  that  bonds  were  given  to  union  ofiicials  and  their  families.  This  I  deny 
unequivocally.  Evidence  was  presented  that  in  2  or  3  instances,  checks  from  the 
bank  accounts  of  the  Trade  Union  Courier  and  related  firms  were  deposited  in 
the  World  Wide  Press  bond  account.  As  far  as  I  have  been  able  to  determine,  all 
that  this  means  is  that  on  those  2  or  3  occasions,  when  the  bond  purchase  money 
was  received  there  were  urgent  payroll,  petty  cash  and  similar  needs  for  the 
operation  of  the  Courier.  The  money  received  was  therefore  immediately  loaned 
to  and  disbursed  by  the  Trade  Union  Courier  Publishing  Corp.  or  a  related  firm. 
When  money  was  again  available,  the  loan  was  repaid  by  corporate  check  which 
was  deposited  in  the  World  Wide  Press  bond  account. 

Testimony  was  also  offered  that  in  the  case  of  two  individuals,  there  is  no 
record  of  payment  for  the  bonds  issued.  I  am  informed  that  the  books  and 
records  in  the  committee's  possession  reveal  that  this  claim  of  no  payment  can 
be  made  only  if  it  is  also  assumed  that  some  unions  or  union  ofiicials  paid  twice 
for  their  bonds,  an  equally  absurd  claim. 

The  fact  is  that  the  records  show  that  there  were  $213,000  worth  of  bonds  sold, 
and  $212,000  was  deposited  directly  in  the  World  Wide  Press  bond  account. 
At  most,  this  would  appear  to  show  that  $1,000  loaned  to  one  of  the  other  related 
firms  has  not  yet  been  repaid  to  World  Wide  Press. 

Nothing  has  been  shown  of  any  wrongdoing  in  these  bond  sales  or  of  any  gift 
of  a  bond  to  anyone.    There  was  none. 

ni.    THE  BOOK,  PORTRAIT  OF  AN  AMERICAN  LABOR  LEADER — WILLIAM  LEVI  HUTCHESON 

6.  It  is  apparently  the  view  of  some  members  of  this  committee's  staff  that  the 
research,  writing  and  revision,  printing  and  publication,  compilation  of  lists  of 
distributees,  and  packing,  mailing  and  distribution  of  over  80,000  copies  of  a 
book  of  over  480  pages,  all  can  be  accomplished  virtually  overnight.  Actually 
the  time  that  elapsed  between  the  initial  conception  of  this  book  and  the  distribu- 
tion thus  far  is  by  no  means  unreasonable,  particularly  when  it  is  borne  in  mind 
that  during  most  of  1956  I  was  busy  on  other  essential  work  for  the  Carpenters 
Union  and  was  imable  to  put  in  the  time  required  to  compile  the  lists  of  tens  of 
thousands  of  recipients  in  such  a  way  as  to  do  the  most  good. 

7.  The  committee  staff  has  made  elaborate  charts  based  on  the  original  arrange- 
ments for  the  book  and  purporting  to  show  substantial  "defaults"  on  my  part. 
Has  no  one  on  the  staff  ever  heard  of  business  arrangements  between  parties 
being  changed  in  the  course  of  time?  The  original  plan  for  a  few  thousand 
copies  of  a  biography  of  the  late  Mr.  Hutcheson  contemplated  a  far  more  modest 
enterprise  than  finally  emerged,  not  only  in  terms  of  number  of  copies,  but  also 
in  terms  of  the  scope  of  the  book.  After  work  on  the  book  lind  started,  both  we 
and  the  Carpenters  Union  agreed  on  an  expanded  full  scale  history  of  the  union 
instead  of  a  relatively  brief  biography  of  its  printing  and  distribution  of  the  full 
number  of  books  ordered  by  the  Brotherhood  of  Cari^enters,  and  more,  has  been 
completed  only  because  of  this  committee's  investigation.  That  is  not  so.  Coun- 
sel's theory  overlooks  the  following  facts  : 

(a)  In  April  or  May  19."7,  several  months  before  the  start  of  this  com- 
mittee's investigation  of  the  Carpenters,  T  hired  a  new  plant  mauiiger  to 
reorganize  World  Wide  Press  so  that,  among  other  things,  we  would  be  pre- 
pared to  print  this  book.  That  was  shortly  after  T  was  finally  released  from 
the  time-devouring  commitments  related  to  the  7~>th  anniversary  year  cele- 
brations and  educational  ('f)nferences  of  the  CarjKMiters  Union. 

(h)  Even  before  the  i)lant  was  reorganized.  10,000  ('ojiios  of  the  book  were 
ordered  from  and  printed  by  an  outside  firm  in  the  spring  of  lOHT.  Thou- 
sands more  would  hav(»  been  printed  at  that  time  but  we  had  not  yet  com- 
pleted our  lists  of  recijiients  and  to  have  tens  of  thousands  of  undistributed 
books  on  hand  would  have  created  too  great  a  storage  problem. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11937 

This  printing  in  May  and  June  of  1957  has  been  completely  slurred  over  in 
the  presentation  thus  fare.  It  completely  destroys  the  claim  that  our  print- 
ing of  the  book  stemmed  only  from  this  investigation. 

(c)  In  the  early  fall  of  1957,  well  before  the  start  of  this  investigation, 
we  laid  plans  for  a  substantial  printing  at  our  plant,  because  the  lists  were 
then  well  along  toward  completion.  Although  the  records  apparently  show 
that  actual  printing  did  not  commence  until  the  paper  was  delivered  a  few 
days  after  the  investigation  began,  anyone  familiar  with  publication  of  a 
booli  of  this  size  Ivnows  that  the  planning  of  production,  the  solicitation  of 
bids  for  paper,  and  the  ordering  and  the  delivery  of  paper  takes  far  more 
time  than  the  few  days  interval  between  the  start  of  the  investigation  and 
the  actual  delivery  of  the  paper.  In  short  our  preparations  for  a  run  of 
over  16,000  books — in  addition  to  the  more  than  18,000  already  printed — 
definitely  antedated  this  committee's  investigation. 

9.  An  attempt  has  been  made  to  imply  that  I,  or  the  firms  with  which  I  am 
associated,  have  made  exorbitant  profits  from  the  publication  of  this  book  at 
the  expense  of  the  Carpenters  Union.  It  Is  interesting  that  this  insinuation 
has  been  made  through  Mr.  Stanley  Thompson's  estimate  as  to  what  he  thinks 
a  book  might  cost.  But  there  has  been  not  a  word  of  testimony  from  the 
committee's  accountants  and  investigators  who  have  had  all  our  corporate  books 
and  records  for  months  as  to  the  profits,  if  any,  which  either  the  companies  or 
I  actually  made  from  the  Hutcheson  book,  as  distinct  from  what  we  might  have 
made  on  someone's  fanciful  estimates.  Thompson  could  have  had  no  idea  of 
what  it  means  to  write  a  history  of  a  major  labor  union,  knowing  that  every 
word  was  subject  to  challenge  and  attack  by  those  hostile  to  that  union.  Into 
that  book  I  poured  the  experience  and  specialized  knowledged  of  a  Lifetime  as 
well  as  intensive  research  by  myself  and  an  experienced  staff. 

Nor  was  this  a  case,  as  Thompson  apparently  assumed,  where  all  the  material 
was  turned  over  to  us.  Voluminous  records  in  various  parts  of  the  country 
had  to  be  unearthed  and  examined  :  numerous  persons  had  to  be  interviewed. 

Even  on  a  question  of  printing  costs,  Thompson's  testimony  leaves  out  several 
key  facts.  Counsel  for  the  committee  emphasized  certain  estimates  by  Thompson 
of  less  than  .$1  a  copy  for  printing  alone.  Thompson  neglected  to  say  that  he  also 
told  us  that  he  could  not  get  the  paper  for  such  a  large  bulk  order,  so  that  his 
estimate  at  that  time  meant  very  little. 

Moreover,  I  would  not  give  him  a  large  order  until  I  had  seen  a  sample  of 
his  work  on  this  particular  book.  Shortly  after  receiving  the  shipment  which  I 
did  order  from  him,  I  was  informed  that,  notwithstanding  his  assurances,  the 
composing  room  of  the  printer  he  selected  was  nonunion.  Accordingly,  I  de- 
manded the  return  of  the  type  and  plates  and  did  no  further  business  with  him. 
The  records  show  that  Thompson  actually  billed  us  for  the  two  orders  he  printed 
at  a  rate  of  more  than  $1  per  copy.  This  does  not  include  the  making  of  the 
plates,  which  we  supplied,  the  engraving,  the  jackets,  or  any  phase  of  the  dis- 
tribution. 

10.  The  evidence  thus  far  has  glosse<l  over  completely  the  intricate,  time- 
consuming  and  costly  process  of  distributing  this  book.  Initially  the  preparation 
of  various  lists  of  recipients  with  the  aim  of  educating  the  community  to  the 
maximimi  extent  possible  in  the  history,  traditions,  and  contributions  of  the 
Brotherhood  of  Carpenters  took  months  of  effort.  It  was  important  not  only  to 
include  the  right  groups  but  to  refrain  from  distribution  which  vrould  merely 
arouse  hostility  toward  the  union.  Work  on  this  compilation  involved  research 
and  secretarial,  typing,  and  clerical  work. 

Our  organization  also  paid  for  the  printing  of  thousands  of  acknowledgment 
forms,  in  varying  types,  which  were  hand  inserted  in  each  copy.  We  imprinted 
and  typed  all  labels,  paid  all  postage  expense,  supplied  containers,  wrappers, 
and  carton  material,  and  paid  union  mailers'  labor  co.sts. 

I  inserted  the  word  "union,"  but  that  was  left  out.  We  paid  postal  costs  for 
"return"  books,  for  reshipping  and  for  thousands  of  acknowledgments  mailed 
in  self-addressed  return  envelopes  which  we  had  printed.  We  also  paid  haulage 
charges  for  hundreds  of  truck  deliveries. 

The  word  "hundreds"  has  been  left  out. 

As  a  result  of  these  efforts,  the  book  has  been  distributed  to  the  following 
groups,  in  most  cases  to  all  persons  or  institutions  in  the  group  and  in  the  others 
to  a  cross  section  or  to  those  whose  names  and  addresses  could  be  obtained : 

(a)  Public  libraries  throughout  the  United  States  and  Canada. 

( b)  University  libraries  in  the  United  States  and  Canada. 


11938  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

(c)   Seminaries  in  the  United  States  and  Canada. 

(rf)   Senior  high  schools  and  junior  colleges. 

(e)   Vocational  and  trade  schools. 

(/)   Law  libraries. 

ig)  Private  law  libraries  of  major  industry  law  firms. 

(h)   Army,  Navy,  Marine,  and  Air  Force  base  libraries. 

(i)   Veterans  hospitals  and  public  hospitals  with  patients'  libraries. 

ij)   United  States  and  Canadian  Trade  and  Industry  Association. 

(  k )   Chambers  of  commerce  and  boards  of  trade. 

{I)   Religious  organizations  and  institutions,  chaplains  and  clergymen. 

<m)   Members  of  the  United  States  Senate  and  House  of  Representatives. 

(n)   Legislators  in  every  Canadian  Province. 

(o)   Fraternal,  service,  and  welfare  organizations  and  agencies. 

(p)  Governors  of  every  State. 

(q)  Mayors  and  city  managers. 

(r)   Public  officials  such  as  judges,  attorneys  general,  etc. 

(s)   Better  business  bureaus. 

(t)   Foundations  and  research  organizations. 

(u)  Private,  personnel,  and  inplant  libraries  of  key  industrial  and  business 
concerns. 

{v)  Major  university  and  public  libraries  throughout  the  world. 

(w)  International  Labor  Organization  representatives  of  the  World  Confed- 
eration of  Trade  Unions. 

(x)   State  industrial  commissioners  and  State  libraries. 

(y)   Historical  societies. 

(z)  Newspapers,  periodicals,  college  and  trade  publications. 

(aa)   Trade  unions  and  their  officers  throughout  the  world. 

(bb)   Farmer  organizations  and  co-ops. 

11.  Mr.  Thompson  testified  that  I  suggested  that  the  book  be  printed  in  a 
nonunion  plant.  This,  I  unequivocally  deny.  I  never  suggested  any  printing 
by  any  firm  which  I  knew,  suspected,  or  was  informed  to  be  nonunion.  Our  own 
plant  at  World  Wide  Press,  which  supplied  the  type  for  the  book,  is  100  percent 
union. 

12.  An  attempt  has  been  made  to  have  it  appear  that  we  made  double  charges 
for  the  sample  books,  once  to  the  Carpenters  and  once  to  some  other  union  or 
institution.  This  attempt  illustrates  a  fundamental  misconception  of  the  re- 
lationship between  the  Carpenters  union  and  the  publisher. 

This  book  is  and  always  was  the  property  of  the  firms  with  which  I  am  asso- 
ciated. It  was  never  owned  by  the  Carpenters.  The  union  merely  purchased 
a  substantial  number  of  copies  at  a  rate  below  that  which  the  book  is  listed. 
But  it  was  no  part  of  my  agreement  that  I  would  not  sell  the  book  to  others.  On 
the  contrary,  I  informed  this  committee's  investigators  months  ago  that  I  have 
every  intention  of  promoting  as  extensive  a  public  sale  as  possible. 

The  book  has  been  reviewed  widely  and  favorably  by  newspapers  and 
periodicals. 

I  also  informed  the  committee's  staff  that  I  originally  proposed  that  the 
Carpenters  distribiite  the  book  to  over  250,000  institutions  and  individuals. 

When  the  brotherhood  decided  on  a  figure  well  below  100,000,  I  sought  to 
persuade  other  unions  to  finance  additional  distribution  to  groups  not  covered 
by  the  Carpenters. 

This  was  in  no  sense  double  ^payment.  The  Carpenters  were  entitled  to  the 
distribution  of  the  copies  they  paid  for,  and  more  than  that  has  already  been 
accomplished.  I  had  every  right  to  distribute  additional  copies  financed  by  other 
organizations. 

If  there  was  any  duplication  in  the  lists  of  the  Carpenters  and  some  other 
union,  that  is  regrettable  but  understandable. 

In  the  nature  of  the  case,  some  overlapping  and  double  shipment  to  the  same 
party  will  occur.  For  example,  there  may  be  one  list  for  high  schools,  another 
for  i»arochial  schools,  and  a  third  for  prep  schools.  Since  these  terms,  as  com- 
monly understood,  are  not  always  mutually  exclusive,  the  same  school  may 
appear  on  more  than  one  list. 

IV.    THE  TESTIMONY  OF  IIAKOLD  DANFORTH 

13.  A  private  investigator  named  Harold  Danforth  testified  that  I  hired  him 
to  do  some  work.     That  is  correct. 

As  Danforth  said,  I  asked  him  to  check  on  the  background  of  Walter  Reuther, 
because  I  believe  that  Reuther  is  seeking  to  gain  control  of  the  American  labor 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11939 

movement  and  that,  in  the  light  of  Reuther's  political  ambitions,  this  is  un- 
healthy for  labor,  generally,  for  the  AFL  craft  unions,  in  particular,  and  for 
the  Nation. 

I  think  his  policies  are  even  unhealthy  from  the  point  of  view  of  his  own  Auto 
Workers.  Since  the  time  that  I  expressed  those  views  to  Danforth,  more  than 
one  member  of  this  Senate  committee  has  publicly  expressed  similar  fears. 

1  also  asked  Danforth  to  investigate  the  truth  or  falsity  of  certain  rumors 
concerning  George  Meany,  in  the  hope  that  more  widespread  knowledge  of  the 
complete  picture  might  cause  him  to  '"stiffen  his  back"  in  dealing  with  Reuther. 

It  has  always  seemed  incomprehensible  to  me  that  Mr.  Meany,  with  his  back- 
ground, would  be  consistently  surrendering  to  Reuther's  group,  as  I  believe 
he  is,  unless  there  is  something  in  the  picture  known  to  Reuther  and  his  allies 
but  not  known  to  the  AFL  craft  unions,  whose  cause  the  Trade  Union  Courier 
has  traditionally  espoused. 

I  hoped  that,  with  more  complete  information,  these  unions  might  better  be 
able  to  cope  with  the  situation.  In  this,  I  was  acting  not  as  their  agent  but 
on  my  own  as  a  newspaperman,  a  labor  editor,  and  a  friend  of  these  AFL  unions. 

The  realities  of  labor  politics  are  no  different  from  the  realities  of  politics 
generally.  It  is  always  well  to  be  armed  with  full  information.  For  example, 
very  recently  a  distinguished  member  of  this  committee,  Senator  Ives,  has  made 
a  charge  of  improper  conduct  against  the  Governor  of  New  York  based  on  art 
alleged  incident  in  the  Governor's  past. 

The  information  on  which  this  charge  was  based  is  similar  to  the  type  of 
information  which  I  sought  to  have  established  or  refuted,  only  in  Senator  Ives' 
case  it  w^as  supplied  not  by  a  private  investigator  but  by  a  reporter  whose  prin- 
cipal assignment  of  late  has  been  covering  the  hearings  of  this  committee. 

In  being  attacked  for  what  I  did,  it  seems  to  me  that  here,  as  in  so  many 
other  instances,  I  am  simply  being  made  the  victim  of  a  double  standard. 

This  is  merely  one  of  the  many  instances  in  which  a  one-sided  presentation 
of  testimony  was  used  against  me  before  any  opportunity  was  given  me,  in 
public  or  private,  to  explain  my  side  of  the  picture. 

Thank  you. 

The  Chairman.  Mr.  Raddock,  I  have  just  one  question  at  the  mo- 
ment.    On  page  13, 1  believe  it  is,  at  the  bottom,  you  say : 

I  also  informed  the  committee  staff  that  I  originally  proposed  that  the  Carpen- 
ters distribute  the  book  to  over  250,000  institutions  and  individuals;  when  the 
brotherhood  decided  on  a  figure  well  below  100,000,  I  sought  to  persuade  other 
unions  to  finance  additional  distribution  to  groups  not  covered  by  the  Carpenters. 

Another  point  you  say,  and  I  could  not  reconcile  the  statement,  this ; 
On  page  10,  you  say : 

It  was  important  not  only  to  include  the  right  groups — 

that  is,  groups  it  would  be  distributed  to — 

but  to  refrain  from  distribution  which  would  merely  arouse  hostility  toward 
the  union. 

If  you  were  going  to  distribute  250,000  books,  publish  that  many, 
or  even  100,000  or  less,  how  could  you  have  possibly  conceived  that  the 
book  might  not  fall  into  the  hands  of  someone  who  is  antiunion  ?  I 
just  do  not  understand  it. 

You  are  trying  to  keep  it  away,  you  say,  from  people  where  it  might 
merely  arouse  hostility  toward  the  union,  yet  you  are  sending  it  to  all 
of  these  groups  and  putting  it  on  sale.  I  just  wondered  how  you 
reconciled  those  two  statements. 

Mr.  Raddock.  Senator  McClellan,  your  interpretation  of  the  bot- 
tom of  page  13  and  the  bottom  of  page  10,  the  construction  you  placed 
on  it  was  that  I  was  evidently  interesting  in  keeping  the  book  out  of 
the  hands  of  antiunion  people.  I  have  no  bigotry  in  my  system.  I 
don't  feel  that  people  generally  fall  into  such  category  as  antiunion. 
I  don't  feel  that  the  history  of  the  Carpenters'  Union  is  the  kind  of  a 
book  that  would  engender  hostility.     The  reference  there  only  im- 


11940  IiMPROPER    ACTIVITIES    IN    THE    L/\BOR    FIELD 

plies  the  following:  That  a  distribution  of  such  a  large  number  of 
books  has  to  be  handled  carefully,  scientifically,  and  selectively  only 
for  the  following  psychological  reasons :  Should  a  publisher  send  out 
a  book  about  a  labor  union,  and  glut  a  city's  educational  institutions, 
it  would  engender  some  sort  of  temporary  ill  feeling  on  the  part  of 
some  persons. 

I  found  in  my  experience,  for  instance,  that  in  some  instances  a 
superintendent  of  a  school  system  in  a  city  resented  the  fact  that 
schools  received  a  book  free  of  charge,  and  suggested  that  it  should 
be  handled  solely  through  a  book  wholesaler.  I  therefore  take  the 
position  that  the  distribution  of  any  book,  and  particularly  a  book 
on  a  trade  union  subject  in  the  current  national  climate  must  be  care- 
fully, intelligently  distributed. 

The  Chairman.  I  can  understand  that.  You  would  like  to  get  dis- 
tribution where  there  would  be  the  most  reading,  possibly,  the  most 
widespread  dissemination  of  the  information  in  the  book.  But  what 
I  could  not  reconcile  is  where  you  say  it  was  important  not  only  to 
include  the  right  groups  but  to  refrain  from  distribution  which  would 
merely  arouse  hostility  toward  the  union. 

Then  you  state,  "Work  on  this  compilation  involved  research  and 
secretarial,  typing  and  clerical  work." 

Mr.  Raddock.  That  refers  to  quantity.  Senator  McClellan.  In  dif- 
ferent words,  not  glutting  all  of  the  institutions  in  any  given  city, 
because  our  distribution  was  probably  the  most  unprecedented  in  the 
history  of  this  country  insofar  as  a  labor  organization,  in  my  opinion, 
exercising  a  salutary  influence  on  the  American  free-enterprise  system 
and  on  the  American  scene. 

The  Chairman.  If  you  were  just  trying  to  give  it  to  a  select  group 
and  making  eflorts  to  keep  it  away  from  others,  I  cannot  understand 
the  philosophy  of  wanting  to  have  250,000,  and  then  I  can't  conceive 
of  such  a  broad  distribution  not  having  the  book  fall  into  the  hands  of 
some  folks  who  might  raise  a  little  hostility. 

Mr.  Raddock.  May  I  say  this :  I,  myself,  am  part  of  the  plain  folks. 
I  have  no  hostility  toward  anyone,  including  the  people 

The  Chairman.  You  say  you  want  to  keep  it  out  of  the  people  who 
might  have  hostility. 

Mr.  Raddock.  No,  but,  Senator  McClellan,  you,  as  an  enlightened 
legislator,  who  Iniows  the  American  scene  definitely,  if  we  sent  it  out 
to  every  trade  organization,  every  chamber  of  commerce,  every  better 
business  bureau  and  to  a  cross-section  of  all  the  large  employer  groups 
of  the  United  States  and  Canada,  we  certainly  didn't  take  the  position 
that  we  are  afraid  of  shedding  a  little  light  on  a  labor  subject  about 
a  free  labor  movement  in  America  to  employer  groups  or  industrial- 
ists who  might  have  a  contrary  view  only  because  they  don't  possess 
the  knowledge. 

The  Chairman.  I  can  appreciate  a  book  of  this  kind,  but  you  would 
primarily  send  it,  I  would  think,  to  those  who  might  be  friendly  to- 
ward the  labor  movement  or  tliose  who  were  neutral  that  you  might 
want  to  impress  with  the  labor  movement,  and  so  forth. 

I  could  not  understand  why  you  thought  it  was  so  important  to  try 
to  keep  it  away  from  groups  or  interests  where  it  might  arouse  hostil- 
ity. I  don't  think  a  book,  a  publication,  of  this  kind  could  hardly  be 
published  without  some  of  those  groups  at  least  having  access  to  it  or 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11941 

maybe  buying  a  volume  of  it.  In  other  words,  I  didn't  think  it  could 
be  a  secret  publication. 

Mr.  Eaddock.  Senator  McClellan,  I  assure  you  once  again  it  is  my 
earnest  feeling  and  fem-ent  hope  that  trade  miionists  in  this  country 
ultimately  will  buy  the  book  in  abundance.  It  was  our  intent  in  the 
Brotherhood  of  Carpenters  and  on  behalf  of  the  Brotherhood  of  Car- 
penters, and  not  only  them  but  labor  generally,  because  we  do  have 
an  interest  in  exercising  a  stabilizing  influence  on  tlie  American  in- 
dustrial scene,  that  this  book  should  go,  rather,  into  wide  circulation 
among  people  who  are  outside  the  union  fold,  and  who  don't  hold 
union  cards,  and  also  to  lawmakers  and  to  industrialists  and  others 
who  have  to  daily  consider  the  union  side  of  the  picture. 

We  felt  that  we  could  help  them  consider  it  in  a  less  biased  light. 
I  have,  again,  an — an  industrialist,  in  my  opinion,  if  he  is  nonunion, 
I  don't  consider  him  antiunion,  and  I  don't  consider  an  antiunionist 
can  have  his  opinions  altered  through  publication. 

The  Chairmax.  I  think  your  statement  would  have  been  better  had 
you  left  that  phrase  out  of  it. 

It  is  calculated  to  create  some  abuse  and  misunderstandmg.  I  was 
just  trying  to  get  some  clarification. 

Mr.  Raddock.  With  the  utmost  deference  to  you.  Senator,  if  it  is 
your  feeling  that  that  is  poorly  phrased,  I  accept  your  criticism  with 
good  grace. 

Tlie  Chairmax.  I  don't  say  it  is  poorly  phrased,  if  you  meant  what 
it  said.    All  right,  Mr.  Kennedy. 

Mr.  Kexxedy.  I  take  it  from  reading  over  this  statement  that  there 
haven't  l>een  any  misstatements  of  fact  concerning  you  in  the  previ- 
ous hearings,  Mr.  Raddock,  but  that  you  just  have  an  explanation 
for  all  of  them  ? 

Mr.  R.VDDOCK.  Misstatements  of  fact,  Mr.  Chief  Counsel  Kennedy  ? 
I  don't  recall  eveiy  line  of  the  transcript.  There  have  been  some  mis- 
taken impressions  created  by  testimony  whicli  I  did  read  out  of  the 
transcripts.  Generally — I  mean,  it  would  be  hard  for  me  to  just  say 
there  were  no  misstatements. 

Mr.  IvExxEDY.  I  have  been  reading  over  your  statements,  and  I  am 
sure  that  prior  to  making  this  statement  you  studied  the  record.  You 
don't  point  out  in  anj^where  in  the  statement  that  there  were  any  mis- 
statements of  fact  concerning  you  in  the  hearings  so  far.  Is  that  cor- 
rect? 

Mr.  Raddock.  I  think  that  almost  every  subject  was  covered  be- 
cause Mr.  Waldman  told  me  not  to  make  the  statement  too  lengthy. 

Mr.  IvExxEDT.  You  talked  in  here  about  these  bonds.  Let  me  get 
a  little  background.    "VYliat  are  your  busmesses,  Mr.  Raddock  ? 

Is  it  World  Wide  Press? 

Mr.  Raddock.  M}^  business,  all  my  life,  is  the  printed  word. 

Mr.  Kexxedt.  Let's  go  back. 

Mr.  Raddock.  And  tlie  kind  of  production 

Mr.  IvENXEDY.  Where  did  you  go  to  school  ? 

Mr.  Raddock.  I  went  to  the  Orthodox  Rabbinical  Seminaiy  of  Xew 
Haven,  Conn. 

Mr.  IvEXXEDY.  You  graduated  from  there? 

IVIr.  Raddock.  Yes.  I  was  almost  ordained  a  rabbi.  I  was  short  1% 
years.  I  was  a  Hebrew  teacher  during  that  time  and  I  wrote  for  the 
Jewish  Daily  Forward  thereafter. 


11942  IMPROPER   ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  What  year  did  you  get  out  of  there  ? 
Mr.  Raddock.  I  believe  I  was  about  17,  I7i/^. 
Mr.  Kennedy.  And  then  what  did  you  do  ? 

Mr.  Raddogk.  I  worked  in  the  advertising  field  as  a  publicity  writer 
for  the  Yiddish  Press.  Thereafter,  into  the  Jewish  Daily  Forward. 
Following  that,  in  1936,  when  the  CIO  was  born,  I  edited  this  news- 
paper, and  pursued — — 

Mr.  Kennedy.    What  newspaper  was  that  ? 

Mr.  Raddock.  The  Trade  Union  Courier — and  followed,  adhered 
to,  an  A.  F.  of  L.  policy. 

Mr.  Kennedy.  Did  you  form  that  paper  yourself  at  that  time  ? 
Mr.  Raddock.  Yes ;  with  the  aid  of  other  unionists.    My  experience 
in  the  Jewish  Daily  Forward  was  rather  broad,  but  in  part  it  also 
included  reporting  of  the  labor  scene. 

I  probably  was  the  first  cub  reporter  who  covered  anything  but  the 
garment  or  the  needle  trades  unions  which  were  predominantly  Jewish 
at  the  time,  and  developed  a  lot  of  friendships  with  a  good  many 
organizations  outside  of  the  needle  trades,  which  had  their  own  house 
organs. 

Mr.  Kennedy.  Were  you  ever  a  trade  union  official  yourself? 
Mr.  Raddock.  First  in  an  honorary  capacity  at  the  request  of  Joseph 
Belsky  of  the  Amalgamated  Meat  Cutters  and  Butcher  Workmen  of 
North  America,  and  I  believe  that  was  in  my  Jewish  Daily  Forward 
days.  He  asked  me  to  aid  in  an  honorary  capacity  some  local  unions 
just  affiliated.  One  of  them  was  the  Butcher  Workmen's  Local  640, 
where  I  later  served,  I  think  for  a  brief  time,  I  wouldn't  recall  how 
long,  maybe  a  half  year  or  a  year,  in  a  paid  capacity.  I  believe  it  was 
$50  or  something  like  that  a  week. 
Mr.  Kennedy.  When  was  that  ? 

Mr.  Raddock.  That  would  have  been,  perhaps  in  1936-38.    I  think 
it  was  around  that  time.    My  recollection  would  not  serve  me  too  well. 
Mr.  Kennedy.  How  long  did  you  serve  in  that  capacity? 
Mr.  Raddock.  A  brief  time.    I  don't  recall  exactly. 
Mr.  Kennedy.  A  year,  2  years,  3  years  ? 
Mr.  Raddock.  Maybe  less  than  a  year.   I  am  not  certain. 
Mr.  Kennedy.  That  is  the  only  time  you  were  ever  a  trade  union 
official ? 

Mr.  Raddock.  A  few  years  later  I  was  asked  to  be  a  general  organizer 
for  the  Clerks  International. 
Mr.  Kennedy.  By  whom  ? 

Mr.  Raddock.  By  Mr.  Nathan  Wertheim,  who  is  now  deceased,  and 
by  C.  C.  Coulter,  the  international  secretary,  out  of  Lafayette,  Ind. 
In  both  of  these  union  posts,  they  were  not  my  total  jobs.  I  was 
interested  chiefly  in  the  newspaper,  but  since  the  newspaper  actually 
participated  actively  in  the  organizing  activities  and  loaned  aid  to  the 
organizers,  I  was,  therefore,  asked  to  take  a  part  and  to  accept  some 
compensation. 

Mr.  Kennedy.  Was  there  any  other  union  other  than  the  Butchers 
and  the  Clerks  ? 

Mr.  Raddock.  No  ;  none  to  my  recollection. 

Oh,  yes,  later  the  jewelry  workers  union.  This  was  for  also  a  period 
of  about  three-quarters  of  a  year  or  a  half  year  or  a  year.  I  served  as 
more  or  less  of  a  trouble  shooter  for  about  1  year's  time,  helping  to 
root  out  certain  conditions  that  the  international  officialdom 


EMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11943 

Mr.  Kennedy.  "Wlien  was  that  ? 

Mr.  Raddock.  I  don't  remember  the  year. 

Mr.  Kennedy.  Approximately  when  was  it? 

Mr.  Raddock.  Maybe  10  years  ago. 

Mr.  Kennedy.  Who  asked  you  to  come  into  the  jewelry  workers? 

Mr.  Raddock.  Well,  our  paper  was  the  ojficial  organ  of  the  Inter- 
national Jewelry  Workers  Union  for  about,  I  think,  15  years.  Leon 
Williams  and  Samuel  Beardsley  were  the  officers.  I  always  worked 
with  them  conscientiously,  and  upon  Williams  passing — first  Beardsley 
passed  away  and  then  Williams  did — and  some  new  people  without  a 
broad  background  in  the  activities  of  the  union  emerged  in  the  leader- 
ship and  they  asked  me  to  lend  a  participating  hand. 

IVir.  Kennedy.  Anything  else  ? 

Jewelry  workei'S,  clerks,  butchers  ? 

Mr.  Raddock.  I  don't  recall  any  others,  although  I  have  worked 
alongside  union  officials  at  least  23  years  of  my  life. 

Mr.  Kennedy.  Are  you  a  member  of  any  union  now  ? 

Mr.  Raddock.  I  was  originally  a  member  of  the  Newspaper  Guild. 
I  think  I  am  about  the  80th  or  so  founding  member,  when  I  was  with 
the  Jewish  Daily  Forward.  I  don't  believe  that  I  hold  anything  but 
perhaps  some  honorary  memberships  that  I  wouldn't  even  be  able  to 
recall. 

IVIr.  Kennedy.  You  don't  pay  any  dues  now  ? 

Mr.  Raddock.  No  ;  I  am  not  a  dues  payer. 

Mr.  Kennedy.  Your  present  position  is  you  have  a  position  with 
the  World  Wide  Press? 

Mr.  Raddock.  I  am  president  of  World  Wide  Press  Syndicate,  Inc. 

Mr.  Kennedy.  And  do  you  own  all  the  stock  in  World  Wide  Press  ? 

Mr.  Raddock.  I  own  two-thirds  of  the  stock.  The  balance  is  in  the 
treasury. 

Mr.  Kennedy.  And  the  Trade  Union  Courier  ? 

Mr.  Raddock.  I  own  all  the  stock  of  the  Trade  Union  Courier,  the 
publishing  corporation,  or,  I  tliink,  there  are  20  shares  in  all  issued 
and  the  balance,  unless  tlie  books  would  show  that  only  20  shares  were 
issued,  the  rest  would  be  in  the  treasury. 

Mr.  Kennedy.  Do  you  have  any  other  companies  or  organizations 
that  you  have  an  interest  in  ? 

Mr.  Raddock.  The  American  Institute  of  Social  Science.  That  is 
about  all. 

Mr.  Kennedy.  Is  that  incorporated? 

Mr.  Raddock.  Yes. 

Mr.  Kennedy.  And  do  you  own  the  stock  in  that,  all  of  it? 

Mr.  Raddock.  I  don't  believe  it  has  been  distributed.  It  is  either  in 
the  treasury  or  I  own  it.  I  don't  think  I  have  taken  the  paper,  the 
certificate. 

Mr.  Kennedy.  The  American  Institute  of  Social  Science,  you  are 
president  of  that  ? 

Mr.  Raddock.  Yes. 

Mr.  Kennedy.  How  long  has  that  been  in  existence  ? 

Mr.  Raddock.  I  believe  since  about  1955,  the  middle  of  1055,  if  I 
am  not  mistaken. 

Mr.  Kennedy.  What  does  that  organization  do,  briefly  ? 

Mr.  Raddock.  Briefly?     Briefly,  it  is  interested  in  economics  and 


11944  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

the  social  sciences,  and  is  presently  working  on  several  subjects  in  the 
field  of  economics,  several  labor  biographies,  one  of  Samuel  Gompers, 
by  a  Dr.  Bernard  Mandel,  another  one  by  Hilton  Hannah  and  Jo- 
seph Belsky  of  Patrick  E.  Gorman,  the  secretary-treasurer  of  the 
Amalgamated  Meat  Cutters ;  and  another  one  on  labor  health  in  the 
United  States;  and  3  other  works  that  are  currently  in  the  research 
state,  in  the  mass  communications  field,  of  which  radio  and  television 
is  a  big  part,  as  Senator  McClellan  pointed  out,  and  sundry  other 
media. 

Mr.  Kennedy.  According  to  your  statement,  some  bonds  were  sold 
on  World  Wide  Press ;  is  that  right  ? 

Mr.  Raddock.  Yes,  sir. 

Mr.  Kennedy.  In  the  case  of  Morris  Horn,  who  runs  local  627  of 
the  Meat  Cutters,  a  review  of  the  records  of  the  World  Wide  Press, 
and  I  see  you  made  reference  to  it,  reflects,  for  instance,  that  there 
was  no  receipt  of  any  money  from  Morris  Horn  for  the  $2,000  worth 
of  bonds  that  he  received  in  September  of  1952.  Do  you  have  any 
explanation  for  that  ? 

Mr.  Raddock.  First,  my  statement  covers  the  overall  total  financial 
subject.  On  the  specific  question,  as  I  told  the  investigators  of  this 
committee,  Mr.  Dunne  and  Mr.  Tierney,  my  recollection  regarding 
Mr.  Horn's  purchase  of  bonds  resulted  from  a  sale  made  sometime 
prior  which  was  not  consummated  to  William  A.  Roth,  of  the  Wine 
Liquor  Distillery  Workers  Union,  Local  1,  who  agreed  to  purchase 
$6,000  worth  of  bonds,  and  Mr.  Rotli — I  remember  it  was  around  elec- 
tion time  when  I  met  him.  He  had  told  me  to  come  up  to  see  him  at 
about  1  or  2  o'clock  to  pick  up  the  money,  and  he  told  me  then  it  was 
the  last  day 

Mr.  Kennedy.  We  are  including  that.  We  are  giving  you  credit 
for  that.  He  got  $3,000  worth  of  bonds  altogether.  One  thousand 
dollars  came  from  William  A.  Roth.  The  record  shows  you  received 
no  money  from  him  for  $2,000  worth  of  bonds,  which  was  an  original 
issue. 

Do  you  have  any  explanation  for  it?     Then  we  will  move  on. 

Mr.  Raddock.  I  will  give  you  my  word  that  Mr.  Horn  or  any  other 
union  official  who  purchased  bonds,  I  declare  this  under  oath,  un- 
ecjuivocally,  everyone  who  purchased  bonds,  businessman,  union  offi- 
cial, or  union  paid  for  the  bonds.  I  can  give  you  no  other  explanation 
except  that  which  I  have  given  you  in  this  statement,  wliich  is  the 
total  truth. 

Mr.  Kennedy.  The  problem  is  that  your  books  and  records  indicate 
that  he  did  not.  When  he  was  asked  before  the  committee  about  it, 
he  refused  to  answer  any  questions  about  it.  You  also  had  a  question- 
able transaction  with  Mr.  John  O'Rourke  for  some  five 

Mr.  Raddock.  Is  that  a  statement  or  a  question,  Mr.  Kennedy  ? 

Mr.  Kennedy.  I  am  going  to  give  you  another  question. 

The  records  show  that  $5,000  was  paid  out  of  payroll  checks,  $5.97 
in  cash  and  18  payroll  checks  of  other  of  j^our  enterj^rises,  for  the 
bonds  of  John  J.  O'Rourke. 

Can  you  ex]:)lain  that  to  the  committee? 

Mr.  Raddoc  K.  Yes,  sir.  The  general  explanation  is  covered  in  my 
statement.  The  specific  recollection  I  have  regarding  the  O'Rourke 
purcliase.     I  personally  sold  Mr.  O'Rourke  the  bonds.     Mr.  O'Rourke 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11945 

was  laid  up  with  a  heart  attack  for  6  months.  Some  friends  told  me 
that  he  would  like  visitors.  I  was  under  the  impression  that  he  could 
not  have  visitors. 

Mr.  Kennedy.  Mr.  Raddock,  let's  get  it  straight.  Just  answer  the 
question. 

Mr.  Kaddock.  Your  question  was  that  there  was  a  suspicious  inci- 
dent. I  would  like  to  say  that  Mr.  O'Rourke  unequivocally  paid  for 
every  single  penny  of  those  bonds,  didn't  get  a  cut  rate  nor  any  privi- 
leged arrangement. 

Mr.  IvENNEDY.  Now,  Mr.  Chairman,  we  subpenaed  Mr.  O'Rourke 
before  the  committee.  He  had  a  doctor's  certificate.  He  has  been  ill 
again,  and  he  furnished  an  affidavit  in  connection  with  the  purchase 
of  those  bonds. 

The  Chairman.  The  affidavit  may  be  printed  in  the  transcript  at 
this  point  in  the  record. 

I  will  read  the  pertinent  part. 

I  understand  that  my  appearance  before  the  committee  would  have  been 
concerned  with  my  relationship  with  Maxwell  C.  Raddock,  the  Trade  Union 
Courier,  and  with  the  purchase,  transfer,  sale,  or  redemption  of  World  Wide 
Press  Syndicate,  Inc.,  debenture  bonds.  To  all  of  the  above  questions  I  would 
before  the  committee,  claim  my  privilege  under  the  fifth  amendment  to  the 
Constitution  of  the  United  States  and  refuse  to  answer  on  the  grounds  that 
those  answers  might  tend  to  incriminate  me. 

(The  document  referred  to  follows :) 

State  of  New  York, 
County  of  Neio  York,  ss : 

John  J.  O'Rourke,  having  first  been  duly  sworn,  deposes  and  says : 

First.  I  am  president  of  Joint  Council  No.  16  of  the  International  Brother- 
hood of  Teamsters,  Chauffeurs,  Warehousemen  &  Helpers  of  America,  and  main- 
tain my  principal  offices  at  26.5  West  14th  Street,  New  York,  N.  Y. 

Second.  I  give  this  aflBdavit  to  representatives  of  the  United  States  Senate 
Select  Committee  on  Improper  Activities  in  the  Labor  or  Management  Field, 
in  hopes  that  it  will  dispense  with  my  personal  appearance  before  that  com- 
mittee in  Washington,  D.  C,  for  reasons  of  my  bad  health. 

Third.  I  understand  that  my  appearance  before  the  committee  would  have 
been  concerned  with  my  relationship  with  Maxwell  C.  Raddock,  the  Trade 
Union  Courier,  and  with  the  purchase,  transfer,  sale,  or  redemption  of  World 
Wide  Press  Syndicate,  Inc.,  debenture  bonds. 

Fourth.  To  all  of  the  above  questions  I  would,  before  the  committee,  claim 
my  privilege  under  the  fifth  amendment  to  the  Constitution  of  the  United 
States  and  refuse  to  answer  on  the  ground  that  those  answers  might  tend  to 
incriminate  me. 

John  J.  O'Roubke. 

Sworn  to  before  me  this  20th  day  of  May  1958. 

[seal]  John  T.  Norton, 

Xotary  Public,  State  of  New  York. 

Qualified  in  Queens  County.  Certificate  filed  in  New  York  County.  Term 
expires  March  30,  1959. 

The  Chairman.  Mr.  O'Rourke  is  still  unable  to  attend,  I  assume, 
and  states  that  he  would  refuse  to  answer  the  question. 

Mr.  Waldman.  May  the  record  show  at  this  point  that  Mr. 
O'Rourke  has  been  before  the  committee  in  other  connections  and  has 
uniformly  pleaded  the  fifth  amendment  as  to  all  questions  asked  of 
him. 

This  is  not  just  an  isolated  incident. 

The  Chairman.  I  think  you  are  correct  about  that,  but  the  record 
reflects  that. 


11946  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

Mr.  Kennedy.  According  to  your  own  records,  the  $5,000  worth  of 
bonds  that  went  to  John  OTlourke  were  paid  for  the  most  part  out 
of  payroll  checks  of  youi-  various  enterprises. 

The  Chairman.  I^et  us  ask  the  witness  this  question :  Do  you  deny 
that  they  were  paid  for  by  these  checks  as  the  record  shows  I 

Mr.  Haddock.  If  the  inference.  Senator  McClellan 

The  Chairman.  There  is  no  inference.  The  bonds  were  actually 
paid  for  by  these  checks,  insofar  as  going  into  the  bond  fund.  What 
is  the  name  of  it  ?     The  World  Wide  Press. 

So  far  as  the  World  Wide  Press,  it  received  its  payments  from 
these  checks,  the  record  reflection. 

Mr.  Kaddock.  May  I  just  add 

The  Chairman.  That  is  true  so  far  as  World  Wide  Press  is  con- 
cerned ;  is  it  ? 

Mr.  Raddock.  Apparently,  according  to  Mr.  Kennedy,  or  the  testi- 
mony that  I  read  in  the  transcript,  that  is  a  fact.     As  I  read  it. 

The  Chairman.  Now,  however,  you  claim  that  Mr.  O'Rourke  paid 
you  for  the  bonds  ? 

Mr.  Raddock.  Definitely. 

The  Chairman,  l^'liere  did  you  enter  that  payment? 

Mr.  Raddock.  Insofar 

The  Chairman.  What  did  you  do  with  it  ? 

Mr.  Raddock.  Insofar,  Senator  McClellan,  as  I  told  the  investi- 
gators, or  I  believe  I  testified  at  the  executive  session,  when  I  per- 
sonally received  money  from  any  bond  purchaser,  I  delivered  that 
money  to  the  secretary  of  the  corporation,  who  in  turn  had  to  notif}' 
the  American  Registrar  &  Transfer  Corp.  that  such  money  was  de- 
posited in  the  bank,  and  only  then  were  bonds  issued. 

The  Chairman.  You  also  were  paying  for  the  bonds  of  the  World 
Wide  Press,  you  were  paying  for  those  bonds,  the  record  so  shows, 
with  payroll  checks  from  your  other  companies ;  is  that  correct  ? 

Mr.  Raddock.  Apparently,  according  to  what  I  read.  My  recol- 
lection would  not  serve  me.  But,  Senator  McClellan,  in  order  that 
no  false  impression  be 

The  Chairman.  I  am  trying  to  eliminate  one,  if  there  is,  and  give 
you  the  opportunity  of  explaining  it. 

So  far  as  the  records  of  the  World  Wide  Press  are  concerned,  they 
show  that  the  payment  for  these  bonds  was  received  in  payroll  checks 
and  so  forth  from  your  other  company. 

Mr.  Raddock.  That  statement  I  will  accept  as  correct. 

The  Chairman.  How  was  your  other  company  reimbursed  and 
was  any  record  made  of  the  reimbursement  by  any  money  you  received, 
if  you  received  any,  from  Mr.  O'Rourke  ? 

iVIr.  Raddock.  Undoubtedly  in  that  the  payroll  checks  of  those 
employees  were  cashed  and  the  checks  deposited  in  the  World  Wide 
Press  account. 

The  Chairman.  Well,  there  would  be  a  record  of  where  the  money 
came  from ;  there  should  be. 

Mr.  Raddock.  Well,  apparently  those  18  payroll  checks  should  be 
the  record  since  no  duplication  of  those  18  payroll  checks  was  con- 
tained in  our  records. 

The  Chairinian.  Tlie  records,  as  I  understand  them,  show  that  the 
money  went  out  of  the  Trade  Union  Courier  into  the  World  Wide 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11947 

Press.  But  the  records  do  not  show  that  a  corresponding  amount  of 
money  came  into  the  Trade  Union  Courier. 

Mr.  Kaddock.  It  does  show  that,  Senator  McClellan,  by  the  com- 
mittee's own  testimony,  that  the  18  payroll  checks  were  cashed  and 
deposited  in  the  World  Wide  Press  accounts.  Again  I  repeat  that  no 
duplicate  payroll  check  was  issued  that  week  to  the  same  employee. 
All  we  did  was  cash  the  employee's  check,  nothing  else  but. 

The  CiiAiRMAX.  Your  record  does  not  show  where  the  cash  came 
from. 

Mr.  Eadoock.  Obviously  it  must  have  come  from  the  World  Wide 
Press  account. 

The  Chairmax.  Then  your  books  are  not  accurate,  because  it  does 
not  show  the  income.     The  books  do  not  show  the  receipt  of  the  money. 

Mr.  Eaddock.  It  does  show  it,  Senator  McClellan,  by  the  com- 
mittee's own  testimony. 

The  Chairman.  Do  you  have  any  record  where  John  O'Rourke's 
name  appears  in  there,  where  the  World  Wide  Courier  received  that 
mone}'  ? 

Mr.  Haddock.  I  am  sure  of  that.  I  am  sure  that  the  World  Wide 
Press  records  will  show  that  John  O'Rourke  paid  $5,000  for  his  bonds. 
I  repeat  again,  Mr.  Chairman,  whether  Mr.  O'Rourke  feels  inclined 
to  take  the  fifth  amendment  for  his  own  interest,  I,  under  oath,  declare 
that  Mr.  O'Rourke  paid  the  full  $5,000  for  his  bonds,  and  I  had  no 
shady  transaction  ever  with  Mr.  O'Rourke  and  personally  have  a 
great  deal  of  liking  for  the  man  and  consider  him  an  honorable  man. 

Mr.  Kexxedy.  There  is  nothing.  Mr.  Chairman — and  I  believe  you 
will  support  this — that  shows  that  he  received  $5,000  in  cash  from 
John  O'Rourke. 

Mr.  Raddock.  Mr.  Kennedy,  I  am  not  an  authority  on  books,  but 
I  can  only  point  it  out  in  my  way.  For  instance,  if  it  were  Friday 
at  3  o'clock,  and  the  employees  needed  their  pay  cashed,  the  bank  was 
closed,  and  if  we  had  cash  in  World  Wide  Press,  the  secretaiy  would 
cash  the  check  for  those  people.  Now^,  in  this  instance,  18  employees' 
checks  were  cashed.  But  I  repeat  again,  and,  to  me,  it  seems  simple, 
I  don't  know  why  I  don't  make  the  mathematical  point,  that  no  dupli- 
cate point  was  issued  to  the  same  18  employees,  who  are  undoubtedly 
with  us,  because  there  have  been  few  severances. 

Mr.  Kexxf.dy.  Can  you  explain,  then,  on  the  bonds  for  Allen  Rob- 
ert Block,  the  son  of  Ix)uis  Block,  issued  in  January  1952,  in  the  total 
amount  of  $1:,000,  why  there  was  no  money  in  that  instance  received 
by  World  Wide  Press  on  the  issue  of  those  bonds  ? 

Mr.  Raddock.  Again  I  repeat,  Mr.  Kennedy,  and  I  believe  I  told 
you  this  in  executive  session,  and  I  declare  it  under  oath  again,  Mr. 
Block  paid  every  single  penny  that  he  was  supposed  to  pay  for  his 
bond  purchases.  Xo  suspicious  conditions  can  be  alleged  to  it.  Inso- 
far as  the  income  of  World  Wide  Press,  it  should  show  such  deposits, 
and  your  total  of  212,000  out  of  the  213,000  out  of  my  statement, 
should  prove  that  point  up  to  $1,000. 

Mr.  Kexxedy.  The  way  to  prove  it,  of  course,  would  be  to  examine 
their  bank  accounts  and  records,  and  get  support  that  they  may  have 
for  the  payments.  ^Mr.  Louis  Block  said  that  he  paid  for  these  bonds 
by  check.  He  was  unable  to  come  up  with  any  che^k  showing  that 
he  had  paid  for  the  bonds.    He  told  us  where  his  bank  accounts  were 


11948  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

at  the  time.  We  checked  them  alL  There  was  no  withdrawal  of 
money  for  the  purchase  of  these  bonds.  We  went  to  Mr.  John 
O'Rourke,  who  received  another  suspicious  payment  of  bonds,  and 
he  took  the  fifth  amendment.  We  went  to  Mr.  Horn,  and  he  refused 
to  answer  about  them.  Your  books  and  records  indicate  that  the 
bonds  were  not  paid  for.    That  is  alL 

Mr.  Raddock.  The  last  part  of  the  statement,  Mr.  Kennedy,  is  not 
accurate.  Insofar  as  my  testimony,  since  you  have  called  me  to  testify 
under  oath,  and  I  wouldn't  want  to  perjure  myself,  is  that  these  men 
positively  paid  for  their  bonds,  and  that  no  one  got  a  bond  without 
paying  the  full  money,  with  due  respect  for  their  testimony.  I  can- 
not be  accountable  for  their  testimony,  but  I  will  be  accountable  for 
mine. 

Mr.  Waldmax.  I  think  that  is  one  of  the  transactions  referred  to 
in  Mr.  Raddock's  statement,  whereby,  if  you  make  the  assumption 
that  Mr.  Louis  Block's  son  did  not  pay,  then  there  was  a  double 
payment  by  either  a  Butcher's  union  or  by  certain  officials  of  the 
union. 

I  don't  think  counsel  means  to  suggest  that  any  union  or  union 
official  paid  twice  for  his  bonds. 

Mr.  Kennedy.  From  the  review  of  the  books  and  records,  it  is  im- 
possible to  understand  where  the  money  came  from  for  the  bonds. 

Senator  Goldwater.  Mr.  Kennedy,  have  you  examined  the  books 
of  World  Wide  Press? 

Mr.  Kennedy.  Someone  under  my  direction. 

Senator  Goldwater.  On  your  statf.  Did  they  find  an  entry  in  those 
books  to  indicate  the  receipt  of  the  money  for  the  bonds  ? 

Mr.  Kennedy.  No. 

Senator  Goldwater.  That  seems  to  be  the  answer. 

Mr.  Kennedy.  It  says  $5,000  from  John  O'Rourke,  and  then  we 
trace  how  those  bonds  were  paid  for.  We  checked  them  back  and 
found  out  that  they  were  paid  for  out  of  payroll  checks  from  World 
Wide  Press.  Possibly,  there  is  an  explanation.  But  the  way  we  went 
into  it  was  to  try  to  go  to  John  O'Rourke,  and  he  wouldn't  answer. 
Then  there  was  a  suspicious  circumstance  regarding  some  of  these 
other  individuals  where  we  couldn't  get  any  answer.  Mr.  Raddock 
says  that  they  all  paid  for  them,  and  I  think  the  facts  speak  for 
themselves. 

Senator  Goli)\\ater.  But  you  found  no  specific  entry  where  $5,000 
was  received  from  John  O'Rourke  ? 

Mr.  Kennedy.  The  $5,000  was  supposed  to  come  from  John 
O'Rourke.  When  we  checked  to  find  out  where  it  came  from,  it  came 
from  the  payroll  checks. 

Senator  Goldwater.  But  there  was  $5,000  on  the  books  for  the  pay- 
ment of  bonds,  for  the  bonds  ? 

Mr.  Kennedy.  Yes. 

Senator  Goldavater.  But  the  money  didn't  come  from  John 
O'Rourke? 

Mr.  Kennedy.  According  to  their  records,  it  did  not  come  from 
Jolm  O'Rourke ;  it  came  from  the  payroll. 

Senator  Goldwater.  May  I  elaborate  ? 

Mr.  Kennedy.  Then  we  have  the  two  instances  where  there  was  no 
payment  at  all. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11949 

Senator  Curtis.  I  would  like  to  ask  some  questions  about  that 
transaction.  Mr.  Kaddock,  is  it  your  claim  that  Mr.  O'Rourke  did 
deliver  or  cause  to  be  delivered  to  your  place  of  business  $5,000  for 
these  bonds  ? 

Mr.  Eaddock.  It  is  a  fact,  Senator. 

Senator  CuR'ns.  Then  is  it  also  your  claim  that,  instead  of  deposit- 
ing that  money  you  used  that  money,  that  cash,  to  cash  the  payroll 
checks  of  employees  tluit  wanted  their  checks  cashed  ? 

Mr.  Raddock.  Senator  Curtis,  my  answer  to  that  question  is,  first, 
that  John  O'Rourke  positively,  according  to  my  recollection,  and  it  is 
very  clear  on  the  subject,  paid  $5,000  for  his  $5,000  worth  of  bonds. 
No.  2  question,  that  I  did  not,  personally,  cash  checks,  but  my  sec- 
retary was  authorized,  even  without  my  authorization,  she  could 
have  cashed  out  of  World  Wide  Press  income,  a  Trade  Union  Courier 
check,  if  she  deposited  an  employee's  exchange  payroll  check  for  that 
week.  But  I  am  positive  that,  if  the  committee  had  asked  me  1  ques- 
tion, if  they  had  sliown  me  the  18  checks,  and  if  all  the  18  employees 
are  there,  or  IT  or  16,  they  would  attest  to  the  fact,  and  the  record 
would  show,  that  they  didn't  get  a  duplicate  payroll  check ;  also,  that 
they  didn't  donate  the  money  to  John  O'Rourke,  to  me,  or  to  World 
Wide  Press. 

I  have  no  reason  in  the  world  for  giving  John  O'Rourke  5  cents. 
Our  friendship  is  a  trade-union  friendship  of  approximately  20  some 
years'  standing,  and  nothing  suspicious  ever  comiected  with  it. 

Senator  Curtis.  What  I  am  trying  to  get  is  the  mechanics  of  it. 
O'Rourke  paid  the  money  in  cash  ? 

Mr.  Raddock.  In  cash-''    I  wouldn't  recall  tliat. 

Senator  Curtis.  He  paid  the  money  ? 

Mr.  Raddock.  Yes. 

Senator  Curtis.  And  it  is  your  contention  that  that  money,  in- 
stead of  instantly  being  deposited  in  the  bond  account,  was  used  to 
cash  checks ;  is  that  right  ? 

Mr.  Raddock.  That  is  what  I  learned  from  one  of  the  investigator's 
testimony. 

Senator  Curtis.  I  don't  care  when  you  learned  it.  Is  that  what 
you  contend  happened  ? 

Mr.  Raddock.  I  don't  contend  it,  Senator.  That  is  the  explanation 
adduced  here  by  one  of  the  investigators  who  testified  regarding  such 
a  transaction. 

Senator  Curtis.  Then  what  was  done  with  those  checks  that  were 
cashed  ? 

Mr.  Raddock.  Obviously  they  were  deposited  in  the  World  Wide 
Press  account  in  lieu  of  whatever  moneys  World  Wide  Press  advanced 
for  those  18. 

Senator  Curtis.  Were  they  deposited  in  the  same  place  that  the 
receipts  for  sales  of  bonds  were  deposited  ? 

Mr.  Raddock.  Positively. 

Senator  Curtis.  How  much  did  those  18  payroll  checks  amount  to  ? 

Mr.  Raddock.  According  to  the  testimony  of  the  investigator  of  this 
committee,  it  was  almost  the  total  except  for  under  a  hundred  dollars, 
I  believe. 

(The  witness  conferred  with  his  counsel.) 

Senator  Cuetis.  It  is  your  contention  that  is  what  happened  ? 


11950  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Raddock.  According  to  the  testimony- 


Senator  CuETis.  No ;  I  don't  care  about  that. 

Mr.  Raddock.  Senator  Curtis,  from  my  own  personal  knowledge 
I  can't  contend  anything  pertaining  to  the  cashing  of  the  18  checks. 
The  only  thing  I  will  say  unhesitatingly  is  that  the  men  who  pur- 
chased bonds  paid  for  those  bonds,  and,  the  other,  that  if  we  deposited 
payroll  checks  we,  in  turn,  got  money  for  those  18  payroll  checks 
from  the  World  Wide  Press  account. 

I  can  say  nothing  else  but,  if  that  is  what  the  books  show.  But 
I  can  assure  you  of  one  thing.  Senator  Curtis,  not  one  penny  comes 
from  any  suspicious  quarter,  nor  was  it  given  imder  suspicious  cir- 
cumstances, nor  any  sort  of  a  gift  of  a  bond  given. 

I  declare  that  again  unhesitatingly,  unequivocally,  not  out  of  con- 
sideration only  for  myself  but  all  the  good  people  who  purchased 
bonds. 

Senator  Curtis.  For  how  long  a  period  of  time  were  these  18  checks 
cashed  ? 

Mr.  Raddock.  I  have  no  knowledge  whatsoever.  This  is  totally 
testimony  out  of  the  investigator's  testimony  from  the  records. 

Senator  Curtis.  I  am  informed  that  they  were  all  cashed  sub- 
stantially at  the  same  time. 

Mr.  Raddock.  If  that  is  what  the  record  shows,  that  is  what  it  is. 

Senator  Curtis.  I  would  like  to  ask  this  question :  Is  there  any- 
thing to  show — these  were  payroll  checks  on  what  payroll  ? 

Mr.  Raddock.  The  Trade  Union  Courier  which  occupied  the  very 
same  office  at  that  time. 

Senator  Curtis.  I  would  like  to  ask  the  staff  or  the  witness:  Is 
there  anything  to  show  the  money  used  to  cash  these  checks  came 
from  any  other  source,  other  than  the  possible  hypothesis  that  it 
was  O'Rourke's  money  ? 

Mr.  Kennedy.  We  just  don't  know  where  the  money  came  from, 
as  I  said. 

Senator  Curtis.  I  am  surprised  you  don't  know  whether  this  did 
or  did  not  happen. 

Mr.  Raddock.  Do  you  mean  the  cashing  of  the  checks  ? 

Senator  Curtis.  Yes. 

Mr.  Raddock.  Senator  Curtis,  if  the  committee  inA^estigators  who 
have  found  in  the  records  that  such  things  occurred  many  more  times, 
it  would  not  surprise  me  at  all,  because  very  often  in  any  organiza- 
tion if  a  bank  is  closed  and  a  worker  wants  a  check  cashed,  if  there 
is  cash  around  in  the  office  they  will  cash  the  check  for  him.  It  is 
as  simple  as  all  of  that. 

Senator  Curtis.  And  that  was  your  practice  there  ? 

Mr,  Raddock,  It  would  be  our  practice  today,  too.  For  instance, 
if  I  took  a  check  for  expenses,  an  expense  that  I  intended  to  incur, 
and  I  needed  the  cash  for  it,  and  if  there  was  c<ash  in  the  office,  I 
would  ask  them  to  cash  the  check  for  me. 

The  Chairman.  Do  you  remember  whether  ]Mr.  O'Rourke  paid 
you  in  cash  or  by  cheek  ? 

Mr.  Raddock.  I  truly  can't  recall  any  such  transactions,  but  I  do 
know  that  I  personally  asked  him  to  buy  the  bonds.  I  described  the 
circumstances,  I  believe,  at  an  executive  session.  I  Avas  going  to 
repeat  it  again,  if  you  want  me  to  repeat  it,  Senator  McClellan,  I 
can  only  tell  you  to  the  full  extent  of  my  recollection. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11951 

The  Chairman.  I  just  asked  you  the  one  question  of  whether  it  was 
by  check  or  cash.  He  doesn't  want  to  testify.  If  it  was  by  check, 
we  ought  to  be  able  to  find  the  check.  You  say  it  was  by  cash.  I 
am  not  surprised  that  there  were  such  transactions  in  cash.  It  is  not 
to  criticize.  Some  people  do  use  cash.  But  we  have  foimd  many 
cash  transactions,  in  the  course  of  these  hearings,  that,  when  ferreted 
out,  leads  to  information  that  indicated  something  was  wrong. 

Mr.  Kennedy.  I  want  to  ask  you  now  about  the  Federal  Trade 
Commission  ruling  back  in  December  1954  in  connection  with  the 
Trade  Union  Courier. 

Mr.  Raddock.  Do  you  want  to  ask  me  about  it  ? 

Mr.  Kennedy.  Is  that  right?     Was  there  such  a  ruling? 

Mr.  Raddock.  Yes.     There  were  two  rulings,  I  believe. 

Mr.  IvENNEDY.  According  to  the  information  that  has  been  devel- 
oped before  the  committee,  your  solicitors  have  continued  to  indicate 
that  they  represent  the  American  Federation  of  Labor,  or  to  give 
that  impression,  at  least. 

Did  you  know  or  were  you  aware  of  the  fact  that  they  were  doing 
that? 

Mr.  Raddock.  Mr.  Kenned}',  the  answer  is  "No,"  and  I  would  not 
approve  of  it ;  also,  as  my  statement  indicates,  we  disclaim  affiliation 
or  identification  with  AFL-CIO  headquarters,  and  I  personally,  as 
editor  of  the  Courier,  do  not  require  of  our  sales  people  to  assert  the 
AFL  headquarters  prestige  in  order  to  solicit  an  ad  sale  for  the 
Trade  Union  Courier.  If  anyone  does  that,  it  is  in  contravention 
of  our  avowed  policy. 

Mr.  Kennedy.  Do  you  give  them  any  specific  instructions  not  to 
describe  themselves  or  give  the  inference  that  they  represent  the 
A.F.ofL.? 

Mr.  Raddock.  Personally,  I  don't  maintain  any  direct  contact  with 
the  advertising  department.  My  office  is  not  located  in  the  Courier. 
But  I  can  state  for  the  record  that  when  most  of  our  sales  people,  I 
would  say  most  of  them,  are  there  at  least  15  years,  and  they  all  know 
that  that  is  our  rigid  policy. 

If  anyone  deviates,  he  is  doing  it  on  his  own  responsibility.  If  we 
knew  about  it,  we  would  take  prompt  disciplinary  action,  if  anyone 
advised  us  on  the  subject. 

Mr.  Kennedy.  Have  you  taken  prompt  disciplinary  action  against 
Mr.  Koota  ? 

Mr.  Raddock.  We  certainly  did.  My  bother,  Bert,  who  is  the 
business  manager.  No  sooner  did  we  leave  Washington,  but  I  had 
a  discussion  with  him,  and  I  told  him  to  take  prompt  action  to  dis- 
cipline Mr.  Koota.  He  called  a  meeting  of  the  entire  staff,  and  read 
to  them  the  record  of  Mr.  Koota's  assertion,  and  received  absolute 
assurances  from  the  advertising  department  and  the  management  that 
it  will  not  occur  again. 

Mr.  Koota  was  suspended  for  a  period  of  4  weeks  without  pay. 
We  hate  to  do  a  thing  like  that,  but  he  pledged  himself.  He  realized 
his  sales  talk  was  on  the  stupid  side,  and  said  he  wouldn't  repeat  it 
again.     We  are  at  least  forgiving  in  the  human  sense. 

Mr.  Kennedy.  AVlien  you  hired  Dave  Koota,  had  he  come  out  of 
jail  ?     Is  that  where  you  got  him  from  ? 

21243—58 — pt.  31 12 


11952  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kaddock.  May  I  say  this:  I  didn't  walk  into  any  jail.  I  don't 
want  to  be  facetious,  but  your  question  is  in  such  a  dramatic  form. 
I  didn't  go  into  jail  to  pluck  them  out  and  I  didn't  know  he  came 
out  of  jail. 

Mr.  Kennedy.  Did  you  know  he  had  just  come  out  of  jail? 

Mr.  Raddock.  I  did  not.  And  please  be  sure  that  we  don't  take  our 
employees  from  any  jails,  and  that  is  not  a  recommendation  for  em- 
ployment in  the  Trade  Union  Courier.  Perhaps  it  is  more  of  a 
recommendation  for  yearbooks,  but  not  for  the  23-year-old  Trade 
Union  Courier. 

Mr.  Kennedy.  How  about  Harry  Pickman? 

How  long  has  he  worked  for  you  ? 

Mr.  Raddock.  I  would  say  about  twenty-some  years.  He  has  can- 
cer right  now  and  he  is  the  advertising  manager  of  the  Courier.  That 
is  one  of  the  reasons  that  Mr.  Koota  was  able  to  do  what  did,  or  was 
allowed  to  do  what  he  did. 

Mr.  Kennedy.  Didn't  he  come  right  out  of  the  penitentiary  in 
mail  fraud  when  he  came  to  work  for  you  ? 

Mr.  Raddock.  The  answer  is,  Mr.  Kennedy,  I  don't  know  where  he 
came  out  from.  He  came  out  of  his  mother's  womb.  So  far  as  I 
am  concerned,  I  didn't  consider  Mr.  Pickman  a  jailbird,  I  didn't 
know  him  to  have  a  jail  record.  As  a  matter  of  fact,  I  don't  ask 
employees.  I  personally  would  not  ask  employees  whether  they  have 
a  jail  record. 

Mr.  Kennedy.  You  have  made  some  derogatory  reflection  on  the 
yearbooks.    You  said  the  yearbooks  hire  people  out  of  jail. 

I  want  to  go  through  a  list  of  the  people  that  work  for  you. 

Mr.  Raddock.  Might  I  say  this,  Mr.  Kennedy.  I  think  from  the 
standpoint  of  the  American  fair  play 

Mr.  Kennedy.  Let's  go  through  the  list  of  people  that  you  have. 

Mr.  Raddock.  You  want  to  go  through  it.  But  I  should  be  a  will- 
ing party.  Should  I  say  that  I  don't  relish  being  made  the  scape- 
goat of  such  a  situation. 

You  would  feel  that  I  am  not  cooperating.  I  repeat  again,  these 
men  are  not  here ;  let  them  answer  for  themselves.  But  I  did  not  liire 
jailbirds;  I  wouldn't  hire  people  for  being  jailbirds.  I  hire  an  ad- 
vertising salesman  for  his  ad-selling  talents  and  nothing  else  but. 
Also,  that  is  as  another  fellow  human  being,  I  do  not  ask  people 
whether  or  not  they  have  a  jail  record. 

That  is  not  part,  of  our  list  of  questions. 

Mr.  IvENNEDY.  Maybe  I  could  help  you  by  telling  you  that  a  great 
number  of  the  people  that  work  for  you  have  j  ail  records. 

Mr.  Raddock.  Have  you  done  likewise,  Mr.  Keimedy,  with  eveiy 
organization  in  the  United  States  to  ascertain 

The  Chairman.  Wait  a  minute,  now. 

This  committee  has  only  been  in  existence  for  15  months.  We 
couldn't  possibly  do  that.  But  wherever  we  have  conducted  an  in- 
vestigation, the  background  and  things  like  tins  have  been  looked 
into  and  they  have  been  placed  on  the  record  heretofore. 

There  is  no  discrimination  against  you  in  this  instance.  It  would 
be  impossible,  of  course,  for  this  committee,  and  I  don't  know  that 
it  ever  shall  get  around  to  investigating  evei-ybody. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11953 

Mr.  Eaddock.  Senator  McClellan,  I  feel  that  the  committee  has 
done  some  very  effective  Avork  in  many  fields,  in  many  areas,  and  in 
many  regards. 

But  I  don't  feel  that  it  is  esthetically  correct  to  subject  these  names, 
the  names  of  these  family  men  to  disparagement,  just  in  case  they 
have  a  blemish  on  their  record  of  15,  20,  or  25  yonrs  ago. 

Neither  am  I  sitting  here  as  their  godfather.  Also,  I  don't  hire 
our  employees.  They  are  hired  by  the  advertising  manager.  I 
haven't  hired  an  advertising  salesman  in  20  years. 

Mr.  IvENNEDY.  Mr.  Eaddock,  you  stated  that  you  didn't  get  people 
directly  out  of  jail,  and  I  thought  that  by  asking  you  some  questions 
about  this  matter,  maybe  it  would  refresh  your  recollection. 

I  have  found  seven  individuals  that  work  for  you  that  came  right 
out  of  the  penitentiaries  to  start  to  work  for  you  as  solicitors,  and  a 
number  of  them  have  very  long  criminal  records. 

Mr.  Raddock.  What  is  the  point  you  want  to  make,  Mr.  Kennedy  ? 

Are  you  asking  me  a  question  whether  I  knew  whether  these  people 
have,  or  is  the  point  merely  a  press  point  that  there  are  seven  people, 
advertising  people,  on  the  Courier  staff  who  have  a  record? 

I  will  say  this  for  our  salespeople :  They  are  on  a  par  with  the  sales- 
people of  newspapers  throughout  the  United  States  of  America,  and 
I  am  sure  they  are  not  in  a  class  on  this  unto  themselves. 

Mr.  Kennedy.  I  am  sure  that  the  newspapers  of  the  country  will 
appreciate  that  statement  of  confidence. 

Mr.  Raddock.  Being  part  of  the  fourth  estate,  I  am  glad  to  join  in 
the  spirit. 

Mr.  Kennedy.  The  Trade  Commission  gave  certain  instructions 
and  rulings  regarding  your  solicitors.  According  to  our  investigation 
and  the  testimony  developed  before  the  committee,  these  solicitors 
were  continuing  to  do  the  same  practices  that  they  were  forbidden  to 
do  by  the  Federal  Trade  Commission  in  1954. 

Looking  to  the  record  of  these  solicitors,  we  found  that  you  hired 
people  that  came  directly  out  of  the  penitentiary.  These  are  not  just 
people  with  criminal  records,  but  people  that  came  directly  out  of  the 
penitentiary  to  work  for  you  as  solicitors. 

Most  of  them,  I  might  add,  were  in  jail  for  stock  swindling, 
swindling  of  other  kinds,  and  confidence  men. 

Mr.  Raddock.  Is  that  a  question  or  a  statement  ? 

Mr.  Kennedy.  I  thought  you  wanted  some  clarification. 

]\Ir.  Raddock.  If  you  had  given  me  any  enlightemnent  at  any  time 
concerning  any  of  our  sales  people  and  you  felt  that  you  had  some 
reasonable  criticism  to  offer  that  we  ought  to  take  some  disciplinary 
action  about,  I  would  have  been  glad  to  take  such  things  under 
consideration. 

I  had  no  personal  knowledge,  Mr.  Kennedy,  of  anyone's  jail  record. 
Once  again  I  can  only  state  to  the  distinguished  members  of  this 
Senate  committee  that  I  personally  would  not  ask  any  man  who  came 
to  work  for  us,  be  he  a  writer,  a  reporter,  a  clerk,  an  office  boy,  a 
messenger  or  an  advertising  salesman,  whether  he  has  a  jail  record. 
If  a  man  volunteered  that,  I  would  take  the  particular  situation  under 
advisement  and  find  out  whether  or  not  I  personally  considered  him 
trustworthy  enough  to  give  him  a  probationary  period  on  the  Courier 
and  see  whether  or  not  he  can  sell  reliablv. 


11954  IMPROPER    ACTIVITIES    I^    THE    L.\BOR    FIELD 

Mr.  Kennedy.  I  think  certainly  if  you  had  1  or  2  solicitors  with 
jail  sentences  it  would  be  one  thing,  but  when  you  have  7  people, 
and  from  the  records  it  indicates  that  they  came  directly  from  the 
jail  to  work  for  you,  that  makes  it  of  considerably  more  importance. 

Mr.  Raddock.  Mr.  Robert  F.  Kennedy,  if  you  had  called  me  up 
personally  to  tell  me  the  day  I  hired  them  for  the  Courier,  and  not 
personally  but  through  personnel,  that  such  was  the  case,  I  would  take 
under  consideration  the  situation. 

If  they  came  out  of  the  penitentiary,  I  would  suggest  another  brief 
rehabilitation  period  before  they  came  into  the  Trade  Union  Courier. 

Senator  Goldwatee.  How  many  salesmen  work  for  the  Courier  ? 

Mr.  Kennedy.  How  many  salesmen  do  you  have  ? 

Mr.  Raddock.  I  truthfully  don't  know,  Senator  Goldwater,  but  it 
probably  must  be  in  the  neighborhood  of  15.  I  think  around  the  15 
figiire.  That  is  usually  the  ratio  of  advertising  men  employed.  I 
personally  have  not  hired  a  single  man,  I  would  say,  in,  easily,  15 
years. 

Mr.  I^NNEDY.  You  have  had  some  complaints  from  other  sources 
other  than  the  A.  F.  of  L.-CIO  regarding  the  activities  of  your  solici- 
tors, have  you  not  ? 

Mr.  Raddock.  No  ;  none  to  my  knowledge. 

Mr.  Kennedy.  None  from  the  Better  Business  Bureau? 

Mr.  Raddock.  None  to  my  knowledge,  Mr.  Kennedy.  I  would  like 
to  say  this:  I  have  seen  blurbs  in  various  Better  Business  Bureau 
periodicals,  and  perhaps  in  some  of  their  own  year  books,  in  which 
they  reflect  derogatorily  on  the  Courier's  ad  methods.  But  if  a  proper 
penetrating  search  into  the  situation  was  made,  and  I  made  some 
when  I  received  personal  complaints,  it  usually  is  another  labor  year- 
book scate  who  makes  the  complaint  and  engenders  the  heat  against  our 
Trade  Union  Courier  advertising  salesmen.  But  if  I  personally 
would  receive  a  complaint,  I  assure  you  I  would  take  the  necessary 
action.  But  I  also  don't  stand  there  with  a  bat  and  a  club  beating 
men  down. 

They  are  nothing  else  but  ad  salesmen,  typical  of  the  advertising 
field. 

The  Chairman.  Here  is  an  affidavit.  I  do  not  have  time  to  peruse 
it  all.  It  is  signed  by  Mr.  Emmett  Dean,  manager  of  financial  and 
commercial  division  of  the  Better  Business  Bureau  of  New  York  City. 

The  affidavit  without  objection  may  be  printed  in  the  record  at  this 
point. 

I  will  read  it  and  see  if  you  care  to  comment. 

Statement  of  Emmett  Dean,  Manager,  Financial  and  Commercial  Dn'isiow, 
Bettmi  Business  Bureau  of  New  Yokk  (^ity.  Inc.,  2*20  Church  Street,  New 
York,  N.  Y. 

I,  Emmett  Dean,  residing  at  605  East  14th  Street,  New  York  City,  and  em- 
ployed by  the  Better  Business  Bureau  of  New  York  City.  Inc..  220  Church  Street, 
New  York  City,  as  manager  of  the  financial  and  commercial  division,  depose 
and  swear  that  in  my  division  I  received  numerous  inquiries  and  some  complaints 
from  businessmen  who  state  that  they  have  been  solicited  by  long-distance  tele- 
phone calls  to  place  advertising,  or  authorize  advertising  in  the  Trade  Union 
Courier.  The  complaints  allege  long-distance  telephone  calls  are  received  from 
New  York  City,  during  which  the  telephone  solicitor  of  the  Trade  Union  Courier 
"insists"  that  an  advertisement  be  accepted  in  the  publication.  The  solicitor 
claims  to  be  affiliated  with  "unions."  The  solicitor,  according  to  the  complaints, 
also  claims  to  be  "endorsed  by  the  American  Federation  of  Labor." 


IMPROPER    ACTIVITIf:S    IX    THE    LABOR    FIELD  11955 

A  few  businessmen  state  they  checked  with  the  AFL-CIO  and  determined  that 
the  Trade  Union  Courier  was  not  "sanctioned"  by  the  AFL-CIO. 

Complaints  received  over  the  years  have  stated  that  Trade  Union  Courier 
has  exploited  various  labor  notables,  such  as  the  Samuel  Gompers  Centennial 
Committee  advised  it  had  no  connection  with  the  Trade  Union  Courier  promo- 
tion, as  did  local  AFL  officials. 

At  one  time  businessmen  complained  that  they  were  told  that  an  advertisement 
in  the  Trade  Union  Courier  would  help  further  the  sale  of  War  Bonds. 

Another  businessman  complained  he  had  been  solicited  for  a  half-page  in  an 
AFL-CIO  convention  book  to  be  distributed  at  the  annual  convention  in  Miami, 
although  the  convention  was  not  being  held  in  Miami  that  year. 

Still  another  solicitor  for  advertising  said  the  AFL  convention  that  year  would 
be  held  in  Washington  when  he  telephoned  for  an  advertisement  in  the  Trade 
Union  Courier.  Other  businessmen  state  that  they  were  solicited  by  the  Trade 
Union  Courier  for  advertisements  on  the  basis  that  they  would  supplement  an 
article  appearing  in  the  publication  and  which  would  have  an  anti-Communist 
theme. 

The  New  York  City  Better  Business  Bureau  has  received  more  than  ."^OO 
inquiries  from  members  of  the  public,  banks,  chambers  of  commerce,  civic  asso- 
ciations, other  Better  Business  Bureaus  and  businessmen  who  had  been  solicited 
to  place  advertising  in  the  Trade  Union  Courier.  Many  of  these  inquiries  to  the 
bureau  indicated  that  the  name  of  the  AFL  or  AFL-CIO  had  been  used  in 
connection  with  the  telephone  solicitation.  Yet  the  late  William  Green,  presi- 
dent of  the  American  Federation  of  Labor,  disavowed  some  years  ago  any 
connection  between  the  Trade  Union  Courier  and  the  AFL.    He  said : 

"The  Trade  Union  Courier  Publishing  Co.  is  in  no  way  connected  with  the 
American  Federation  of  Labor.  It  possesses  no  authority  to  use  the  name  of 
the  American  Federation  of  Labor  in  soliciting  advertisements  or  to  claim  that 
those  who  represent  it  are  calling  from  the  circulation  department  of  the 
American  Federation  of  Labor  headquarters." 

More  recently  George  Meany,  president  of  AFL-CIO,  said  in  regard  to  the 
Trade  Union  Courier : 

"This  so-called  labor  newspaper  has  neither  moral  or  legal  right  to  imply 
that  it  has  the  backing  or  cooperation  of  the  American  Federation  of  Labor 
in  soliciting  funds  from  business  firms." 

The  New  York  Better  Business  Bureau  has  been  reporting  these  statements 
to  inquirers.  In  recent  years  there  has  been  a  group,  some  with  proven  criminal 
records,  who  have  invaded  the  labor  publication  field  with  boilerroom  tactics 
in  an  effort  to  prey  on  gullible  businessmen.  Some  of  these  publications  exist 
only  for  brief  periods  of  time  because  of  the  activities  of  Better  Business  Bureaus 
in  exposing  the  principals  and  their  backgrounds.  But  even  in  these  brief 
periods  our  experience  has  shown  that  they  may  reap  a  lucrative  harvest. 

One  of  the  earliest  such  papers  is  the  Trade  Union  Courier.  It  began  opera- 
tions in  1936.  In  July  1945,  Mr.  Maxwell  C.  Raddock  told  the  deponent  during 
the  course  of  an  interview  that  the  Trade  Union  Courier  was  incorporated  in 
1939.  He  said  he  was  the  president  and  only  shareholder.  He  said  he  started 
the  Trade  Union  Courier  in  19.36  because  he  saw  the  need  for  an  AFL  news- 
I>aper.  Its  purpose,  he  continued,  was  to  advance  the  interest  of  the  AFL, 
Americanism,  and  the  labor  movement. 

He  said  the  Trade  Union  Coui-ier  was  the  official  newspaper  of  many  labor 
councils,  all  AFL,  in  upper  New  York  State,  New  Jersey,  Canada,  and  New 
England.  However,  Mr.  Raddock  refused  to  name  these  councils.  He  said  the 
Trade  Union  Courier  was  the  official  organ.  These  sums,  he  said,  were  from 
advertising  revenues,  and  were  distributed  to  unions  to  make  up  losses  incurred 
when  the  unions  gave  up  printing  their  own  annual  journals  to  accept  the 
Trade  Union  Courier  as  their  official  publication.  These  sums,  he  said,  aver- 
aged 8  or  9  percent  of  the  Trade  Union  Courier's  profits.  Mr.  Raddock  said  he 
would  not  disclose  circulation  figures,  and  that  was  final.  He  did  say  distribu- 
tion was  by  bulk  delivery  to  unions  as  well  as  by  mail  to  individual  union 
members.  Most  of  the  unions  receiving  the  Trade  Union  Courier,  he  said, 
charged  their  members  a  per  capita  tax  for  the  publication  and  paid  the  publica- 
tion either  2  cents  a  copy  or  $1  yearly  per  copy. 

The  Better  Business  Bureau  of  New  York  City  strongly  condemns  the  high- 
pressure  "boilerroom"  tactics  employed  by  phony  labor  publications  which  seek 
to  obtain  payments  for  advertising  through  vicious  deception  and  misrepre- 
sentation. We  shall  continue  our  activities  in  exposing  this  racket  and  we  are 
certain  that  its  extinction  would  be  of  invaluable  benefit  to  the  public,  business- 


11956  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

men,  and  labor  unions  alike.  The  undersigned  swears  and  deposes  that  the 
statements  contained  herein  are,  to  the  best  of  his  recollection  and  information, 
true  and  honest  statements. 

(Signed)     Emmett  Dean, 
Manaffer,  Financial  and  Commercial  Division. 

Sworn  to  and  subscribed  before  me  this  3d  day  of  June  1958. 

[seal]  Lou  LiBIBEEMAN, 

Notary  Public  in  the  State  of  New  York.  Qualified  in  New  York  County. 

Certified  in  New  York  County  clerk's  and  registrar's  office. 
Commission  expires  March  30,  1959. 

The  Chairman.  That  is  the  full  statement  of  Mr.  Enimett  Dean, 
manage  for  the  financial  and  commercial  division  of  the  Better  Busi- 
ness Bureau  of  New  York  City.  It  may  be  printed  in  full  in  the 
record. 

Do  you  wish  to  make  any  comment,  Mr.  Haddock  ? 

Mr.  Raddock.  It  is  quite  a  lengthy  letter,  a  treatise  on  a  subject,  ap- 
parently, about  which  tliis  man  is  a  very  mature  authority.  I  can 
only  attempt  to  answer  some  of  the  slurs  therein.  I  will  try  to  re- 
fresh my  memory.  Senator  McClellan,  because  this  man  apparently 
referred  to  instances  many  years  ago.  I  believe  one  of  the  dates  he 
referred  to  was  1945. 

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

The  Chairman.  May  I  ask  you :  Are  you  familiar  with  the  quotes 
in  there  regarding  Mr.  Green,  Mr.  William  Green,  and  also  of  Mr. 
Meany  ?  Have  those  statements  from  these  labor  leaders  come  to  your 
attention  heretofore  ? 

Mr.  Raddock.  Yes. 

The  Chairman.  Wlien  ? 

Mr.  Haddock.  Through  blurbs  in  various  labor  souvenir  journals, 
yearbooks,  and  official  boilerplate  house  organs  of  central  labor 
bodies. 

The  Chairman.  In  other  words,  those  statements  of  the  two  presi- 
dents of  the  AFL  have  been  published  and  have  come  to  your  at- 
tention heretofore  ? 

Mr.  Raddock.  May  I  say  this,  Senator  McClellan. 

The  Chairman.  Well,  is  that  correct  ? 

Mr.  Raddock.  Through  the  manner  in  which  I  previously  described. 
Through 

The  Chairman.  I  said  they  had  been  published  and  come  to  your 
attention  heretofore. 

Mr.  Raddock.  Yes.     But  I  would  like  to  add  this. 

The  Chairman.  Let  me  ask  you  this  and  then  you  may  answer. 
How  long  ago  was  it  that  they  came  to  your  attention,  that  they 
were  first  published  ? 

Mr.  Raddock.  That  I  couldn't  specifically  say.  But  to  the  best 
of  my  recollection  these  things  were  normally  engendered  by  the 
advertising  manager  or  promoter  of  a  yearbook  or  a  souvenir  journal 
of  a  union,  a  local  union  or  a  central  labor  body,  who  wrote  to  Mr. 
Green  and  started  off  as  follows:  "The  Trade  Union  Courier  is  do- 
ing this  and  this  naughty  thing.  "Wliat  do  you  think  of  the  Trade 
Union  Courier,"  to  the  venerable  Mr.  William  Green  for  whom  I 
had  a  great  deal  of  respect  and  affection.  Mr.  Green  in  turn  prompt- 
ly replied  to  the  letter  in  customary  fashion  and  said,  "Such  tactics 
are  very,  very  naughty." 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11957 

He  responded  to  the  letter  just  in  the  same  spirit  and  context  as  the 
writer  saw  it.  Mr.  Green  also,  at  executive  council  meetings,  declared 
that  the  Trade  Union  Courier  is  the  best  labor  newspaper  in  the  United 
States  editorially  and  reportorially.  He  told  me  on  several  occasions 
that  he  has  had  some  complaints  regarding  a  Trade  Union  Courier 
salesman's  ads  solicitation,  Mr.  George  Meany  at  the  executive  coun- 
cil meetings  of  the  A.  F.  of  L.  prior  to  the  merger,  likewise  declared 
that  the  Trade  Union  Courier  is  the  best  labor  newspaper  in  the  coun- 
try, and  if  the  A.  F.  of  L.  could  spend  a  million  dollars  to  buy  it,  he 
would  recommend  it. 

These  are  not  guess  conversations.  They  occurred  at  the  executive 
council  meetings.  He  simultaneously  took  to  task  those  critics  who 
engendered  those  complaints.  There  has  been  a  change  of  heart  on  the 
part  of  Mr.  Meany  when  we  differed  with  him  editorially  regarding 
the  road  on  to  which  he  is  taking  the  labor  movement. 

The  Chairman,  In  other  words,  you  got  along  with  Mr.  Meany 
well,  is  that  what  you  implied  ? 

Mr.  Raddock.  Pardon  ? 

The  Chairman.  You  got  along  with  Mr.  Meany  very  well  until  you 
published  some  editorials  he  disagreed  with  ? 

Mr.  Haddock.  I  wouldn't  put  it  in  that  form,  Senator,  out  of  con- 
sideration for  Mr.  Meany.  After  all,  he  is  the  president  of  the  A.  F. 
ofL.-CIO. 

The  Chairman.  Just  out  of  consideration  for  the  truth  ? 

Mr.  Haddock.  In  the  interests  of  truth,  I  would  say  this,  that  Mr. 
Meany  and  I  knew  each  other  probably  some  25  years.  I  remember 
him  very,  very  well  as  president  of  the  New  York  State  Federation  of 
Labor,  where  he,  too,  ran  a  yearbook.  As  far  as  I  am  concerned,  being 
a  sturdy  A.  F.  of  L.'er  myself,  I  got  along  splendidly  with  him.  In 
recent  years  he  has  developed  a  change  of  heart  and  mind.  If  Mr. 
Meany  would  write  me  a  letter  ever  complaining  or  explaining  an- 
noyance or  grievance  or  a  legitimate  complaint  regarding  any  one  of 
my  employees,  I  would  promptly  act  on  it.  I  have  never,  in  turn,  Sena- 
tor, complained  or  aired  in  the  Trade  Union  Courier,  or  sensationalized 
out  of  proportions  in  this  sort  of  a  fashion,  the  doings  of  individuals 
anywhere  inside  the  labor  movement,  including  Mr.  Meany's  own  offi- 
cial family. 

The  Chairman.  Let  me  ask  you  a  question.  Based  on  these  reports 
of  statements  by  Mr.  Meany,  did  you  ever  look  into  your  sales  organi- 
zation to  find  out  if  they  were  engaging  in  these  practices  ? 

Mr.  Raddock,  Yes,  sir.  Senator  McClellan, 

The  Chairman,  Ajid  you  found  it  to  be  true  or  not  to  be  true  ? 

Mr.  Raddock.  Here  is  specifically  what  I  found  in  one  instance 
where  I  personally  investigated.  This  occurred  about  a  half  dozen  or 
more  years  ago  in  the  Rhode  Island  area,  Providence,  R.  I.,  specifically. 
I  was  there  to  address  the  executive  board  meeting  regarding  the  offi- 
cial adoption  of  our  newspaper  as  the  organ  for  the  Rhode  Island  State 
Federation.  They  had  a  yearbook  there  which  the  Providence  Journal 
exposed  as  taking  in  $300  and  collecting  $19,000. 

The  Chairman.  "\'\^iy  can't  you  answer  the  question  ? 

Mr.  Raddock.  I  am  trying  to  answer  it,  Senator. 

The  Chairman.  You  are  going  into  little  minute  details  that  are 
wholly  unrelated  to  the  issue. 


11958  EVIPROPER    ACTR'ITIES    IX    THE    LABOR    FIELD 

Mr.  Haddock.  I  didn't  realize  they  are,  Senator.  If  they  are,  I 
want  to  apologize. 

The  Chairman.  I  want  to  extend  you  every  courtesy,  but  why  not 
try  to  answer  the  question.     Proceed. 

Mr.  Raddock.  Proceed  with  the  story  or  shall  I  wait  for  the  ques- 
tion? 

The  Chairman.  Well,  I  asked  you  a  question  about  what  action 
did  you  ever  take,  and  then  you  go  into  some  meeting  way  off  some- 
where about  $19,000  and  something  else,  which  has  no  relation  to  the 
question  at  all.  If  you  took  action,  who  did  you  take  it  against  and 
when? 

Mr.  Raddock.  Against  the  yearbook  solicitor  for  the  Providence 
Central  Labor  Union,  who  I  found  was  the  culprit  responsible  for 
lodging  the  complaint  against  the  Trade  Union  Courier. 

The  Chairman.  All  right.    Wliat  is  his  name  ? 

Mr.  Raddock.  His  name  I  don't  recall.  But  the  man  who  was  pre- 
siding then  at  the  State  Federation  of  Labor  meeting  was  Daniel 
Wliite,  was  the  secretary  of  the  Rhode  Island  State 

The  Chairman.  Did  you  take  it  against  Daniel  ^Vhite  ? 

Mr.  Raddock.  No. 

The  Chairman.  Why  did  you  mention  his  name  ? 

Mr.  Raddock.  You  asked  me  with  whom  I  lodged  the  complaint. 
With  the  labor  body  involved  because  the  story  I  was  telling  you  was 
to  describe  the  intimate  details  so  that  you  would  see  it  in  correct 
perspective. 

The  Chairman.  All  right.  You  say  you  took  action  against  the 
man  that  you  found  to  be  the  culprit  in  your  organization. 

Mr.  Raddock.  Not  my  organization. 

The  Chairman.  Well,  in  your  organization.  These  men  in  your 
organization  who  were  doing  these  things,  did  you  ever  take  any 
action  against  any  of  them  ? 

Mr.  Raddock.  Senator  McClellan,  I  tried  to  answer 

The  Chairman.  You  just  took  action  against  somebody  that  made 
a  complaint,  apparently. 

Mr.  Raddock.  Senator  McClellan,  I  did  what  was  necessary.  Once 
a  complaint  reached  my  ears,  I  did  everything  that  the  situation  called 
for,  and  since  you  don't  feel 

The  Chairman.  I  am  not  sure  about  that.  Maybe  you  have.  Tliat 
is  what  I  am  trying  to  ask  you.  You  had  information  for  years  that 
people  were  using  these  tactics  soliciting  ads  for  your  paper,  didn't 
you? 

Mr.  Raddock.  That  is  not  correct.  Senator. 

The  Chairman.  When  Mr.  Meany  and  when  these  others  made 
these  statements  about  it,  and  you  heard  of  these  statements,  and 
read  about  them,  what  did  you  do  then  to  correct  the  situation? 

Mr.  Raddock.  When  I  heard  it  on  one  or  two  instances,  I  communi- 
cated with  Mr.  Meany  and  Mr.  Green,  and  when  one  of  them  would 
not  see  me,  I  asked  several  labor  leaders  to  go  up  and  ask  would  they 
give  me  the  specific  complaints  so  that  I  could  do  something 

The  Chairman.  What  did  you  do  within  your  own  organization 
to  correct  it? 

Mr.  Raddock.  Wlienever  I  had  a  specific  complaint,  I  handed  it 
to  the  advertising  manager  for  investigation  and  for  a  report. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11959 

The  Chaikmax.  Did  you  follow  up  on  it  ? 

Mr.  Eu\DDOCK.  Definitely,  unequivocally,  and  fully. 

The  Chairman.  Did  you  ever  get  any  confirmation  that  these 
things  were  happening  ? 

Mr.  Raddock.  No,  Senator  McClellan. 

The  Chairmax.  Did  you  make  any  investigation  to  determine 
whether  they  were  happening? 

Mr.  Haddock.  In  three  instances  I  made  personal  investigations  and 
confirmed  that  they  were  untrue  and  inspired  by  other  yearbook 
operators. 

The  Chairmax.  Well,  this  is  the  testimony  you  want  to  give.  I 
see  of  no  instance — if  there  is  one,  you  tell  me — where  you  ever  dis- 
charged or  reprimanded  an  emploj^ee  for  this  sort  of  tactics. 

Mr.  Eaddock.  Yes;  we  did  discharge  two  employees.  I  did  not 
discharge  them,  but  the  organization  discharged  two  advertising  sales 
people. 

The  Chairman.  Who  were  they  ? 

Mr.  Raddock.  The  names  I  don't  recall,  but  one  of  them  went  to 
work  immediately  for  the  New  York  Central  Trade  and  Labor  Coun- 
cil and  the  other  one  went  to  work  immediately  for  a  union  paper 
in  Camden.  N.  J.,  and  Philadelphia. 

The  Chairmax.  I  would  think  you  could  recall  their  names  if  you 
recall  all  of  that. 

Mr.  Raddock.  I  don't  recall.  I  certainly  recall  the  instance. 
Senator. 

The  Chairmax.  What  were  they  charged  for? 

Mr.  Raddock.  For  misrepresenting  the  Trade  Union  Courier. 

The  Chairmax.  In  what  respect? 

Mr.  Raddock.  In  exaggerating  the  role  of  the  Trade  Union  Courier 
and  not  presenting  it  to  the  potential  advertiser  accurately  and  cor- 
rectly and  in  a  manner  which  we  personally  approve  of  and  favor. 

The  Chairman.  Did  you  approve  and  favor  of  these  tactics? 

Mr.  Raddock.  If  the  better  business  bureau  would  send  me  a  spe- 
cific complaint.  Senator,  I  assure  you  I  would  act  on  it.  I  have  not 
received  any  complaint.     I  could  remember 

The  Chairmax.  Is  there  not  some  responsibility  on  you,  do  you  not 
accept  some  responsibility,  for  knowing  what  goes  on  in  your  organ- 
ization ? 

Mr.  Raddock.  Senator,  I  wouldn't  shed  an  iota  of  responsibility. 
Neither  would  I  feign  a  lack  of  knowledge,  like  some  labor  heads  of 
some  of  these  yearbook  promoters  do. 

The  Chairmax.  Right  at  the  moment  we  are  not  investigating  the 
yearbooks.  You  say  things  are  unfair  because  we  are  asking  things 
here  and  because  we  have  developed  information.  I  don't  know  but 
what  you  are  being  very  mifair  to  some  other  publication  by  con- 
stantly referring  to  them  in  the  manner  in  which  you  do.  Wliat  do 
you  think  of  that  ? 

Mr.  Raddock.  I  wouldn't  want  to  be  unfair  to  anybody. 

The  Chairmax'.  Aren't  you  casting  aspersions  on  others  ? 

Mr.  Raddock.  Of  those  that  you,  yourself,  have  uncovered. 

The  Chairmax.  We  have  uncovered  something  here  that  we  are 
trying  to  interrogate  you  about.  Every  time  we  ask  you,  you  talk  of 
some  other  publication. 


11960  IMPROPER    ACTIVITIES    IN    THE    L-\BOR    FIELD 

Mr.  Raddock.  If  you  find  me  garrulous,  Senator,  to  me  these  things 
are  vitally  important.  I  want  to  try  to  be  as  specific  as  you  want  me. 
If  I  use  a  circuitous  route,  it  is  because  I  want  to  detail  the  facts  so 
that  they  will  be  properly  understood.  If  you  ask  me  a  question  or 
any  question,  if  I  am  asked  a  question  in  such  a  manner,  I  will  answer. 

The  Chairman.  I  don't  want  to  deny  an  adequate  or  proper  expla- 
nation. You  are  entitled  to  that,  and  certainly  the  committee  wants 
to  grant  you  that  opportunity.  But  you  keep  bringing  in  other  publi- 
cations and  referring  to  them  in  a  derogatory  reference.  Yet  you  say 
we  are  unfair  because  we  take  the  records  and  interrogate  you  about 
them  as  to  your  own  business. 

Mr.  Raddock.  I  didn't  say  you  were  unfair,  Senator  McClellan.  I 
didn't  say  anything  of  the  sort. 

The  Chairman.  There  is  such  a  thing  as  an  implication.  I  thought 
we  had  presented  the  matter  fairly.  I  thought  we  had  given  you  a 
chance  to  explain  all  of  it  to  us  beforehand. 

Mr.  Raddock.  You  just  read  to  me  a  letter  that  was  written  to  you 
by  a  third  party  of  which  I  have  no  personal  knowledge.  You  asked 
me  for  my  comment.  Believe  you  me,  I  would  love  to  comment  on  4 
or  5  points  that  were  raised  there. 

The  Chairman.  The  Chair  will  be  glad  to  hear  you. 

Mr.  Waldman.  Before  Mr.  Raddock  starts  on  that,  on  one  other 
item  on  which  you  questioned  him,  on  which  he  answered,  namely, 
the  earlier  sentiments  of  Mr.  Green  and  Mr.  ^Nleany,  which  he  stated 
in  the  case  of  Mr.  Meany  did  change  at  some  point,  we  do  liave  docu- 
mentary support  and  I  would  like  to  present  lettere  from  Mr.  Green 
and  Mr.  Meany  praising  lavishly  the  Trade  Union  Courier  and  its 
editorial  and  reportorial  policies. 

The  Chairman.  The  Chair  will  be  glad  to  receive  them  and  ex- 
amine them. 

You  may  proceed  with  your  statement. 

Mr.  Raddock.  Hoping  that  I  can  be  as  terse  as  is  desired,  my  recol- 
lection regarding  an  incident  referred  to  about  a  Gompei^  centennial, 
I  remember  personally  a  visit  by  the  representative  of  a  group  which 
set  itself  up  with  the  full  authority  of  the  A.  F.  of  L.,  calling  itself 
a  Gompers  centennial  about  a  dozen  or  so  years  ago,  and  we  were 
asked  to  be  the  official  organ  of  such  a  thing. 

I,  in  turn,  presented  certain  conditions.  I  wanted  to  utilize  the 
Courier  for  a  historical  edition,  approximately  100  pages  in  size. 
The  man  had  other  ideas  involving  ads  and  so  forth,  and,  instead,  put 
out  a  yearbook.  So  any  complaint  regarding  us  on  that  subject  would 
require  an  insight  into  just  what  happened  with  the  Gompers 
centennial. 

Regarding  our  anti-Communist  stand,  I  guess  in  America  it  is 
highly  popular,  the  anti-Communist  theme  is  a  highly  popular  thing. 
I  am  persoiially  anti -Communist.  I  have  been  that  way  ever  since  I 
was  reared  and  raised  in  my  scliool. 

However,  the  Trade  Union  Couriei-  advertising  content  contains 
anti-Communist  slogans  which,  in  our  opinion,  servo  to  educate,  our 
readership  into  ])ursuing  an  anti-Communist  line,  and  in  that  manner 
I  feel  we  render  a  salutaiy  service.  A  study  of  other  labor  news- 
papers throughout  the  United  States  of  America  would  show  that  we 
are  far  more  articulate  in  editing  and  preparing  our  anti-Communist 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11961 

slogans  than  most  who  feature  ogres,  bears,  and  other  sorts  of 
animals. 

The  Chairman.  O.  K.  You  have  the  animals  in  there  now. 
Proceed. 

Mr.  Raddock.  Regarding  war  bonds,  ever  since  the  war  broke  out, 
we  have  been  doing  our  share,  as  has  any  other  American  institution, 
to  promote  the  sale  of  war  bonds.  I  think  in  that  sense  the  Trade 
Union  Courier  renders,  too,  an  important  contributing  service.  Re- 
garding our  unwillingness  to  disclose  to  this  writer  for  the  Better 
Business  Bureau  our  circulation  at  that  time,  might  I  say  this,  that 
the  same  Better  Business  Bureau  regarding  the  central  labor  body 
organ  in  New  York,  which  was  handed  out  to  promotional  people, 
declaring  "A  million  membership*'  even  though  the  circulation  might 
have  been  500,  and  upheld  this  central  labor  body  because  it  had  the 
"official  emblem  or  official  sanction."  You  can  understand  readily. 
Senator,  my  unwillingness  to  go  along  with  an  organization  that 
would  be  that  irresponsible  and  not  making  a  thorough  and  pene- 
trating study  of  the  difference  between  the  two  publications,  circu- 
lation, editorial  influence,  content,  et  cetera,  and  its  willingness  to 
help  promote  sales  for  one  by  declaring  it  legitimate  and  noble  and 
the  other  suspect. 

But  on  any  complaint  regarding  your  specifics,  after  the  FTC 
action,  Senator,  I  again  gave  orders  to  the  staff  never  to  misrepresent 
the  Trade  Union  Courier,  and  printed  in  our  newspaper  our  dis- 
claimer of  any  AFL-CIO  headquarters  affiliation. 

We  don't  feel  that  a  headquarters  stamp  of  approval  for  a  free  labor 
press  in  America  is  necessary  for  a  labor  paper  to  function,  and  in- 
dependently as  an  individual  and  an  editor  of  the  newspaper  I  would 
not  accept  the  endorsement  from  AFL-CIO  for  our  publication  if 
it  would  make  us  subservient  and  take  away  our  independent  right 
to  express  a  counter  editorial  opinion  or  a  counter  political  opinion 
or  differ  with  them  on  any  issue  affecting  our  society. 

The  Chairmax.  Have  you  completed  ? 

Mr.  Raddock.  Yes,  sir ;  respectfully,  Senator. 

.The  CHAiKMAisr.  The  Chair  has  examined  the  two  letters  presented 
by  counsel  for  you.  Would  you  care  to  identify  them  and  state  that 
you  did  receive  these,  that  these  are  photostatic  copies  of  letters  that 
you  did  receive  from  Mr.  George  Meany  and  jSIr.  William  Green  ? 

Mr.  Raddock.  I  will  so  identify  both  of  these  letters  from  Mr. 
Meany  and  Mr.  Green. 

The  Chairman.  They  may  be  made  exhibit  No.  41A  and  B. 

(The  documents  referred  to  were  marked  "Exhibits  41 A  and  B"  for 
reference,  and  will  be  found  in  the  appendix  on  pp.  12176-12177.) 

The  Chahiman.  The  one  from  Mr.  Meany  is  dated  December  18, 
1940,  and  the  one  from  Mr.  Green  is  dated  December  20, 1940. 

Have  you  had  similar  letters  of  praise  and  commendation  from 
either  of  them  since  that  time  ? 

Mr.  Raddock.  We  were  approximately  4  years  old  at  that  time; 
and,  obviously,  if  we  deserved  such  lavish  praise,  and  I  don't  know 
whether  it  was  deserved  or  not,  I  am  sure  we  had  letters  much  later. 
But  after  a  while  the  Trade  Union  Courier  stopped  parading  the 
letters  and  relied  chiefly  on  its  own  editorial  standing. 

The  Chairman.  I  can  appreciate  that  at  that  period  of  time. 


11962  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

I  mean,  it  may  be  true  that  at  that  period  of  time  maybe  those 
practices  that  have  been  revealed  here  by  the  testimony  had  not  been 
engaged  in  or  had  not  been  discovered,  and  that  was  prior  to  the 
time  that  Mr.  Meany  or  others  may  have  undertaken  to  inform  the 
public  that  your  paper  in  no  way  represented  them,  and  that  they 
didn't  approve  of  certain  tactics.  I  wondered  if  those  conditions  had 
developed  since,  or  if  you  had  letters  of  recent  date  commending  you, 
from  Mr.  Meany  or  someone  like  that. 

I  think  it  would  be  proper  for  you  to  put  them  into  the  record. 

Mr.  Raddock.  I  wish  I  had  such  letters  to  put  into  the  record,  Sen- 
ator, but  I  would  say  this,  that  we  had  letters  later.  We  had  other 
commendations  from  both  of  these  gentlemen  much  later  than  1940. 
I  personally  don't  have  these  letters.  If  they  exist,  they  may  be  in 
the  committee's  hands. 

The  Chairman.  I  can  see  very  well,  too,  that  you  might  publish 
editorials  that  reflected  credit  or  gave  approval  or  gave  favorable 
comment  to  the  labor  movement,  to  the  A.  F.  of  L.  or  to  some  particu- 
lar union,  and  that  certainly  the  president  or  any  other  official  of  the 
union,  or  maybe  any  member  thereof  would  not  want  to  disagree  with 
you,  but  would  appreciate  that  attitude  or  that  policy  or  that  publi- 
cation on  the  part  of  your  paper.  Yet  they  would  not,  if  they  knew 
it,  condone  or  be  a  party  to,  or  permit  the  name  of  the  A.  F.  of  L.,  the 
CIO,  or  their  union  to  be  used  in  a  way  that  might  bring  about  de- 
ception in  the  securing  of  ads. 

So  they  might  well  approve  an  editorial  you  would  write  and  then 
wholly  disapprove  of  tactics  that  might  be  employed  by  you  or  by 
members  of  your  soliciting  staff  with  respect  to  how  you  procured 
advertising. 

Mr.  Raddock.  According  to  the  transcript.  Senator  McClellan,  it 
was  either  you  personally  or  Senator  Curtis  who  asked  whether  or  not 
we  received  these  complaints  from  Mr.  Meany  or  whoever  wrote  it. 

I  would  like  to  state  for  the  record  that  I  never  received  a  single 
complaint  from  Mr.  Meany,  neither  did  the  Trade  Union  Courier  or 
any  individual  on  the  Trade  Union  Courier,  and  in  two  instances 
when  we  received  at  my  insistence  from  Mr.  Green  two  such  com- 
plaints, we  investigated  them  and  confirmed  to  him  their  untruth,  and 
that  they  were  inspired  by  yearbook  competition,  as  much  as  that 
subject  is  taboo  at  this  moment. 

Senator  Curtis.  Mr.  Chairman  ? 

The  Chairman.  Senator  Curtis. 

Senator  Curtis.  Who  is  Harold  Danforth  ? 

Mr.  Raddock.  Harold  Danforth  is  a  professional  private  investi- 
gator. 

Senator  Curtis.  Where  is  he  located  ? 

Mr.  Raddock.  On  42d  Street  in  New  York  City.  I  believe  the  num- 
ber is  17  East  42d  Street. 

Senator  Curtis.  That  is  his  general  business,  investigating? 

Mr.  Raddock.  Yes.  He  is  a  professional  head  of  an  investigating 
bureau. 

Senator  Curtis.  Do  you  know  whether  he  is  licensed  ? 

Mr.  Raddock.  Yes. 

Senator  Curtis.  And  you  employed  him  ? 

Mr.  Raddock.  Yes. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  11963 

Senator  Curtis.  For  what  purpose  did  you  employ  him  ? 
Mr.  Raddock.  To  investigate  certain  issues  that  I,  on  behalf  of  my 
organization,  was  concerned  about. 

"Senator  Curtis.  What  specifically  did  you  employ  him  for  in  ref- 
erence to  Walter  Reuther  ? 

Mr.  Raddock.  I  asked  him,  Mr.  Danforth,  who  has  a  very  fine  repu- 
tation as  an  investigator  and  now  as  a  writer — I  believe  he  authored  a 
book  called  D.  A.'s  Man  or  coauthored  a  book  called  The  D.  A.'s  Man — 
to  check  into  everything  he  can  possibly  find  regarding  the  activities  of 
Walter  Reuther  in  order  to  help  me  amass  information  that  I  re- 
quired for  two  of  my  activities,  one  as  editor  of  the  Trade  Union 
Courier,  and  then  for  a  forthcoming  book  that  I  personally  am  writ- 
ing on  George  Meany. 

Senator  Curtis.  Did  you  deal  with  Mr.  Danforth  personally  ? 
Mr.  Raddock.  Yes,  sir. 
Senator  Curtis.  He  made  reports  to  you  ? 

Mr.  Raddock.  We  had  chiefly  oral  types  of  reports,  because  he 
never  fully  developed  any  of  the  more  serious  aspects  of  the  issue  that 
I  wanted  to  investigate  and  confirm. 

Senator  Curtis.  About  what  year  was  this  ? 

'Sir.  Raddock.  This  was  about  May.  Our  relationship  began  about 
May  1957. 

Senator  Curtis.  And  for  how  long  a  time  did  you  have  him  em- 
ployed ? 

^Ir.  Raddock.  I  would  say  about  4  to  5  months. 
Senator  Curtis.  Did  you  pay  him  with  personal  funds  ? 
^Ir.  Raddock.  Organizational  funds. 
Senator  Curtis.  I  beg  your  pardon. 
Mr.  Raddock.  Organizational  funds. 

Senator  Curtis.  Do  you  recall  which  one  of  your  business  organ- 
izations ? 

Mr.  Raddock.  The  American  Institute  of  Social  Science. 
Senator  Curtis.  Do  they  do  other  research  ? 
jNIr.  Raddock.  Oh,  yes. 

Senator  Curtis.  Is  that  organization  or  expenditures  called  into 
question  in  this  transaction,  in  this  investigation,  that  you  know  of  ? 
Mr.  Raddock.  I  don't  understand  the  question.  Senator  Curtis. 
Senator  Curtis.  I  can't  see  the  relation  between  a  publication  hir- 
ing an  investigation  made  of  any  individual  in  the  United  States  to 
the  business  operations  of  the  Trade  Union  Journal  or  otherwise,  and  I 
just  wondered  why  it  was  called  into  question  here. 

Mr.  Raddock.  I  don't  understand  personally.  I  am  in  total  agree- 
ment with  you.  Senator  Curtis,  I  don't  understand  why  it  was  done. 

Senator  Curtis.  Have  the  financial  records  of — what  is  it  called, 
political  science? 

Mr.  Raddock.  American  Institute  of  Social  Science  which  is  en- 
gaged in  publication  of  a  number  of  studies  at  this  time. 

Senator  Curtis.  Are  there  financial  records  turned  over  to  this 
committee? 

Mr.  Raddock.  Yes,  sir. 

Senator  Curtis.  T^Hiat  relation  has  that  investigation  by  you  as  a 
publisher  of  an  individual  relate  to  these  charges  about  irregularities, 
whether  they  are  true  or  not  in  operating  your  trade  journal?  "^Tiat 
is  the  comiection  ?     I  don't  see  it. 


11964  IMPROPER    ACTrVITIES    IX    THE    LABOR    FIELD 

Mr.  Eaddock.  Just  like  you  say,  Senator,  there  isn't  tlie  remotest 
connection  between  whatever  matters  have  been  taken  up  in  this  study 
of  our  organizations'  activities,  and  I  also  fail  to  see  any  connection. 

Senator  Curtis.  Was  there  any  act  performed  by  Mr.  Danforth  at 
your  request  or  with  your  knowledge  either  before  or  afterwards  that 
was  in  violation  of  law  ? 

Mr.  Raddock.  The  answer  is.  Senator  Curtis,  absolutely  not,  and 
Mr.  Danforth,  as  I  referred  to  him  before,  is  a  very  reliable  type  of  an 
individual,  enjoying  a  good  and  responsible  reputation  on  the  Xew 
York  City  investigative  sense.  One  of  the  conditions  of  our  arrange- 
ment was  that  if  he  ran  across  any  information  that  looked  of  an  un- 
lawful nature,  that  he  should  have  the  right  and  did  have  the  right 
to  report  same  to  the  proper  agencies. 

Senator  Curtis.  Wliat  I  am  getting  at  is  the  methods  followed  by 
Mr.  Danforth.  Did  you  employ  him  to  follow  any  unlawful  methods 
or  procedures  ? 

Mr.  Raddock.  Positively  not,  and  would  not  countenance  any  such 
thing. 

Senator  Curtis.  Did  you  learn  that  he  did,  and  if  so,  I  want  my 
question  to  include  whether  you  learned  it  before  or  after  he  did  it. 

Mr.  Raddock.  He  performed  no  unlawful  acts  to  my  knowledge  of 
any  kind,  and  I  don't  think  he  would  engage  in  such. 

Mr.  Waldman.  Nor,  I  believe.  Senator,  has  there  been  any  charge 
or  testimony  before  this  committee,  before  whom  Mr.  Danforth  did 
testify  a  couple  of  weeks  ago. 

Senator  Curtis.  I  have  been  fairly  regular  in  my  attendance  before 
this  committee,  but  that  is  one  bit  of  testimony  that  I  did  not  hear 
and  have  not  read.  The  reason  I  raise  the  question  is  I  realize  that  we 
are  in  a  highly  competitive  field,  both  in  publications,  selling  adver- 
tising, in  labor  union  politics,  and  I  was  at  a  loss  to  know  what  the 
connection  was  between  your  investigation  of  Mr.  Reuther  and  these 
general  charges  that  have  been  leveled  against  you  in  your  organiza- 
tions here  in  regard  to  bond  transactions,  and  other  things  that  some 
witnesses  have  pointed  out  as  being  improper. 

Mr.  Raddock.  As  suggesting  that  we  were  improper. 

Senator  Curtiss.  Well,  the  record  will  have  to  speak  for  itself.  I 
don't  know  in  detail  which  ones  can  be  verified  and  which  can't,  or 
if  any  of  them.  But  my  query  is :  How  does  Mr.  Danforth's  investi- 
gation relate  to  any  of  that  ? 

Mr.  Raddock.  Mr.  Danforth,  Senator  Curtis,  has  no  relationsliip, 
connection,  of  the  remotest  nature  with  any  study  presently  under 
consideration  by  this  committee.  I  personally,  as  editor  of  the  Trade 
Union  Courier,  and  of  the  American  Institute  of  Social  Science,  em- 
ployed and  paid  Mr.  Harold  Danforth,  and  no  union  has  any  connec- 
tion by  payment  to  him,  with  my  employing  him,  whatsoever. 

Senator  Curtis.  That  is  all,  Mr.  Chairman. 

The  Chairman.  When  did  you  hire  Mr.  Danforth  ? 

Was  it  May  1957? 

Mr.  Raddock.  To  the  best  of  my  recollection  it  was 

The  CiiAiRisrAN.  Was  that  after  Mr.  Meany  had  condemned  the  prac- 
tices of  your  publication  ? 

Mr.  Raddock.  The  answer  is,  Senator  McClellan,  I  didn't  give  his 
condemnation   of  the  Trade  Union   Courier  the  slightest  thought. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11965 

Neither  was  I  aware  that  he  ■would  condemn,  could  condemn,  nor  did 
I  give  a  hoot. 

The  CiiAiEMAx.  I  don't  know  what  connection  it  has,  but  it  does 
appear  that  after  your  men  had  been  using  the  name  of  the  AFL-CIO, 
and  putting  on  what  have  been  called  boilerroom  tactics 

Mr.  Raddock.  They  were  probably  referring  to  plumbers,  not  to  me. 

The  CiiAiRMAx.  Well,  it  might  be  more  fitting  for  a  plumber  than 
for  you.  But  that  then  you  started  an  investigation  to  try  to  get 
something  on  Mr.  Meany  and  Mr.  Reuther  too  so  that  you  could  coun- 
teract them  because  they  had  disapproved  of  some  of  your  tactics. 

Mr.  Haddock.  I  don't  know.     That  is  all  in  the  labor  movement. 

May  I  say  this,  Senator  McClellan :  You  have  always  shown  great 
responsibility  in  your  actions  on  the  American  scene,  and  my  interests 
were  not  in  any  way  inspired  by  any  vengeance  because  of  a  possible 
Meany  irritation  with  an  advertising  sale  or  solicitation  by  one  of  my 
people.  Rather,  mine  was  a  study  into  several  personalities,  who,  in 
my  opinion,  exercised  a  very  profound  influence  in  the  labor  movement 
of  America,  and  could  influence  the  entire  American  scene. 

My  study  was  not  intended  to  seek  derogatory  information,  as  the 
transcript  has  it,  but,  rather,  to  seek  out  or  ferret  out  the  truth  regard- 
ing certain  rumors  that  have  circulated  regarding  these  men  on  the 
American  scene  insofar  only  as  it  affects  the  shaping  of  the  American 
labor  movement. 

I  don't  edit  a  Labor  Confidential ;  neither  do  I  write  ''whodunits," 
and  I  was  not  interested  in  trailing  Mr.  Meany  or  anyone  else,  but, 
rather,  to  follow  through  on  letters,  on  reports,  and  other  bits  of  in- 
formation that  have  reached  my  desk  both  through  the  written  path 
and  through  the  oral  path. 

The  Chairman.  Mr.  Danforth,  I  believe,  has  testified  already 
before  the  committee.  He  gives  a  little  different  story  about  it,  as 
I  recall  his  testimony.  Anyway,  the  record  can  be  compared.  Dave 
Koota  did  work  for  you  as  a  solicitor  agent,  didn't  he? 

Mr.  Raddock.  Who? 

The  Chairman.  Dave  Koota. 

Mr.  Raddock.  I  tell  you  the  truth,  I  don't  know  their  first  names. 

The  Chairman.  Did  Mr.  Koota  work  for  you? 

Mr.  Raddock.  Yes. 

The  Chairman.  All  right. 

Mr.  Kennedy.  On  this  one  question,  Mr.  Danforth  testified  before 
the  committee  that  j^ou  stated  that  you  represented,  in  connection 
with  this  investigation,  certain  union  officials.     Is  that  correct? 

Mr.  Raddock.  No. 

Mr.  Kennedy.  Did  you  ever  tell  him  that  you  represented  certain 
union  officials? 

Mr.  Raddock.  I  don't  think  that  Mr.  Danforth  testified  to  that 
effect.  I  read  the  transcript,  and  I  never  told  that  to  Mr.  Danforth. 
And  Mr.  Danforth  knows  of  me  quite  well  since  I  am  23  years  long 
or  old  on  the  New  York  scene. 

Mr.  Kennedy.  Just  answer  the  question. 

Did  you  in  fact  represent  any  labor  union  official  ? 

Mr.  Raddock.  I  answered  just  as  I  did  to  Senator  Curtis.  The 
answer  is  unequivocally  "No."  I  represented  no  unions  or  union 
officials. 


11966  IMPROPER    ACTR'ITIES    IX    THE    LABOR    FIELD 

Mr.  Kennedy.  Did  you  tell  Mr.  Danforth  that  you  represented  cer- 
tain union  oiScials? 

Mr.  Raddock.  Positively  not. 

Mr.  Kennedy.  You  did  not  tell  liim  that  ? 

Mr.  Raddock.  Positively  not,  and  that  is  not  true,  and  neither  did 
Mr.  Danforth,  according  to  what  I  read,  state  it  for  the  record. 

Mr.  Kennedy.  Where  did  you  say  this  $2,000  came  from?  I  be- 
lieve Mr.  Danforth  stated  in  the  record,  and  we  can  check  it  now, 
that  you  told  him  that  you  were  representing  certain  union  officials 
in  this  investigation. 

We  can  straighten  that  out.  You  claim  that  he  did  not.  Where 
did  the  $2,000  come  from  that  you  have  paid  Mr.  Danforth? 

Mr.  Raddock.  From  my  pocket  and  from  the  account  of  the  Ameri- 
can Institute  of  Social  Science,  which  advanced  to  me  certain  moneys 
on  account  toward  activities  of  mine  during  the  year  1957,  and  against 
draws  or  against  arrears  of  money  due  me. 

Mr.  Kennedy.  This  was  just  cash  that  you  had? 

Mr.  Raddock.  Yes. 

Mr.  Kennedy.  In  other  words,  it  was  just  cash  you  had  in  your 
pockets  ? 

Mr.  Raddock.  It  is  good  money  coming  out  of  the  account  of  the 
American  Institute. 

Mr.  Kennedy.  But  there  are  no  withdrawals  from  your  organ- 
ization which  indicate  that  it  was  to  go  for  this  purpose.  I  am  trying 
to  find  out  where  the  money  came  from.  It  just  came  from  out  of  your 
pocket  ? 

Mr.  Raddock.  I  told  you  it  came  from  the  American  accounts  of 
AISS,  and  I  personally  paid  it  in  cash  to  Mr.  Danforth  as  he  testified. 

Mr.  Ivennedy,  Well,  it  is  not  charged  on  the  books,  certainly — as 
a  payment  for  this  purpose  on  the  books. 

Mr.  Raddock.  I  wouldn't  know  how  it  is  charged,  but  before  the 
year  is  out,  and  our  fiscal  year  is  up,  it  will  be  properly  and  accord- 
ingly charged. 

Mr.  Kennedy.  I  am  just  telling  you,  until  this  investigation  started 
and  as  of  now,  it  is  not  charged  on  the  books,  but  it  is  just  a  payment 
in  cash.  There  is  no  indication  where  the  cash  came  from.  That  is 
why  I  am  asking  you. 

The  third  point  is  that  even  according  to  your  statement  here,  on 
page  15 : 

I  also  asked  Danforth  to  investigate  the  truth  or  falsity  of  certain  rumors 
concerning  George  Meany  in  the  hope  that  more  widespread  knowledge  of  the 
complete  picture  might  cause  him  to  stiffen  his  back  in  dealing  with  Keuther. 

That  is  another  way  of  stating  that  you  were  going  to  blackmail 
him.  You  were  going  to  get  information  on  Mr.  Meany  to  try  to 
blackmail  him  to  stiffen  his  back  against  AYalter  Reuther. 

Mr.  Waldman.  Not  if  you  read  the  remainder  of  the  statement, 
Mr.  Kennedy. 

Mr.  Raddock.  I  read  that  part  of  the  transcript  where  you  per- 
sonally, Mr.  Kennedy,  asked  the  question  in  that  form,  or  stated  the 
question  in  that  form  to  Mr.  Danforth.  The  answer  is  my  record 
througliout  my  entire  lifetime,  on  the  record,  would  indicate  that  I 
have  never  used  the  Trade  Union  Courier  or  in  any  activity  that  I 
was  engaged  in,  that  I  ever  would  blackmail  anybody.     The  Trade 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11967 

Union  Courier's  columns  for  23  years  have  never  been  used  to  vilify 
a  union  official  or  a  union  or  a  politico  personally. 

Mr.  Kennedy.  You  gave  Mr.  Danforth,  did  you  not,  certain  de- 
rogatory information  regarding  Mr.  George  Meany  and  told  him  to 
go  further  in  his  investigation  of  it  ? 

Mr.  Raddock.  Since  this  committee  began 

Mr.  Kennedy.  Just  answer  the  question. 

Mr.  Raddock.  "\Miat  you  call  derogatory  information  is  an  infer- 
ence, frankly,  or  a  label  that  I  find  slighthly  annoying.  When  you 
use  the  word  "derogator}',"  you  ai-e  implying  that  I  wanted  to  spread 
something  malicious  regarding  Meany.  Rather  than  that,  as  an  editor, 
I  sought  to  check  the  truth  of  information  that  had  reached  me,  and 
which  I  had  to  either  confirm  or  help  to  put  a  stop  to. 

Mr.  Kennedy.  It  was  unfavorable  information  ? 

Mr.  Raddock.  May  I  say  this 

Mr.  Kennedy.  Wait  a  minute.     It  was  unfavorable  information? 

Mr.  Raddock.  I  don't  know.  I  don't  even  know  what  you  are  re- 
ferring to  specifically. 

Mr.  Kennedy.  The  information  you  gave  to  Mr.  Danforth,  that 
you  wrote  out  on  a  memorandum,  was  unfavorable  information  ? 

Mr.  Raddock.  I  don't  even  know  what  kind  of  a  memorandum  you 
are  referring  to  that  I  wrote  out.  If  I  saw  the  memorandum,  I  would 
tell  you  whether  I  wrote  it  and  I  would  know  whether  it  is  unfavor- 
able information.  But  as  I  was  saying  before,  Mr.  Kennedy,  since  I 
have  been  publicized  as  a  result  of  tliese  hearii^gs,  I  also  receive  about 
another  20  letters  containing  what  you  migln'  call  derogatory  infor- 
mation with  an  excerpt  of  a  New  York  Times  siory  by  Loftus,  which 
has  brought  me  a  lot  of  fame.  People  are  sending  me  information 
every  day  that  I  don't  solicit,  of  what  you  might  call  a  derogatory 
information.  I  might  consider  them  grievances  and  complaints  that 
perhaps  ought  to  be  checked.  Otherwise,  if  they  are  of  an  intra- 
union  nature  involving  employment  conditions  of  a  man  or  human 
misery  that  I  take  it  up  with  a  proper  source  and  help  to  get  them 
corrected. 

Mr.  Kennedy.  That  is  all  very  interesting,  but  the  situation  was 
not  that  you  were  trying  to  develop  some  information  that  you  would 
place  the  truth  or  falsity  forward  in  your  magazine,  but,  according 
to  your  very  statement  here,  you  were  going  to  use  that  information 
to  "stiffen  his  back"  in  dealing  with  Walter  Reuther,  which,  of 
course,  is  entirely  different. 

Mr,  Raddock.  For  instance,  I  don't  know  precisely  what  you  derive 
from  this.  If  I  stiffen  Meany's  back,  precisely  whjxt  would  be  doing 
of  a  derogatoi-y  nature?  I  don't  understand  your  interpretation. 
Unless  you  want  to  discuss  the  broad  concepts  of  the  labor  movements, 
and  I  am  sure  that  would  become  a  little  bit  irritating. 

Mr.  Kennedy.  Quite  clearly,  you  hired  an  investigator,  as  I  under- 
stand it  from  Mr.  Danforth's  testimony,  to  look  into  and  investigate 
Oeorge  Meany. 

Mr.  Danforth  received  from  you  certain  rumors  of  a  derog:'/ory  or 
unfavorable  nature  regardinf  Mr.  George  Meany,  and  that  you  were 
then  going  to  use  that  information,  develop  tha'^t  information  to  use 
it  in  the  hope  of  stiffening  George  Meany's  back  in  dealing  with 
Walter  Reuther. 

21243— 5S—pt.  31 13 


11968  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Haddock.  What  is  you  question,  Mr.  Kennedy  ? 

Mr.  Kennedy.  I  thought  you  were  unclear  as  to  what  the  facts  were.' 

Mr.  Raddock.  I  wrote  that  letter  in  what  you  just  asked  mo  in  the 
form  of  a  statement.     It  is  clearly  worded  here. 

Mr.  Kennedy.  On  the  question  of  whether  it  is  an  improper  or 
illegal  act,  I  say  it  is  an  admission  in  the  statement,  and  an  admission 
by  yourself  of  blackmail. 

Mr.  Waldman.  You  are  leaving  out  every  time  the  statement  that 
precedes  all  of  this  that  he  was  under  the  impression  from  Mr. 
Meany's  acts  that  apparently  Mr.  Reuther  and  his  allies  must  have 
had  something  derogatory  about  Mr.  Meany  which  was  not  known  to 
Mr.  Raddock  or  the  union  whose  policies  the  Trade  Union  Courier 
espouses.  I  think  that  puts  an  entirely  different  interpretation  on 
it.     You  leave  that  out. 

It  is  the  preceding  sentence  about  his  belief,  which  was  the  back- 
ground of  his  investigation,  as  his  statement  indicates,  that  appar- 
ently in  the  light  of  Mr.  Meany's  actions,  he  believed  that  there  must 
be  information  current  about  Mr.  Meany  which  was  known  to  Mr. 
Reuther  and  his  allies,  and  which  explains  certain  action  being  taken 
and  which  was  not  known  or  confirmed  to  Mr.  Raddock  or  the  unions 
whose  cause  his  paper  espouses. 

The  Chairman.  The  Chair  thinks  that  the  relationship  of  this  will 
simply  go  as  a  circumstance  to  indicate  wdiether  an  effort  was  being 
made  after  these  tactics  had  been  revealed  that  Mr.  ]\Ieany  disap- 
proved of,  and  learning  of  the  use  of  the  A.  F.  of  L.-CIO  in  the 
soliciting  of  ads,  and  the  implication  that  the  A.  F.  of  L.-CIO  was 
back  of  this  paper. 

It  is  just  a  question  of  whether  at  that  time  the  witness  thought  he 
might  try  to  get  something  on  jSIr.  Meany,  as  a  matter  of  defense  or 
as  a  matter  of  counteracting  whatever  Mr.  Meany  might  say  about  his 
publication. 

Other  than  that,  I  see  no  particular  relation.  Whether  it  is  black- 
mail, whetlier  he  meant  to  use  it  in  that  fashion,  or  whether  he  simply 
meant  to  use  it  to  probably  deter  Mr.  Meany  from  making  furtlier 
unfavorable  comments  about  his  publication,  I  do  not  know. 

Mr.  Waldman.  May  I  say,  Senator 

The  Chairman.  Another  question  arises  from  the  fact  that  there 
is  no  record  of  this  expenditure,  the  payment  to  Mr.  Danforth.     I 
believe  he  said  he  told  Mr.  Danforth  that  other  labor  unions  were 
interested  in  it. 
Is  that  correct? 

Mr.  Kennedy.  That  was  my  recolleetioiL  I  know  he  told  me  that 
prior  to  the  a[)pearance. 

Mr.  Waldafan.  In  the  light  of  your  first  comment,  the  record  of 
your  committee  indicates  that  there  is  a  time  lag  of  several  years 
between  Mr.  Meany's  criticism  of  the  Coui-icr  and  the  hiring  of  Mr. 
Danforth.  In  other  words,  it  isn't  a  question  that  Mr.  Meany  criti- 
cizes the  (yourier 

The  ('nAiKMAN.  Well,  all  of  these  things  the  record  reflects. 
Mr.  Waldman.  There  are  numy  years  that  intervene. 
The  CiLMUMAN.  1  am  not  necessarily  arguing  at  this  time.     It  is  a 
matter  of  making  the  record  for  whatever  it  shows. 

Senator  Curtis.  I  have  liad  an  opportunity  to  read  Mr.  Danforth's 
testimonv  wliich  occurred  on  June  (>,    and  on  page  -)-10  there  are  a 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11969 

number  of  thinj2:s  he  said  in  here  that  are  not  in  any  great  measure  of 
contradiction  with  the  witness. 

Mr.  Danforth.  Well,  it  was  a  little  confusing  to  me  at  first,  because  he  indi- 
cated he  was  interested  in  the  American  Federation  of  Labor,  and  I  thought  he 
was  a  friend  of  George  Meany's,  but  he  said  he  wanted  to  see  Meany  stand  up 
against  Walter  Reuther.  Therefore,  he  wanted  me  to  investigate  Meany's  back- 
ground to  see  if  there  wasn't  somethiag  that  cou'.d  be  given  to  his  group  in  the 
American  Federation  of  Labor  that  niij^'ht  be  used  as  he  put  it  to  stiffen 
Meany's  backbone.  It  was  against  Walter  Reuther  whom  he  claimed  intended 
to  take  over  all  the  labor  movement. 

Now  on  page  342,  Mr.  Danforth  said : 

I  didn't  know  whom  he  represented,  and  I  couldn't  very  well  carry  on  an  in- 
vestigation, an  honest  investigation  without  knowing  whom  he  represented  and 
what  he  wanted  to  use  it  for. 

On  the  bottom  of  page  343,  Mr.  Danforth  said : 

He  stated  on  several  occasions  that  he  did  not  like  Beck.  I  asked  him  after 
I  had  done  some  little  work  for  him  if  he  knew  Hoffa,  and  he  stated  that  he 
knew  practically  everyone  in  the  labor  movement  because  he  had  been  in  it  for 
some  29  years  as  a  publisher,  and  he  said  that  Hoffa  was  not  a  friend  of  his, 
indicating  that  he  didn't  know  him  well,  but  he  did  say  however  that  he  con- 
sidered Hoffa  the  smartest  labor  leader  in  the  country. 

On  page  348,  Mr,  Danforth  said : 

Well,  it  was  impossible  for  me  to  continue  an  investigation  and  not  know 
exactly  whom  he  represented,  and  to  obtain  evidence  on  things  or  people  unless 
I  knew  what  it   was  to  be  used  for  and  for  what  purpose. 

In  another  place,  on  350,  he  said : 

Well,  Mr.  Raddock  wanted  me  to  go  to  Chicago.  There  was  a  labor  meeting 
there  and  I  left  him  at  the  airport  and  decided  not  to  go  to  Chicago,  because  by 
that  time  I  felt  that  I  did  not  know  whom  he  represented,  and  just  what  he  was 
up   to,  and  so  I  declined  to  go  along  further  with  the  case. 

Now,  the  reason  I  raised  this  point,  I  do  not  want  to  see  this  com- 
mittee get  into  intrigue  between  the  labor  unions.  Now,  this  question 
of  private  investigators  may  be  overdone  in  the  country,  and  I  don't 
know,  but  still  it  goes  on  and  apparently  it  is  lawful.  I  recall  we  ac- 
cepted here  a  memorandum  of  a  staff  member  that  went  back  some  32 
years  on  a  Chicago  labor  leader,  where  the  basis  of  it  was  an  investiga- 
tion carried  on  by  a  Chicago  newspaper,  and  interviews  with  the  re- 
porter that  did  his  own  investigation  and  reference  to  his  original 
notes  made  at  the  time. 

As  I  say,  this  matter  of  private  investigations,  and  investigating 
people,  may  be  overdone.    I  don't  know. 

Mr.  Kexnedy.  On  the  question  of  whom  he  represented,  it  is  the  next 
paragraph  after  that. 

Senator  Curtis.  Mr.  Kennedy  asked  what  did  he  indicate  as  to  whom 
he  represented  in  the  matter,  and  would  you  relate  to  the  committee. 

He  never  told  me  whom  he  represented,  other  than  the  fact  that  it  was  peo- 
ple or  it  would  be  labor  leaders  in  the  American  Federation  of  Labor,  and  he 
did  not  give  me  any  names,  and  I  had  said  I  would  meet  them  sometime  or  other 
but  at  this  particular  time  I  was  supposed  to  be  gathering  information  so  that 
I  could  understand  myself  just  what  all  of  his  labor  trouble  was  about. 

Mr.  Kennedy.  Then  there  is  an  explanatory  question  there,  which 
may  or  may  not  be  helpful.     It  is  the  next  question. 
Senator  Curtis.  I  want  to  read  it  all : 

Mr.  Kennedy.  He  was  representing  certain  of  the  labor  union  officials,  and 
j'Ou  were  to  gather  this  information  for  him,  and  then  did  you  understand  him 


11970  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

to  say  he  was  then  going  to  become  the  public  relations  man  for  these  labor 
union  officials? 

Mr.  Danforth.  That  was  my  understanding. 

Now,  in  that  connection,  a  Government  official  in  recent  months  was 
subject  to  a  rather  intensive  and  very  searching  and  almost  suspicious 
investigation  by  a  private  investigator  and  it  developed  that  the  House 
of  Representatives  held  a  hearing  on  it  and  exposed  the  matter  and 
completely  exonerated  the  Government  official.  Later  it  developed 
that  the  investigator  hired  to  do  it  was  by  a  private  business  concern 
that  had  business  with  that  particular  Government  agency  and  the 
Government  agency  related  that  they  went  to  an  investigating  firm 
here  in  Washington  who  didn't  take  the  work  but  recommended  the 
person  he  had,  and  that  agency  is  employed  by  the  United  States 
Government. 

Well,  it  has  no  connection  with  this,  and  I  merely  cite  it  that  this 
matter  may  be  going  too  far,  so  far  as  the  ri^ht  of  people  to  privacy 
is  concerned.  But  I  do  not  gather  the  connection  between  the  employ- 
ment of  Mr.  Danforth  and  this  investigation  of  irregularities  of  labor 
unions  that  these  transactions  are  charged,  some  of  them  which  lead 
to  Mr.  Haddock's  business  enterprises. 

The  Chairman.  The  Chair  will  make  this  observation:  I  don't 
know,  he  certainly  has  the  right  to  employ  a  private  investigator  to 
investigate  anything  he  wanted  to  investigate.  But  we  have  found,  of 
course,  many  instances  where  union  funds  were  spent  improperly,  and 
since  there  was  or  appeared  to  be  some  issue  here  as  between  Mr  Rad- 
dock  and  Mr  Meany — and  possibly  Mr  Reuther,  I  don't  know — the 
question  arises  as  to  whether  it  would  be  proper  to  spend  labor  unions' 
money  for  such  services. 

Now,  I  say  or  you  answer  that  by  saying  it  was  your  money,  al- 
though the  implication  in  the  testimony  is  here  that  you  were  repre- 
senting some  people.  Wliether  they  were  labor  union  leaders  or  not,  or 
labor  unions,  I  don't  know,  but  you  said  you  would  disclose  that  later 
nnd  he  would  meet  them  some  day,  and  he  would  probably  find  out 
what  it  was  all  about.  I  don't  know  whether  the  money  came  out  of  a 
union  treasury  or  not,  and  if  it  did  I  think  it  was  improperly  spent- 
Mr.  Raddock.  And  I  would  agree  with  you. 

The  Chairman.  It  is  one  of  those  circumstances,  and  we  have  a 
number  of  them  here  that  we  are  looking  into.  Is  there  anything  fur- 
ther before  we  recess  ? 

Tlie  committee  will  stand  in  recess  until  2  o'clock. 

Mr.  DoNOHUE.  May  I  address  the  com.mittee  for  a  moment,  please? 
As  the  Chair  probably  knows,  because  of  my  appearance  before  a 
session  of  this  committee  in  executive  session,  I  am  counsel  for  Charles 
Johnson,  Jr.,  who  is  on  call  to  be  here  at  2  o'clock  this  afternoon. 
At  0  o'clock  last  night,  while  in  my  company  at  the  Carlton  Hotel, 
he  sulVored  a  heart  attack.  We  called  the  hotel  physician  who  sent  a 
heart  s])ecialist  to  examine  him.  After  the  examination  the  local 
doctor  called  Mr.  Johnson's  doctor  at  his  home  in  New  Jersey. 

Some  2  years  ago  he  was  hospitalized  for  a  number  of  months  for 
a  serious  heart  attack.  A  cardiograph  was  taken  about  11  o'clock  last 
nighi.  I  have  not  yet  had  a  report  from  Dr.  Shulm.an  who  made  the 
cardiograph,  but  I  was  advised  by  Mr.  Johnson's  doctor  in  New  Jersey 
and  I  was  advised  last  night  by  Irwin  I.  Yager,  a  heart  specialist  of 
this  city,  that  subject  to  a  reading  of  the  cardiograph  it  was  their 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11971 

firm  conviction  that  Mr.  Johnson  ought  not  to  attempt  to  testify  be- 
fore this  committee. 

I  expect  to  talk  to  the  doctor  during  the  recess. 

The  Chairman.  Will  you  do  that  during  the  noon  recess,  and  then 
let  us  know? 

(Whereupon,  at  12:40  p.  m.,  the  committee  recessed,  to  reconvene 
at  2  p.  m.,  the  same  day.) 

AFTERNOON    SESSION 

(At  the  start  of  the  hearing,  the  following  members  are  present: 
Senators  McClellan  and  Goldwater.) 

The  Chairman.  The  committee  will  come  to  order. 
Come  forward,  Mr.  Raddock. 
All  right,  Mr.  Kennedy,  proceed. 

TESTIMONY  OF  MAXWELL  C.  RADDOCK,  ACCOMPANIED  BY 
SEYMOUR  WALDMAN,  COUNSEL— Resumed 

Mr.  Kennedy.  I  just  have  a  few  more  questions,  Mr.  Chairman. 
I  would  like  to  have  the  witness  identify  this  check. 

The  Chairman.  Mr.  Raddock,  I  hand  you  a  photostatic  copy  of  a 
check  dated  October  25,  1955,  in  the  amount  of  $1,750,  drawn  on  the 
Amalgamated  Meatcutters  and  Retail  Food  Stores  Employees'  Union 
of  Greater  New  York,  Local  342,  apparently  made  payable  to  you. 
I  ask  you  to  examine  this  photostatic  copy  and  see  if  you  identify  it. 

(The  document  was  handed  to  the  witness.) 

(The  witness  conferred  with  his  counsel.) 

The  Chairman.  Do  you  identify  the  check  ? 

Mr.  Raddock.  I  see  a  check  here  made  out  to  me.  I  believe  the 
endorsement  on  the  back  of  the  check  is  my  signature. 

The  Chairman.  The  check  may  be  made  exhibit  No.  42. 

(The  document  referred  to  was  marked  "Exhibit  No.  42"  for 
reference  and  will  be  found  in  the  appendix  on  p.  12178.) 

Mr.  Kennedy.  This  is  a  check  dated  October  25,  1955,  for  $1,750. 
It  is  written  on  the  Amalgamated  Meatcutters  and  Retail  Food  Store 
Employees  Union  of  Greater  New  York,  Local  342.  It  is  paid  to 
the  Older  of  Maxwell  C.  Raddock.  It  would  appear  to  have  been 
cashed  at  the  union  headquarters.    What  did  you  do  with  that  cash? 

Mr.  Raddock.  I  don't  recall  the  check  for  that  nor  the  receipt  of  it. 
If  the  union  gave  me  any  money  for  the  Trade  Union  Courier,  it 
would  have  gone  into  the  Trade  Union  Courier. 

Mr.  Kennedy.  Do  you  remember  receiving  this  check? 

Mr.  Raddock.  No,  I  don't. 

Mr.  Kennedy.  Does  the  statement  here  on  the  side  "Trade  Union 
subscription  for  the  Grand  Union  and  Food  Fair  Stores"  help  your 
recollection  ? 

Mr.  Raddock.  No,  it  does  not. 

ISIr.  Kennedy.  Do  you  remember  cashing  the  check  and  receiving 
the  $1,750  ? 

Mr.  Raddock.  I  do  not. 

Mr.  Kennedy.  Your  books  and  records  of  the  Trade  Union  Courier 
do  not  reflect  that  this  money  was  ever  received. 


11972  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Raddock.  That  is  a  statement.  I  don't  know  what  to  answer 
to  the  statement.    Wliat  is  the  question  ? 

Mr.  Kennedy.  You  can  make  any  comment  on  that,  that  you  wish 
to. 

Mr.  Raddock.  There  is  no  comment  that  I  can  make.  But  in  the 
event  I  received  money  from  the  Amalgamated  Meatcutters  Local 
342  for  the  Trade  Union  Courier,  it  would  have  been  deposited  in  the 
Trade  Union  Courier,  or  given  to  somebody  in  the  Trade  Union 
Courier  for  deposit. 

Mr.  KIennedy.  Do  you  state  that  that  money  was  deposited  in  the 
account  of  the  Trade  Union  Courier  ? 

Mr,  Raddock.  I  don't  even  recall  receipt  of  this  check,  although 
I  identify  the  endorsement  on  the  back  as  mme. 

(The  witness  conferred  with  his  counsel.) 

The  Chairman.  This  says  "additional  Trade  Union  subscription  for 
Grand  Union  and  Food  Fair  Stores",  that  was  in  1955. 

Can  you  tell  us  what  that  transaction  was  about  ? 

Mr.  Raddock.  I  cannot.  It  is  sometimes  possible  that  a  union  will 
order  extra  copies  in  a  particular  organizing  campaign.  It  is  not 
customary  for  a  union  to  make  out  the  check  to  me  personally. 

The  Chairman.  If  it  is  not  customary  and  this  was  unusual,  there 
could  not  be  something  about  it  that  could  help  you  to  remember 
so  that  you  could  give  us  an  explanation  ? 

Mr.  Raddock.  Senator  McClellan,  I  am  sure  that  there  would  be 
nothing  unusual 

The  Chairman.  Well,  that  is  a  general  statement. 

Mr,  Raddock.  There  would  be  nothing  unusual  about  anything. 

The  Chairman.  Can  you  give  us  an  explanation  of  it  ? 

Mr.  Raddock.  There  would  be  nothing  unusual  about  any  trans- 
action that  I  would  have  had  then  with  local  342.  My  association 
with 

The  Chairman.  You  just  said  it  would  be  unusual  for  them  to 
give  you  this  money,  didn't  you  ? 

Mr.  Raddock.  No,  I  didn't  say. 

Mr.  Kennedy.  It  is  payable  to  Maxwell  C.  Raddock. 

The  Chairman.  It  would  be  unusual  for  them  to  make  a  check 
payable  to  you  and  not  to  your  company.    Isn't  that  what  you  said? 

Mr.  Raddock.  Unusual  in  the  normal  sense  that  instead  it  should 
be  made  out  to  the  organization. 

The  Chairman.  Well,  it  wasn't.    It  was  made  to  you, 

Mr.  Raddock,  I  didn't  make  the  check  out,  Senator, 

The  Chairman.  As  I  understand,  your  records  do  not  show  the 
receipt  of  it. 

Mr.  KioxNEDY.  We  can  ask  Mr.  Dunne,  Mr.  Chairman,  who  has 
reviewed  Mr,  Raddock's  records  at  the  Trade  Union  Courier  and  also 
Mr.  Raddock's  personal  income  tax  to  see  if  that  was  declared. 

TESTIMONY  OF  ROBERT  E,  DUNNE— Resumed 

The  Chairman.  You  have  been  previously  sworn,  Mr.  Dunne  ? 
Mr,  Dunne,  Yes,  sir,  I  have. 

The  Chairman.  Did  you  make  an  effort  to  trace  this  check,  the 
proceeds  of  it  and  ascertain  to  what  account  it  was  credited  or  if 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11973 

there  is  any  record  of  it  in  either  Mr.  Raddock's  personal  records,  his 
income  tax,  or  in  any  of  his  companies  ? 

Mr.  Dunne.  Yes,  Senator,  1  checked  the  books  and  records  of  the 
Trade  Union  Courier,  and  there  was  no  cash  receipt  of  any  similar 
amonnt  at  or  about  that  time.  Additionally,  Trade  Union  Courier 
maintenance  subscription  records  which  list  the  number  of  subscrip- 
tions and  the  receipt  of  all  moneys  for  subscriptions.  There  was  no 
unusual  activity  at  all  at  about  this  time  to  support  this  payment. 

Mr.  Kennedy.  So  the  payments  did  not  go  through  the  books  and 
records  of  the  Trade  Union  Courier  ? 

Mr.  Dunne.  It  did  not. 

Mr.  Kennedy.  Did  Mr.  Raddock  declare  it  on  his  income  tax? 

Mr.  Dunne.  No,  he  did  not. 

TESTIMONY  OF  MAXWELL  C.  RADDOCK,  ACCOMPANIED  BY 
SEYMOUR  WALDMAN,  COUNSEL— Resumed 

The  Chairman.  Can  you  give  us  any  explanation  of  it? 

Mr.  Raddock.  Mr.  Chairman,  I  wish  I  could  give  you  a  specific 
explanation  regarding  this  check,  but  I  assure  you  there  was  no  un- 
usual circumstance  surrounding  this  check  or  any  other  check  that 
I  received  from  a  union,  and  no  union  has  ever  given  me  money  un- 
justifiably, unnecessarily,  undeservedly,  or  our  organizations  or  for 
any  services  rendered  to  the  union. 

Mr.  Waldman.  Mr.  Chairman  ? 

The  Chairman.  That  is  fine  and  very  emphatic  in  generality.  But 
we  have  a  special  instance  here.  It  is  not  a  small  amount,  not  to  me, 
at  least.    There  is  no  record  of  it. 

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

Mr.  Waldman.  Mr.  Chairman,  under  your  rules,  I  believe  it  is 
proper  for  the  witness  or  his  attorney  to  suggest  that  questions  be  put 
to  another  witness  who  has  given  testimony  on  the  subject  matter? 

The  Chairman.  Yes,  sir,  you  may  submit  a  question. 

Mr.  Waldman.  May  I  ask  that  Mr.  Dunne  be  questioned  as  to 
whether  at  any  time  prior  to  this  moment  at  these  public  hearings, 
either  Mr.  Raddock  himself  or  any  other  employee  of  the  Trade  Union 
Courier  had  this  particular  check  and  this  transaction  called  to  his 
attention.  Was  he  or  she  asked  whether  it  was  possible  that  cash 
might  have  been  obtained  and  expended  as  cash  for  Trade  Union 
Courier  purposes  at  or  about  that  time,  obtained  from  that  particular 
check  ? 

The  Chairman.  Well,  we  are  asking  about  it  now.  I  have  asked, 
and  I  think  the  record  is  already  clear,  if  he  found  any  trace  of  this 
money,  either  in  Mr.  Raddock's  personal  account  or  in  any  of  his 
companies. 

Mr.  Dunne.  No,  Senator,  we  didn't. 

Mr.  Waldman.  My  question  goes  beyond  that,  as  to  w^hether  any 
explanation  was  sought,  either  from  Mr.  Raddock  or  from  any  of  his 
employees  who  might  be  more  familiar  with  the  actual  expenditures, 
as  to  whether  the  cash  which  was  actually  obtained  from  that  check 
may  or  may  not  have  been  spent  for  Trade  Union  Courier  purposes, 
business  purposes,  at  or  about  that  time. 

Mr.  Dunne.  An  attempt  was  made  to  ascertain  from  local  342  the 
purpose  of  this  check,  and  the  books  and  records  of  local  342  don't 


11974  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

exactly  support  the  check.  The  local's  books  reflect  that  the  check  was 
payable  to  Trade  Union  Courier  for  subscriptions.  The  check  was 
drawn  to  Maxwell  C.  Raddock. 

Mr.  Waldman.  I  take  it  from  that  that  no  attempt  was  made  to 
get  it  from  the  employees  of  the  Courier. 

The  Chairman.  While  we  want  to  get  the  truth,  you  have  a  record, 
a  definitely  authenticated  record  of  some  transaction,  which  you  say 
in  itself  would  be  unusual  for  subscriptions  for  them  not  to  make 
the  check  payable  to  your  company  instead  of  to  you. 

I  think  the  burden  of  explanation  is  upon  you. 

Mr.  Waldman.  I  only  point  out,  Senator,  that  it  would  seem  to  me 
to  be  somewhat  unfair  to  call  this  to  the  attention  of  the  president  of 
the  company  at  this  time  for  the  first  time,  because  the  staff  does  have 
information  as  to  the  following  facts : 

First,  that  Mr.  Haddock  is  not  the  principal  disburser  of  the  funds 
of  the  corporation,  but  that  other  persons  are;  second,  that  the  cor- 
poration was  required  to  expend  funds  in  its  normal  course  of  business 
in  cash,  because  of  its  press  credit  position. 

The  Chairman.  Well,  that  is  a  matter  of  argument.  This  check 
is  not  made  to  his  company,  it  is  made  to  him  personally.  It  is  en- 
dorsed by  him.  I  don't  know  what  the  money  was  paid  for.  I  don't 
know  how  he  disbused  it. 

The  records  give  us  no  evidence  of  it.  The  only  thing  I  could  do 
would  be  to  ask  him  about  it. 

I  don't  know,  but  I  think  if  I  received  $1,750  in  a  check  within  the 
last  2  ¥2  years,  I  think  I  would  remember  something  about  it. 

Mr.  Waldman.  That  is  on  the  assumption  he  spent  it  personally, 
which  he  denies. 

The  Chairman.  I  don't  know  whether  he  spent  it  personally  or 
not. 

Let  the  witness  testify. 

That  is  what  we  are  asking  him  questions  about.  If  he  can  answer — 
maybe  he  needs  time  to  look  it  up,  I  don't  know. 

I  don't  know  anybody  to  ask  but  you,  Mr.  Raddock.  You  are  the 
one  that  got  the  money,  obviously,  and  no  one  knows  better  as  to  why 
you  got  it,  how  you  got  it,  and  what  you  did  with  it,  than  you  do. 

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

Mr.  Raddock.  May  I  make  this  observation,  and  then  ISIr.  Wald- 
man's  questions  to  you,  had  an  investigator  of  this  committee  at  any 
time  asked  me  about  this  check,  I  would  have  endeavored  to  ascertain 
precisely  what  sort  of  a  transaction  it  was,  and  I  would  gladly  give 
all  the  information  here. 

I  repeat  again,  you  said  that  I  talk  in  generalities.  I  think  I  am 
being  very  specific.  Any  union  transaction  I  have  had  has  always 
been  honorable.  I  have  never  dealt  with  a  union  official  who  I  found 
dishonorable,  and  none  of  them  give  me  union  money  fictitiously  or 
unjustifiably,  except  for  organizational  services  rendered. 

In  this  instance  of  local  342, 1  give  you  my  personal  assurance  under 
oath  that  there  are  no  suspicious  circumstances  surrounding  this  check 
or  any  other  item,  and  if  I  could  be  more  specific,  I  assure  you,  Sen- 
ator, I  would  be  unhesitating  in  my  remarks. 

The  Chairman.  I  know.  You  have  had  far  more  contacts  with 
labor  officials,  as  you  refer  to  them,  than  we  have,  I  am  sure. 


IMPROPER    ACTrV'ITIES    IN    THE    LABOR    FIELD  11975 

But,  unfortunately,  we  have  found  many  instances  of  circumstances 
like  this  wliere  there  were  some  shenanigans  about  them. 

I  think  the  record  is  replete  with  such  instances.  Therefore,  we 
have  this,  and  we  are  giving  you  an  opportunity,  if  you  know  anything 
about  it.  If  you  don't,  if  you  find  out  the  truth,  let  us  know  what  it 
is.     That  is  all  we  want. 

Mr.  Haddock.  I  will.  Senator. 

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

Mr.  Kennedy.  Briefly,  your  magazine,  the  Trade  Union  Courier 
that  goes  out  now  claims  to  have  the  endorsement  of  some  2,000  labor 
unions,  A.  F.  of  L.-CIO  labor  unions.     That  is  not  a  fact;  is  it? 

Mr.  Raddock.  To  the  best  of  my  knowledge,  Mr.  Kennedy,  the 
Trade  Union  Courier  has  endorsements  from  over  2,900  unions.  In 
the  Federal  Trade  Commission  proceeding  which  was  instigated 
against  us 

Mr.  Ivennedy.  Is  your  answer  that  they  do  now  have  more  than 
those? 

Mr.  Raddock.  To  the  best  of  my  knowledge,  Mr.  Kennedy,  we  re- 
ceived endorsements  from  over  2,900  A.  F.  of  L.  unions. 

Mr.  Kennedy.  Just  answer  the  question.  Do  they  now  have  more 
than  2,000  endorsements  from  A.  F.  of  L.-CIO  unions? 

Mr.  Raddock.  To  the  best  of  my  knowledge ;  yes. 

Mr.  Kennedy.  That  is  endorsements  that  you  received  a  number  of 
years  ago.  Don't  you  know  that  a  number  of  those  endorsements  have 
been  withdrawn  ? 

Mr.  Raddock.  I  don't  know  that  endorsements  were  withdrawn  that 
would  make  the  number  less  than  2,000. 

Mr.  Kennedy.  Our  records  show  that  the  most  you  would  have,  and 
the  reason  you  even  have  this  many  is  because  of  Charlie  Johnson,  is 
417  endorsements ;  346  of  those  come  from  Charlie  Johnson. 

Mr.  Raddock.  Mr.  Chairman,  with  the  utmost  respect  for  Mr.  Ken- 
nedy, there  is  no  individual  in  the  labor  movement  that  has  bestowed 
upon  us  any  special  brand  or  type  of  endorsement. 

The  endorsements  obtained  by  the  Trade  Union  Courier  are  in 
recognition  of  the  Trade  Union  Courier's  labors  as  a  labor  newspaper, 
championing  the  interests  of  the  workers  the  union  represents. 

Mr.  Kennedy.  Mr.  Raddock,  all  I  say  is  that  you  turned  over  your 
books  and  records  indicating  how  many  endorsements  you  have. 

We  checked  the  number  of  endorsements  that  you  have,  and  you  have 
417.  Your  paper  says  that  they  have  2,000.  That  is,  on  the  face  of  it, 
a  fraud. 

Mr.  WALD:\rAN.  Mr.  Chairman,  in  the  light  of  that  statement,  which 
is  not  a  question,  itseems  only  fair  that  that  be  answered. 

Mr.  Kennedy.  He  can  answer  it.     Let  him  answer  it. 

Mr.  Waldman.  Pie  was  not  here,  and  I  was  here  during  the  testi- 
mony. 

The  Chairman.  Just  one  moment.  The  Chair  will  straighten  this 
out.     How  many  endorsements  do  you  say  you  have  now  ? 

Mr.  Raddock.  It  is  my  belief  that  the  Trade  Union  Courier  has  in 
excess  of  2,000  endorsements  from  A.  F.  of  L.  unions. 

The  Chairman.  As  of  this  time  ? 

Mr.  Raddock.  As  of  this  time. 

The  Chairman.  And  that  would  include  any  that  had  been  with- 
drawn ? 


11976  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Raddock.  It  would  not  include  any  that  had  been  withdrawn. 

The  Chairman.  It  would  not  include  any  that  had  been  given  and 
withdrawn  ? 

Mr.  Haddock.  To  my  knowledge. 

The  Chairman.  All  right. 

Now,  you  say  that  is  according  to  the  best  of  your  belief. 

Mr.  Raddock.  Yes,  sir. 

The  Chairman.  When  did  you  last  check  to  ascertain  how  many  ? 

Mr.  Raddock.  After  the  Federal  Trade  Commission  proceeding,  the 
last  one — the  first  one 

The  Chairman.  I  don't  know  any  proceeding  of  the  last  time.  Can 
you  give  me  some  date  now  ? 

Give  it  to  me  the  best  you  can. 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  I  can't  give  you  the  dates  of  the  check,  neither  can  I 
recall  at  this  moment  the  date  of  the  last  Federal  Trade  Commission 
proceeding. 

The  Chairman.  I  don't  have  to  have  the  exact  day  or  month. 

Mr.  Raddock.  A  number  of  years  ago,  I  would  say  perhaps  3,  4,  or 
5  years  ago. 

The  Chairman.  Some  3,  4,  or  5  years  ago  you  had  some  direct  in- 
formation about  it  at  the  time,  and  it  was  more  than  2,000? 

Mr.  Raddock.  First  we  had  the  official  record  checked  by  the  Fed- 
eral Trade  Commission  which  showed,  I  think,  2,975  unions,  and  fol- 
lowing that,  there  was  some  action  taken  by  1  or  2  labor  leaders  to 
compel  or  seduce  some  labor  bodies  to  rescind  an  endorsement.  I 
never  received  a  formal  notification  of  any  withdrawals  that  would 
bring  our  endorsement  number  below  2,000. 

Mr.  Kennedy.  Wliat  was  the  word  ? 

Mr.  Raddock.  Seduce. 

The  Chairman,  Now  I  am  a  little  confused.  But  on  this  repre- 
sentation, would  your  records  show  that  you  do  have  your  records, 
the  records  you  keep,  they  would  show  that  you  have  more  than  2,000 
endorsements  if  properly  examined  ? 

Mr.  Raddock.  I  believe  so.  Senator  McClellan,  if  I  personally 

The  Chairman.  The  statement  has  been  made  here,  and  I  want  to 
ask  the  investigator  about  it,  the  statement  has  been  made  here  that 
your  records  show  only  four  hundred  and  some. 

Mr.  Waldman.  That  was  not  the  statement  or  the  testimony. 

The  Chairman.  But  lawyer,  let  him  answer. 

Is  that  statement  in  error,  according  to  your  best  judgment  and 
belief? 

Mr.  Raddock.  Yes.  According  to  my  belief,  Senator  McClellan, 
that  is  absolutely  in  error. 

The  Chairman.  And  you  think  instead  your  records  would  reflect 
over  2,000? 

Mr.  Raddock.  That  is  correct.  If  I  ])ei'sonally  had  2  weeks'  time, 
I  would  bring  in  another  2,000  endorsements  from  A.  F.  of  L.  unions 
if  the  number  is  so  important. 

The  Chairman.  The  number  is  not  important  exce]")t  in  that  you 
advertise  you  rejiresent  them  for  the  ])ur{K)se  of  getting  advertise- 
ments, and  it  has  been  ])retty  well  demonstrated  here. 

There  have  been  some  very  flagrant  exaggerations  with  respect  to 
the  statements  made  in  solicitations  for  advertisements. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11977 

The  question  is  if  you  represent  to  the  public  that  you  have  the 
endorsement  of  over  2,000  unions,  and  you  only  have  the  endorse- 
ment of,  say  four  hundred  and  something,  that  is  a  misrepresentation. 

In  other  words,  that  is  one-third,  or  a  little  less  than  one-third,  of 
the  amount  you  represent  you  liave  the  endorsement  of. 

So  if  your  records  are  accurate,  and  they  should  reflect  the  truth, 
then  your  records  would  determine  whetiier  your  guess  is  wrong,  or 
whether  this  statement  is  wrong. 

INIr.  Kaddock.  Senator  McClellan,  once  again  I  would  like  to  make 
only  this  observation  to  you:  If  we  only  had  400  endorsements,  I 
would  gladly  put  down  400,  and  it  is  my  opinion  that  with  the  Amer- 
ican sales  technique 

The  Chairman.  That  is  a  statement  that  is  a  self-servmg  declara- 
tion and  it  is  perfectly  all  right  for  you  to  make  it.  I  am  not  con- 
demning it. 

But  if  you  make  that  statement,  and  the  records  reflect  that  isn't 
true,  you  are  in  error. 

Mr.  Raddock.  Right. 

The  Chair3ian.  The  best  thing  is  to  try  to  check  the  records. 

Mr.  Raddock.  Senator  McClellan,  I  assure  you  I  will  check  the 
records  and  I  will  come  up  with  2,000  endorsements  at  least. 

The  Chairman.  Who  has  checked  the  records? 

Mr.  Kennedy.  Mr.  Dunne. 

The  Chairjuan.  Mr.  Dunne,  have  you  checked  the  records  with  re- 
spect to  these  so-called  endorsements  of  labor  unions  l 

Mr.  Dunne.  Yes,  sir. 

The  Chairiman.  Do  you  have  a  list  of  them  ? 

Mr.  Dunne.  Yes,  sir.  It  was  introduced  into  this  hearing  about 
3  weeks  ago. 

Tlie  Chairman.  It  has  already  been  introduced  into  the  record  ? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  Have  you  made  a  compilation  and  ascertained  the 
total  number  i 

Mr.  Dunne.  Tliat  is  correct.  Many  of  the  unions  which  originally 
endorsed  him  have  been  rejected  by  the  A.  F.  of  L.  because  of  corrup- 
tion. Many  have  withdrawn.  We  have  oiven  Mr.  Raddock  credit  in 
any  case  where  we  could  not  locate  the  union,  or  because  of  the  limita- 
tions of  time  we  couldn't  contact  them,  and  we  gave  him  credit  for 
those. 

The  maximmn  number  he  has  is  417. 

The  Chairman.  417  ? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  What  do  you  mean  by  that  ?  Are  they  active  en- 
dorsements ? 

How  long  ago  were  they  given  ?  Maybe  in  one  year  they  would  en- 
dorse, and  5  years  later  they  would  decide  not  to  endorse  it? 

Mr.  Dunne.  Anywhere  from  1945  to  1952,  prior  to  the  Federal 
Trade  Commission  proceeding  and  prior  to  the  action  of  George 
Meany  to  have  these  endorsements  withdrawn  in  1955. 

The  Chairman.  You  mean  you  have  included  all  of  those  back 
there  in  1945  ? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  Up  to  1950-something? 

Mr.  Dunne.  Yes,  sir. 


11978  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  And  the  total  runs  only  417  ? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  As  of  May  1958  ? 

Mr.  Dunne.  Yes,  sir. 

The  Chairman.  Do  you  find  at  any  time  in  your  examination  that 
the  endorsements  ever  equaled  or  exceeded  2,000  ? 

Mr.  Dunne.  Yes,  sir.  In  1952  at  the  time  of  the  Federal  Trade 
Commission  proceeding,  there  were  about  3,200  endorsements. 

The  Chairman.  In  1952  he  had  about  3,200  endorsements.  How 
do  you  ascertain  that  he  only  has  the  417  now  ? 

Mr.  Dunne.  We  checked  with  the  various  people  who  gave  the  en- 
dorsements and  they  informed  us  that  they  had  withdrawn  the  en- 
dorsements, in  those  cases  where  the  unions  are  still  with  the  A.  F.  of 
L.  in  the  case  of  the  Teamsters,  we  struck  them  because  they  are  no 
longer  A.  F.  of  L.  unions.  A  great  many  of  these  are  Teamster 
organizations. 

The  Chairman.  The  Teamsters  were  only  expelled  2  or  3  months 
ago. 

Mr.  Dunne.  This  is  a  list  as  of  May  1958. 

The  Chairman.  Do  you  understand  clearly  that  we  are  talking 
about  May  1958? 

Mr.  Waldman.  May  I  ask  that  another  question  be  put  to  Mr. 
Dunne  ? 

The  Chairman.  Let  me  ask  the  witness. 

Do  you  understand  now,  we  are  talking  about  May  1958,  that  you 
only  have  417  ? 

Mr.  Raddock.  I  understand  that  Mr.  Dunne 

The  Chairman.  I  mean  according  to  his  testimony. 

Mr.  Haddock.  According  to  his  testimony,  his  calculations  would  in- 
dicate 417,  but  I  doubt  that  these  calculations  represent  the  true  figure. 

Re  the  endorsements  bestowed  on  the  Trade  Union  Courier, 
which,  by  the  way.  Senator,  we  don't  seek  to  reconfiiin  each  year,  be- 
cause of  a  regular,  going  relationship  with  the  union.  As  I  suggested 
before,  if  I  may  put  it  in  proper  perspective,  it  isn't  important  to  me 
as  editor  of  the  Trade  Union  Courier  to  display  2,000  or  417. 

If  it  were  417,  I  would  be  glad  to  put  down  417,  and  I  am  sure  that 
as  a  selling  point  an  American  businessman  would  not  be  specially 
impressed  by  2,000  rather  than  417. 

Mr.  Waldman.  Senator,  may  I  ask  that  the  question  be  put  to  Mr. 
Dunne? 

He  apparently  compiled  his  list  of  the  change  in  endorsements 
from  3,200  to  alleged  four  hundred-odd  by  going  to  the  unions  and 
asking  theni.  Did  he  obtain  any  official  notification  that  was  com- 
municated in  writing  to  the  Trade  Union  Courier  that  would  accomit 
for  that  much  of  a  decrease? 

In  other  words,  it  doesn't  mean  very  much  if  a  union  tells  Mr. 
Dunne  "wo  withdrew"  if  the  Trade  Union  Courier  was  never  officially 
infonned  in  proper  form  of  any  such  rescission. 

The  Chairman.  What  did  you  ascertain  about  that,  Mr.  Dunne, 
that  they  had  notified  them  or  had  not  ? 

Mr.  Dunne.  We  attempted  to  get  this  information  from  the  Trade 
Union  Courier  and  they  informed  us  that  they  had  given  us  all  of  the 
letters  of  endorsement  in  the  files  they  turned  over  to  us.  We  ex- 
amined their  files  narrowly  and  found  none.    We  have  come  upon 


IMPROPER   ACTIVITIES    IN    THE    LABOR    FIELD  11979 

and  received  from  some  of  these  unions  that  have  withdrawn  copies 
of  notification  sent  to  the  Courier.  Those  were  not  received  by  us  in 
the  papers  we  subpenaed  from  the  Courier.  In  some  cases  they  in- 
formed us  that  they  had  withdrawn,  but  we  don't  have  copies  of  the 
notification  given  to  the  Trade  Union  Courier. 

But  in  any  event,  as  of  1958,  only  417  unions  presently  endorse  it. 
Those  facts  are  all  detailed  in  the  mimeogi\aphed  statement  which 
we  gave  out  during  the  early  part  of  this  hearing. 

The  Chairman.  Has  the  witness  had  a  copy  of  this  statement? 

Mr.  Dunne.  I  believe  liis  counsel  received  a  copy. 

The  Chairman.  Have  you  checked  it  for  accuracy  ? 

Mr.  Waldman.  We  have  no  way  of  checking  the  rescessions.  We 
will  accept  Mr.  Dunne's  statement  that  in  and  aromid  1952,  3,200  is 
the  correct  figure.  But  in  terms  of  rescissions,  we  have  no  way  of 
knowing  because  you  have  all  of  our  files  of  correspondence.  We 
have  been  unable  to  locate  any  other  files  of  either  endorsements  or 
rescissions,  and  we  have  not  gone  to  each  of  the  individual  unions,  as 
Mr.  Dunne  states  that  he  has,  and  sought  to  find  out  at  this  time. 

One  other  factor  here  which  was  pointed  out,  I  think,  at  your  ear- 
lier hearings,  Senator,  is  that  these  files  have  been  unavailable  to  the 
Courier  generally  during  the  bulk  of  the  time  that  the  Teamsters 
and  other  unions  have  been  expelled,  so  we  have  no  way  of  finding 
out  how  many  of  these  original  endorsements  come  from  Teamsters 
or  other  expelled  unions.  We  will  be  able  to,  we  hope,  when  our 
records  are  in  order  again. 

The  Chairman.  All  right.    Proceed. 

Senator  Curtis.  Mr.  Chairman  ? 

The  Chairman.  Senator  Curtis. 

Senator  Curtis.  I  would  like  to  ask  Mr.  Dunne:  How  many  of 
these  endorsements  or  claimed  endorsements  were  stricken  from  your 
list  because  they  were  from  Teamsters  or  other  imions  that  were 
expelled  from  the  A.  F.  of  L.  ? 

Mr.  Dunne.  There  is  an  item  of  221  from  the  Atlantic  Coast  Con- 
ference of  Teamsters.  That  was  an  organization  that  was  just  in 
existence  for  a  very  short  time  in  the  late  1940's.  Jolmny  O'Rourke 
was  the  head  of  it. 

I  could  go  through  these.  Then  there  are  some  from  the  Central 
States  Conference  of  Teamsters. 

Senator  Curtis.  I  am  interested  in  the  number. 

Mr.  Dunne.  I  would  say  less  than  400. 

Senator  Curtis.  And  those  you  did  not  contact  to  see  whether  they 
had  rescinded  or  not  ? 

Mr.  Dunne.  No ;  we  did  not. 

Senator  Curtis.  Then  there  were  some  you  didn't  contact  because 
you  couldn't  locate  them,  is  that  right  ? 

Mr.  Dunne.  Yes.  But  in  that  case  we  assumed  that  they  were  valid 
existing  endorsements  and  are  included  in  the  417. 

Senator  Curtis.  Of  the  3,200  claimed  endorsements,  how  many  of 
those  unions  did  you  contact? 

Mr.  Dunne.  Actually  what  we  did,  Senator,  is  contact  the  pci-son  or 
the  organization  which  made  the  endorsement.  In  the  case  of  346 
claimed  unions,  that  was  an  endorsement  by  an  individual,  by  Charles 
Johnson,  Jr.     We  contacted  his  organization  and  ascertained  that  the 


11980  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

endorsement  was  still  valid.     Therefore,  we  assumed  that  that  em- 
braced the  346  unions  in  his  group  of  unions  in  the  Carpenters. 

Senator  Curiis.  How  did  you  handle  the  other  unions?  Did  you 
contact  the  union  that  was  supposed  to  have  given  the  endorsements  ? 

Mr.  Dunne.  That  is  right,  Senator. 

The  Chairman.  Wliat  did  they  do,  just  claim  thev  had  withdrawn 
it? 

Mr.  Dunne.  That  is  right,  Senator.  All  of  the  facts,  as  I  say,  are 
detailed  union  by  union,  or  council  by  council.  Many  of  these  were 
nniltiple  endorsements.  There  was  one  from  the  Meat  Cutters  Inter- 
national which  embraced  550  unions.  We  have  correspondence 
whereby  the  president  of  the  Meat  Cutters  International  informed 
George  Meany  that  he  had  withdrawn  his  endorsement  in  1955. 

Senator  Curtis.  Did  you  find  any  evidence  of  them  notifying  the 
Courier  that  they  had  withdrawn  ? 

Mr.  Dunne.  In  some  cases  w^e  found  out  that  the  Courier  was  noti- 
fied, and  in  other  cases  we  don't  have  evidence  that  the  Courier  was 
notified,  but  we  have  statements  of  the  officials  either  to  us  or  to  the 
AFL  that  they  had  withdrawn. 

In  1955,  the  AFL  wrote  letters  to  any  of  these  people  who  liad  given 
these  endorsements  and  asked  whether  it  was  a  valid  existing  endorse- 
ment, and  the  miions  wrote  back  that  they  luid  withdrawn. 

Senator  Curtis.  That  is  where  you  got  the  infonnation  ? 

Mr.  Dunne.  Some  of  it.  Senator,  and  some  by  our  own  inquiries  of 
the  unious  involved. 

Senator  Curtis.  Some  of  this  information  came  from  AFL  head- 
quarters ? 

Mr.  Dunne.  That  is  right. 

Senator  Curits.  How  many  unions  involved  came  from  that  source? 

Mr.  Dunne.  I  can't  give  you  an  answer  to  that  immediately,  Sen- 
ator. 

Mr,  Kennedy.  Mr.  Eaddock,  I  am  going  to  ask  you  about  tliis 
book.  The  Portrait  of  an  American  Labor  Leader:  William  H. 
Hutcheson. 

On  January  8,  1954,  you  received  $25,000,  is  that  right?  Origi- 
nally, prior  to  the  time  of  marking  this  arrangement  with  Mr.  Hutche- 
son, had  you  discussed  the  matter  with  Mr.  Charley  Johnson? 

Mr.  Raddock.  I  never  made  an  arrangement  with  Mr.  Hutcheson, 
I  never  made  an  arrangement  with  Mr.  Charles  Johnson. 

Mr.  Ki^nnedy.  You  what? 

Mr.  Haddock.  I  never  made  an  arrangement  with  Mr.  Hutcheson, 
nor  did  I  make  an  arrangement  with  Mr.  Charles  Johnson. 

Mr.  Kennedy.  Did  you  discuss  the  matter  with  Mr.  Charley  John- 
son prior  to  the  time  you  first  received  the  $25,000  on  January  8, 
1954? 

Mr.  Haddock.  No,  sir. 

Mr.  Kennedy.  You  never  discussed  it  with  him  ? 

Mr.  Raddock.  I  never  discussed  with  him  anything  pertaining  to 
$25,000. 

Mr.  Kennedy.  Did  you  discuss  the  writing  of  the  book  with  Mr. 
Charles  Johnson  ? 

Mr.  IxADDOcK.  I  interviewed  him  as  I  did  other  members  of  the 
United  Hrotherhood  of  Carpenters  executive  board. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11981 

Mr.  Kexxkoy.  Mr.  Kaddock,  did  you  discuss  Avritin*;  the  book  with 
Mr.  Charley  Johnson  jn-ior  to  the  time  you  fjot  the  $25,000^ 

Mr.  Raddock.  I  woukln't  remember  specifically  whether  I  talked 
to  him  any  more  than  I  did  to  other  board  members. 

Mr.  Kenxeoy.  Did  you  talk  to  others,  then?  Can't  you  answer  the 
question?  Did  you  talk  to  them?  Is  the  question  "yes"  or  "no,  I 
don't  remember."    Answer  tlie  (|uestion. 

Mr.  Raddock.  I  prefer  not  to  use  the  term  "no,  I  don't  recall,"  I 
want  to  answer  you  as  correctly  as  })ossible. 

Mr.  Kexx'edy,  I  have  asked  the  question  eight  times  and  you 
haven't  answered  it  yet. 

Mr,  Raddock.  Please  forgive  me.  If  you  will  ask  me  the  question 
in  the  proper  context  so  I  can  answer  it,  I  will  be  glad  to. 

The  Chair:max.  Did  you  discuss  this  matter  of  Avriting  the  book 
with  Mr.  Johnson  before  you  got  the  $25,000  ? 

Mr.  Raddock.  Senator  McClellan,  I  don't  recall  such  a  discussion. 

Mr.  Kex'xet>y.  You  were  supposed  to  have  6,000  copies  of  that  book 
available  by  November  1954,  isn't  that  right?  You  were  supposed  to 
write  and  publish  the  book  and  furnish  6,000  copies  by  November  of 
1954? 

Mr.  Raddock.  I  was  to  endeavor  to  write  a  book  and  complete  it 
by  1054,  and  Avhen  I  did  to  furnish  the  union  with  6,000  copies. 

Mr.  Kexxedy.  The  answer  to  that  is  "yes,"  isn't  it,  Mr.  Raddock? 

Mr.  Raddock,  I  prefer,  Mr.  Kennedy,  to  enlighten  you  in  the  in- 
terests of  brevity,  too. 

Mr.  IvEX'XEDT.  You  didn't  enlighten  me  a  bit.  I  asked  you  a  ques- 
tion and  all  you  had  to  do  was  say  "yes."  On  May  18,  1954,  you 
received  another  $25,000  for  additional  research,  is  that  right? 

Mr.  Raddock.  That  is  correct. 

Mr.  Kexxedy.  Was  that  after  ai-rangements  with  Mr.  Charley 
Johnson  ? 

Mr.  Raddock.  Definitely  not. 

Mr.  Kex^xedy.  Was  that  after  arrangements  with  Mr.  Hut<?heson? 

Mr.  Raddock.  It  was  after  arrangements  with  the  general  executive 
board  of  the  United  Brotherhood  of  Carpenters  and  Joiners  of  Amer- 
ica. 

Mr.  Kexxedy.  They  are  not  members  of  the  general  executive 
board,  are  they  ? 

Mr.  Raddock.  They  are. 

Mr.  Kex'xedy.  They  are  two  of  the  individuals  you  would  discuss 
the  matter  with. 

Mr.  Raddock.  I  would  normally  conduct  my  negotiations  with  the 
executive  boards  in  its  entirety. 

Mr.  Kexxedy.  But  those  are  two  of  the  individuals? 

Mr.  Raddock.  That  is  correct. 

Mr.  Kexxtedy.  You  didn't  produce  the  book  by  November  of  1954, 
did  you  ? 

Mr.  Raddock.  I  didn't  finish  writing  the  book.  The  initial  ]n-oject 
called  for  a  biography  of  William  L.  Hutcheson.  While  in  th\}  proc- 
ess of  doing  my  research,  I  was  asked  to  develop  a  history  of  the 
United  Brotherhood  of  Carpenters  which  altered  the  entire  situation 
considerably. 

Mr.  Kexxeiy.  Bv  whom? 


11982  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr,  Raddock.  Mr.  Albert  E.  Fisher,  the  late  general  secretary,  who 
was  charged  by  a  convention  action  following  Mr.  Frank  Duffy's 
passing,  to  complete  such  a  history.  He  asked  me  personally  to  please 
help  him  complete  a  history  so  that  he  could  faithfully  discharge 
his  obligations  to  the  membership  of  the  brotherhood,  per  convention 
decision. 

Mr.  Kennedy.  So  you  were  working  on  this  book  during  1954  but 
were  not  able  to  get  it  finished  by  November  1954  ? 

Mr.  Raddock.  I  didn't  finish  the  book  until 

Mr.  Kennedy.  Will  you  listen  to  my  questions  and  then  answer 
them,  Mr.  Raddock  ? 

Mr.  Haddock.  Yes,  sir,  Mr.  Kennedy. 

Mr.  Kennedy.  You  were  working  on  the  book  for  the  year  1954  but 
were  unable  to  finish  it  by  the  end  of  1954  ? 

Mr.  Raddock.  Correct. 

Mr.  Kennedy.  Then  in  January  1955,  January  31,  1955,  you  re- 
ceived another  $50,000,  is  that  right  ? 

Mr.  Raddock.  I  don't  recall.  If  that  is  what  your  records  show, 
the  answer  is  yes. 

Mr.  Kennedy.  Then  on  February  14,  1955,  you  received  another 
$50,000.     By  this  time  you  had  received  $150,000,  is  that  right? 

Mr.  Raddock.  If  that  is  what  your  records  show,  that  is  what  I 
received. 

Mr.  Kennedy.  Now,  you  were  only  to  receive  another  $100,000  if 
you  produced  50,000  books,  and  can  you  explain  to  the  committee  how 
you  were  able  to  receive  the  third  installment,  the  third  payment  of 
$50,000  on  March  31,  1955  ? 

Mr.  Raddock.  What  is  that? 

Mr.  Kennedy.  On  March  31,  you  got  the  third  installment  of  $50,- 
000. 

Mr.  Raddock.  I  did  not  hear  your  question  in  its  entirety,  and  I  am 
sorry. 

Mr.  Kennedy.  Under  the  agreement  that  you  had  made  on  Febru- 
ary 14,  1955,  you  were  to  receive  $200,000  for  50,000  books.  You  were 
to  receive  $100,000  as  a  prepayment,  and  the  second  $100,000  was  to 
be  paid  after  you  had  delivered  the  50,000  books  and  a  list. 

Now,  despite  that,  you  did  receive  a  third  installment  of  $50,000  on 
March  31,  1955,  despite  the  fact  that  you  still  had  produced  no  books. 
Could  you  explain  to  the  committee  how  that  happened  ? 

Mr.  Raddock.  Not  only  "despite  I  hadn't  produced  the  books,"  but 
that  I  also  had  not  completed  the  book,  but  I  had  requested  the  money 
from  the  board  of  the  United  Brotherhood  of  Carpenters  on  account 
of  the  fact  that  I  did  want  them  to  complete  the  entire  payment  for 
the  order  as  soon  as  I  had  the  book  completed. 

Mr.  Kennedy.  Now,  the  reason  you  wanted  the  money  was  to  pay 
your  own  personal  debts,  and  the  debts  of  some  of  your  other  com- 
panies, wasn't  that  true? 

Mr.  Raddock.  May  I  say  this:  I  did  not  pay  my  personal  debts 
with  any  money  but  my  money.  All  of  the  moneys,  including  the 
research  moneys,  went  into  the  organizations. 

Mr.  Kennedy.  Wliich  was 

Mr.  Raddock.  Undoubtedly,  we  utilized  those  moneys  in  the  inter- 
est of  the  organizations,  and  I  was  discharging  my  obligations  to 
the  Brotherhood  of  Carpenters. 


IRIPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11983 

Mr.  Kennedy.  It  had  nothing  to  do  at  all  with  this  book,  and  you 
were  reserving  money  from  the  Carpenters  for  the  book  and  you 
were  not  using  it  for  that  purpose,  because  you  had  not  printed  any 
books  as  of  that  time. 

Mr.  Raddock.  As  to  whether  I  used  that  particular  money  or  any 
other  money,  I  was  going  to  use  money  to  produce  the  book  or  the 
bulk  book  order  of  the  Brotherhood. 

Mr.  Kennedy.  Why  did  you  take  the  $50,000  then,  when  you  had 
not  produced  any  books?  By  that  time  you  had  already  received 
$150,000  from  the  Carpenters.  Why  did  you  take  the  third  install- 
ment of  $50,000  ? 

Mr.  Raddock.  The  fact  that  you  label  it  a  third  installment  or  that 
the  fact  reveals  I  received  a  third  payment,  I  would  have  wanted  all  of 
the  money  as  soon  as  possible  because  it  is  in  the  interest  of  my  organ- 
ization to  be  able  to  operate  in  as  healthy  a  fashion  as  possible. 

Mr.  Ivennedy.  But  didn't  you  feel  that  you  had  some  obligation  to 
the  Carpenters,  and  then  going  on  to  November  30, 1955 

Mr,  Waldman.  May  the  witness  be  permitted  to  answer  that? 

The  Chairman.  Did  you  feel  you  had  any  obligation  to  the  Car- 
penters ? 

Mr.  Raddock.  Not  only  do  I  feel  that  I  had,  but  I  shall  always  feel 
part  and  parcel  of  the  Brotherhood  of  Carpenters,  and  never  for  once 
would  I  ever  waver  in  that  loyalty  to  the  Brotherhood  of  Carpenters 
on  a  financial  front,  moral  front,  or  otherwise. 

Mr.  Kennedy.  Did  you  tell  the  Carpenters  that  you  needed  this 
money  in  order  to  pay  the  debts  of  the  Trade  Union  Courier  and  the 
Worldwide  Press? 

Mr.  Raddock.  No,  not  ever  precisely  in  that  way,  but  I  did  ask  for 
the  money  and  tried  to  get  it  as  soon  as  possible. 

Mr.  Kennedy.  Whom  did  you  ask  for  the  money  ? 

Mr.  Raddock.  The  Brotherhood  of  Carpenters. 

Mr.  Kennedy.  And  you  discussed  this  with  Mr.  Hutcheson? 

Mr.  Raddock,  With  the  board. 

Mr.  Kennedy.  You  discussed  it  with  Mr.  Hutcheson,  did  you  not  ? 

Mr.  Raddock.  I  do  not  believe  I  ever  talked  to  Mr.  Hutcheson 
personally  on  any  issue  pertaining  to  finances. 

Mr.  Kennedy.  Did  you  discuss  it  with  Mr.  Charlie  Johnson  in 
New  York? 

Mr.  Raddock.  I  don't  believe  that  I  ever  talked  to  Mr.  Charlie 
Johnson  in  New  York  regarding  the  finances. 

Mr.  Kennedy.  You  were  in  touch  with  Mr.  Charlie  Johnson  in 
New  York,  very  frequently,  were  you  not? 

Mr.  Raddock.  I  am  still  in  touch  with  Mr.  Charles  Johnson  in 
New  York  and  wherever  else  I  contact  him.  He  is  an  old  friend  and  a 
dear  friend  and  a  labor  leader  with  whom  I  am  glad  to  stay  in  con- 
tact, but  that  does  not  imply  by  the  farthest  stretch  of  the  imagination 
that  I  did  not  promptl}^  and  directly  answer  your  question. 

Mr.  Kennedy.  Then,  you  did  discuss  it  with  Mr.  Charlie  Johnson? 

Mr.  Raddock.  With  the  general  executive  board. 

Mr.  Kennedy.  Did  you  discuss  it  with  Mr.  Charlie  Johnson  ? 

Mr.  Raddock.  In  the  same  context  of  your  previous  question,  that 
Mr.  Johnson  is  a  member  of  the  board,  the  answer  is  yes.  Personally, 
no. 

21243—58 — pt.  31 14 


11984  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  Well,  you  were  talking  to  him  on  the  telephone  con- 
tinuously, were  you  not,  Mr.  Raddock  ? 

Mr.  Raddock.  Continuously? 

Mr.  Kennedy.  Yes. 

Mr.  Raddock.  I  use  telephone  calls  to  contact  and  communicate 
with  everybody  I  have  to. 

Mr.  Kennedy.  Mr.  Johnson  was  one  of  those  that  you  talked  to? 

Mr.  Raddock.  I  am  positive  that  in  my  line  of  work  I  contacted 
Mr.  Johnson. 

Mr.  Kennedy.  According  to  his  records,  his  own  records,  his  diary, 
you  were  calling  him  at  least  3  or  4  times  eveiy  month,  calling  him 
once  a  week. 

Mr.  Raddock.  I  presume  that  I  call  him  at  least  that. 

Mr.  Kennedy.  And  you  never  discussed  that  with  him  on  the  tele- 
phone ? 

Mr.  Raddock.  I  am  pretty  certain  that  I  did  not. 

Mr.  Kennedy.  Now,  just  to  go  back  on  this  check  of  January  8, 
1954,  for  $25,000,  on  January  6,  1954,  there  is  a  notation  here,  in  jVIr. 
Johnson's  diary : 

Mr.  Raddock  called ;  did  not  receive  any  mail  from  Mr.  Hutchinson  today. 

Didn't  that  refer  to  the  $25,000  ? 

Mr.  Raddock.  1  am  pretty  certain  that  it  does  not  in  any  way  refer 
to  any  finances,  and  regarding  any  such  notation  by  him,  I  think  he 
is  the  only  one  who  can  best  answer  it.  I  did  not  ask  Mr.  Charles 
Johnson  personally  for  any  finances  of  any  kind  nor  discuss  it  with 
him. 

The  Chairman.  The  real  question  is,  were  you  calling  him  on  the 
telephone  for  the  purpose  of  getting  advance  payments  on  this  book  ? 

Mr.  Raddock.  To  the  best  of  my  knowledge,  Senator  McClellan,  I 
did  not  call  Charles  Johnson  or  any  other  individual  board  member 
for  any  payments. 

The  Chairman.  Did  you  appear  before  the  board  ? 

Mr.  Raddock.  Yes,  I  did. 

The  Chairman.  In  session? 

Mr.  Raddock.  Yes,  sir. 

The  Chairman.  Did  you  talk  to  any  members  of  the  board  about  it 
before  appearing  before  them  in  session  ? 

Mr.  Raddock.  I  can't  recall  that. 

The  Chairman.  Did  you  talk  to  Mr.  Jolinson  about  it  before  the 
board  met  'i 

Mr.  Raddock.  I  don't  recall  such  a  conversation. 

The  Chairman.  Did  you  talk  to  Mr.  Hutcheson  about  it  before 
the  board  met  ? 

Mr.  Raddock.  Not  precisely. 

The  Chairman.  Precisely  what? 

Mr.  Raddock.  I  did  not  talk  to  Mr.  Hutcheson  precisely  on  the 
subiect  of  finances. 

The  Chairman.  Did  you  talk  to  any  other  member  of  the  board 
before  the  meeting  regarding  these  advances  or  these  advance  pay- 
ments? 

Mr.  Raddock.  I  don't  recall  ever  talking  to  an  individual  member 
of  the  board  concerning  any  of  the  moneys  due  me. 


IMPROPER    ACTIVITIES    IN    THE    K\BOR    FIELD  11985 

The  Ch^mrman.  I  am  talkino;  about  this  money,  regarding  this 
money  that  you  were  getting  in  advance  of  your  contract,  of  per- 
forming the  contract. 

Mr,  Haddock.  I  did  not  talk  to  any  individual  member. 

The  Chairman.  Now,  have  we  settled  it  so  we  are  not  going  to 
have  any  doubt  about  it  in  the  future?  All  of  the  talking  you  did 
about  getting  this  money  was  when  the  board  was  in  session  and  you 
were  there  present  ? 

Mr.  Raddock.  That  is  my 

The  Ciiairmax.  You  did  not  talk  to  other  individual  members  of 
the  board  about  it  ? 

Mr.  Haddock.  I  don't  believe  so,  unless  the  board  assigned  a  com- 
mittee to  talk  to  me,  but  never  to  individuals,  to  the  best  of  my 
recollection.  Somebody  would  call  me  on  the  phone  and  ask  me 
something,  and  I  can't  think  of  anyone  having  discussed  it  with  me, 
but  it  is  very  possible  that  a  board  member  would  walk  off  on  the 
side  and  ask,  "What  about  this?"  or  "What  about  that?"  but  I  do 
not  recall  any  such  conversation. 

The  Chairmax.  Now,  if  I  get  it  clear,  you  do  not  recall  having 
talked  to  individual  members  of  the  board,  any  of  them,  about  needing 
this  advance  financing. 

Mr.  Raddock.  That  is  the  best  answer  I  can  give,  according  to  my 
recollection. 

The  Chairman.  Am  I  understanding  you  correctly?  That  is  all 
I  want. 

Mr.  Raddock.  Yes. 

The  Chairman.  All  right ;  proceed. 

Mr.  Kennedy.  On  November  31, 1955,  you  received  another  $50,000, 
and  by  that  time  you  had  only  produced  5,000  books. 

The  Chairman.  What  does  that  total  by  that  time? 

Mr.  Kennedy.  Isn't  that  right,  Mr.  Raddock?  That  is  $250,000, 
Mr.  Chairman,  and  5,000  books. 

The  Chairman.  Is  that  correct,  Mr.  Raddock  ? 

Mr.  Raddock.  If  that  is  what  the  records  show. 

The  Chairman.  Up  to  the  time  you  had  received  a  total  of  $250,000, 
on  November  31,  1955,  you  had  only  produced  5,000  books;  is  that 
correct  ? 

Mr.  Raddock.  I  don't  know  whether  it  was  November  or  December 
of  1955. 

The  Chairman.  Do  you  want  to  put  it  in  December,  and  let  us  not 
quibble? 

Mr.  Raddock.  I  believe  so,  and  I  think  it  was  in  December. 

The  Chairman.  All  right,  then,  the  record  shows  November,  but 
you  say  by  December  you  had  produced  only  5,000  books,  and  you  had 
received  $250,000. 

Mr.  Raddock.  I  believe  that  is  correct,  sir. 

Mr.  Kennedy.  Then  on  February  24,  1956,  you  received  another 
$50,000  for  printing  an  additional  10,000  books  at  $5  a  copy.  T^^lat  is 
the  explanation  for  that,  Mr.  Raddock,  why  you  had  not  met  your 
commitment  on  these  first  books  ? 

Mr.  Raddock.  I  would  not  label  it  that  way,  Mr.  Kennedy.  If  the 
question  is,  "Wliy  did  I  not  produce  more  books  than  5,000  by  any  date, 
that  is  another  question? 


11986  IMPROPER    ACTIVITIES    INT    THE    LABOR    FIELD 

The  question  as  to  why  I  received  $50,000  in  February  1956,  if  that 
is  the  correct  date,  I  was  under  the  impression  it  was  about  March. 
Then  I  sold  the  Brotherhood  on  the  idea  of  expanding  the  size  of  their 
gift  list. 

I  did  not  fix  it  at  10,000  books,  as  you  suggest,  but  I  was  asked  to 
produce  the  book  at  the  cheapest  rate  possible,  and  I  was  to  go  back 
and  consider  how  I  could  produce  a  cheaper  book  to  get  the  widest 
possible  coverage. 

Mr.  Kennedy.  Mr.  Raddock,  why  didn't  you  just  meet  your  com- 
mitment to  print  the  books  you  were  supposed  to  print  ? 

The  Chairman.  Let  me  ask  a  question  here. 

He  had  delivered  or  produced  5,000  books,  up  to  the  time  he  got 
$250,000.     Under  the  contract,  how  many  was  he  supposed  to  produce  ? 

Mr.  Kennedy.  56,000  books. 

The  Chairman.  Now,  he  was  in  default  51,000  books ;  is  that  correct? 

Mr.  Kennedy,  That  is  correct. 

The  Chairman.  At  that  time  ? 

Mr.  Raddock.  Is  that  question  asked  of  me.  Senator  ? 

The  Chairman.  According  to  this  testimony  here,  in  the  record,  you 
had  received  $250,000  for  which  you  were  to  have  delivered,  produced 
and  delivered,  56,000  books.  Now  you  come  along  and  make  another 
deal  whereby  you  are  to  produce  10,000  books  at  a  cost  of  $5  per  book 
while  you  were  in  default  on  your  original  contract  by  51,000  books ; 
is  that  correct  ? 

Mr.  Raddock.  That  is  not  correct. 

The  Chairman.  Now  you  correct  it. 

Mr.  Raddock.  No.  1, 1  was  not  supposed  to  deliver  56,000  books  nor 
did  I  sell  the  Brotherhood  10,000  additional  books  at  $5. 

No.  2,  my  assignment  consisted  of  the  following :  I  was  to  produce 
6,000  books  to  go  to  affiliated  unions  of  the  Brotherhood  of  Car- 
penters, to  top  officers,  I  believe,  1  or  2,  the  president  and  secretary  of 
affiliated  international  unions. 

The  Chairman.  Let  me  ask  you  this,  and  I  want  to  get  it  straight : 
How  many  books  were  you  under  contract  to  produce  for  the  $250,000  ? 

Mr.  Raddock.  Finally,  I  was  to  produce 

The  Chairman.  Well,  let  us  answer  the  question. 

Mr.  Kennedy.  As  of  November  1955,  or  December  of  1955. 

The  Chairman.  As  of  either  November  or  December  of  1955,  what 
was  your  contract  and  how  many  books  were  you  to  produce?  You 
had  gotten  $250,000.  How  many  books  were  you  supposed  to  produce 
for  that  money  ? 

Mr.  Raddock.  For  the  $250,000  I  was  obligated  to  produce  and  to 
have  delivered  to  my  own  sources,  56,000  books. 

The  Chairman.  That  is  correct,  as  of  February  1956,  on  the  basis 
of  the  $250,000  and  the  56,000  books,  how  many  books  had  you  pro- 
duced up  to  that  time? 

Mr,  Radix)CK.  Would  you  kindly  repeat  the  dates.  Senator? 

The  Chairman.  Very  well.  As  of  February  1956  you  make  a  con- 
tract for  another  number  of  books.  Prior  to  that  time  you  had  a 
contract  and  had  been  paid  $250,000  to  deliver  56,000  books,  or  pro- 
duce 56,000  books. 

As  of  the  time  you  made  this  additional  contract,  in  February  of 
1956,  how  many  of  the  56,000  books  under  the  previous  contract  had 
you  actually  produced  ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11987 

Mr,  Raddock.  I  do  not  know  precisely  how  many  copies  were  com- 
pleted by  February. 

The  Chairman.  Our  record  shows,  as  I  understand  it,  it  is  5,000 
books. 

Mr.  Kennedy.  That  is  correct . 

The  Chairman.  Now.  is  that  true,  that  you  had  only  produced 
5,000  books  or  5,000  copies  up  to  February  of  1956? 

Mr.  Raddock.  Of  course,  you  realize,  Senator 

The  Chairman.  I  do  not  realize,  but  had  you  produced  5,000  copies 
or  more  ? 

Mr.  Raddock.  That  is  what  Chief  Counsel  Kennedy  says,  that  I  had 
produced  5,000  books. 

The  Chairman.  Wliat  do  you  say  ? 

Mr.  Raddock.  I  said  before,  I  do  not  recall  the  precise  date  of  the 
second  time. 

The  Chairman.  Do  you  say  the  statement  of  5,000  of  what  you 
produced  up  to  that  time  was  wrong  ? 

Mr.  Raddock.  No,  I  do  not  say  it,  if  your  records  show  that  5,000. 

The  Chairman.  They  are  your  records. 

Mr.  Raddock.  I  have  not  the  records ;  you  people  have  the  records. 

The  Chairman.  Do  you  dispute  that  as  being  your  own  records? 

Mr.  Raddock.  Not  at  all,  and  I  would  not  dispute  a  thing  that 
the  record  shows. 

The  Chairman.  That  would  make  you  51,000  books  in  default  as 
of  February  of  1956,  would  it  not  ? 

Mr.  Raddock.  No,  sir. 

The  Chairman.  You  were  not  in  default  ? 

Mr.  Raddock.  Not  at  all,  and  the  word  "default"  is  a  wrong  label 
to  the  entire  transaction. 

The  Chairman.  Well,  your  first  contract  was  to  produce  that  many 
books,  5,000  or  6,000  books  by  November  of  1954. 

]\Ir.  Raddock.  My  contract  was  not  to  produce  books. 

The  Chairman.  What  were  you  to  do  by  1954,  then  ? 

Mr.  Raddock.  Senator,  I  will  be  glad  to  answer  you,  if  you  want 
the  answer  in  detail,  and  I  will  be  glad  to  give  it  to  you. 

The  Chairman.  I  am  trying  to  get  in  a  little  more  simple  form. 

Mr.  Raddock.  I  am  trying  to  be  as  simple  as  I  can,  and  if  you  will 
afford  me  the  opportunity 

The  Chairman.  You  have  succeeded  in  confusing  no  one  but  your- 
self so  far  as  I  am  concerned. 

Mr,  Raddock.  I  do  not  really  feel  confused,  Senator. 

The  Chairman,  I  am  asking  you  a  simple  question  here.  You  got 
$250,000,  and  for  that  you  were  to  produce  these  books.  As  of  Febru- 
ary of  1956  you  had  produced  only  5,000  books. 

Mr,  Raddock.  These  are  the  statements  of  fact,  Senator,  which 
you  do  not  want  me  to  dispute,  because  they  are  correct. 

The  Chairman.  I  want  you  to  dispute  them  if  they  are  incorrect. 

Mr.  Raddock,  I  said  before.  Senator,  I  said  that  whatever  your 
records  show  to  be  correct,  I  certainly  agree. 

The  Chairman,  Well,  assume  the  records  are  correct,  and  if  they 
are  you  are  in  default  51,000  books. 

Mr.  Raddock,  No,  I  again  repeat  now.  Are  you  willing  now  to 
let  me  explain  it  in  detail?  You  want  me  to  answer  the  term  "de- 
fault" and  I  say  "No,  I  was  not  in  default." 


11988  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  If  it  is  not  default,  what  is  it? 

Mr.  Haddock.  With  your  kind  permission,  Senator,  I  will  try  to 
explain  to  you. 

The  Chairman.  You  have  my  kind  permission. 

Mr.  Raddock.  Thank  you  very  much.  You  are  the  typical  gentle- 
man from  Arkansas. 

The  Chairman.  Well,  thank  j^ou.  I  hope  that  reflects  credit  upon 
all  Arkansas  citizens. 

Mr.  Eaddock.  I  feel  that  way. 

The  Chairman.  We  think  we  are  pretty  good  people  down  there. 

Mr.  Raddock.  That  is  right. 

The  Chairman.  We  agree  on  that,  then. 

Mr.  Eaddock.  Yes. 

The  Chairman.  Proceed. 

Mr.  Raddock.  The  Carpenters  Union  charged  me  and  privileged 
me  by  authorizing  me  to  do  a  biography  history  of  the  United  Brother- 
hood of  Carpenters  and  Joiners  of  America.  I  was  not  asked  to  pro- 
duce 56,000  books,  as  if  that  is  a  dozen  cases  of  salmon.  I  was  asked 
to  write  a  creative  history  of  75  years  of  the  life  of  a  great  economic 
organization.     That  is  one  aspect  of  the  obligation. 

The  other  obligation  was  finally  to  deliver  or  have  delivered  56,000 
books  for  $250,000  and  approximately  16,000  books,  I  believe,  for  the 
other  $50,000,  and  on  another  occasion  2,000  books  which  we  had  de- 
livered to  individual  people,  for  which  the  union  supplied  a  list. 

The  first  job  we  performed.  Senator,  was  the  following:  We  sent 
out  the  book  to  the  affiliated  unions  of  the  Brotherhood  of  Carpenters. 
We  sent  out  several  hundred  review  copies  to  leading  reviewers 
throughout  the  Nation,  and  following  that,  we  had  a  second  printing 
of  the  book,  from  which  we  supplied  the  union  with  the  2,000  copies, 
and  filled  some  other  orders  of  copies  that  had  been  missent.  Later 
on,  as  soon  as  I  was  freed  from  my  obligations  to  the  Brotherhood  of 
Carpenters  for  the  entire  year  of  1956,  I  completed  the  shipment  of 
all  of  the  books  for  which  the  Brotherhood  of  Carpenters  paid  me. 

It  was  never  their  intent,  I  am  sure,  nor  would  I  ever  undertake  to 
glut  the  American  academic  institutions  with  56,000  books  at  one  time. 
That  has  never  been  done,  and  should  not  be  done,  and  it  is  the  most 
unwise  distribution.     The  distribution  was  left  to  me. 

If  the  point  is  that  I  was  paid  in  advance,  let  us  say  that  I  effectively 
convinced  the  union  to  pay  me  for  the  services  and  to  entrust  me  to  per- 
form to  the  hilt  all  of  my  obligations,  and  I  have  done  so  in  my  opin- 
ion, eloquently,  as  immodest  as  it  may  soimd. 

The  Chairman.  You  have  done  it  eloquently  and  have  not  been  in 
default? 

Mr.  Raddock.  Senator  McClellan,  I  gave  you  my  word  that  I  have 
not  been  in  default  in  the  sense  that  the  term  infers.  I  was  not  in  de- 
fault. 

If  you  want  to  discuss  the  method  of  distribution  and  how  scien- 
tific it  was,  and  whether  it  achieved  the  best  results,  I  am  perfectly 
willing  to  go  into  it. 

(At  this  point,  the  following  luembcrs  ^\ere  present:  Senators 
McClellan  and  Curtis.) 

The  Chairman.  Well,  I  wouldn't  want  to  insist  tliat  you  take  that 
much  time.     The  point  is,  and  it  is  very  simple,  as  I  see  it,  unless 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11989 

you  have  some  better  explanation  than  you  have  given,  that  you  got 
$250,000  over  a  period  beginning  in  early  195-1,  and  by  February  1956, 
you  had  received  $250,000 

Mr.  Kennedy.  $300,000  by  that  time,  by  February  1956;  yes. 

The  Chairman.  He  got  another  $50,000  ? 

Mr.  Kennedy.  Yes. 

The  Chairman.  You  got  $300,000  by  Februaiy  1956,  and  you  had 
actually  produced  5,000  books. 

Mr.  Raddock.  Yes,  sir.  Senator. 

The  Chairman.  We  agree  on  that? 

Mr.  Raddock.  Yes,  sir. 

The  Chairman.  But  you  say  you  were  not  in  default  ? 

Mr.  Raddock.  Positively. 

The  ChxVIrman.  That  is  the  only  matter  at  issue. 

Mr.  Raddock.  Senator  McClellan,  that  is  absolutely  correct. 

The  Chairman.  Although  you  had  been  paid  for  56,000  books,  you 
had  delivered  5,000.  Then  we  will  say,  if  you  don't  want  to  use  the 
w^ord  "default,--  we  will  say  that  you  still  owed  51,000  books  that  you 
had  not  produced  ? 

Mr.  Raddock.  That  is  correct. 

The  Chairman.  Then  you  go  make  another  contract  for  an  addi- 
tional 2,000  books  for  $10,000.    How  quick  were  you  to  produce  those? 

Mr.  Raddock.  Those  books,  as  I  previously  stated,  were  sent  out 
upon  receipt  of  an  order.  Those  books  were  not  part  of  the  total 
order  for  institutions  throughout  the  United  States. 

The  Chairman.  Somebody  has  poor  management  or  something 
here.  I  just  can't  miderstand.  The  union  had  51,000  volumes  of 
the  books  due  from  you  they  already  paid  for.  Why  they  are  going 
to  make  another  contract  for  2,000  more  when  they  could  not  get  the 
51,000  kind  of  leaves  it  fuzzy,  don't  you  think  ? 

Mr.  Raddock.  Senator  McClellan,  once  before  I  told  you  in  execu- 
tive session.  You  had  written  me  in  a  letter  and  you  asked  me  two 
pointed  questions  and  I  answered  them  as  pointedly  as  you  put  them. 

If  you  ask  me  that  question  now,  and  it  is  a  good  one,  the  answer 
is  that  those  2,000  books  were  not  part  of  my  distribution.  Those 
books  were  individual  orders  received  by  the  Brotherhood  of  Car- 
penters for  the  book.  The  56,000  books,  plus  the  $50,000  order  in 
February  or  ]March  1956,  were  intended  for  the  institutions  for  which 
I  supplied  the  list  to  you.  Senator,  per  your  request. 

The  Chairman.  If  you  had  delivered  the  51,000  they  would  not 
need  2,000  more  to  supply  them. 

Mr.  Raddock.  No,  that  is  not  correct.  Senator.  Those  2,000  books, 
I  repeat  again  I  have  the  list,  and  I  gave  a  copy  of  the  list  to  your  com- 
mittee, those  2,000  names  were  to  individual  members  and  unions. 

They  Avere  not  part  of  my  shipment.  My  books,  the  56,000  plus  the 
other  order  of  about  16,  were  for  the  list  that  I  supplied  to  you,  which 
includes  a  cross  section  of  all  the  educational  institutions  and  the  best 
mediums  for  contacting  Americans  that  I  could  possibly  adduce. 

The  Chairman.  We  are  down  to  February  26.  Some  things  you 
agree  to  and  some  things  are  still  m  the  state  of  absolute  confusion. 
Let's  proceed  from  February  26. 

Mr.  Kennedy.  Then  we  have,  Mr.  Chairman,  3,100  more  books 
printed  in  March  1956 ;  in  January  of  1957 — isn't  that  correct,  Mr.  Rad- 
dock ?    I  don't  want  to  say  it  if  it  is  not  correct  ? 


11990  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Haddock.  I  don't  think  you  would. 

Mr.  Kennedy.  It  is  correct,  then  ? 

Mr.  Raddock.  I  don't  know  about  the  January. 

Mr.  Kennedy.  March  1956,  you  produced  another  3,100  books? 

Mr.  Raddock.  I  believe  that  is  your  figure.  I  thought  it  was  4,300. 
You  said  32. 

Mr.  Kennedy.  3,200.  Then  January  9,  1957,  you  received  another 
$10,000  for  2,000  more  books. 

Mr.  Raddock.  Those  books  I  referred  to  before. 

Mr.  Kennedy.  And  you  were  then  charging  the  union  $5  a  copy  for 
those  books  ? 

Mr.  Raddock.  On  that  order  to  individual  members  or  locals  the 
charge  was  $5  for  2,000  books,  because  the  only  agreement  I  had  with 
the  Brotherhood  was  on  bulk  book  orders  above  10,000  to  give  them  a 
lower  rate. 

Mr.  Kennedy.  Then  why  didn't  you  produce  the  books  you  were 
supposed  to  produce  up  to  the  time  you  took  the  $10,000  ? 

Why  didn't  you  produce  them  ? 

Mr.  Raddock.  Just  a  moment,  Mr.  Kennedy.  In  the  year  1956 — now, 
let's  remember  that  the  book  was  completed 

Mr.  Kennedy.  Mr.  Raddock,  listen  to  my  question.  You  were  in 
default  for  books,  you  had  taken  a  large  sum  of  money  from  the  Car- 
penters, and  then  you  proceeded  on  January  9,  1957,  to  take  another 
$10,000  from  the  Carpenters  to  produce  some  more  books. 

I  am  asking  you  if  you  had  any  interest  in  the  Carpenters  at  all  why 
you  took  that  extra  $10,000. 

Mr.  Raddock.  I  don't  know  whether  I  am  to  answer  you  on  my 
interest  re  the  Carpenters,  or  whether  you  want  the  question  answered 
as  I  did  before  on  the  2,000  books  that  did  not  come  within  the  scope 
of  the  bulk  book  orders  for  which  we  charged  under  $4,  overall,  or 
whether  you  want  to  know  whether  or  not  I  was  doing  anything  that 
would  contravene  my  own  loyalty  and  fealty  to  the  Brotherhood  of 
Carpenters. 

The  answer  is,  Mr.  Kennedy,  that  following  the  publication  of  the 
book  in  December  1955,  following  that,  the  Brotherhood  of  Carpen- 
ters asked  me  to  take  on  another  duty  that  kept  me  busy  from  Feb- 
ruary 1956,  1  month  later,  and  I  assure  you  it  was  an  exhausting 
labor,  the  writing  of  the  book. 

I  took  on  an  assignment  from  February  1956,  through  March  1957, 
work  like  I  never  was  asked  to  perform  that  was  literally  exhausting, 
and  I  did  not  have  the  chance,  the  time,  nor  the  abilities  to  come  to 
grips  with  the  other  distribution  problem.  But  the  Brotherhood  of 
Carpenters,  in  my  opinion^  profited  thereby  to  the  tune,  perhaps,  of 
$7,500  to  $10,000  in  that  mdividual  sales  made  by  us  to  academic 
institutions  automatically  come  off  their  gift  list. 

They,  in  turn,  actually  are  able  to  send  their  book  to  more  institu- 
tions than  they  originally  expected. 

The  Chairman.  Let  me  nsk  you,  Mr.  Raddock,  this  question :  You 
had  completed  writing  the  book  before  November  1955,  had  you  ? 

Mr.  Raddock.  I  believe  the  book  was  completed  in  about  the  third 
week  of  November  1955,  if  my  memory  serves  me  correctly. 

The  Chairman.  That  is  tlie  first  publication  of  it? 

Mr.  Raddock.  Not  the  first  publication.  The  completion  of  the 
manuscript.     I  believe  the  actual  arrival  of  books  must  have  been 


IMPROPER    ACTIVITIES    IN   THE    LABOR    FIELD  11991 

either  the  end  of  November  or  2  or  so  days  before  the  A.  F.  of  L.- 
CIO  merger  convention. 

I  think  it  was  December  5.     Or  the  very  day. 

The  Chairman.  Let  me  see.  You  got  it  completed  at  least  so  you 
could  have  it  published  by  November  1955,  is  that  correct  ? 

Mr.  Raddock.  I  tried  to  get  it  done  as  speedily  as  possible. 

The  Chairman.  I  don't  care  what  you  tried  to  do.  What  you  suc- 
ceeded to  do  is  what  I  am  talking  about. 

Mr.  Raddock.  I  believe  it  was  late  November  or  December. 

The  Chairman.  Let's  split  the  difference. 

Mr.  Raddock.  I  believe  the  release  date  was  February  12,  Lincoln's 
birthday. 

The  ChairmxVN.  All  right.  Now  we  have  Lincoln  in  it.  Tlie 
point  I  am  trying  to  make  is  that  it  occurs  to  me  once  you  have  the 
type  for  the  book  set  up  and  was  publishing  it,  actually  printing  it, 
I  don't  know  what  other  work  you  had  to  do  after  that  except  run  the 
printing  presses  to  get  out  tlie  book. 

Mr.  Raddock.  I  wouldn't  have  done 

The  Chairman.  You  said  you  got  all  busy  and  couldn't  do  anything, 
you  worked  yourself  sick  or  something. 

Mr.  Raddock.  That  is  very  possible,  Senator. 

The  Chairman.  During  that  period  of  time  you  didn't  actually  turn 
the  press  and  run  out  the  book  yourself.  You  had  all  of  the  work  done. 
You  had  the  book  prepared.  You  already  had  it  published.  You 
certainly  had  the  plates. 

What  was  there  to  do  that  you  could  not  have  done  and  would  not 
have  normally  done  and  did  have  done  in  your  plant  all  the  time  to  get 
out  the  books  ? 

I  don't  care  what  you  were  doing.  You  may  have  been  writing 
another  thesis  or  something.  You  may  have  been  writing  ads  for  a 
convention  or  something  else  yourself. 

Mr.  Raddockn.  I  don't  do  that.  Senator,  in  case  you  are  interested. 

The  Chairman.  The  point  I  am  making  is  that  you  had  everything 
necessary  to  produce  the  book.  You  had  produced  it.  The  same 
things  that  produced  it  once  produced  it  again  with  a  little  more  pa- 
tience and  a  little  more  work. 

T\Tiat  was  it  that  delayed  you  in  getting  the  book  out? 

You  had  the  money.     You  had  it  paid  for. 

Mr.  Raddock.  Again,  Senator,  I  don't  want  to  bore  you  or  irritate 
you,  but  this  involved  the  wisest  possible  distribution  of  56,000  books, 
plus  16. 

The  Chairman.  Is  that  your  best  explanation  ? 

Mr.  Raddock.  Senator,  permit  me,  please,  to  finish. 

I  am  a  little  bit  tuckered  out  by  now. 

The  Chairman.  I  am,  too. 

Mr.  Raddock.  Believe  you  me,  with  utmost  concern  for  you,  plus 
myself,  I  would  like  to  dispense  with  it.  But  the  answer  is.  clearly, 
that  I  had  an  obligation  to  distribute  56,000  plus,  I  think,  16,000,  hard 
covered  books.  I  had  supplied  to  the  Brotherhood  of  Carpenters 
originally  a  list,  I  believe,  of  256,000  sources  that  I  had  hoped  they 
would  cover  via  the  distribution. 

It  was  then  my  job  to  see  to  it  that  a  selective  distribution  is  handled 
as  speedily  as  I  could.     It  was  my  intention  and  hope  to  do  it  as 


11992  IMPROPER    ACTIVITIES    IN   THE    LABOR    FIELD 

wisely  as  possible  within  the  shortest  time,  perhaps  during  late  or  the 
middle  of  1956  and  thereafter. 

But  as  I  say,  Senator,  the  Carpenters  asked  me  to  take  on  another 
duty  which  kept  me  away  from  performing  that  aspect  of  the  job,  the 
handling  of  a  selective  distribution  of  the  book,  and  I  could  not  give  it 
my  personal  attention. 

Again  I 

The  Chairman.  "What  about  publishing  the  book  after  you  had 
written  it,  after  you  had  had  the  plates  made,  the  type  set  up,  and  the 
book  published  ? 

What  was  it  about  finishing  the  production  of  it  that  required  your 
encouragement  and  consistent  attention  ? 

Mr.  Raddock.  Originally  I  had  supplied  to  the  Carpenters  a  list 
of  256,000  names.     It  was  now  down  to  sixty-some  thousand. 

The  Chairman.  All  right.     You  had  that. 

Mr.  Haddock.  Furthermore,  Senator,  I  am  sure,  as  an  articulate 
gentleman,  you  know  that  after  a  book  is  reviewed  there  are  orders 
forthcoming  from  academic  institutions.  I  wanted  to  wait  to  see  the 
responses  from  the  academic  institutions  so  that  saving  would  be  ef- 
fected and  we  would  not  have  to  duplicate  a  gift  copy  to  the  same 
sources. 

The  Chairman.  Was  the  book  ever  rewritten  ? 

Mr.  Haddock.  It  was  revised  somewhat  later,  very  slightly. 

The  Chairman.  Wlien? 

Mr.  Raddock.  Wlien? 

The  Chairman.  Yes. 

Mr.  Raddock.  I  believe  toward  1957. 

The  Chairman.  You  say  very  slightly  ? 

Mr.  Raddock.  Very,  very,  very  slightly. 

The  Chairman.  Very,  very,  all  right. 

I  think  a  couple  of  lines. 

Mr.  Raddock.  A  couple  of  lines.     That  is  very  slightly. 

Mr.  Kennedy.  The  fact  is  you  never  intended  to  produce  this  book 
until  the  committee  began  its  investigation;  is  that  correct? 

Mr.  Raddock.  Mr.  Kennedy,  that  is  so  far  from  the  truth  that  it 
should  not  even  be  ventured  by  you. 

Mr.  Kennedy.  Isn't  it  true  that  you  had  spent  all  the  money  the 
Carpenters  paid  you  by  the  time  the  committee  started  its  investiga- 
tion, and  in  order  to  produce  these  books  you  had  to  go  out  and  bor- 
row money  ? 

Mr.  Raddock.  No. 

Mr.  Kennedy.  Didn't  you  borrow  money  in  January  and  February 
of  1958? 

Mr.  Raddock.  I  may  be  borrowing  money  every  month,  every  day, 
every  year.  To  answer  your  question,  without  you  casting  any 
aspersions  on  my  reputation  or  character 

Mr.  Kennedy.  The  facts  speak  for  themselves. 

Mr.  Raddock.  Let's  say  that  the  facts  speak  very  well  for  all  of 
us.  But  on  this  particular  subject  of  your  question,  in  1957,  May 
or  June  of  1957,  when  I  was  released  by  the  Brotherhood  of  Car- 
penters, we  published  10,000  books  and  began  shipping  again;  stopped 
in  the  middle  of  the  summer  and  resumed  again  toward  Christmas, 
because  the  school  system  opens  in  September  and  we  wanted  to  give 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11993 

them  a  chance  to  get  ^oing  before  we  would  send  out  gift  copies  of  a 
vahiable  book  priced  either  at  $3.50,  $4,  or  $5. 

Mr,  Kenni':dy.  Yes,  that  is  fine.  Now,  in  February  of  1958,  Mr. 
Kaddock,  didn't  you  borrow  some  $10,000  from  the  New  York  Savings 
Bank,  from  your  bookkeeper? 

Mr.  Raddock.  I  didn't  borrow  any  money  from  my  bookkeeper. 

Mr.  Kennedy.  Did  you  get  any  money  from  Mr.  Tom  Wang? 

Mr.  Raddock.  I  hxter  found  out  that  Mr.  Tom  Wang  advanced 
money  personally  to  our  organization. 

Mr.  IvENNEDY.  How  much  was  that? 

Mr,  Haddock.  I  don't  know. 

Mr.  Kennedy,  The  record  shows  some  $10,000,  in  February  1958. 

Mr,  Raddock.  If  the  record  shows  it  and  we  still  owe  it  to  him,  I 
am  sure  he  will  be  paid  as  soon  as  we  can  pay  him. 

Mr.  Kennedy.  In  the  same  month,  didn't  you  borrow  money  on 
your  insurance  money  ? 

Mr.  Raddock.  The  same  man  borrowed  money  on  my  insurance 
policy  in  the  interest  of  the  organization. 

Mr.  Kennedy.  How  much  was  that? 

Mr.  Raddock,  I  think  it  was  in  the  neighborhood  of  $17,000  or 
$18,000, 

Mr,  IvENNEDY,  So  that  was  $17,312,27.  That  made  a  total  of  $27,- 
312,27,  that  you  borrowed  in  Februaiy  1958.  From  whom  did  you  re- 
ceive orders  for  the  books  you  printed  in  February  1958  ? 

Mr,  Raddock,  I  don't  know. 

Mr,  Kennedy.  Well,  the  books  were  ordered  by  World  Wide  Press 
from  American  Book  Stratford,  in  January  and  February  of  1958, 
and  American  Book  Stratford ;  is  that  correct  ? 

Mr,  Raddock,  If  your  records  show  that,  that  is  correct. 

Mr,  Kennedy,  That  bill,  according  to  the  records  we  have,  to  pay 
for  those  books,  was  $28,988,08. 

Mr,  Raddock,  Yes, 

Mr.  ICennedy.  So  you  borrowed  $27,312,27  and  paid  out  for  the 
books  at  that  same  period  of  time  some  $28,988,08. 

Mr,  Raddock.  Is  that  a  statement  or  a  question  ?  Are  you  asking 
me  a  question  ? 

Mr,  I^NNEDY,  You  make  any  statement  about  it  that  you  want  to. 
Isn't  it  a  fact  that  you  used  all  the  money  that  the  Carpenters  paid 
you  during  this  period  of  time  to  pay  for  the  World  Wide  Press,  to 
pay  for  your  other  debts,  that  you  were  all  used  up  ? 

We  began  our  investigation  and  you  had  to  go  ahead  and  borrow 
money  in  order  to  print  this  book,  and  you  never  would  have  printed 
it  if  our  investigation  had  not  begun, 

Mr,  Raddock,  Again,  Mr,  Kennedy,  with  the  highest  possible  re- 
gard for  the  prestige  of  this  committee  on  which  you  serve  as  general 
counsel,  we  would  have  completed  and  I  would  have  completed  any 
obligation  I  have,  because  I  did  not  really  require  you  to  come  into  my 
life  m  order  for  me  to  fulfill  an  obligation,  I  say  that  with  the  ut- 
most respect  for  you  and  everyone  else. 

In  addition,  another  fact,  Mr,  Kennedy,  please  do  not  slur  over,  as 
nay  statement  says,  the  fact  tliat  in  May  or  June  1957  we  perhaps 
didn't  borrow  money  or  we  did  borrow  money ;  I  don't  know. 

Maybe  we  were  just  loaded  with  money,  but  we  produced  10,000 


11994  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

books,  which  you  again  fail  to  mention,  and  that  is  a  half  year  before 
your  committee  came  to  existence  or  into  our  life. 

The  Chairman.  Let's  see,  Mr,  Haddock.  You  delivered  these  last 
books  in  1958,  didn't  you? 

Mr.  Raddock.  The  last  books?  Senator  McClellan,  I  answered 
you  at  the  time  that  you  wrote  me  the  letter,  I  answered  you  factually. 

The  Chairman.  Can't  you  answer  me  "Yes"  or  "No"  ? 

Mr.  Raddock.  I  don't  know,  really. 

The  Chairman.  Didn't  you  borrow  this  money  and  order  $28,000 
worth  of  books  this  year  ? 

Mr.  Raddock.  No.  sir. 

The  Chairman.  What  are  the  dates  of  those  borrowings? 

Mr.  Kennedy.  The  borrowings  started  on  February  10,  1958,  and 
went  tlirough  February  24, 1958. 

The  Chairman.  Wlien  were  the  books  delivered? 

Mr.  Kennedy.  February  of  1958. 

The  Chairman.  At  the  time  the  books  were  delivered,  or  about 
the  time  they  were  delivered,  the  money  was  borrowed? 

Mr.  Kennedy.  That  is  correct. 

The  Chairman.  Did  you  use  this  money  to  pay  for  the  books  ? 

Mr.  Raddock.  The  answer  to  that.  Senator,  is  that  Mr.  Kennedy 
only  told  you  half  of  the  story,  that  we  did  not  print  all  the  books 
outside.  We  were  printing  books  in  our  plant,  just  as  I  told  you. 
I  believe  it  was  in  November  and  December  of  1957,  Senator,  plus 
another  order  on  the  outside. 

The  Chairman.  Well,  did  you  have  about  $28,000  worth  printed 
outside  ? 

Mr.  Raddock.  I  wouldn't  know.  Senator. 

The  Chairman.  This  is  all  recent.  This  is  just  a  few  months  ago. 
This  is  June,  and  back  to  February  is  4  months  ago  at  the  outside. 
Do  you  mean  to  tell  me  you  don't  know  whether  you  borrowed  money 
to  pay  for  these  books  that  you  had  made  outside  of  your  plant  ? 

Mr.  Raddock.  I  did  answer.  Mr.  Kennedy  asked  whether  $17,000 
or  $18,000  was  borrowed  on  my  insurance  for  the  company.  I  didn't 
say  for  books. 

The  Chairman.  And  another  $10,000  was  borrowed. 

Mr.  Raddock.  Was  loaned  by  a  conscientious  employee  of  our  or- 
ganization, for  whatever  purpose  he  chose  to  lend  it.  As  to  whether 
it  was  for  books,  or  all  the  books  or  other  bills,  I  can't  say.  Senator. 

The  Chairman.  Well,  at  any  rate,  to  pay  for  $28,000  worth  of 
books,  you  ordered  outside  of  your  plant,  to  fulfill  your  contract,  you 
borrowed  twenty-seven  thousand  and  some  hundred  dollars? 

Mr.  Raddock.  I  can't  say  that  we  borrowed  $27,000  to  pay  for  $28,- 
000  worth  of  books.  I  would  say  that  we  printed  books  on  the  out- 
side and  we  paid  for  them. 

If  it  totaled  $28,000 

The  Chairman.  Let's  put  it  this  way:  In  order  to  pay  for  the 
books,  you  didn't  have  the  money 

Mr.  Raddock.  I  wouldn't  be  ashamed  of  saying  to  you.  Senator 
McCellan,  that  I  do  or  don't  have  money.  I  want  to  answer  you 
frankly.  I  don't  know  whether  the  money  was  borrowed  for  the 
books.   We  were  printing  books  in  November 


IMPROPER    ACTIVITIES    IN   THE    LABOR    FIELD  11995 

The  Chairman.  Let's  take  it  the  other  way.  It  wasn't  borrowed  for 
the  books.  But  in  order  to  pay  for  the  books  out  of  the  money  you  had 
to  met  your  other  obligations,  you  had  to  borrow  $27,000. 

Mr.  Kaddock.  Very  possible.  Senator. 

The  Chairman.  Either  way,  it  adds  up  to  the  same. 

Mr.  Raddock,  We  always  may  be  borrowing  money.  In  American 
business  institutions,  people  are  borrowing  and  lending  and  that  is 
why  we  have  banks  and  lending  institutions. 

The  Chairman.  You  had  received  up  to  that  time  how  much? 

Mr.  Kennedy.  Some  $310,000. 

The  Chairman.  $310,000? 

Mr.  Kennedy.  And  these  books  printed  outside  were  all  cloth- 
bound  books,  40,000  clothbound  books  needed  to  fulfill  the  contract. 

This  money,  this  $28,988.08  was  used  to  pay  for  those  books. 

Mr.  Raddock.  May  I  say  that  not  all  the  clotlibouud  books  were 

Crinted  outside.  I  think  10,000  or  20,000  were  printed  by  us.  The 
inding  may  have  been  done  outside. 

Mr.  Kennedy.  By  American  Book  Stratford.  This  was  to  pay  for 
the  books. 

Mr.  Haddock.  And  that  we  printed  an  additional  thirty  or  so 
thousand  books  in  addition  to  those  10,000  or  20,000  ourselves,  from 
about  July  1957  until  now. 

Mr.  Kennedy.  Did  you  write  this  book,  Mr.  Raddock  ? 

Mr.  Raddock.  It  bears  my  title. 

Mr.  Kennedy.  That  is  not  the  question. 

Did  you  write  the  book  ? 

Mr.  Waldman.  If  we  are  leaving  the  other  subject,  may  I  ask  that 
the  staff  be  asked  another  question  on  this  subject,  namely  whether  or 
not  their  investigation  did  not  disclose  from  the  records  that  100,000 
covers  of  the  book  were  printed  some  time  in  1955,  or  1956  at  the  plant 
or  elsewhere  ? 

The  Chairman,  Mr.  Raddock,  you  may  testify  to  tliat. 

Mr.  Raddock.  Yes,  Senator  McClellan,  we  printed,  I  believe,  100,- 
000  or  150,000  book  jackets,  because  it  was  our  original  intent  to 
handle  not  only  the  shipment  for  the  brotherhood's  orders,  but  to 
handle  a  general  sale  of  the  book,  as  for  any  other  book. 

But  I  didn't  have  the  time  even  to  do  that. 

The  Chairman.  Why  would  you  print  the  jacket  before  you  got  the 
book? 

Mr.  Raddock.  In  preparation.  In  other  words,  the  jacket  is  a 
separate  print,  a  four-color  printing  job  unto  itself. 

The  Chairman.  When  were  the  jackets  printed  ? 

Mr.  Raddock.  I  believe  in  1955. 

The  Chairman.  In  1955.  You  didn't  get  the  book  finished  up  until 
1958,  3  years.  You  had  the  jackets  that  far  in  advance.  I  don't  know 
about  the  printing  business.  Maybe  you  get  the  jackets  first.  Other 
printers  will  know.  I  don't  know.  I  would  think,  tliough,  yon  would 
be  sure  you  would  get  the  book  before  you  got  the  jackets. 

Mr.  Raddock.  Or  get  the  jackets  ready  for  the  books.     Kithei'/or. 

Mr.  Kennedy.  Mr.  Chairman,  just  before  I  ask  him  about  tliis  otlier 
matter,  I  would  like  to  ask  Mr.  Wolfe  and  Mr.  Diebel  to  sit  over  here. 

They  traced  through  the  $310,000  to  determine  how  it  was  used. 


11996  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

TESTIMONY  OF  CHARLES  E.  WOLFE  AND  KARL  DEIBEL— Resumed 

The  Chairman.  You  have  both  been  sworn  in  this  particular  series 
of  hearings  and  have  testified  publicly.    Proceed,  Mr.  Kennedy. 

First,  state  your  names  for  the  record,  again. 

Mr.  Deibel.  My  name  is  Karl  Deibel.  I  hold  a  CPA  certificate 
in  the  District  of  Columbia.  I  am  assigned  to  the  St.  Louis  office  of 
the  United  States  General  Accounting  Office. 

Mr.  Wolfe.  Charles  E.  Wolfe,  investigator  from  the  General  Ac- 
counting Office,  assigned  to  this  committee. 

Mr.  Kennedy.  Mr.  Wolfe,  you  are  familiar  with  the  books  and 
records  of  Mr.  Haddock's  companies  ? 

Mr.  Wolfe.  Yes,  sir. 

Mr.  Kennedy.  You  specifically  traced  the  money  that  came  to  Mr. 
Raddock  out  of  the  Carpenters  to  pay  for  the  book,  The  Portrait  of 
an  American  Labor  Leader  ? 

Mr.  Wolfe.  Yes,  sir. 

Mr.  Kennedy.  Were  you  able  to  trace  as  to  how  the  money  was 
used  during  this  period  of  time  ? 

Mr.  Wolfe.  Wliat  we  did  was  to  compare — Mr.  Diebel  will  testify 
to  the  $10,000  received  in  March  1957. 

Mr.  Deibel.  We  have  a  summary  here. 

Mr.  Wolfe.  Maybe  Mr.  Deibel  can  give  the  summary. 

Mr.  Deibel.  We  have  a  summary  of  the  expenditure  of  $300,000 
during  the  period  of  January  1954  through  July  of  1956.  It  shows  that 
there  were  some  $28,000  used  to  pay  for  expenses  connected  with  the 
book. 

The  Chairman.  How  much? 

Mr.  Deibel.  $28,000. 

The  Chairman.  $28,000  out  of  the  $300,000  was  used  for  the  expenses 
of  the  book  ? 

Mr.  Deibel.  That  is  correct,  sir. 

The  Chairman.  All  right. 

Mr.  Deibel.  There  was  an  additional  $167,000  which  was  used  to 
reduce  the  indebtedness  of  the  World  Wide  Press. 

The  Chairman.  How  much? 

Mr.  Deibel.  $167,000. 

This  consisted  of  payments  on  notes  for  plant  machinery,  reduction 
of  debenture  bonds,  payments  on  mortgages  and  reduction  on  liability 
for  delinquent  Federal  withholding  and  social-security  taxes. 

The  Chairman.  Do  you  mean  out  of  the  $300,000,  now,  you  account 
for  $28,000  of  it  that  you  trace  toward  the  carrying  out  of  the  contract 
for  the  book  ? 

Mr.  Deibel.  That  is  correct,  Mr.  Chairman. 

The  Chairman.  All  riglit.  And  $167,000  went  to  the  payment  of 
other  obi  igations  of  the  company  ? 

Mr.  Deibel.  Of  indebtedness. 

The  Chairman.  Well,  that  would  be  an  obligation. 

Mr.  Deibel.  Right. 

The  Chairman.  Indebtedness  of  the  company. 

Mr.  Deibel.  In  addition,  there  was  $81,000  which  was  used  to  pay 
the  operating  expenses  of  World  Wide  Press  during  the  same  period. 

The  Chairman.  $81,000? 

Mr.  Deibel.  That  is  correct. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11997 

The  Chairman.  All  right. 

Mr.  Deibel.  In  a  subsequent  period,  from  July  of  195()  through  Feb- 
ruary of  1957,  Mr.  Raddock  reduced  the  indebtedness  of  World  Wide 
Press  by  another  $85,000.  So,  in  effect,  this  $81,000,  by  using  it  to  pay 
his  current  obligations,  he  was  able  to  reduce  his  indebtedness  by  an- 
other $85,000. 

In  addition,  we  found  he  withdrew  from  his  personal  account  some 
$20,000,  of  which  $6,000  was  drawn  to  cash  and  indorsed  to  the  Black 
Angus  Kestaurant.  Another  $12,000  were  cash  withdrawals  which 
were  cashed  at  banks  and  hotels. 

This  totals  up  to  some  $296,000. 

The  Chairman.  As  you  analyze  his  records,  that  accounts  for  $296,- 
000  out  of  the  $300,000^ 

Mr.  Deirel.  Out  of  the  $300,000.  We  also  determined  that  the  bank 
balances  of  his  personal  account  and  of  the  organizations  which  he 
controlled  increased  $3,800  in  this  period.  So  we  have  accounted  for 
the  entire  $300,000. 

The  Chairman.  All  except  200. 

Mr.  Deibel.  Yes. 

Senator  Curtis.  May  I  ask  a  question  ? 

The  Chairman.  Yes. 

Senator  Curtis.  You  referred  to  a  figure  of  $28,000  spent  producing 
the  book.    What  was  the  figure  ? 

Mr.  Deibel.  That  was  $28,000  we  were  able  to  identify  as  expenses 
incurred  and  paid  by  Mr.  Raddock's  organizations  related  to  the 
Hutcheson  book. 

Senator  Curtis.  What  expenditures  constitute  that  $28,000? 

Mr.  Deibel.  That  included  some  $4,000  to  Mr.  Riesel,  Victor  Riesel, 
approximately  $11,000  for  the  salary  of  Mr.  Irving  Graeber,  who  was 
doing  work  on  the  book;  $8,500  to  Stahley  Thompson  for  the  plates, 
printing,  and  binding  of  the  book;  another  $1,000  to  Internal  Revenue, 
related  to  the  salary  of  the  people  there  who  were  working  on  the  book, 
and  $500  to  Lorraine  Gratz,  who  was  doing  some  research  and  index- 
ing relating  to  the  book. 

Senator  Curtis.  Did  any  of  that  involve  printing  in  his  own  plant? 

Mr.  Deibel.  Printing  was  done  at  Stahley  Thompson.    No,  sir. 

Senator  Curtis.  None  of  the  books  were  published  in  his  own  plant  ? 

Mr.  Deibel.  None  of  the  expenses  that  we  were  able  to  identify. 
Let  me  make  this  comment,  Mr.  Raddock's  organizations  have  no 
cost  accounting  system  or  any  way  that  you  can  relate  specific  expenses 
outside  of  examining  invoices  from  outside  firms  or  examining  the 
checks  and  any  notations  on  the  checks. 

It  is  totally  impossible  to  try  and  ascertain  a  cost  of  work  that  is 
done  within  Mr.  Raddock's  World  Wide  Press. 

Senator  Curtis.  Do  you  know  whether  any  of  them  were  printed, 
either  in  whole  or  in  part  in  his  plant  ? 

Mr.  Deibel.  I  believe  he  has  printed  some,  but  I  cannot  testify  on 
the  figures. 

Senator  Curtis.  Can  you  trace  anything  in  that  $28,000  covering 
that? 

Mr.  Deible.  Not  covering  that  printing ;  no,  sir. 

Senator  Curtis.  There  would  be  expense  on  that,  payroll  and  ma- 
chinery expense. 


11998  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Deibel.  Well,  we  have  the  expenses  of  Mr.  Graeber,  who  was 
engaged  in  the  writing  of  this  book.  This  is  only  up  until  July  1956. 
At  that  time,  there  were  only  8,100  books  produced. 

Senator  Curtis.  Were  any  of  those  8,100  books  printed  in  whole  or 
in  part  in  Mr.  Haddock's  plant  ? 

Mr.  Deibel.  I  believe  Mr.  Tierney  is  more  qualified  to  testify  on 
that  point.  Senator. 

Mr.  Tierney.  Some  of  these  books  were.  Senator. 

Senator  Curtis.  How  many  of  them  ? 

Mr.  Tierney.  We  know  that  10,000  of  the  insides  of  the  hardbound 
covered  books  were  printed  in  Mr.  Raddock's  plant. 

Senator  Curtis.  10,000  of  what  ? 

Mr.  Tierney.  The  hardbound  or  clothbound  books  as  distinguished 
from  the  paper  back  books  and  some  29,000  paper  back  books  were 
printed  in  Mr.  Raddock's  plant. 

Senator  Curtis.  Prior  to  this  date? 

Mr.  Tierney.  No,  all  afterwards,  all  subsequent  to  this  date. 

That  all  took  place  beginning  in  the  latter  part  of  November  1957. 

The  Chairman.  What  you  are  doing  is  accounting  for  the  money 
up  to  July  1956? 

Mr.  Deibel.  That  is  correct.  We  are  accounting  for  the  receipt  of 
the  $300,000  which  was  received  between  January  1954  and  March  of 
1956.  We  have  determined  that  by  July  of  1956  he  had  used  the 
$300,000,  $28,000  which  we  could  identify  with  the  book,  but  tlie  re- 
maining $272,000  was  used  for  other  purposes. 

The  Chairman.  Do  I  understand  there  had  been  a  total  of  8,100 
books  printed  up  to  that  time,  up  to  July  1956? 

Mr.  Deibel.  That  is  correct,  Mr.  Chairman. 

The  Chairman.  All  right.  Assuming  you  take  the  $28,000  that 
you  identify,  and  then  add  to  it,  say,  $5  the  cost  of  printing  each  book, 
you  would  have  $40,000,  you  would  have  a  total  of  around  $68,000 
that  actually  went  into  the  book,  if  you  make  that  generous  allowance 
for  the  cost  of  printing  ? 

Mr.  Deibel.  If  you  make  the  allowance.  We  liave  included  in  that 
$28,000,  $8,000  which  he  paid  to  Stahley  Thompson  for  printing  at 
least  5,000  of  these  books. 

The  Chairman.  He  got  5,000  of  them  printed  for  $8,000? 

Mr.  Deibel.  That  is  correct. 

The  Chairman.  That  is  according  to  your  records. 

Senator  Curtis.  Is  that  5,000  the  only  books  that  were  published 
during  this  period  you  are  talking  about? 

Mr.  Deibel.  There  was  8,100  at  this  time,  Senator. 

Senator  Curtis.  Where  were  the  other  3,100  printed? 

Mr.  Deibel.  They  were  also  printed  at  Stahley  Thompson. 

Senator  Curtis.  But  paid  at  a  later  time  ? 

Mr.  Deibel.  Paid  at  a  later  time,  to  the  best  of  my  knowledge. 

Mr.  Tierney.  The  8,100  books  were  purchased  and  printed  through 
Stahley  Thompson,  5,000  in  November  1955  and  3,100  in  March  1956, 
whicli  would  be  prior  to  the  terminating  date  of  this  analysis. 

Senator  Curtis.  What  is  the  terminating  date  of  this  analysis? 

Mr.  Deibel.  This  period  terminates  July  1956. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  11999 

Senator  Curtis.  Wasn't  there  any  work  done  in  Mr.  Raddock's 
plant  on  this  book  prior  to  July  1956  other  than  what  is  repre- 
sented in  that  $28,000  ? 

Mr.  Deibel.  There  no  doubt  was  work,  but  as  I  previously  stated 
we  are  unable,  from  the  records  supplied  by  Mr.  Raddock,  to  de- 
terminate any  specific  cost  figures  related  to  it. 

Senator  Curtis.  "Wliat  would  be  the  nature  of  that  work  ? 
Mr.  Deibel.  Presumably  the  making  of  type,  or  the  making  of 
plates.     There   might  have   been   some  traveling   expenses  during 
this  period,  some  research,  which  we  have  not  taken  care  of. 

We  are  unable  to 

Senator  Curtis.  How  about  copyrighters,  proof  writers,  and 
stenographers  ? 

Mr.  Deibel.  I  think  Mr.  Eaddock  would  be  much  more  qualified 
to  answer  that.     We  were  unable  to  trace  specific  amounts. 

Senator  Curtis.  In  other  words,  your  statement  that  by  July 
1956  some  $28,000  was  spent  on  this  book  is  all  that  you  can  trace, 
and  one  of  the  factors  in  that  statement  is  the  deficiency  in  the  account- 
ing system  followed  at  Mr.  Raddock's  plants  ? 

Mr.  Deibel.  That  is  true,  Senator. 

Senator  Curtis.  But  you  do  not  contend  that  there  is  no  evidence 
that  there  was  other  work  done  ? 

Mr.  Deibel.  That  is  correct. 

Senator  Curtis.  What  was  the  payment  to  Mr.  Riesel  for? 

Mr.  Deibel.  That  payment  was  for  research  and  editorial  work. 

Senator  Curtis.  Do  you  have  any  further  description  of  it? 

Mr.  Wolfe.  No,  that  is  all  we  have.  We  got  that  off  the  canceled 
checks,  the  notation  on  the  canceled  checks. 

Senator  Curtis.  But  you  know  it  was  research  and  editorial  work 
on  this  particular  book  ? 

Mr.  Wolfe.  It  was  identified  as  such,  yes,  sir. 

Senator  Curtis.  By  whom  ? 

Mr.  Wolfe.  On  the  canceled  checks  relating  to  the  Hutcheson  book. 

Senator  Curtis.  On  the  check  Mr.  Riesel  got  or  upon  the  stubs  ? 

Mr.  Wolfe.  On  the  check  Mr.  Riesel  got. 

Senator  Curtis.  That  is  all. 

The  Chairman.  Is  there  anything  further  of  these  witnesses  2 

All  of  that  money,  except  the  profit,  whatever  the  profit  was,  if 
that  had  been  spent  on  the  books  up  to  that  time,  the  $300,000,  you 
have  no  way  of  accounting  for  it? 

Mr.  Deibel.  That  is  correct,  sir. 

The  Chairman.  But  you  do  account  for  during  that  period  of 
time  the  reduction  in  his  indebtedness  of  $167,000? 

Mr.  Deibel.  That  is  correct. 

The  Chairman.  And  the  payment  of  operating  expenses  of  $81,000  ? 

Mr.  Deibel.  That  is  correct,  sir. 

Mr.  Kennedy.  We  made  an  investigation  of  the  book  and  Mr. 
Reisers  name  has  come  into  it.  It  is  a  common  and  ordinary  prac- 
tice in  a  procedure  such  as  this  where  payments  will  be  to  other  people, 
where  newspapermen  and  otherwise  are  making  this  kind  of  arrange- 
ment in  their  operation. 

The  Chairman.  All  right.     Proceed. 

21243—58 — pt.  31 15 


12000  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

TESTIMONY  OE  MAXWELL  RADDOCK— Resumed 

Mr.  Kenistedy.  Mr.  Raddock,  there  Avere  a  number  of  checks  drawn 
to  cash  in  1954  over  a  period  of  about  6  months,  some  $12,550  drawn 
to  cash.  For  instance,  on  May  11,  1954,  the  $1,250,  a  check  drawn 
to  cash.     Can  you  tell  us  what  you  did  with  that  ? 

Mr.  Eaddock.  ^Vliat  I  did  with  it  ? 

Mr.  Kennedy.  Yes.     You  cashed  the  check. 

Mr.  Eaddock.  Personally  ? 

Mr.  Kennedy.  Yes. 

Mr.  Raddock.  If  I  did  it,  I  utilized  the  money  for  my  expenses. 

Mr.  Kennedy.  And  then  on  June  8, 1954,  $5,000  in  cash. 

Mr.  Haddock.  If  I  took  money  personally,  I  often  endorsed  checks 
to  cash. 

Mr.  Kennedy.  These  are  cash  withdraw^als  by  j^ou  ? 

Mr.  Raddock.  I  wouldn't  know  whether  it  was  cash  withdrawals  by 
me.  In  our  organization  I  sign  all  checks  in  blank  and  any  week  I 
may  be  away  on  payday,  and  I  can  sign  as  many  as  a  hundred  checks 
for  2  or  3  weeks. 

If  I  endorse  the  checks  sometimes,  if  it  made  out  for  a  large  sum, 
the  bank  insists  on  having  my  signature.  It  does  not  necessarily 
mean  that  I  receive  the  money. 

Whatever  the  books  would  indicate,  that  w^ould  be  the  fact. 

Mr.  Kennedy.  During  this  period  of  May  1954,  to  November  1954. 
there  were  checks  drawn  to  cash  and  withdrawals  in  cash  by  you  total- 
ing some  $20,000.  Could  you  tell  us  what  you  did  with  all  of  that 
cash  ? 

Mr.  Raddock.  I  certainly  cannot. 

Mr.  Kennedy.  That  is  from  May  of  1954,  shortly  after  this  book 
began.  May  of  1954,  to  November  of  1954,  a  total  of  $20,000. 

That  is  checks  drawn  to  cash  amounting  to  $6,650,  and  cash  w'itli- 
drawals  amounting  to  $12,550,  and  another  check  for  $800,  making  a 
total  of  $20,000. 

The  Chairman.  There  was  about  $20,000  in  a  period  of  5  months. 

Mr.  Raddock.  May  I  chew  a  piece  of  gum  'i  My  throat  is  parched 
and  I  have  a  sore  throat. 

The  answer  to  that  question  is,  if  I  received  the  money,  Mr.  Ken- 
nedy, personally,  then  it  went  for  expenses.  I  am  pretty  certain  that 
during  the  years  1954,  1955,  and  1956,  I  spent  considerable  money  for 
expenses,  t  am  sure  that  I  bought  at  least  $7,000  or  $8,000  worth  of 
books  during  1954  and  1955. 

I  am  sure  I  and  staff  did  traveling  to  the  tune  of  perhaps  $15,000, 
These  are  all,  of  course,  random  figures  in  addition  to  which  we 
worked  nights  and  we  woi'ked  weekends,  and  there  was  a  host  of 
bills,  all  of  which  were  taken  care  of  by  cash  which  I  personally  ob- 
tained or  "h)ane<l  to  the  organization,''  since  all  of  my  money  for 
research  and  otherwise  went  into  the  organization  proper  and  I 
received  none  of  it  myself. 

Mr.  Kennedy.  These  were  unusual  withdrawals  to  cash,  and  thev 
were  during  this  particular  period  of  time.  There  were  regular  with- 
drawals of  cash  which  we  did  not  include  and  then  these  were  un- 
usual and  I  wanted  to  ask  you  about  them. 

Did  vou  actnallv  write  this  book,  Mr.  Raddock  ^ 


IMPROPER    ACTIVITIES    IN   THE    LABOR    FIELD  12001 

Mr.  Haddock.  Personally  and  solely,  except  for  the  excellent  aid 
I  received  from  my  colleagues  and  researchers. 

The  Chairman.  I  did  not  get  that  last  answer  quite  clearly. 

JNIr.  Raddock.  I  wrote  the  book  personally  and  solely  except  for 
the  fact,  or  except  for  the  excellent  aid,  I  believe  I  said,  I  received 
from  my  colleagues  and  researchers  on  the  staff,  plus  some  others  who 
are  not  directly  part  of  my  staff,  but  work  elsewhere  in  the  literary 
world. 

Mr.  Kennedy.  Did  these  other  people  to  whom  you  refer,  your 
staff,  did  they  do  much  of  the  book? 

Mr.  Raddock.  Most  literary  people  delight  in  the  knowledge  and 
comfort  that  they  had  a  great  participating  share.  Far  be  it  from 
me  to  deny  it  to  them,  any  more  than  your  own  brother  denied  it  to 
Mr.  Sorenson, 

Mr.  Kennedy.  If  we  will  just  stick  to  the  answers  to  the  ques- 
tions, it  would  be  a  great  help. 

Did  they  play  a  major  role  in  writing  the  book? 

Mr.  Raddock.  They  played  a  vital  role,  and  a  crucial  role,  and  an 
important  role, 

Mr.  Kennedy.  Was  a  lot  of  this  written  actually  by  these  people 
to  whom  you  refer  ? 

Mr.  Raddock.  I  would  say  not,  and  I  would  say  that  these  are  the 
fruits  of  my  labors,  plus  the  aid  of  about  half  a  dozen  persons  who 
contributed  to  the  final  product. 

Mr.  Kennedy.  Were  these  researchers  working  for  you? 

Mr.  Raddock.  Yes,  sir. 

Mr.  Kennedy.  Who  were  some  of  those  people  ? 

Mr.  Raddock,  Dr.  Irving  Graeber  was  the  chief  researcher. 

Mr.  Kennedy.  Dr.  Graeber? 

Mr.  Raddock.  Yes,  sir. 

Mr,  Kennedy,  Did  he  actuall}^  do  the  writing  of  the  book? 

Mr.  Raddock.  No,  sir. 

Mr.  Kennedy.  You  wrote  the  book  ? 

ISIr.  Raddock.  I  personally,  by  my  lonesome,  little  ol'  me,  wrote 
the  book,  and  I  gave  proper  and  due  recognition  to  all  of  those  who 
asked  and  sought  recognition.  Tliere  were  some  who  did  not  want 
any  recognition  for  their  contribution  in  this  work,  not  because  it 
lacked  a  literary  quality,  that  is  for  the  sake  of  the  press,  but  only 
because  they  w^ork  on  other  newspapers  or  elsewhere  and  pi-efer  not 
to  identify  themselves. 

Mr.  Kennedy.  I  am  trying  to  find  out  who  actually  wrote  some 
of  the  book,  and  you  say  Dr.  Graeber  wrote  some  of  the  book? 

Mr.  Raddock.  I  thought  I  answered  the  question,  Mr.  Kennedy. 

Mr,  Kennedy.  You  wrote  the  book  ?     What  is  the  answer  ? 

Mr.  Raddock.  The  answer  is,  I  wrote  the  book,  at  the  outset,  four 
times  since,  and  I  would  repeat  it  again  as  Senator  McClellan  says, 
no  matter  how  many  times  you  would  ask  me. 

Mr.  Kennedy.  I  was  looking  it  over,  and  I  was  interested  in  the 
literary  style. 

Mr.  Raddock.  Is  that  also  the  purview  of  this  committee,  to  dis- 
cuss literary  quality  ? 

Mr.  Kennedy.  I  just  want  to  ask  you  about  some  of  this.  Do  you 
have  a  copy  of  the  book  there  ? 


12002  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Would  you  give  Mr.  Raddock  a  copy  of  the  book,  please  ? 

(A  document  was  handed  to  the  witness.) 

Mr.  I^NNEDY.  On  page  68 — I  am  not  going  to  read  the  whole 
book  through. 

Mr.  Raddock.  I  wish  you  would,  Mr.  Kennedy,  and  perhaps  it 
might  lead  you  in  some  noble  directions. 

Mr.  Kj^nnedy.  Thank  you. 

mow,  it  says  down  here  at  the  bottom  of  page  68 : 

To  make  laws  and  adjustments  in  conformity  with  new  needs  in  a  changing 
industry,  or  amend  the  union's  constitutional  procedure,  was  one  thing.  But 
to  compel  obedience  on  the  proud,  powerful,  and  parochial  district  councils 
was  another.  These  local  unions  and  the  district  council  clearly  wanted  both : 
To  eat  their  cake  and  have  it  too;  to  gain  all  the  benefits  of  a  large  national 
union,  the  Brotherhood,  but  not  to  subordinate  themselves  to  its  procedures, 
or  surrender  an  ounce  of  their  freedom  of  action ;  to  help  pass  laws  giving  the 
chief  officer  authority  over  local  affairs,  but  to  raise  an  enormous  clatter  when 
he  enforced  them.  And  no  group  of  carpenters  needed  taming  more  than  did 
the  New  York  locals. 

Then  you  go  to  the  New  York  City  part.     Did  you  write  all  of  that  ? 

Mr.  Raddock.  First  of  all,  may  I  say  that  I  enjoyed  it,  and  I  enjoy 
your  reading,  Mr.  Kenned}^ 

Mr.  Kennedy.  Thank  you. 

Mr.  Raddock.  Your  diction  is  excellent. 

And  I  do  not  remember  precisely  whether  I  wrote  every  single 
word,  but  I  wrote  that  paragraph. 

Mr.  Kennedy.  Did  you  ? 

Mr.  Raddock.  Yes,  sir. 

Mr.  Kennedy.  Let  us  go  over  to  page  72 : 

In  the  spring  of  1916,  building  was  looking  up,  and  the  New  York  Carpenters 
wanted  a  raise  more  than  ever.  Secretary  Elbridge  Neal  of  the  New  York  Dis- 
trict Council  appeared  before  the  general  executive  board  and  requested  permis- 
sion to  turn  out  on  May  1,  1916,  if  necessary,  to  gain  a  50-cents-per-day  increase 
in  4  of  the  boroughs  and  60-cents-a-day  advance  in  Manhattan.  After  a  long 
session,  the  board  gave  reluctant  consent  and  agreed  to  give  financial  aid — 

and  then  it  goes  on. 

Did  you  write  that,  too? 

Mr.  Raddock.  I  wrote  the  entire  book,  Mr.  Kennedy,  and  insofar 
as  the  particular  paragraphs  that  you  singled  out,  tliey  are  a  recon- 
struction of  other  paragraphs  written  by  leftist  authors  and  Com- 
munist authors  who  pelted  rightwing  labor  leaders  throughout  the 
1930's.  _ 

Tliis  is  my  reconstruction  of  happenings  during  that  period  after 
a  tliorough  investigation  of  all  of  the  facts  through  interviews  and 
otherwise. 

Mr.  Kennedy.  That  is  all  your  writing?  You  wrote  it,  is  that 
right? 

Mr.  Raddock.  Mr.  Kennedy,  again  my  answer  to  you  is,  I  wrote 
the  entire  book  and  as  to  whether  or  not  any  similar  thoughts  are  ex- 
pressed by  other  writers,  and  tliere  were  many  writers  during  the 
1930's  who  dealt  with  that  particuhir  subject,  as  a  matter  of  fact, 
you  can't  find  one  book  written  by  a  leftist  writer  during  the  1030's 
that  did  not  deal  with  that  particular  incident,  but  dealt  with  it 
critically. 

Mr.  Kennedy.  On  page  100 — do  you  have  that?  Do  you  want  to 
follow  me  here? 


IMPROPER   ACTIVITIES    IN    THE    LABOR    FIELD  12003 

Carpenters  were  recruited  by  individual  contractors  through  newspaper  ad- 
vertisements. After  traveling  many  miles,  they  often  found  no  jobs  awaiting 
them,  or  were  refused  jobs  because  of  their  union  membership. 

Did  you  want  to  say  something  ? 
Mr.  Raddock.  I,  personally ;  no.     I  am  listening  to  you. 
Mr.  IvENXEDY  (continuing)  : 

Men  who  were  lured  to  a  distant  locality  by  the  promise  of  high  wages  often 
found  wages  to  be  lower  than  in  their  own  districts.  In  some  instances,  large 
numbers  of  skilled  carpenters  answered  the  Government's  call  only  to  find  that 
there  was  no  work  awaiting  them. 

Then  it  goes  on,  and  that  is  you,  too,  I  guess. 

Mr.  Raddock.  Is  it  me,  too?  Do  you  recognize  my  style?  To 
the  best  of  my  recollection,  every  word  in  that  paragraph  is  mine, 
and  with  the  aid  of  researchers  who  helped  me  with  the  book. 

Mr.  Kennedy.  On  page  204 

Mr.  Raddock.  May  I  also  say  that  nobody  has  a  monopoly  on  any 
words,  in  the  English  language,  and  neither  on  a  thought,  and  neither 
on  a  sentence  or  paragraph  structure.  As  I  also  said,  this  thought 
has  been  played  with  and  dabbled  with  by  most  of  the  leftist  writers 
of  that  era,  but  my  interpretation  of  those  particular  situations,  I  am 
sure,  is  accurate,  and  properly  portrays  the  responsible  attitude  of  the 
Brotherhood  of  Carpenters  in  dealing  with  those  collective  bargain- 
ing institutions  and  trade-union  situations. 

Mr.  Ivennedt.  And  I  take  it,  it  is  your  own  language,  is  it  ? 

Mr.  Raddock.  I  have  no  monopoly  on  the  English  language. 

Mr.  Kennedy.  But  you  would  not  take  someone  else's  material  and 
copy  it? 

Mr.  Raddock.  In  a  measure,  I  would.  If  you  want  to  accuse  me 
of  plagiarism,  let  us  say  this :  That  I  have  not  read  a  single  book  that 
contains  total  originality  from  beginning  to  end,  and  there  isn't  a 
single  new  thought  in  this  entire  world  that  is  not  derived  from  God 
and  the  Bible. 

Mr,  Kennedy.  But,  Mr.  Raddock,  so  I  understand,  you  would  then 
take  somebody  else's  words  and  copy  them  word  for  word,  would  you  ? 

Mr.  Raddock.  If  it  is  good,  I  would  borrow  the  thought,  just  like 
Jack  Benny  may  borrow  from  Bing  Crosby  or  somebody  else. 

Mr.  IvENNEDY.  Would  you  make  a  little  notation  that  you  had 
copied  it  down  ? 

Mr.  Raddock.  Make  a  notation? 

Mr.  Kennedy.  Yes. 

Mr.  Raddock.  I  would  give  due  credit  whenever  the  situation  re- 
sponsible calls  for  it. 

Mr.  KJENNEDY.  A^-lien  you  copied  someone  else's  work,  or  took  some- 
one else's  work,  you  would  give  them  credit,  would  you  not? 

Mr.  Raddock.  "Whenever  it  requires  I  would,  unless  my  researchers 
might  have  been  irresponsible  in  a  situation  and  did  not  properly  con- 
vey the  facts. 

Mr.  IvENNEDY.  On  page  204,  it  says  down  here  in  the  middle,  talk- 
ing about  the  fight  that  occurred  between  John  L.  Lewis  and  Mr. 
Hutcheson : 

The  blow  Lewis  landed  on  Hutcheson's  jaw  was  timed  with  the  careful  preci- 
sion of  a  choreographer  pirouetting  his  dancing  partner  on  stage. 

Is  that  you,  Mr.  Raddock  ? 


12004  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Raddock.  I  am  not  exactly  a  dancer,  but  I  would  say  that  that 
is  my  phraseology.  As  to  whether  I  borrowed  the  expression,  perhaps 
I  did,  and  if  you  want  to  loiow 

Mr.  Kennedy.  How  much  of  this  book  did  you  borrow,  do  you 
think,  Mr.  Raddock  ? 

Mr.  Raddock.  Mr.  Kennedy,  because  you  are  the  perfect  gentleman 
and  come  from  such  a  fine,  aristocratic  family,  I  don't  think  that  is 
called  for.  I  assure  you,  I  wrote  the  book  with  the  aid  of  the  men 
who  received  proper  and  due  credit,  and  if  you  are  now  becoming  a 
stylist  in  the  English  language,  and  you  want  to  go  into  discus- 
sions of  literary  quality,  and  my  responsibility  re  the  book,  I  do  not 
think  actually,  that  Mr.  McClellan  feels  that  literary  content  of  this 
book  comes  within  the  purview  of  this  committee  and  I  would  like  to 
call  it  to  his  attention. 

The  Chairman.  The  question  is  a  question  of  jurisdiction.  Here  is 
a  book  that  has  cost  these  folks  $300,000.  According  to  the  informa- 
tion I  have  and  it  may  be  developed  here,  a  great  deal  of  this  book 
was  just  copied  from  other  books. 

That  is  why  you  are  being  questioned  about  it.  There  is  no  secret 
about  it. 

Mr.  Raddock.  May  I  say  that  I  do  not  think  anyone  ever  took 
account  of  how  many  sentences  were  borrowed  by  any  writers  in  a 
scholarly  work,  or  certainly  not  in  the  history  of  a  movement,  be  it  a 
labor  movement  or  any  other  kind. 

The  Chairman.  I  understand  that. 

Mr.  Raddock.  I  think  Mr.  Kennedy  is  going  a  little  bit  too  far 
afield. 

The  Chairman.  Just  a  moment. 

Mr.  Raddock.  I  am  soriy,  I  didn't  hear  you.  Senator  McClellan. 

The  Chairman.  I  am  sure  that  one  may  very  well  in  writing  a  book, 
quote  from  some  other  author,  but  they  usually,  I  think,  out  of  def- 
erence to  and  respect  for  the  other  author,  put  it  in  quotations  or  make 
some  note  that  so  and  so  wrote  at  a  certain  time  this  or  that,  and  adopt 
it  or  disagree  with  it  and  argue  about  it. 

But  to  just  take  another  book  and  have  paragraphs  and  quotations 
from  it  without  so  indicating,  would  look  a  little  bit  as  if  someone 
else  may  have  actually  written  most  of  the  book  or  a  great  deal  of 
it.  ■ 

Mr.  Waldman.  On  the  jurisdictional  issue,  it  seems  to  me  you  have 
raised  a  question  perhaps  under  the  copyright  laws  which  I  do  not 
think  are  within  the  committee. 

Tlie  Chairman.  I  am  not  interested  in  that.  He  has  copyrighted 
the  book  iiud  I  do  not  challenge  that.  The  question  here  is  whether 
the  miion  members  have  been  defrauded. 

Mr.  Waldman.  Therefore,  it  w^ould  seem  to  me  that  trying  to  find 
an  isolated  instance  which  leads  to  4  sentences  in  400  pages 

Tlie  Chairman.  We  are  not  through,  and  be  patient.  Give  us  a 
little  time. 

Go  ahead. 

Mr.  Kennedy.  I  think  that  they  paid  about  $750  a  page  for  this,  so 
even  if  you  come  up  with  a  page  that  is  wholly  somebody  else's,  it  is 
worth  a  great  deal  of  money. 

Mr.  Waldman.  All  for  the  writing,  Mr.  Kennedy  ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12005 

Mr.  Raddock.  As  to  whether  or  not  you  want  to  afford  JNIr.  Ken- 
nedy more  time  to  excerpt  another  passage  here  or  there,  is  certainly 
your  right. 

Tlie  Chairman.  Well,  just  a  minute.  Your  attorney  raised  the 
question  that  there  are  only  -5  or  4  quotes  here.  I  said  I  think  that 
there  are  some  more  if  lie  wants  the  rest  of  it. 

Mr.  Raddock.  1  would  have  no  objection  if  Mr.  Kennedy  read  the 
entire  book.  HoAvever,  Senator  McClellan,  I  did  answer  that  I  wrote 
the  book. 

The  CiiAiUMAN.  I  know  you  did. 

Mr.  Raddock.  1  credited  whatever  sources  had  to  be  credited  and 
that  is  my  sole  and  exclusive  authority.  As  to  whether  or  not  the 
Carpenters  paid  $750  a  page,  I  am  sure  ]Mr.  Kennedy  realizes  that 
that  is  rather  a  facetious  remark. 

Insofar  as  the  Carpenters  being  defrauded.  Senator  McClellan,  I 
assure  you  that  the  record  will  clearly  show  notwithstanding  the 
figures  cited,  that  the  Carpenters  got  the  book  at  so  clieap  a  rate  that 
I  don't  think  any  other  trade-union  book,  including  Dubinsky's  or 
William  Green's,  or  pTohn  Lewis'  or  Walter  Reuther's,  were  produced 
any  cheaper,  nor  distributed  as  competently  as  this  one  in  the  best 
interests  of  the  Brotherhood  of  Carpenters  and  its  vast  membership. 

The  Chairmax.  Proceed,  Mr.  Kennedy.  Let  us  see  if  we  can  make 
some  progress. 

Mr.  Kennedy.  Well,  then,  over  on  page  365,  and  I  won't  ^o 
through  it  in  great  detail  if  you  don't  want  to,  as  I  tliought  you  said 
you  had  written  the  book,  and  I  thought  you  would  like  to  hear  it. 

The  Chairman.  I  have  advised  the  witness  and  his  counsel  that 
according  to  information  we  have  a  great  deal  of  this  book  was 
simply  taken  out  of  other  publications. 

Mr.  Raddock.  May  I  ask,  Senator  McClellan 

The  Chairman.  Do  you  want  to  deny  that? 

Mr.  Raddock.  Yes.  Here  is  what  I  would  like  to  repeat  again: 
First  of  all,  I  would  appreciate  it  greatly  if  the  researchers  who 
checked  the  contents  of  this  book  would  identify  themselves,  as  in- 
vestigators of  this  committee  or  as  authorities  on  its  content.  That  is 
No.L 

No.  2,  insofar  as  a  reading  of  this  book  or  any  other  book,  I  am 
sure  it  would  show  that  there  are  many  thoughts  borrowed  or  even  a 
phrase  borrowed  from  other  writers.  But  I  think  that  the  point  is 
being  labored  to  the  degree  that  it  originally  was  in  order  to  reflect 
on  me  personally  and  my  reputation  after  29  years  as  a  writer  and  I 
think  that  that  is  facetious  to  say  the  least. 

I  do  not  think  the  intent  is  serious,  but  rather  to  cast  unjustifiable 
aspersions. 

The  Chairman.  I  do  not  know.  We  have  testimony  here  that  this 
book  cost  some  $310,000,  but  according  to  some  testimony  we  have 
had  from  people  who  a])parently  know  their  business  and  with  whom 
you  dealt,  I  believe,  for  a  part  of  the  book,  that  this  book  could  well 
have  been  produced  for  around  $1  or  $1.10  or  $1.20  and  distributed 
for  that  amount. 

Now,  we  find  that  during  the  time  that  the  book  should  have  been 
produced,  and  you  were  drawing  this  money,  apparently  you  used  the 
money  to  pay  oft'  your  indebtedness,  and  you  got  behind  with  the  pro- 
duction of  the  book.     That  seems  to  be  indicated. 


12006  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Now  you  say  that  you  wrote  the  book,  and  you  charged  for  writing 
the  book.  It  develops  according  to  information  that  we  have,  that 
a  great  deal  of  this  book,  and  it  may  have  been  done  by  your  research- 
ers— I  do  not  know — was  simply  lifted  out  of  other  publications 
without  giving  credit  to  those  publications  for  it. 

I  do  not  know  whether  you  call  that  trying  to  embarrass  you.  I 
do  not  like  to  embarrass  anybody,  but  here  are  union  members  who 
have  paid  their  dues,  and  on  the  face  of  it,  and  that  is  what  we  are 
trying  to  inquire  into,  have  been  charged  and  their  money  has  been 
paid  out  far  in  excess  of  what  they  could  have  bought  or  what  this 
work  could  have  been  bought  for. 

You  say,  then,  you  wrote  the  book.  Very  good.  The  question  that 
arises,  if  you  wrote  the  book,  did  you  simply  in  order  to  construct  the 
book,  just  go  to  other  publications  and  lift  out  statements  and  ex- 
cerpts from  it  or  pages  from  it  without  giving  credit  to  the  real 
author  of  the  language  and  of  the  statements  ? 

That  would  simply  indicate  to  me  that  possibly,  instead  of  doing 
such  arduous  task  of  writing  a  book,  you  simply  threw  a  lot  of  things 
together  that  you  assembled  from  some  otlier  authors.  I  do  not  know. 
But  there  is  enough  about  this  that  it  looks  like  somebody  paid  out  $3 
or  $4  where  $1  should  have  purchased  the  same  service. 

Mr.  Ejennedt.  Let  me  read  this  last  paragraph.    This  is  one  more : 

McGuire  administered  the  union  along  tlie  lines  dictated  by  his  personality 
and  philosophy  such  as  prevailed  during  the  second  half  of  the  last  century. 
The  manner  in  which  he  and  his  early  coworkers  conducted  the  union  can  be 
summed  up  in  these  three  words :  "educate,"  "agitate,"  and  "organize*' — 

Is  that  your  language? 

Mr.  Haddock.  Yes,  sir. 

Mr.  IvENNEDT,  May  I  call  another  witness,  Mr.  Chairaian? 

The  Chaieman.  Are  there  any  questions.  Senator  Curtis? 

Senator  Curtis.  Not  at  this  point,  Mr.  Chainnan. 

The  Chairman.  Stand  aside  for  the  present,  Mr.  Eaddock. 

Call  the  next  witness. 

Mr.  Kennedy.  Dr.  Christie. 

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  ? 

Dr.  Christie.  I  do. 

TESTIMONY  OF  DE.  ROBERT  A.  CHRISTIE 

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

Dr.  Christie.  Robert  A.  Christie,  Pennsylvania.  By  training  I  am 
a  college  professor  of  history,  and  I  have  taught  at  Cornell  Univer- 
sity and  Lafayette  College,  but  for  the  past  2  yeare,  I  have  been  em- 
ployed as  a  staff  member  of  Gov.  George  M.  Leader  of  Pemisylvania. 

The  Chairman.  You  waive  counsel,  do  you  not  ? 

Dr.  Christie.  I  do. 

The  Chairman.  Proceed. 

Mr.  Ivennedy.  In  the  fall  of  1950,  you  enrolled  at  the  New  York 
State  School  of  Industrial  Labor  Relations  at  Cornell  Univereity? 

Dr.  Christie.  I  did. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  12007 

Mr.  Kennedy.  And  you  were  a  candidate  for  a  doctor  of  philos- 
ophy at  that  time  ? 

Dr.  Christie.  I  was. 

Mr.  Kennedy.  And  you  decided  to  write  the  history  of  the  Carpeii- 
tei-s,  as  your  thesis  ? 

Dr.  Christie.  Yes. 

Mr.  IvENNEDY.  Xow,  you  liave  always  been  interested  in  the  Carpen- 
ters, have  you  ? 

Dr.  Christie.  Yes ;  I  have  been  interested  in  them. 

Mr.  Kennedy.  Would  you  tell  the  committee  why  ? 

Dr.  Christie.  My  grandfather  was  a  carpenter  and  my  father  was 
and  is,  and  before  I  decided  to  go  to  college  I  worked  as  one,  but 
never  became  a  journeyman. 

I  was  interested  in  the  union  for  personal  reasons,  and  for  academic 
reasons.  It  is  the  oldest  continuing  union  in  the  United  States.  It 
was  the  first  trade  ever  found  in  unions  away  back  in  the  18th  century. 

It  founded  the  AFL  and  speaking  strictly  academically,  it  is  prob- 
ably the  most  important  union  at  present  active  in  the  trade  union 
movement  from  a  historical  viewpoint. 

Mr.  Kennedy.  Xow,  after  you  decided  to  write  your  thesis  on  the 
Carpenters  Union,  did  you  get  in  touch  with  the  Carpenters  Union 
itself,  the  international,  to  see  if  they  would  cooperate  as  far  as  mak- 
ing any  documents  and  records  available? 

Dr.  Christie.  Over  a  period  of  3  or  4  months,  in  the  end  of  1951, 
and  in  early  1952, 1  contacted  various  persons  in  the  union  to  acquaint 
them  with  the  work  I  was  doing.  I  contacted  them  about  a  year  after 
I  began  the  book  so  that  I  would  have  some  background  material  as- 
sembled and  know  what  I  wanted  to  ask  them. 

In  late  1951, 1  started  writing  letters  to  the  late  Secretary  Duffy  of 
the  union,  and  I  wrote  one  to  the  late  Secretary-Treasurer  Fisher, 
Vice  President  Blaier  and  requested  their  aid  and  assistance  in  writ- 
ing the  book  and  presented  my  credentials  as  a  candidate  for  a  doctor 
of  philosophy. 

Mr.  Kennedy.  Did  they  agree  to  cooperate  with  you  ? 

Dr.  Christie.  Xo;  they  never  answered  any  of  the  letters  for  a 
good  many  months  and  the  chairman  of  my  doctor  of  philosophy 
committee  phoned  Indianapolis  and  spoke  with  the  education  director. 

I  do  not  know  what  his  name  was,  and  I  did  not  make  the  phone 
call  but  I  was  present  when  it  was  made,  and  he  told  us  he  did  not 
think  we  could  get  any  assistance.  They  never  stated  why.  They 
did  not  want  an  accredited  college  like  Cornell  and  a  labor  relations 
school  that  was  dedicated  to  collective  bargaining,  and  it  says  in  the 
charter  of  the  school,  and  they  never  said  why  they  did  not  want  the 
history  written. 

I  received  one  letter  a  few  weeks  after  the  phone  call  from  Secre- 
tary Fisher  saying  that  they  would  give  me  no  help  of  any  kind,  and 
giving  me  a  2-  or  3-page  pamplilet  on  which  to  construct  my  doctor 
of  philosophy  thesis,  a  throwaway  sort  of  thing. 

Mr.  Kennedy.  Did  you  decide  to  go  ahead  with  your  thesis 
anyway  ? 

Dr.  Christie.  After  consultation,  a  lot  of  people  felt  that  such  a 
history  could  not  be  written  without  the  cooperation  of  the  union  and  a 
lot  of  other  people  felt  it  could  be  written  and  it  would  be  a  valuable 


12008  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

contribution  if  it  proved  you  could  write  it  without  the  cooperation 
of  the  union  because  there  are  a  lot  of  public  documents  from  many 
unions  in  libraries. 

One  of  the  objects  in  writing  it  was  to  see  what  kind  of  a  history 
could  be  turned  out  with  the  available  public  documents  that  you 
would  be  able  to  get  in  any  library. 

Mr.  Kennedy.  Now,  you  went  ahead  and  wrote  your  thesis  which 
was  called  "Empire  in  Wood" ;  is  that  right  ? 

Dr.  Christie.  Yes ;  a  history  of  the  United  Brotherhood  of  Carpen- 
ters and  Joiners. 

Mr.  Kennedy.  Was  that  accepted  by  the  university  ? 

Dr.  CiiRisnE.  It  was  accepted  by  the  university  as  my  doctor  of 
philosophy  thesis  in  the  spring  of  1954. 

Mr.  Kennedy.  April  of  1954  ? 

Dr.  Christie.  April  of  1954. 

Mr.  Kennedy.  Before  you  handed  your  thesis  in,  did  you  rexieive  a 
communication  from  a  Dr.  Graeber  of  the  Trade  Union  Courier  in 
New  York? 

Dr.  Christie.  I  did. 

Mr.  Kennedy.  And  did  he  request  to  examine  your  thesis  ? 

Dr.  Christie.  Yes.  He  wrote  me  twice  and  I  believe  you  have 
copies  of  the  letters,  or  one  of  them,  and  he  wrote  me  a  rather  vague 
letter  saying  that  he  wanted  to  see  my  manuscript,  and  my  research 
cards  for  a  history  of  labor  for  Y5  years,  I  believe  were  the  words  he 
used. 

I  was  writing  this  under  the  terms  of  a  fellowship,  and  I  felt  that 
the  thesis  was  by  that  token  partially  the  property  of  Cornell,  and 
they  had  obligated  themselves  to  publish  it,  if  it  passed  publication 
standards. 

I  took  it  to  Leonard  Adams,  the  research  director,  and  aslred  liim 
what  to  do  and  he  said,  "Well,  certainly,  you  are  publishing  this  work 
to  help  any  legitimate  scholar,  but  request  Dr.  Graeber  to  give  you 
more  information  on  precisely  what  he  is  doing." 

This  is  the  custom  when  scliolars  borrow  on  eacli  other's  Avork.  and 
you  trade  ideas.  Usually,  scholars  are  happy  to  trade  ideas,  and  get 
the  help  of  other  scholars,  and  I  wrote  a  letter  and  he  wrote  back 
again  saying  the  same  vague  answer. 

Dr.  Adams  advised  me  not  to  reply,  since  T  couhl  not  get  a  complete 
detailed  rundown  which  would  have  taken  at  least  2  or  o  pages  of 
single-spaced  typed  copy  to  explain  in  a  legitimate  project,  so  I  did 
not  get  that,  and  I  never  gave  him  my  manuscript  or  helped  him  in 
any  way,  to  my  knowledge. 

Mr.  Kennedy.  Then  it  was  finally  decided,  after  your  thesis  Avas 
accepted,  that  it  would  be  sent  to  Dr.  Graeber,  is  that  it  ? 

Dr.  Christie.  Well,  Avhat  happens  then  is  that  it  is  deposit,ed  like 
any  normal  book.     It  is  bound. 

Mr.  Kennedy.  I  Avant  to  move  along  to  the  more  importaiit  parts. 

Dr.  Christie.  Yes.  Well,  it  Avas  deposited  and  Dr.  Graybar  tele- 
gramed  the  school,  I  believe  you  have  a  copy  of  the  telegram,  and 
asked  for  permission  to  borrow  it.  Anyone  can  borroAA'  a  book.  He 
received  permission  and  borroAA-ed  it,  and  borrowed  it  under  the 
terms  Avritten  in  the  inside  co\'er  that  he  would  give  credit  to  all  the 
ideas  and  lanfmage  AAhen  he  used  it. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12009 

Mr.  Kennedy.  So  it  was  forwarded  to  liim.  He  asked  for  an  ex- 
tension in  time,  did  he  not,  in  November  of  1954? 

Dr.  CiiKisTiE.  Correx:t.  All  this  without  any  knowledge  at  the 
time.     I  was  not  then  at  the  school. 

Mr.  IvENNEDY.  It  was  decided  not  to  give  hun  the  extension  and  it 
was  requested  that  he  return  the  thesis  ? 

Dr.  CiiRisiiE.  I  believe  that  is  the  case. 

Mr.  I^NNEDY.  That  happened  about  November  1954,  is  that  right? 

Dr.  Christie.  Correct. 

Mr.  Kennedy.  Did  you  ever  hear  anything  further  about  the 
situation,  for  the  next  year  or  so? 

Dr.  Ciikistie.  I  had  no  idea  he  had  the  book.  I  was  then  teaching 
at  Lafayette  College  in  Easton,  Pa.,  and  pursuing  other  activities, 
revising  the  thesis  for  publication,  when  I  was  contacted  by  Mr.  Le- 
vitas,  editor  of  the  New  Leader,  a  national  publication  in  New  York. 

He  told  me  of  the  existence  of  this  book  here  by  Mr.  Raddock, 
The  Portrait  of  an  American  Labor  Leader,  and  advanced  the  opin- 
ion that  it  was  an  issue  of  lies  and  misrepresentations,  in  his  letter, 
and  would  I  review  it.  I  replied  I  would  review  it,  and  whatever 
it  was  I  would  call  it,  but  not  with  any  preconceived  notion.  He  then 
forwarded  me  the  book. 

Mr.  Kennedy.  Did  you  then  read  the  book  ? 

Dr.  Christie,  I  read  it. 

Mr.  Kennedy.  What  was  your  reaction? 

Dr.  Christie.  It  was  like  living  a  dream,  something  I  had  done 
before.  I  kept  seeing  myself  in  the  pages.  There  were  five  or  six 
thousand  of  my  words  stolen,  plagiarized,  borrowed,  whatever  you 
want  to  call  it. 

Mr.  Kennedy.  It  was  hardly  borrowed. 

Dr.  Christie.  No.  ''Plagiarized"  I  think  would  be  the  accurate 
word.  I  recognized  it  almost  as  soon  as  I  got  into  the  book.  The 
book  is  full  of  fits  and  starts.  The  style  changes  abruptedly.  If 
you  are  used  to  writing  or  editing  at  all,  you  come  through  a  certain 
type  of  writing  that  is  very  poor  and  jargon  laden  and  adolescent  in 
composition,  and  then  you  ram  right  up  into  a  crisp,  clean  sentence. 

Mr.  Kennedy.  Was  that  yours? 

Dr.  Christie.  Well,  I  wasn't  the  only  one  involved.  As  a  matter 
of  fact,  the  first  strained  sentence  I  ran  into  was  that  of  Frederick 
Lewis  Allen,  the  late  editor  of  Harpers  from  his  book  The  Big 
Change. 

At  that  time  I  was  using  it  for  lectures  at  Lafayette. 

Mr.  Kennedy.  Did  you  find  then  that  the  book  was  not  only  taken 
from  your  thesis  but  was  taken  from  other  books  ? 

Dr.  Christie.  Yes,  a  good  many  others. 

Mr.  Kennedy.  Can  you  give  us  the  names  of  some  of  the  other 
books  in  which  verbatim  excerpts  were  taken  ? 

Dr.  Christie.  Yes.  Frederick  Lewis  Allen,  The  Big  Change; 
George  Soule,  Prosperity  Decade.     These  are  only  word  for  word. 

Mr.  Kennedy.  These  are  all  word  for  word  ? 

Dr.  Christie.  These  are  word  for  word.  These  are  only  the  books 
he  took  word  for  word,  verbatim,  with  almost  no  changes.  Perhaps 
he  would  run  sentences  together  or  something  like  that.     From  the 


12010         IMPROPER  activitip:s  in  the  labor  field 

Wagner  Act  to  Taft-Hartley,  by  Professor  Mills,  and  Depression 
Decade,  by  Brodiis  Mitchell.     And  Empire  and  Wood,  by  Christie. 

Mr.  Kennedy.  Could  you  give  us  some  examples  of  some  of  the 
things  that  he  took?  Did  you  make  up  a  memorandum  as  far  as 
your  own  book  was  concerned  ? 

Dr.  Christie.  Well,  yes.  I  copied  the  ones  from  my  own  book. 
Everything  you  read  was  out  of  my  own  book.    My  thesis,  that  is. 

Mr.  Kennedy.  All  those  excerpts  that  I  read  ? 

Dr.  Christie.  All  those  excerpts  you  took  were  my  deathless  prose, 
such  as  it  is.  I  have  here  a  total  of — I  didn't  count  it  word  for  word. 
It  comes  to  33  single-spaced  typewritten  pages,  with  his  stuff  on  the 
left,  out  of  his  book,  and  my  stuff  on  the  right  out  of  my  book. 

I  never  received  credit  in  footnote  or  bibliography  for  any  of  it. 
He  never  mentioned  me  once. 

The  Chairman.  Do  you  know  how  many  words  this  contained, 
Doctor? 

Dr.  Christie.  I  would  estimate  that  probably  about  five  to  eight 
thousand.     But  that  is  a  guess.     They  could  easily  be  counted. 

The  Chairman.  Just  half  of  this 

Dr.  Christie.  Half  of  it  is  mine,  the  other  half  is  his. 

Mr.  I^JENNEDY.  Is  that  considered  a  large  number  of  words  in  a  book 
of  this  length?  Would  that  be  considered  a  large  number  of  words 
stolen  in  a  book  of  this  length  ? 

Dr.  Christie.  This  is  a  Brinks  robbery  of  literary  plagiarism.  It 
is  an  enormous  steal.  Then  you  have  to  throw  the  other  ones  in,  too. 
I  haven't  got  those  all  typed  up. 

The  Chairman.  Before  you  put  in  any  others,  may  we  put  in  as  an 
exhibit  this  document  which  I  will  hand  you.  Is  this  your  work  that 
you  have  referred  to  here  of  making  the  comparison  with  what  he  has 
taken  from  your  thesis  ?     Will  you  identify  it,  please  ? 

(Document  handed  to  the  witness.) 

Dr.  Christie.  It  is. 

The  Chairman.  Is  that  your  own  work,  or  a  photostatic  copy  of  it  ? 

Dr.  Christie.  That  is  a  photostatic  copy  of  the  work  I  did  myself. 

The  Chairman.  That  is,  in  taking  out  of  his  book  what  he  had 
taken  from  yours,  and  makes  a  comparison  ? 

Dr.  Cpiristie.  Yes. 

The  Chairman.  That  may  be  made  exhibit  No.  43,  for  reference. 

(Document  referred  to  as  marked  "Exhibit  No.  43,"  for  reference 
and  may  be  found  in  the  files  of  the  select  committee.) 

The  Chairman.  All  right. 

Mr.  Kennedy.  You  were  making  some  references  to  the  other  books. 

Dr.  Christie.  Well,  there  are  three  legal-size  pages  here  out  of 
Frederick  Lewis  Allen's  The  Big  Change  and  that  doesn't  include 
all.  There  are  3  more  pages  of  his  own  book  taken  from  6  more 
pages  of  Allen's  book  that  could  be  added  to  this.  Then  there  is  a 
full  page  from  George  Soule's  Prosperity  Decade,  and  that  isn't  all 
either. 

There  are  130  more  pages  out  of  about  20  pages  of  Soule. 

Mr.  Kennedy.  Is  there  any  credit  in  any  of  those? 

Dr.  Christie.  He  mentions  Soule  in  1  or  2  footnotes.  He  never 
mentioned  Allen.    He  mentions  Soule,  and  he  mentioned  Millis  Brown. 

Mr.  Kennedy.  In  all  instances? 


I 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12011 

Dr.  Christie.  No.  He  just  mentioned  them  once  or  twice,  and 
never  where  he  had  taken  the  material,  and  he  never  used  quotes  in 
this  material  I  have  here.  The  fact  that  you  mention  somebody  and 
don't  use  quotes — when  you  don't  use  quotes,  the  fact  that  you  men- 
tion them  does  not  excuse  it,  at  least  in  academic  circles. 

Mr.  Kennedy.  There  were  some  others  ? 

Dr.  Christie.  There  was  material  taken  from  Broadus  Mitchell's 
book,  Depression  Decade,  and  then  from  Millis'  book.  This  happened 
on  about  10  or  20  pages  of  all  of  these  books.  Had  I  time,  I  am  sure 
I  could  add  substantially  to  this  library  of  sources  he  took  from. 

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

Mr.  Kennedy.  This  is  what  you  have  done  in  the  last  week  or  so? 

Dr.  Christie.  About  a  week  or  10  days.  I  have  gone  into  these 
other  books.  I  also  knew  they  had  been  taken,  but  didn't  have  any 
good  reason  to  look  them  up. 

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

The  Chairman.  This  second  document  that  you  have  referred  to, 
where  you  have  made  a  comparison  or  noted  them,  may  be  made  ex- 
hibit No.  43A. 

(The  document  referred  to  was  marked  "Exhibit  No.  43A"  for 
reference  and  may  be  found  in  the  files  of  the  select  committee.) 

The  Chairman.  Do  you  have  an  extra  copy  of  it,  Doctor? 

Dr.  Christie.  Yes;  I  do. 

As  far  as  I  can  see,  his  only  expenses  for  writing  the  book  was  a 
pair  of  scissors  and  a  pot  of  glue. 

Mr.  Kennedy.  Were  there  any  changes  made  in  the  thought,  taking 
some  of  your  language  but  changing  the  thought? 

Dr.  Christie.  Well,  yes.  That,  perhaps,  is  the  most  oppressive  part 
of  it.  He  would  not  only  take  material  but  whenever  it  was  critical 
of  the  union  or  of  Hutcheson,  as  any  scholarly  book — the  essence  of 
a  scholarly  work  that  is  that  it  exercises  criticism  of  everything  you 
write  about — whenever  this  criticism  was  directed  at  the  union  or  at 
Hutcheson,  father  or  son,  or  anyone  else  who  happened  to  be  in  Mr. 
Haddock's  good  favor,  he  would  change  the  end  of  a  sentence  or  per- 
haps he  would  delete  3  or  4  paragraphs  and  then  continue  the  plagi- 
arism. 

If  you  have  my  thesis  there,  I  can  give  you  a  few  examples. 

(The  document  was  linnded  to  the  witness.) 

Dr.  Christie.  Here  on  page  69  of  Mr.  Kaddock's  book,  he  t«ok  a 
full  paragraph  that  was  on  page  366  of  this  thesis.  I  was  referring 
to  the  state  of  labor  relations  in  New  York  City  in  the  building  trades. 

I  said: 

Together  the  two  groups  regulated  New  York  City  building  to  their  own  satis- 
faction and  to  the  exclusion  of  the  various  national  unions. 

I  had  reference  to  the  employers  association  and  the  local  unions  there. 

They  settled  jurisdictional  matters  iu  tlieir  own  way  without  consulting  na- 
tional union  officers,  banned  sympathetic  striking  and  practiced  rigid  control  over 
racketeering  on  a  scale  unmatched  in  any  other  city. 

He  changed  this  to — 

They  settled  jurisdictional  matters  in  their  own  way  without  consulting  na- 
tional union  officers,  banned  sympathetic  striking  and  practiced  rigid  control  over 
skills. 


12012  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

Mr.  Kennedy.  Would  you  give  us  again  the  two  changes  ? 

Dr.  Christie.  Well,  I  said  "Practiced  collusion  and  racketeering  on 
a  scale  unmatched  in  any  other  city." 

He  said,  "Practiced  rigid  control  over  skills."  Otherwise,  the  para- 
graph is  identical.  So  it  could  have  hardly  been  an  error.  I  mean,  a 
lot  of  thought  went  into  changing  these. 

On  page  426  there  is  another  rather  interesting  one. 

This  is  in  his  book  on  page  69, 1  believe.  No ;  on  page  105.  This  is 
a  little  complicated.     It  is  on  page  105. 

In  this  case,  he  just  used  my  construction  and  changed  an  awful  lot, 
but  it  is  interesting  to  parallel  the  construction,  I  was  referring  to 
the  fact  that  in  World  War  I,  Hutcheson  had  conducted  a  strike  which 
many  people  thought  was  against  the  public  interest,  and  that  public 
opinion  was  marshalled  against  him  by  President  Wilson  and  forced 
him  to  call  off  the  strike. 

When  he  was  in  the  dilemma  about  what  to  do,  I  said :  "Hutcheson, 
the  Midwestern  Eepublican,  the  INIason,  the  patriot,  overnight  became 
a  public  menace,"  and  he  said,  "Hutcheson,  the  son  of  a  migi^ant 
worker  and  carpenter,  whose  father  had  abandoned  his  chest  of  tools 
at  the  call  of  President  Lincoln,  overnight  became  a  public  menace." 

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

Mr.  Kennedy.  What  is  your  analysis  of  the  book  ? 

Dr.  Christie.  Well,  it  is  what  in  the  university  you  call  an  official 
history,  and,  as  such,  it  is  discredited.  It  is  valuable  historically  to 
see  what  the  officials  concerned  wanted  the  world  to  think  of  them. 
It  is  a  sort  of  small  glimpse  into  their  psyche. 

But  as  history,  it  is  useless  except  to  prove  that  these  men  would 
have  this  type  of  a  book  written.  Wherever  it  suits  his  purpose,  he 
changes  the  material  throughout  the  book,  even,  as  I  said,  when  he 
is  borrowing. 

He  took  some  stuff  fi-om  me  on  page  548  of  my  book  in  which  I  was 
referring  to  a  jurisdictional  fight  in  the  late  1940's  on  the  west  coast 
between  the  brotherhood  and  the  International  Woo<l  Workers  Asso- 
ciation, and  I  mentioned  union  violence  which  was  the  heart  of  the 
matter. 

All  of  this  material  was  deleted  so  that  you  would  have  absolutely 
no  idea  that  there  was  any  real  t}'])^  of  hard  feelings  there  was  there. 

Well,  here  are  a  couple  of  examples  of  the  type  of  writing,  wherein 
he  bends  over  backward  to  praise  the  miion  at  the  expense  of  all  ob- 
jectivity, and  these  are  quotes:  Maurice  Hutclieson  "is  mwlerate  in 
everything,  even  in  the  use  of  his  intelligence."     Page  350. 

Page  190,  "Hell,  fury  and  vilification  could  not  offend  Hutcheson. 
The  President  of  the  United  States  could  not  palsy  him." 

And  of  some  of  Ilutcheson's  opponents,  "Thurmond  Arnold  was  an 
offended  buffoon."  "Wilson's  Edward  Hurley  exercised  imperial  ar- 
rogance and  demogoguery." 

The  book  leans  so  far  over,  in  quotes,  of  "moderate  use  of  intelli- 
gence" he  stumbles. 

Well,  this  is  self-explaining  here.  Here  are  a  couple  of  his  own 
remarks  put  in  the  foreword  and  elsewhere  in  the  book. 

They  will  only  take  a  minute  or  two. 

Propaganda  disuuispd  as  history  is,  of  course,  not  oondiicive  to  the  cLirifiea- 
tion  of  so<'ially  sijirnificant  issues,  with  which  the  above-mentioned  writers — 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12013 

he  means  me  and  a  few  others  that  he  didn't  like.  He  calls  us  all 
leftists,  by  which  he  means  we  are  to  the  left  of  him,  which  isn't  diffi- 
cult to  be. 

Historical  ohjwtivity  Iims  no  friends  in  a  garrison  state, 
and  so  on. 

I  believe  it  oujiht  to  be  possible  to  fell  tbe  truth  about  an  important  creative 
personality.  I  have  fried,  flierefore,  to  the  best  of  my  ability,  to  remain  sci- 
entifically objective. 

Then  on  page  14 — 

As  to  the  facts  in  this  book,  I  have  been  scrupulously  careful,  rejecting  un- 
verifiable  legends,  unsubstantiated  tales. 

Then  on  333— 

One  curious  thing  about  the  life  and  work  of  Hutcheson  is  that  none  of  the 
small  coterie  of  devotee-writers  wlio  lavislied  so  much  attention  on  the  labor 
movement  and  its  leaders  since  the  midthirties,  made  an  effort  to  understand 
him.  It  was  a  case  of  love  for  a  new  labor  movement  which  opened  their  eyes 
as  it  blinded  them.  The  result  has  been  a  series  of  labor  histories,  some  widely 
quoted,  biographies,  monographs,  and  popularized  journalistic  outpourings,  which 
are  permeated  with  strong  emotional  content,  unashamed  bias,  and  confusion 
of  moral  judgment,  and  deliberate  perversion  of  facts. 

It  would  be  very  pertinent  in  a  review  of  his  own  book,  that  re- 
mark. 

But  it  is  generally  accepted,  we  think,  that  the  writer  or  biographer  should 
also  be  a  historian,  that  the  moral  judgments  which  he  passes  on  should  be 
based  firmly  on  sound  documentary  evidence. 

The  Chairman.  Well,  he  was  on  sound  documentary  evidence  when 
he  was  takinij  your  book,  wasn't  he? 

Dr.  Christie.  I  was  forced  by  the  professors  of  Cornell  to  look  all 
of  my  stuil  up,  and  I  tliink  it  is  sound. 

The  Chairman.  Insofar  as  using  your  material. 

Dr.  Christie.  Well,  yes.    He  just  omitted  a  very  necessai*y  step. 

The  Chairman.  All  right. 

Mr.  Kennedy.  What  is  your  general  impression  of  the  book? 

Have  you  any  summary  on  that  ? 

Dr.  Christie.  It  is  the  worst  history  book  I  have  ever  read. 

And  I  would  imagine,  perhaps,  one  of  the  worst  ever  written.  It 
does  a  great,  disservice  to  the  subject.  Because  it  is  so  pasted  and 
glued  together  it  is  impossible  foi-  there  to  be  any  intellectual  outline 
or  substance  to  it.  It  doesn't  follow  a  train  of  thought,  it  does  not 
develop  a  theme  or  thesis.  The  construction  that  was  put  into  the 
book  is  reflected  in  the  book  itself.  It  is  a  vei-y  sporadic,  episodic 
hit  and  miss  thing. 

Mr.  Kennedy.  Do  you  think  it  is  worth  $310,000  ? 

Dr.  Christie.  Good  heavens,  no.  Of  course,  I  can^t  testify'  about 
what  it  cost  to  print  the  book,  but  normally  in  a  university  you  would 
not  get  more  than  three  or  four  or  five  thousand  dollars  perhaps  to 
write  a  book  like  this. 

If  you  went  to  a  foundation  for  a  grant,  perhaps  the  Ford  Founda- 
tion or  Guggenheim  might  give  you  $3,000,  $4,000  or  $5,000,  i)orliaps, 
for  a  year. 

Mr.  Kennedy.  He  got  $310,000  for  writing  and  producing  67,000 
books. 


12014  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

Dr.  Christie.  That  is  a  fantastic  payment.  I  would  have  stayed 
in  teaching  had  I  known  things  like  that  were  going  to  happen. 

Mr.  Kennedy.  Mr.  Chairman,  we  have  some  docmnents  if  he  could 
identify  them  to  support  his  testimony  regarding  the  contact  with 
a  representative  of  Mr.  Raddock. 

The  Chairman.  I  hand  you  a  series  of  photostatic  copies  of  five 
letters  and  telegrams.  I  believe  there  are  4  lettere  and  1  telegram.  I 
will  ask  you  to  examine  them  and  state  if  you  identify  them,  please, 
sir. 

(The  documents  were  handed  to  the  witness.) 

Dr.  Christie.  This  is  a  telegram  to  the  university  at  the  time,  from 
Mr.  Graeber,  I  believe,  and  at  the  time  he  borrowed  my  thesis. 

Tliis  is  a  request  to  Dr.  Adams,  research  director  of  Cornell,  for  an 
extension  of  the  loan  on  my  thesis. 

This  is  Dr.  Adams'  answer  saying  that  they  can't  extend  it,  that 
they  need  it  at  the  school. 

This  is  a  note  from  Dr.  Graybar  returning  the  thesis. 

This  is  a  letter  from  Dr.  Graybar  originally  acknowledging  the 
fact  that  Dr.  Adams  said  they  could  borrow  the  manuscript,  and  ask- 
ing him  to  send  it  and  saying  it  would  be  returned  promptly. 

The  Chairman.  Those  may  be  made  exhibits  Nos.  44A,  B,  C,  D,  and 
E. 

(The  documents  referred  to  were  marked  "Exhibits  Nos.  44A,  B,. 
C,  D,  and  E,"  found  in  the  appendix  on  pp.  12179-12183.) 

The  Chairman.  Is  there  anything  further? 

Are  there  any  questions.  Senators  ? 

Senator  Gold  water. 

Senator  Goldwater.  How  long  did  it  take  you  to  do  this  thesis,. 
once  you  decided  on  the  subject? 

Dr.  Christie.  "Well,  from  1950,  September,  to  its  publication  in 
May  of  1954,  and  then  about  a  year  and  a  half  more  whipping  it  into 
a  book. 

Senator  Goldwater.  So  you  had  about  41/^  years  or  51/^  j-^eare? 

Dr.  Christie.  If  you  count  it  up  to  its  book  form.  It  was  ulti- 
mately published  as  a  book  by  the  Cornell  ITniversity  Press. 

Senator  Goldwater.  I  was  not  here.  What  was  the  title  as  pub- 
lished on  your  book  ? 

Dr.  Christie.  P^mpire  and  Wood,  a  history  of  the  United  Brotlier- 
hood  of  Carpenters  and  Joiners  of  America. 

Mr.  Kennedy.  You  were  teaching  at  the  same  time,  though? 

Dr.  Christie.  Yes.  AVhen  I  was  writing  the  thesis,  I  was  going  to 
school,  earning  my  doctor  of  philosophy  credits  and  spending  a  lot 
of  time  on  that,  and  when  I  was  revising  the  book,  revising  the  thesis 
for  publication  as  a  book,  I  was  canying  a  full  load  of  coui"ses  at 
Lafayette  (\)llege. 

Senator  Goldwater.  How  long  did  you  think  it  would  have  taken 
you  had  you  applied  yourself  to  that  and  nothing  else? 

Dr.  Christie.  Well,  it  so  happened  tluit  for  2  of  tliose  years,  from 
1952  to  1954,  I  did  just  that.  I  got  leave  to  go  down  to  New  York 
City  where  the  greatest  concentration  of  documents  was,  and  to  work 
full  time  on  it,  and  did  not  take  any  more  coni-ses,  and  took  mv  exam- 
inations when  I  came  back  for  my  doctor  of  philosophy.  So  there- 
were  2  years  full  time,  and  then  about  a  year  half  time.     So  the  total 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  12015 

time,  I  would  say,  was  a  good  3  years'  work  for  1  person  without  any 
research  assistants. 

It  is  pretty  difficult,  really,  to  write  a  book  like  this  and  utilize 
research  assistants  to  any  great  degree.  You  might  be  able  to  do  it 
in  a  university,  someone  like  Dr.  Nevins,  at  Columbia,  where  you  have 
the  students  inider  you  and  they  know  what  you  want  and  it  is  a 
closely  controlled  situation. 

But  usually  a  book  like  this  has  to  be  pretty  much  an  individual 
effort  if  it  is  to  make  any  sense. 

Senator  Goldwater.  Thank  you. 

The  Chairman.  Is  there  anything  further  ? 

If  not,  thank  you  very  much,  Doctor. 

Mr.  Waldmax.  Mr.  Chairman,  are  we  excused  ? 

The  Chairman.  You  will  have  to  be  here  tomorrow. 

Before  we  recess  until  tomorrow,  Mr.  Donohue,  do  you  have  a  re- 
port on  Mr.  Johnson  ? 

Mr.  DoNoiiuE.  Senator,  Mr.  Johnson  was  in  bed  at  the  hotel.  I 
was  unable  to  reach  Dr.  Yager  to  find  out  whether  he  had  yet  gotten 
the  report  from  Dr.  Shulman  who  took  the  cardiograph. 

Dr.  Aaron  from  New  York,  who  is  the  personal  physician  of  Mr. 
Johnson,  will  be  here  in  the  morning  and  will  examine  him.  I  will 
make  a  report  to  you,  sir,  tomorrow  morning. 

The  Chairman.  That  will  be  fine. 

The  committee  will  stand  in  recess  until  10  o'clock  tomorrow. 

(Whereupon,  at  4:40  p.  m.,  the  hearing  was  recessed,  to  reconvene 
at  10  a.  m.  Thursday,  June  26,  1958.  At  this  point,  the  following 
members  were  present:  Senators  McClellan,  Ervin,  and  Goldwater.) 


21243— 58— pt.  31 16 


INVESTIGATION  OF  IMPROPER  ACTIVITIES  IN  THE 
LABOR  OR  MANAGEMENT  FIELD 


THURSDAY.   JUNE   26,    1958 

United  States  Senate, 
Select  Committee  on  Isipropek  Activities 

in  the  l.vbor  or  management  fleld, 

Washington,  D.  C. 

The  select  committee  met  at  10  a.  m.,  pursuant  to  Senate  Resolution 
221,  agreed  to  January  29,  1958,  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 
John  F.  Kennedy,  Democrat,  Massachusetts;  Senator  Barry  Gold- 
water,  Republican,  Arizona; 'Senator  Carl  T.  Curtis,  Republican, 
Nebraska. 

Also  present:  Eobert  F.  Kennedy,  chief  counsel;  Paul  J.  Tierney, 
assistant  counsel;  John  J.  McGovern,  assistant  counsel;  Harold  Ran- 
stad,  investigator;  Charles  E.  Wolfe,  accountant,  GAO;  Karl  Deibel, 
accountant,  GAO;  John  Prinos,  accountant,  GAO,  Richard  G.  Sin- 
clair, accountant,  GAO ;  Ruth  Young  Watt,  chief  clerk. 

(At  the  convening  of  the  session,  the  following  members  wei'e  pres- 
ent: Senators  McClellan  and  Curtis.) 

The  Chairman.  The  committee  will  come  to  order. 

Call  the  next  witness,  Mr.  Kennedy. 

Mr.  Kennedy.  Mr.  Raddock,  please,  Mr.  Chairman. 

TESTIMONY  OF  MAXWELL  C.  RADDOCK,  ACCOMPANIED  BY  HIS 
COUNSEL.  SEYMOUR  WALDMAN— Resumed 

Tl)e  Chairman.  All  right,  Mr.  Kennedy,  you  may  proceed. 

Mr.  Waldman.  Mr.  Chairman,  in  view  of  the  impressive  demon- 
stration yesterday  of  Mr.  Christie  of  the  fact  that  "Hell  hath  no  fury 
like  an  author  scorned,"  may  we  have  permission  at  this  point  in  the 
record  to  supply  the  Committee  and  have  inserted  book  reviews  from 
publications  of  general  circulation  whose  views  on  the  literary  merits 
of  this  book  are  quite  different  than  Mr.  Christie's  ? 

The  Chairman.  They  may  be  filed  with  the  committee  for  refer- 
ence, and  he  may  refer  to  them  in  the  course  of  his  testimony  if  he 
desires. 

Mr.  Waldman.  We  don't  have  them  with  us,  they  are  in  New  York, 
but  we  will  send  them  to  you. 

The  Chairman.  You  may  file  them  with  the  committee  for  the 
committee's  consideration  and  action  on  them.     If  found  to  be  appro- 

12017 


12018  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

priate,  they  either  may  be  inserted  in  the  record  or  filed  as  an  exhibit 
to  the  testimony  of  the  witness. 

Proceed. 

Mr.  Kennedy.  Mr.  Raddock,  do  you  know  anything  about  the  1300 
Broadway  Corp.  ? 

Mr.  Raddock.  No,  sir. 

Mr.  Kennedy.  You  never  heard  of  that  ? 

Mr.  Raddock.  No. 

Mr.  Kennedy.  Do  you  know  anything  about  Consolidated  Invest- 
ments, Inc.  ? 

Mr.  Raddock.  No,  sir. 

Mr.  Kennedy.  The  Mid-City  Investments,  Inc.? 

Mr.  Raddock.  No,  sir. 

Mr.  Kennedy.  The  State  Sibly  Corp.? 

Mr.  Raddock.  No,  sir. 

Mr.  Kennedy.  Do  you  know  of  Mr.  George  Goldstein? 

Mr.  Raddock.  No,  sir. 

Mr.  Kennedy.  Do  you  know  of  a  Mr.  Charles  Gluck? 

Mr.  Raddock.  No,  sir. 

Mr.  Kennedy.  Have  you  ever  had  any  conversations  regarding 
either  one  of  those  two  individuals  ? 

Mr.  Raddock.  I  don't  know  any  of  those  names. 

Mr.  Kennedy.  Do  you  knoAv  a.  Norman  Leavenberg  of  the  Mid- 
City  Investments  ? 

Mr.  Raddock.  No,  sir. 

Mr.  Kennedy.  Do  you  know  a  gentleman  or  heard  discussion  of  a 
gentleman  by  the  name  of  A.  Martin  Katz  ? 

Mr.  Raddock.  No,  sir. 

Mr.  Kennedy.  Do  you  know  Al  Weinstein  ? 

Mr.  Raddock.  No,  sir. 

Mr.  Kennedy.  Do  you  know  Metro  Holovachka,  the  county  prose- 
cutor at  Lake  County,  Ind.  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  On  the  advice  of  counsel  I  refuse  to  answer  the 
question  on  the  ground  tliat  it  may  tend  to  make  me  a  witness  against 
myself. 

Mr.  Kennedy.  I  just  asked  you  if  you  knew  the  county  prosecutor 
in  Lake  County,  Ind.    Can't  you  answer  that  question  ? 

Mr.  Raddock.  The  answer,  Mr.  Kennedy,  is  that  on  advice  of 
counsel,  I  refuse  to  answer  the  question  on  the  ground  that  it  may  tend 
to  make  me  a  witness  against  myself. 

Mr.  Kennedy.  You  know  this  is  a  government  official  in  I^ake 
County,  Ind.,  and  you  refuse  to  tell  us  even  whether  you  know  liini 
on  the  ground  that  it  may  tend  to  incriminate  you  ? 

He  is  a  county  official. 

Mr.  Raddock.  The  answer  is  still  the  same,  Mr.  Kennedy.  Do  you 
wish  me  to  repeat  the  entire  answer  ? 

Mr.  Kennedy.  Yes,  would  you? 

Mr.  Raddock.  On  advice  oiF  counsel,  I  refuse  to. answer  the  question 
on  the  ground  that  it  might  tend  to  make  me  a  witness  against  myself. 

The  Chairman.  Do  you  know  whether  he  is  still  the  county  prose- 
cutor in  tliat  county,  Lake  County?  If  I  understand  you  correctly, 
you  have  taken  a  position  you  could  not  state  whether  you  know  this 
official,  this  county  official,  you  could  not  make  a  statement  as  to 


IMPROPER    ACTmTIES    IN    THE    LABOR    FIELD  12019 

whether  you  know  him  or  do  not  know  him,  without  tending  to  in- 
criminate you.  I  just  asked  a  question  as  to  whether  you  know  he  is 
still  a  county  official.  I  am  not  sure.  Do  you  know  whether  he  is  still 
a  county  official  ? 

Mr.  Kaddock.  Senator,  on  the  advice  of  counsel,  I  refuse  to  answer 
the  question  on  the  ground  that  it  might  tend  to  make  me  a  witness 
against  myself. 

The  Chairmax.  Let  me  ask  you  this  question :  Do  you  state  under 
your  oath  that  you  honestly  believe  that  if  you  gave  a  truthful  answer 
to  the  question,  that  the  truth  might  tend  to  incriminate  you  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  Yes,  sir. 

The  Chairmax.  You  honestly  believe  that  ? 

Mr.  Raddock.  Yes,  sir. 

The  Chairman.  Of  course,  you,  having  the  facts,  would  know  bet- 
ter than  I  whether  your  acquaintance  with  him  might  tend  to  incrimi- 
nate you.     So  you  state  it  under  oath. 

The  record  will  stand  that  way. 

Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  Do  vou  know  Mr.  Michaael  Sawochka,  of  Gary, 
Ind.? 

Mr.  Raddock.  On  the  advice  of  counsel,  Mr.  Kemiedy,  I  refuse  to 
answer  the  question  on  the  ground  that  it  may  tend  to  make  me  a  wit- 
ness against  myself. 

Mr.  Kennedy.  Do  you  know  Mr.  Sawochka  as  the  secretary-treas- 
urer of  Local  142  of  the  Teamsters,  in  Gary,  Ind.  ? 

Mr.  Raddock.  On  the  advice  of  counsel,  I  refuse  to  answer  the 
question  on  the  ground  that  it  may  tend  to  make  me  a  witness  against 
myself. 

The  Chairman.  Mr.  Raddock,  you  have  answered  very  freely  all 
questions  up  to  now,  and  answered  some  of  them  at  considerable 
length.  I  don't  know  what  is  to  be  implied  from  this  immediate 
change  of  attitude.  It  is  your  privilege  to  take  the  fifth  amendment 
if  you  honestly  believe  that  answering  the  questions  truthfully  might 
tend  to  incriminate  you. 

I  am  hopeful  that  you  would  continue  as  you  did  yesterday  to  be 
cooperative  with  the  committee  and  give  it  all  information  within 
your  knowledge. 

Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  Do  you  know  what  the  relationship  is  between  Mr. 
Sawochka,  the  Teamsters  official,  and  Mr.  Holovachka,  the  County 
Prosecutor  of  Lake  County  ? 

Mr.  Raddock.  On  the  advice  of  counsel  I  decline  to  answer  on  the 
ground  that  to  do  so  might  tend  to  make  me  a  witness  against  myself. 

Mr.  Ivennedy.  Was  Mr.  James  Hoffa  contacted  in  connection  with 
the  matters  dealing  with  the  Carpenters  in  Lake  County,  Ind.  ? 

Mr.  Waldman.  May  I  say  that  it  would  seem  to  me  that  I  would 
have  to  advise  the  witness  on  this,  and  I  certainly  don't  understand 
what  that  refers  to,  the  matters  dealing  with  the  Carpenters. 

Mr.  Kennedy.  I  will  go  on.  The  question  was  not  clear,  is  that 
right? 

Mr.  Waldman.  It  wasn't  to  me,  to  the  extent  that  I  could  properly 
advise  the  witness. 


I 


12020  HVIPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  All  right. 

Certain  matters  dealing  with  the  purchase  and  sale  of  land  in 
Indiana  were  being  presented  to  a  grand  jury  in  Lake  County,  is  that 
correct,  Mr.  Haddock  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  On  the  advice  of  counsel,  I  decline  to  answer  on  the 
ground  that  to  do  so  might  tend  to  make  me  a  witness  against  myself. 

Mr.  Kennedy.  Was  Mr.  Hoffa's  help  or  assistance  requested  in 
connection  with  the  possible  indictments  that  were  to  arise  out  of  that 
case? 

Mr.  Haddock.  On  the  advice  of  counsel,  I  decline  to  answer  on  the 
ground  that  to  do  so  might  tend  to  make  me  a  witness  against  myself. 

Mr.  Kennedy.  Isn't  it  correct  that  Mr.  Hoffa  was  contacted  and 
he,  in  turn,  contacted  Mr.  Sawochka  in  Lake  County,  of  the  Teamsters 
Union  in  Lake  County  % 

Mr.  Haddock.  On  the  advice  of  counsel,  Mr.  Kennedy,  I  decline  to 
answer  on  the  ground  that  to  do  so  might  tend  to  make  me  a  witness 
against  myself. 

The  Chairman.  Let  me  ask  you  this :  Do  you  have  any  knowledge 
of  such  a  contact  having  been  made? 

Mr.  Haddock.  Senator  McClellan,  on  the  advice  of  counsel  I  decline 
to  answer  on  the  ground  that  to  do  so  might  tend  to  make  me  a  witness 
against  myself. 

The  Chairman.  Do  you  honestly  believe  that  if  you  answered  that 
question  truthfully,  the  truth  might  tend  to  incriminate  you  ? 

Mr.  Haddock.  Yes,  sir. 

The  Chairman.  You  honestly  believe  that? 

Mr.  Haddock.  Yes,  sir. 

The  Chairman.  Proceed. 

Mr.  Kennedy.  Mr.  Chairman,  could  I  read  a  short  statement  in 
background  of  this  situation  to  clarify  it? 

The  Chairmax.  So  that  there  will  be  no  doubt  as  to  the  subject  mat- 
ter being  inquired  into,  and  so  that  the  witness  may  be  so  apprised, 
you  may  read  some  background  information,  not  as  testimony,  but 
upon  which  to  predicate  further  testimony. 

Mr.  Kennedy.  In  May  and  June  of  1957,  hearings  were  held  be- 
fore the  Gore  committee,  concerning  the  purchase  of  land  along  a 
proposed  right-of-way  in  Lake  County,  Ind.,  by  certain  individuals, 
including  Frank  Chapman,  who  was  the  general  treasurer  of  the 
Carpenters  International. 

The  Chairman.  Is  that  a  right-of-way  for  a  highway  for  a  public 
highway? 

Mr.  Kennedy.  That  is  correct.  And  the  purchase  that  was  being 
looked  into  was  the  purchase  that  was  made  in  June  of  1956. 

Involved  in  this  situation,  along  with  Chapman,  were  Maurice  A. 
Hutcheson,  general  president  of  the  Carpenters,  and  O.  "William 
Blaier,  second  general  vice  jjresident.  Within  several  months  after 
the  purchase  of  the  land,  it  was  sold  to  \\\^  State  for  the  highway  at 
a  $78,000  profit  on  a  $20,000  in  vestment. 

Part  of  tlie  proceeds  of  the  profits  Avere  allegedly  paid  by  Chap- 
man to  the  Indiana  Highway  Commission,  and  a  deputy  in  the  right- 
of-way  office  of  the  Indiana  Highway  Department. 

Hutcheson,  Blaier,  and  Chapmaii  invoked  the  fifth  amendment  be- 
fore the  Gore  committee  on  this  matter.    This  whole  situation  was 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12021 

presented  to  the  Lake  County  grand  jury  by  Metro  Holovachka,  the 
county  prosecutor,  connnencing  July  22, 1957. 

The  grand  jury  recessed  on  July  23,  and  thereafter  considered  the 
matter  for  an  additional  da}^  on  August  19,  1957. 

Hutcheson,  Blaier,  and  Chapman  did  not  appear  before  the  grand 
jury  because  Holovachka  did  not  subpena  them,  or  could  not.  On 
August  20,  1957,  Holovachka  announced  that  no  indictments  of  the 
Carpenters'  officials  as  well  as  others  involved  would  be  forthcoming 
because  "A  lack  of  jurisdiction."  Moreover,  through  an  attorney 
wliom  Holovachka  refused  to  identify,  the  Carpenters'  officials  made 
restitution  to  the  State  of  the  $78,000  profit  made  on  the  deal. 

Subsequently,  Mr.  Chairman,  these  three  individuals  as  well  as  cer- 
tain of  the  State  officials,  were  indicted  in  an  adjoining  county,  Marion 
County,  in  the  State  of  Indiana  on  this  deal. 

We  are  inquiring  into  the  situation  in  connection  with  the  presen- 
tation before  the  grand  jury  in  Lake  County,  Ind. :  the  intervention 
by  certain  union  officials  into  that  matter,  and  the  part  that  was  played 
by  Mr.  Hutcheson  himself,  Mr.  Sawochka,  the  secretary-treasurer  of 
local  142  of  the  Teamsters,  and  Mr.  James  Hoffa,  the  international 
president  of  the  Teamsters. 

The  Chairman.  Is  there  some  information  that  either  union  funds 
were  used  in  the  course  of  these  transactions  or  that  the  influence  of 
official  positions  of  high  union  officials  was  used  in  connection  with 
this  alleged  illegal  operation  ? 

Mr.  Kennedy.  We  have  information  along  both  lines,  Mr.  Chair- 
man, not  only  the  influence  but  also  in  connection  with  the  expendi- 
ture of  union  funds. 

The  Chairman.  In  that  respect,  then,  it  would  be  similar  to  the 
instance  down  in  Tennessee,  where  we  found  union  funds,  some 
$20,000,  being  used  in  a  manner  unaccounted  for ;  is  that  correct  ? 

Mr.  Kennedy.  That  is  correct. 

The  Chairman.  I  believe  subsequently  it  has  developed  that  one 
of  the  union  officials  down  there  who  took  the  privilege  of  the  fifth 
amendment  before  this  committee  has  subsequently  acknowledged  in 
an  official  tribunal,  before  tlie  senate  sitting  as  an  impeachment  court 
in  the  State  of  Tennessee,  that  the  $20,000  was  used  for  an  illegal 
purpose;  is  that  correct? 

Mr.  Kennedy.  That  is  correct;  for  the  purpose  of  fixing  his  case. 

The  Chairman.  For  fixing  a  case  where  there  were  some  13  union 
officials  involved  and  indicted. 

Mr.  Kennedy.  That  is  correct. 

The  Cpiairman.  That  is  the  interest  of  this  committee  in  a  trans- 
action of  this  kind  or  alleged  transaction  of  this  kind,  to  ascertain 
again  whether  the  funds  or  dues  money  of  union  members  is  being 
misappropriated,  improperly  spent,  or  whether  officials  in  unions  are 
using  their  position  to  intimidate,  coerce,  or  in  any  way  illegally  pro- 
mote transactions  where  the  public  interest  is  involved. 

Mr.  Raddock,  you  have  heard  a  background  statement.  That  is 
not  evidence,  but  it  is  information,  however,  which  the  committee  has, 
regarding  this  matter  out  there.  The  committee  is  undertaking  to 
inquire  into  this  in  pursuit  of  the  mandate  given  to  it  by  the  resolu- 
tion creating  the  committee. 

It  is  our  duty  to  inquire  into  it.  If  you  have  information,  and 
apparently  you  have  because  you  say  if  you  give  it,  it  might  tend  to 


12022  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

incriminate  you,  may  I  say  to  you  that  you  have  an  opportunity  here 
now,  if  you  have  information  that  will  throw  any  light  on  this,  you 
have  an  opportunity  now  to  render  a  service  to  your  country,  to  union 
members,  to  honest,  decent  unionism  as  such,  and  also  to  law  and  order 
in  this  country,  if  you  will  cooperate  and  give  the  information  and 
the  facts  you  have  which  are  within  your  knowledge. 

I  will  ask  you  if  you  are  willing  to  do  that. 

(The  witness  conferred  with  his  counsel.) 

Mr.  Eaddock.  Mr.  Chairman,  I  would  like  to  make  it  clear  for 
the  record,  for  the  press  and  for  the  American  people  that  I,  too, 
love  my  country  above  everything  else ;  that  I  am  a  devotee  of  honest, 
clean,  genuine,  and  bona  fide  trade  unionism,  and  concerned  with  the 
American  people  and  the  rank  and  fiJe  of  labor. 

But  on  the  advice  of  counsel,  I  decline  to  answer  on  the  ground  that 
to  do  so  might  tend  to  make  me  a  witness  against  myself. 

The  Chairman.  Well,  I  believe  you  said  you  loved  your  country 
above  everything  else.  I  was  hoping  that  your  cooperation  would 
clearly  confirm  that  statement.  You  have  the  right,  of  course,  if 
you  honestly  believe  that  if  you  told  the  truth  the  truth  might  tend 
to  incriminate  you,  you  have  the  right  under  the  laws  of  this  country, 
under  its  constitution,  to  withhold  the  facts  that  you  have. 

I  was  hoping  it  wasn't  that  serious.  I  am  really  disappointed  that 
it  is.  I  was  hopeful  that  you  could  cooperate  with  us  and  help  us 
get  leads  here  and  evidence  that  would  help  to  expose  those  who  may 
have  engaged  in  criminal  acts,  those  who  may  have  abused  their  posi- 
tion and  their  authority  and  as  union  officials,  and  who  may  have 
brought  discredit  upon  one  of  the  large  international  unions  of  this 
country,  and  that  you  might  be  helpful  in  securing  the  measure  of 
law  enforcement  that  helps  to  preserve  this  country  that  you  profess 
to  love. 

(The  witness  conferred  with  his  counsel.) 

Mr.  Eaddock.  Mr,  Chairman,  on  advice  of  counsel  I  decline  to  an- 
swer on  the  ground  that  to  do  so  might  tend  to  make  me  a  witness 
against  myself. 

The  Chairman.  Mr.  Kennedy,  do  you  have  other  questions  along 
this  line  ? 

Mr.  Kennedy.  Yes,  Mr.  Chairman.  We  have  some  information, 
Mr.  Chairman,  which  I  would  like  to  ask  Mr.  Eaddock  about  in  con- 
nection with  this  matter,  the  part  that  he  personally  played  in  the 
situation. 

The  Chairman.  All  riglit.  If  we  have  information  of  this  wit- 
ness' connection  with  anything  within  the  jurisdiction  of  this  com- 
mittee, about  which  we  are  concrned  here,  in  inquiring  into,  you  may 
ask  the  witness  the  questions.  He  has  his  right,  which  he  may  exer- 
cise, but  I  think  the  record  should  be  made.  At  this  time,  the  Chair 
would  like  to  announce  that  this  prosecuting  attorney  or  county 
attorney,  Mr.  Metro  Holovachka,  has  been  notified  by  the  committee 
by  telegram  dated  June  17, 1958,  which  telegram  was  delivered  to  Mr. 
Holovachka  on  the  21st  of  June  at  2 :  30  p.  in.  He  was  invited,  among 
other  things,  as  the  telegram  says,  after  advising  him — and  this  may 
be  printed  in  the  record,  this  telegram,  and  the  certification  of  the 
delivery  by  the  Western  Union  at  this  point — I  will  read  this  for  the 
information  of  those  interested : 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12023 

This  is  to  advise  you  that  the  public  hearings  will  be  held  at  10  a.  m.  on  or 
about  June  24,  1958,  at  which  time  it  is  expected  that  information  reflecting 
upon  you  will  be  developed.  You  will  be  afforded  an  opportunity  to  testify 
if  you  so  desire.  If  you  do  desire  to  testify,  it  is  requested  that  you  advise 
me  by  collect  wnre  at  room  101,  Senate  Office  Building,  in  order  that  we  may 
inform  you  of  the  exact  time  and  date  of  the  hearing. 

That  was  signed  by  chief  counsel  of  the  committee. 
(The  document  referred  to  follows :) 

Seu:ct  Labor  Committee 

official  business 

June  17,  1958. 
(Please  confirm  delivery.) 
Mr.  Metro  Holowachka, 

7321  Oak  Avenue,  Gary,  Ind.: 
This  is  to  advise  you  that  public  hearings  will  be  held  at  10  a.  m.  on  or  about 
June  24,  1958,  at  which  time  it  is  expected  that  information  reflecting  upon  you 
will  be  developed.  You  will  be  afforded  an  opportunity  to  testify  if  you  so 
desire.  If  you  do  desire  to  testify,  it  is  requested  that  you  advise  me  by 
collect  wire  at  room  101  Senate  Office  Building  in  order  that  we  may  inform  you 
of  the  exact  time  and  date  of  the  hearing. 

Robert  F.  Kennedt, 
Chief  Counsel,  Senate  Select  Committee  on  Improper  Activities  in  the 
Labor  or  Management  Field. 


[Western  Union  telegram] 

Washington,  D.  C,  June  17, 1958. 
Robert  F.  Kennedy, 

Chief  Counsel,  Senate  Office  Building,  Washington,  D.C.: 
Y^our  telegram  June  17  to  Metro  Holowachka,  7321  Oak  Avenue,  Gary,  Ind., 
is  undelivered.     Addressee  is  out  of  the  city  until   Saturday.     Your  message 
will  be  delivered  upon  his  return. 

Western  Union. 


[Western  Union  telegram] 

Gart,  Ind.,  June  21,  1958. 
Robert  F.  Kennedy, 

Chief  Coutusel,  Senate  Select  Committee  on  Improper  Activities  in  the 
LabM-  or  Management  Field,  Washington,  D.  C: 
Your  telegram  17th  Metro  Holowachka,  7321  Oak  Avenue,  deled  230  pmc  est 
(personally). 

Western  Union. 

The  Chairman.  Have  you  received  a  wire  or  message  from  Mr. 
Holovachka  since  the  telegram  was  delivered  ? 

Mr.  Kennedy.  No,  Mr.  Chairman,  he  has  not  contacted  us  since  that 
telegram  was  delivered.  At  an  earlier  time  we  had  informed  him 
verbally  that  we  had  expected  to  develop  matters  along  this  line,  and 
he  indicated  he  was  not  going  to  come  before  the  committee. 

The  Chairman.  The  only  reason  I  make  this  a  part  of  the  record 
at  this  time,  I  may  say.  is  because  in  the  Tennessee  investigation,  in 
which  Judge  Schoolfield's  name  came  into  the  hearing  and  derogatory 
testimony  was  developed  with  respect  to  him,  or  testimony  brought 
his  name  into  the  hearing,  he  was  advised  by  wire,  and  also  by  tele- 
phone conversation,  that  there  would  be  information  that  might  re- 
flect upon  him  developed  by  the  committee,  and  he  was  invited  to  be 
present. 

Thereafter,  some  suggestion  was  made  that  he  should  have  been 
subpenaed.     In  a  matter  of  this  kind,  it  is  the  Chair's  feeling,  at 


12024  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

least,  unless  we  have  reason  to  believe  they  would  give  testimony  and 
not  just  invoke  the  fifth  amendment,  it  is  not  necessary  to  put  the  Gov- 
ernment to  that  expense. 

If  they  do  not  care  to  come  and  testify  after  being  invited,  then 
we  can  determine  later  whether  a  subpena  is  warranted.  But  we  do 
not  want  to  be  unfair  to  anyone,  and  where  we  have  advance  knowledge 
that  testimony  will  be  given  that  will  reflect  upon  an  official  of  the 
Government  or  of  a  State,  or  subdivision  thereof,  we  feel  it  proper 
to  advise  them  and  give  them  the  opportunity  to  be  heard  if  they  so 
desire. 

All  right,  Mr.  Kennedy,  proceed. 

Mr.  Kennedy.  Mr.  Chairman,  we  have  information  that  Mr.  Ead- 
dock  registered  at  the  Drake  Hotel  on  August  11,  1957,  with  Mr. 
Hutch  eson. 

Is  that  correct,  Mr.  Raddock  ? 

The  Drake  Hotel  in  Chicago,  111. 

Mr.  Raddock.  On  the  advise  of  counsel,  I  decline  to  answer  on  the 
ground  that  to  do  so  might  tend  to  make  me  a  witness  against  myself. 

Mr.  Kennedy.  And  that  his  transportation  to  that  hotel  and  his 
stay  at  the  hotel  was  paid  for  out  of  Carpenter  funds. 

is  that  correct,  Mr.  Raddock  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Waldman.  There  is  some  doubt.  Wlien  you  say  his  transpor- 
tation and  hotel,  do  you  mean,  by  his,  Mr.  Raddock's? 

Mr.  Kennedy.  Yes,  Mr.  Raddock's. 

Mr.  Raddock.  On  the  advice  of  counsel,  I  decline  to  answer  on  the 
ground  that  to  do  so  might  tend  to  make  me  a  witness  against  myself. 

The  Chairman.  May  I  ask  you,  Mr.  Raddock,  if,  on  other  occasions, 
you  have  performed  services  for  the  Carpenters'  Union? 

(The  witness  conferred  with  his  counsel. ) 

Mr.  Raddock.  Yes,  sir.  Senator  McClellan. 

The  Chairman.  You  have  performed  services  for  the  International 
Brotherhood  of  Carpenters  on  other  occasions,  for  which  you  have 
been  paid  and  for  which  yon  have  received  your  expenses,  is  that 
correct  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  In  the  year  1956,  I  was  paid  for  services  in  connec- 
tion with  the  all-year-long  75th  anniversary  celebration  and  regional 
conferences  held  throughout  the  United  States  and  Canada. 

The  Chairman.  Were  your  travel  expenses  paid  by  the  Carpenters' 
Union  in  connection  with  those  services? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  Your  question  was  travel  expenses  and 

The  Chairman.  Travel  expenses  and  hotel  bills  incident  to  the  per- 
forming of  the  services  for  which  you  were  employed.  Were  your 
expenses,  travel  expenses,  hotel  bills,  and  incidental  expenses  con- 
nected with  the  services  rendered,  ])aid  by  the  Carpenters'  Union? 

Mr.  Raddock.  Dnrinc;  the  year  1956,  tlie  Carpenters'  Union  paid  a 
portion  of  hotel  bills,  I  believe,  and  some  travel  expenses  for  myself 
and  some  other  members  of  my  staffs. 

The  Chairman.  In  connection  with  the  work 

Mr.  Raddock.  With  the  1956  yearlong  celebration  and  regional 
conferences. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12025 

Tlie  Chairman.  Well,  that  was  in  connection,  I  say,  with  work  you 
were  performino;  for  the  Carpenters'  Union,  is  that  correct? 

Mr.  Raddock.  Precisely  as  I  outlined  them. 

The  CriAiuMAN.  Well,  I  think  I  understood  you. 

Mr.  Raddock.  Yes,  sir,  Senator  McClellan. 

The  Chairman.  So  your  e^Kpenses  were  paid. 

And  it  would  be  proper,  I  think,  if  you  were  performing  the  serv- 
ices. There  is  nothing  improper  about  it.  The  only  question  is  if 
you  have  been  performing  services  for  them  and  have  been  paid  for 
them.  We  asked  a  question  about — on  this  particular  occasion  of 
August  11,  1957,  if  you  registered  at  the  Drake  Hotel  in  Chicago, 
along  with  Mr.  Hutclieson  of  the  Carpenters'  Union,  and  if  your  ex- 
penses, your  travel  expenses  and  hotel  bills  were  paid  for  that  trip 
and  for  whatever  services  you  performed  at  that  time. 

Are  you  prepared  to  answer  that  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  On  the  advice  of  counsel,  I  decline  to  answer  on  the 
ground  that  to  do  so  might  tend  to  make  me  a  witness  against  myself. 

The  Chairman.  The  other  services  that  you  performed,  that  you 
have  testified  to,  for  which  you  were  paid,  there  was  nothing  in  con- 
nection with  that,  I  believe,  then,  that  causes  you  to  feel  that  if  you 
told  the  truth  about  it  you  might  be  a  witness  against  yourself,  is  that 
correct  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  If  I  understood  you  correctly.  Senator,  anything  that 
I  answered  previously  regarding  my  services  to  the  United  Brother- 
hood of  Carpenters  and  travel  and  other  expenses  therefor,  are  correct. 

The  Chairman.  I  hand  you  here,  then,  a  photostatic  copy  of  your 
registration  at  the  Drake  Hotel  on  the  8th  and  15th,  I  believe,  in  1957 ; 
is  that  correct — yes — together  with  the  bill  rendered  by  the  hotel  for 
your  stay  there,  and  ask  you  to  examine  it  and  state  if  you  identify 
your  registration  card  and  also  the  bill  rendered  for  your  expenses, 
your  hotel  bill  and  so  forth,  while  there. 

I  ask  you  to  examine  them  and  state  if  you  identify  them. 

(The  documents  were  handed  to  the  witness.) 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  Mr.  Chairman,  on  the  advice  of  counsel  I  decline  to 
answer  on  the  ground  that  to  do  so  might  tend  to  make  me  a  witness 
against  myself. 

Tlie  Chairman.  The  hotel  bill  and  the  registration  certificate  may 
be  made  exhibits  Nos.  45  A  and  B. 

(The  documents  referred  to  were  marked  "Exhibits  Nos.  45  A  and 
B"  for  reference  and  may  be  found  in  the  files  of  the  Select  Commit- 
tee.) 

The  Chairman.  I  believe  the  hotel  bill  shows  that  it  was  signed  for, 
or  approved  by  Mr.  M.  A.  Hutclieson. 

Is  that  correct?  It  shows  that  you  registered  as  repi*esenting  the 
firm  of  United  Brotherhood  of  Carpenters  and  Joiners  of  America. 

Is  that  correct,  Mr.  Raddock? 

Mr.  Raddock.  On  the  advice  of  counsel,  I  decline  to  answer  on  the 
ground  that  to  do  so  might  tend  to  make  me  a  witness  against  myself. 

The  Chairman.  Is  this  your  handwriting  on  the  registration  certifi- 
cate, Mr.  Raddock  ? 


12026  IMPROPER    ACTTVITIES    IN    THE    LABOR    FIELD 

Mr,  Raddock.  On  the  advice  of  counsel,  I  decline  to  answer  on  the 
ground  that  to  do  so  might  tend  to  make  me  a  witness  against  myself. 

The  Chairman.  I  believe  the  hotel  bill  totals  some  $147.10.  Was 
that  hotel  bill  paid  by  you  or  was  it  paid  by  the  Brotherhood,  the  In- 
ternational Carpenters  and  Joiners. 

Mr.  Haddock.  On  the  advice  of  counsel,  Mr.  Chairman,  I  respect- 
fully decline  to  answer  on  the  ground  that  to  do  so  might  tend  to  make 
me  a  witness  against  myself. 

The  Chairman.  Were  you  in  the  employ  of  the  United  Brother- 
hood of  Carpenters  and  Joiners  of  America  at  the  time  you  took  this 
trip  to  Chicago,  and  at  the  time  you  incurred  this  hotel  bill  ? 

Mr.  Ri\i)DOCK.  On  the  advice  of  counsel  I  decline  to  answer  on  the 
groimd  that  to  do  so  might  tend  to  make  me  a  witness  against  myself. 

The  Chairman.  If  you  were  in  their  employ,  as  this  indicates,  or 
that  your  expenses  w^ere  being  paid,  will  you  tell  us  what  kind  of 
service  you  were  employed  to  render  at  that  time  ? 

Mr.  Raddock.  On  the  advice  of  counsel,  I  decline  to  answer  on 
the  ground  that  to  do  so  might  tend  to  make  me  a  witness  against 
myself. 

The  Chairman.  Mr.  Raddock,  you  have  answered  other  questions 
regarding  the  work  you  did  for  the  same  international  union,  and 
stated  that  you  got  paid  for  it,  and  got  your  expenses  for  it. 

I  assume,  then,  of  course,  where  you  answered  with  respect  to  that, 
there  was  nothing  connected  with  your  employment  that  might  tend 
to  incriminate  you,  or  cause  you  to  be  a  witness  against  yourself  by 
answering  truthfully  about  it. 

Now  we  reach  this  point  where  you  are  apparently  on  a  mission 
for  this  international  union,  and  your  expenses  are  being  paid.  Now 
you  state,  if  I  understand  you  correctly,  that  if  you  answered  truth- 
fully regarding  this  trip,  this  mission,  the  services  rendered,  and  ac- 
cepting expenses  for  it,  that  if  you  answered  truthfully,  the  truth 
might  tend  to  incriminate  you ;  is  that  correct  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  Yes,  sir.  Senator. 

The  Chairman.  Well,  that  is  a  very  sad  situation.  Here  is  a  great 
international  union.  The  officers  have  tremendous  responsibility. 
They  are  in  a  position  of  great  and  sacred  trust,  I  would  say,  to  liter- 
all}^  thousands  upon  thousands  of  working  people  in  this  country  who 
are  members  of  that  union,  who  support  it.  Here  we  have  now  ex- 
penditures being  made  over  the  authority  or  authorization  of  the  presi- 
dent of  that  great  international  union,  expenses  being  paid  for 
services,  I  assume,  rendered,  where  the  one  who  performs  the  service 
and  who  receives  the  expenses  states  that  if  he  told  the  trutli  about 
it,  that  is,  as  to  the  kind  of  service  he  was  to  perform,  or  wliat  he  was 
employed  to  do,  or  having  accepted  and  received  the  expenses  incurred 
in  connection  with  that  service,  if  he  told  the  truth  about  it,  it  might 
tend  to  incriminate  him. 

That  cannot  help — without  being  explained,  it  cannot  help  but  be 
a  reflection  upon  the  management  of  that  union. 

It  is  those  things  that  has  given  the  country  as  well  as  this  com- 
mittee and  the  Congress  grave  concern  about  how  some  affairs  of 
unions  are  today  being  conducted. 

I  should  hope  that  you  would  reconsider  and  be  able  to  help  the 
committee  and  give  us  the  truth  about  it. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12027 

If  Mr.  Hutclieson,  and  the  services  you  were  engaged  in,  that  you 
were  employed  to  perform,  and  the  expense  that  he  authorized  here 
and  paid  out  of  union  funds  were  for  legitimate  reasons,  I  would  be 
hopeful  that  you  would  give  us  an  explanation  of  it. 

Can  you  do  that  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  Senator,  on  the  advice  of  counsel,  I  must  respectfully 
decline  to  answer  on  the  ground  that  to  do  so  might  tend  to  make 
me  a  witness  against  myself. 

The  Chairman.  I  am  compelled,  and  I  think  everyone  who  listens 
or  who  may  read  this  transcript  is  compelled,  to  the  conclusion  that 
you  are  being  truthful  at  least  about  takmg  the  fifth  amendment,  and 
that  if  you  did  tell  the  truth,  it  might  tend  to  incriminae  you,  and  also 
those  of  the  union  who  are  responsible  for  and  who  authorize  the 
services  you  performed. 

I  will  have  to  let  the  record  stand  that  way,  unless  you  wish  to 
correct  it  by  sworn  testimony. 

Mr.  Waldmax.  Well,  I  assume  the  record  needn't  show  that  the 
courts  have  held  that  the  plea  of  the  privilege  did  not  indicate  an  ad- 
mission on  the  part  of  the  witness 

The  Chairman.  The  attorney  can  take  judicial  notice  of  that  as 
I  do.  I  said  he  had  a  right  to  take  it  under  the  Constitution,  and  the 
■committee  needs  no  lecture  at  this  late  hour  in  its  work  with  respect 
to  what  the  fifth  amendment  is  and  the  privilege  of  taking  it. 

Let's  proceed. 

Mr.  Kennedy.  You  were  in  Chicago  on  August  11,  1957;  it  vras 
there,  was  it  not,  that  the  contact  was  made  with  Mr.  Hoff a  ? 

Mr.  Raddock.  On  the  advice  of  counsel,  I  decline  to  answer  on  the 
ground  that  to  do  so  might  tend  to  make  me  a  witness  against  myself. 

Mr.  Kennedy.  And  you  were  there  on  August  11  and  August  12  at 
this  hotel,  were  you  not,  the  Drake  Hotel '? 

Mr.  Raddock.  On  the  advice  of  counsel  I  again  respectfully  decline 
to  answer  on  the  ground  that  to  do  so  might  tend  to  make  me  a  witness 
against  myself. 

Mr.  Kennedy.  Tlie  contact  was  made  with  Mr.  Hoffa  during  tliat 
period  of  time,  and  he  agreed  at  that  time  that  he  would  contact  Mr. 
Sawochka,  tlie  local  teamster  official  in  Gary,  Ind.,  is  that  correct? 

( The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  On  the  advice  of  counsel,  Mr.  Kennedy,  I  decline  to 
answer  on  the  ground  that  to  do  so  might  tend  to  make  me  a  witness 
against  myself. 

Mr.  Kennedy.  Didn't  you  then,  on  August  13,  contact  Mr. 
Sawochka,  yourself  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Waldman.  Mr.  Chairman,  Mr.  Raddock  has  a  very  sore  throat 
which  lie  got  in  part  from  his  full  day's  testimony  yesterday.  May  he 
be  permitted  to  just  say  the  same  answer  in  the  light  of  that? 

It  is  very  difficult  for  him  to  testify. 

The  Chairman.  Are  you  suffering  from  a  severe  throat  ailment? 

Mr.  Raddock.  Yes,  sir.  Senator.  I  don't  know  how  severe  it  is,  but 
it  does  hurt. 

The  Chairman.  It  hurts?  It  is  painful  to  you  when  you  invoke 
the  fifth  amendment  by  repeating  the  "on  the  advice  of  counsel" 
statement  ? 


12028  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

Mr.  Raddock.  xVs  oi'e  American  to  the  other,  Senator,  I  have  always 
answered  you  most  respectfully.  But  I  do  have  a  sore  throat  which  is 
an  ailment  that  can  overtake  humans  when  they  talk  freely  as  I  did  all 
day  yesterday,  from  10  to  4,  only  to  have  a  stellar  performance  follow 
me  which  I  still  haven't  had  a  chance  to  refute. 

The  Chairmax.  Well,  we  are  giving  you  every  opportunity  now, 
and  the  Chair  was  simply  tryino;  to  ascertain  from  you  if  it 
would  add  to  your  comfort  and  help  you  in  j^iving  your  testimony 
if  the  Chair  sim])ly  permitted  you  to  state  "Tlie  same  answer,"  with 
the  understandiiii;  that  "the  same  answer"  would  be  "on  the  advice 
of  counsel"  as  you  have  quoted  a  number  of  times.  I  am  trying  to 
make  this  record  so  there  would  be  no  doubt  about  it.  I  am  trying  to 
be  considerate. 

Mr.  Raddock.  As  I  said  yesterday,  you  are  most  considerate.  Sena- 
tor, you  are  the  perfect  gentleman  from  Arkansas.  But  my  throat  does 
hurt  me  slightly,  and  I  would  appreciate  it  if  I  could  make  my  answers 
on  this  subject  briefer. 

Mr.  Kennedy.  I  wish  you  had  said  that  yesterday. 

Mr.  Waldman.  His  throat  didn't  hurt  yesterday. 

The  Chairman.  I  don't  want  to  ever  be  unfair  to  anyone,  whether 
it  is  a  physical  ailment  or  suffering.  I  don't  want  to  be  unfair  or  un- 
duly exacting.  It  is  quite  proper,  however,  for  the  taking  of  the 
privilege  to  be  stated  clearly  so  there  can  be  no  misunderstanding 
about  it. 

The  understanding,  and  with  your  acquiescence  in  it,  that  you  do 
state  each  time  when  you  say  "I  give  the  same  answer,"  you  refer  to  the 
statement  you  have  been  reading,  "on  the  advice  of  counsel"  which  says 
that  you  decline  on  the  ground  that  to  do  so  might  be  giving  evidence 
against  yourself. 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  That  is  agreeable,  Senator. 

The  Chairman.  All  right. 

Since  the  committee  is  being  very  considerate  of  you,  won't  you  be 
a  little  more  considerate  of  us  and  more  cooperative? 

This  is  not  pleasant,  what  we  are  having  to  do.  I  think  one  favor 
deserves  another.    Can  you  now  be  cooperative  with  us? 

Well,  all  right,  proceed. 

Mr.  Kennedy.  We  had  you  contacting  Mr.  Sawochka  on  August  13. 
Can  you  tell  us  what  you  discussed  with  him  at  that  time? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  And  then  several  times  again  on  August  14  you  con- 
tacted him? 

Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  Then  you  went  down  to  Gary,  Ind.,  and  consulted 
with  him,  did  you  not  ? 

Mr.  Raddock.  Tlie  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  Would  you  tell  the  committee  how  it  was  going  to 
be  arranged  between  you  and  INIr.  Sawochka  to  make  the  approach  to 
the  ])rosecuting  attorney  ? 

Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  Was  Mr.  Jose])h  P.  Sullivan,  who  was  the  attorney 
for  local  142,  brought  in  on  this  matter? 


IMPROPER   ACTIVITIES    IN    THE    LABOR    FIELD  12029 

Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  Do  you  know  Mr.  Joseph  P.  Sullivan  ? 

Mr.  Kaddock.  The  same  answer,  Mr.  Kerniedy. 

Mr.  Kennedy.  And  at  the  same  time  as  being  the  attorney  for  local 
142,  was  he  also  an  assistant  county  prosecutor  ? 

Mr.  Kaddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  So  were  discussions  held  with  Mr.  Sullivan  also  ? 

Mr.  Kaddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  Were  most  of  those  conversations  held  by  Mr. 
Sawochka  with  Mr.  Sullivan  i 

Mr.  Haddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  There  was  discussion  at  that  time,  was  there  not, 
about  having  no  indictments  against  Mr.  Hutcheson,  Mr.  Chapman, 
and  Mr.  Blaier  ? 

Mr.  RiVDDOCK.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  Was  it  discussed  at  that  time  the  reimbursement  to 
Mr.  Holovaclilva  for  not  indicting  Mr.  Chapman,  Mr.  Blaier,  and  Mr. 
Hutcheson  ? 

Mr.  Raddock,  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  Was  there  going  to  be  another  land  operation  so 
that  Mr.  Holovachka  could  be  reimbursed  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  Did  you  return,  then,  to  your  home  in,  your  resi- 
dence, Mamaroneck,  around  August  17, 1957  ? 

Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy,  And  your  air  transportation  back  to  New  York  from 
Chicago  was  paid  by  the  Carpenters,  was  it  not  ? 

Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  And  when  you  returned  home  to  Mamaroneck  on 
August  17,  didn't  you  call  Mr.  Sawochka  at  his  residence  in  Gary, 
Ind.,  at  9 :  36  p.  m.  and  speak  for  17  minutes  ? 

Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr,  Kennedy,  And  shortly  after  you  talked  to  Mr,  Sawochka,  didn't 
you  call  Mr,  Hutcheson  at  his  residence  in  Indianapolis  at  10 :34  and 
speak  to  him  for  4  minutes  ? 

Mr,  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  That  is  the  information  we  have. 

The  Chairman.  Have  you  checked  the  telephone  records  and  that 
is  what  they  reflect  ? 

Mr.  Kennedy.  That  is  correct. 

The  Chairman.  You  appreciate,  Mr.  Raddock,  that  this  informa- 
tion comes  from  the  records  of  the  telephone  company.  Would  you 
want  to  refute  it  ? 

Mr,  Raddock.  The  same  answer. 

The  Chairman,  Do  you  want  to  deny  these  records  are  correct? 

Mr,  Raddock,  The  same  answer,  Senator  McClellan, 

The  Chairman.  In  this  instance,  I  gather  the  impression  from  this 
background  infonnation  and  from  your  attitude  about  it,  therewas  a 
conspiracy  between  those  of  you  who  were  pursuing  this  project  to 
obstruct  justice,  to  prevent  indictments  being  found  against  Mr,  Hut- 
clieson,  Mr,  Chapman,  and  Mr.  Blaier,  Is  that  a  correct  assumption  ? 
(The  witness  conferred  with  his  counsel,) 

Mr.  Raddock.  The  same  answer.  Senator  McClellan. 


12030  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  Also  at  this  period  of  time  or  perhaps  possibly  ear- 
lier, Mr.  Charles  Johnson  was  brought  into  the  matter;  is  that  right? 
Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  Do  you  know  Charlie  Johnson,  vice  president  of  the 
Carpenters  ? 
Mr.  Raddock.  I  know  Charles  Johnson,  Mr.  Kennedy. 
Mr.  Kennedy.  Of  the  Carpenters  Union  ? 
Mr.  Raddock.  Yes. 

Mr.  Kennedy.  Did  you  discuss  this  matter  with  Charles  Johnson 
of  the  Carpenters'  Union  ? 
Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 
Mr.  Kennedy.  Did  he  also  discuss  this  with  Mr.  Hoffa  ? 
Mr.  Raddock.  The  same  answer. 

Mr.  Ivennedy.  Did  Mr.  Johnson  go  to  Gary,  Ind.,  with  you? 
Mr.  Raddock.  The  same  answer,  INIr.  Kennedy. 

Mr.  Kennedy.  Our  information  is  that  Mr.  Johnson  went  to  Gary, 
Ind.,  himself. 

Could  you  tell  the  committee  why  he  went  to  Gary,  Ind.,  sir? 
Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  On  August  18,  1957,  you  called  Mr.  Sawochka  again 
at  12 :  28  p.  m.  and  spoke  to  him  for  5  minutes,  is  that  right  ? 
Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  Then  on  August  19  you  called  him — this  was  the 
day  before  the  prosecuting  attorney  announced,  Mr.  Chairman,  that 
there  would  be  no  indictments,  this  is  on  August  19 — and  did  you 
then  talk  to  him,  Mr.  Sawochka?  At  the  Lake  Hotel  Building  in 
in  Gary,  Ind.,  for  7  minutes? 
Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  And  then  did  you  return  to  Chicago  on  that  date, 
August  19,  at  Carpenter  expense  and  register  once  again  at  the  Hotel 
Drake  ? 
Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  Our  information  is  that  you  did.     Is  that  correct? 
Mr.  Raddock,  The  same  answer,  Mr,  Kennedy. 

Mr.  Kennedy,  Wliat  were  j^ou  doing  out  in  Chicago  at  that  time, 
in  August,  xVugust  19? 
Mr.  R.\DD0CK.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  And  during  this  period  of  time  you  were  keeping  in 
touch  with  Mr.  Hutcheson,  were  you  not,  and  keeping  him  advised  as 
to  what  you  were  doing? 

Mr.  Raddock,  The  same  answer,  Mr,  Kennedy. 

Mr.  Kennedy,  And  the  prosecuting  attorney  made  his  announce- 
ment on  August  20,  1957,  is  that  right,  that  there  would  be  no  prosecu- 
tion? 

Mr,  Raddock,  The  same  answer, 

Mr,  Kennedy,  Did  you  then  continue  to  be  in  touch  with  Mr.  Saw- 
ochka ? 

Mr.  Raddock.  The  same  answer. 

Mr.  Kennedy.  Could  you  tell  us  what  you  were  discussing  with  Mr. 
Sawochka  after  August  20  ? 
Mr.  Raddock.  The  same  answer. 

Mr.  Kennedy.  Were  there  certain  financial  arrangements  that 
needed  to  be  ironed  out  after  August  20  ? 


niPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  12031 

Mr.  Raddock.  The  same  answer. 

Mr.  IvEXNEDT.  What  part  did  you  play  in  the  restitution  of  the 

$78,000  to  the  State  of  Indiana  i 

Mr.  Raddock.  The  same  answer. 

Mr.  Kexxedy.  Did  you  handle  that  for  the  Carpenters  ? 

Mr.  Raddock.  The  same  answer. 

Mr.  Kennedy.  Could  you  tell  the  connnittee  how  you  got  involved 
in  that  yourself  ? 

Mr.  Raddock.  The  same  answer. 

Mr.  Kennedy.  Did  you  handle  any  of  this  money  which  was  re- 
stored to  the  state? 

Mr.  Raddock.  The  same  answer,  Mr.  Kennedy. 

Mr.  Kennedy.  In  fact,  you  were  employed  to  fix  this  case,  were  you 
not,  Mr.  Raddock? 

(Tlie  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  The  same  answer,  Mr.  Kenned3^ 

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

The  Chairman.  Do  you  wish  to  make  any  statement? 

Mr.  Raddock.  Senator  McClellan,  I  appreciate  your  gesture  very 
much.  I  w^ould  like  to  prepare  in  the  next  few  hours  a  factual  state- 
ment concerning  yesterday's  testimony. 

The  Chairman.  You  will  be  recalled  again.  I  just  wanted  to  know 
whether  you  wanted  to  make  any  statment  now  in  connection  with 
these  matters  about  which  you  invoked  the  fifth  amendment. 

You  will  be  given  another  opportunity  to  testify,  but  I  just  won- 
dered now,  after  the  questions  have  been  asked  you  which  carry  with 
them  very  definite  implications  that  would  implicate  you  in  an  enter- 
prise or  in  a  project  that  would  be  improper  insofar  as  the  use  of 
union  funds  in  the  judgment  of  the  Chair,  at  least,  I  wondered  if  you 
wanted  to  clarify  or  make  any  statement  in  your  own  interest  or  to 
helj)  the  efforts  of  the  committee  with  respect  to  the  matter  about 
which  you  have  been  interrogated  here  this  morning. 

Mr.  Raddock.  No,  sir,  Senator  McClellan;  and  I  thank  you  very 
much  for  your  kindness. 

The  Chairman.  All  right.     You  may  stand  aside  for  the  present. 

Call  the  next  witness. 

Mr.  Kennedy.  Mr.  Chairman,  we  have  an  affidavit  which  would  be 
of  some  interest  in  connection  with  this  matter. 

Mr,  Waldman.  Is  it  my  understanding  that  the  witness  is  directed 
to  remain  ? 

The  Chairman.  Yes :  we  are  going  to  try  to  conclude,  but  we  may 
need  him. 

Senator  Curtis.  May  I  ask  2  or  3  questions? 

The  Chairman.  Pardon  me,  Senator  Curtis. 

Senator  Curtis.  Mr.  Raddock,  do  I  understand  correctlj^  that  you 
made  an  intensive  study  and  research  of  the  history  of  the  Carpenter's 
Union  in  preparation  of  your  book  ? 

Mr.  Raddock.  That  is  correct,  Senator  Curtis. 

Senator  Curtis.  Did  you  make  a  study  of  the  finances  of  tlie  Car- 
penters' Union  ? 

Mr.  Raddock.  In  a  general  way,  since  I  am  no  fiscal  expert. 
Senator  Curtis.  Did  3'ou  make  a  study  of  the  growth  of  their 
wealth  and  their  capital  assets  ? 

21243— 58— pt.  31 IT 


12032  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Raddock.  In  a  superficial  sense ;  yes. 

Senator  Curtis.  And  did  that  include  their  property  wherever  it 
may  be,  including  the  State  of  Florida  ? 

Mr.  Raddock.  That  is  correct. 

Senator  Cuktis.  Did  you  find  that  it  was  all  accounted  for  and 
preserved  for  the  benefit  of  the  union  throughout  the  years  ? 

Mr.  Raddock.  In  my  estimate,  most  certainly  so. 

Senator  Curtis.  You  found  nothing  to  the  contrary  ? 

Mr.  Raddock.  Nothing  to  the  contrary. 

Senator  Curtis.  That  is  all. 

The  Chairman.  I  have  an  affidavit  here  which  I  believe  you  might 
be  interested  in,  and  might  want  to  make  some  comment  upon. 

This  is  an  affidavit  dated  June  24, 1958,  from  Mr.  John  D.  Hackett. 

It  states : 

(The  document  referred  to  follows :) 

State  of  Indiana, 

County  of  Marion,  ss: 

I,  John  D.  Hackett,  being  duly  sworn,  upon  my  oath  state  that  I  am  presently 
an  employee  on  the  staff  of  the  Indianapolis  Times,  a  newspaper  of  daily 
circulation  located  at  Indianapolis,  Ind. ;  that  on  August  19,  1957,  I  was  em- 
ployed as  a  reporter  for  the  said  Indianapolis  Times  newspaper  at  Indianapolis, 
Ind.,  and  on  said  day  was  assigned  to  rewrite  duty,  and  that  on  said  day  at 
9 :  45  a.  m.  I  did  receive  an  anonymous  phone  call  while  stationed  at  my 
assigned  desk  in  the  offices  of  the  Indianapolis  Times,  wherein  such  anonymous 
phone  call  I  did  hear  a  male  voice  state  the  following : 

"Thought  you  people  would  like  to  know  that  Gary  Carpenter's  case  has  been 
all  taken  care  of  by  the  Teamsters.  There  will  be  no  indictment  today.  You 
can  check  the  telephone  room  in  Chicago  and  find  that  Max  Rattock  put  through 
a  call  to  Charles  Johnson,  Jr.,  last  night.  This  came  right  after  the  Teamsters 
had  a  meeting  in  Gary  last  Wednesday  night." 

At  this  point  of  the  anonymous  caller's  statement,  I  stated  to  him : 

"We  are  very  much  interested !  Who  are  you  and  will  you  give  me  your 
name?" 

The  same  male  voice  then  replied  as  follows  : 

"Me?  I'm  connected  with  it  and  I  can't  give  you  my  name.  Check  it  out 
and  see." 

This  was  the  end  of  the  conversation  with  nothing  more  being  said  by  either 
the  anonymous  male  caller  or  myself,  as  the  said  anonymous  caller  terminated 
the  conversation. 

I  hereby  assert  that  the  above  facts,  including  conversation,  are  true  in  sub- 
stance and  in  fact,  as  this  affiant  is  informed  and  verily  believes. 

[S]     John  D.  Hackett. 

Subscribed  and  sworn  to  before  me  this  24th  day  of  June  1958. 

Olive  Ella  Ballabd, 
Notary  Puhlic,  Marion  County,  Ind. 

My  commission  expires  December  16, 1961. 

The  Chairman.  Mr.  Raddock,  were  you  the  one  that  made  the 
anonymous  call  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  The  same  answer.  Senator  McClellan. 

The  Chairman.  This  sa;ys  that  Max  Raddock  put  through  a  call  "to 
Charles  Johnson,  Jr.,  last  night." 

Would  you  like  to  deny  that  ? 

Mr.  Raddock.  The  same  answer.  Senator. 

The  Chairman.  You  don't  want  to  deny  it.  I  get  some  anonymous 
calls,  too,  you  know,  where  things  are  said  to  you  that  may  not  be  true. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12033 

This  anonymous  caller,  if  it  wasn't  you,  yourself,  certainly  used 
your  name  here,  according  to  this  sworn  testimony,  and  said  you 
"put  through  a  call  last  night  to  Charles  Johnson."  Would  you  want 
to  deny  that  you  did  that  ^ 

(The  witness  conferred  with  his  counsel.) 

The  Ch^ukslvn.  All  right.  Do  you  w^ant  to  deny  that  you  put 
through  that  call  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  The  same  answer,  Senator  McClellan. 

The  CuAiRMAX.  This  anonymous  call  here  is  quite  significant. 
Whoever  did  the  calling  evidently  had  the  right  information,  because 
I  believe  it  was  the  next  day  that  it  was  announced  officiall}'  that  they 
W'Ould  not  be  indicted.  If  you  have  some  information  about  that 
that  you  think  would  be  helpful  to  us,  we  would  appreciate  it  if  you 
would  give  it. 

(The  witness  conferred  with  his  counsel.) 

Mr.  Raddock.  The  same  answer.  Senator  McClellan. 

The  Chairman.  O.  K.    Is  there  anything  further,  Senator  Curtis? 

Senator  Curtis.  No. 

The  Ch.virman.  All  right.  Stand  aside  for  the  present.  Call  the 
next  witness. 

Mr.  Kennedy.  Mr.  Sawochka. 

The  Chairman.  Be  sworn,  please.  You  do  solemnly  swear  the  evi- 
dence you  shall  give  before  this  Senate  select  committee  shall  be  the 
truth,  the  wliole  truth,  and  nothing  but  the  truth,  so  lielp  you  God? 

Mr.  Sawociika.  I  do. 

TESTIMONY  OF  MICHAEL  SAWOCHKA,  ACCOMPANIED  BY  COUNSEL, 
HARRY  CLIFFORD  ALLDER 

The  Chairman.  State  your  name,  your  place  of  residence,  and  busi- 
ness or  occupation. 

Mr.  Sawochka.  My  name  is  Michael  Sawochka,  I  reside  at  2500 
West  41st  Avenue,  Gary,  Ind.  I  am  secretary-treasurer  of  the  team- 
sters Local  142. 

Tlie  Chairman.  Thank  you  very  much. 

You  have  counsel  present  ? 

Mr.  Sawochka.  Yes,  sir. 

The  Chairman.  Identify  yourself,  Mr.  Counsel. 

Mr.  Allder.  My  name  is  Harry  Clifford  Allder,  a  member  of  the 
bar  of  Washington,  D.    C.    I  have  an  office  at  401  Third  Street  NW. 

The  Chairman.  Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  You  are  in  the  Teamsters  Union,  you  are  a  member 
of  the  Teamsters  Union  ? 

Mr.  Sawochka.  Yes,  sir. 

Mr.  Kennedy.  What  union  is  it  ? 

Mr.  Sawochka.  Teamsters  142.    I  am  secretary-treasurer. 

Mr.  Kennedy.  How  long  have  you  held  that  position  ? 

Mr.  Sawochka.  About  27  years. 

Mr.  Kennedy.  You  have  been  secretary-treasurer  for  27  years  ? 

Mr.  Sawochka.  Xot  as  secretary-treasurer,  but  as  an  officer,  stew- 
ard, and  finally  secretary-treasurer. 

Mr.  Kennedy.  How  long  have  you  been  secretary-treasurer? 


12034  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  | 

Mr.  Sawochka.  Since  1941. 

Mr.  Kennedy.  And  how  often  do  they  have  an  election  in  that 
local ^ 

(The  witness  conferred  with  his  counsel.) 

Mr.  Sawochka.  Our  elections  in  Local  142  over  a  period  of  years, 
Mr.  Kennedy,  have  varied.  At  one  time  we  had  annual  terms,  and 
a  change  in  3  years,  and  now  we  elect  our  officers  every  5  years. 

Mr.  Kennedy.  AVlien  were  you  last  elected  ? 

Mr.  Sawochka,  I  was  elected  in  December  of  1957. 

Mr.  Kennedy.  Did  you  have  an  opponent,  any  opposition  at  that 
time  ? 

Mr.  Sawochka.  I  had  no  opponent. 

Mr.  Kennedy.  Did  you,  prior  to  that  time  ? 

Mr.  Sawochka.  Yes.  At  one  time.  I  was  originally  elected  by 
one  vote.  Several  years  later  I  was  defeated  by  12  votes.  I  came  back 
later  on  and  won  by  a  pretty  decent  majority  and  have  been  there  since. 

Mr.  Kennedy.  Wlien  was  the  last  time  you  had  opposition  ? 

Mr.  Sawochka.  1941. 

Mr.  Kennedy.  1941  was  the  last  time  you  ever  had  opposition  ? 

Mr.  Sawochk.^.  Yes.  I  might  just  say  this,  if  I  may,  Mr.  Chairman, 
that  there  has  been  times  or  occasions,  rather,  where  there  was  some- 
one nominated. 

However,  he  was  not  eligible  in  accordance  with  the  constitution  ol 
our  organization. 

But  T  have  had  actually  no  opposition  since  1941. 

Mr.  Kennedy.  Any  opposition  that  has  been  nominated  has  been 
ruled  ineligible  under  the  constitution ;  is  that  right? 

Mr.  Sawochka.  Only  one  time,  sir. 

Mr.  Kennedy.  "Wlien  was  that  ? 

Mr.  Sawochka.  That  was  in  1957. 

Mr.  Kennedy.  1957? 

Mr.  Sawochka.  That  is  right.  _ 

Mr.  Kennedy.  Why  were  they  ineligible  ? 

Mr.  Sawochka.  Nonpayment  of  dues. 

Mr.  Kennedy.  By  the  first  of  the  month  ? 

Mr.  Sawochka.  Our  bylaws  provide  our  dues  are  payable  quarterly 
in  advance  on  or  before  ihe  15th  day  of  the  first  month  of  each  quarter 
and  this  particular  individual  that  was  a  potential  candidate  had  not 
had  his  dues  pa  id  up  for  quite  some  time. 

Mr.  Kennedy.  How  long  had  he  been  in  the  Teamsters  ? 

Mr.  Sawochka.  I  don't  recall  offhand. 

Mr.  Kennedy.  A  number  of  years  ? 

ISTr.  Sawochka.  Yes. 

Mr.  Kennedy.  Did  you  just  purchase  some  property?  Did  youi 
Teamsters  Local  just  purchase  some  property  out  in  Gary,  Ind? 

(Tlie  witness  conferred  with  his  counsel.) 

Mr.  Sawochka.  Mr.  Kennedv 

Mr.  Kennedy.  Let  me  see  if  I  can  get  some  answers  from  you.  ! 
will  strike  that  question.  Do  you  know  the  company  called  the  130f 
Bioa dway  Corp. ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Sawochka.  \t  this  time,  Mr.  Kennedy,  on  the  advice  of  coun- 
sel, T  respectfully  decline  to  answer  the  question  and  exercise  my 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  12035 

privileo^e  under  the  fifth  amendment  of  the  United  States  Constitu- 
tion not  to  be  a  witness  against  myself. 

Mr.  Kennedy.  Do  you  know  the  IMid-City  Investments,  Inc.? 

Mr.  Sawochka.  At  this  time,  on  tlie  advice  of  counsel,  I  respect- 
fully decline  to  answer  the  question  and  exercise  my  privilege  under 
the  fifth  amendment  of  the  United  States  Constitution  not  to  be  a 
witness  against  myself. 

Mr.  Kennedy.  Did  you  just  purchase  some  property  from  that  com- 
pany or  purchase  some  property  from  that  company  for  $40,000? 

Mr.  Sawochka.  At  this  time,  on  the  advice 

Mr.  Kennedy.  With  union  funds.  The  union,  did  they  just  pur- 
chase some  ]:)roperty  from  that  company  for  $40,000  ? 

Mr.  Saavociika.  Again  at  this  time,  on  the  advice  of  counsel,  I  re- 
spectfully decline  to  answer  the  question  and  exercise  my  privilege  un- 
der the  fifth  amendment  of  the  United  States  Constitution  not  to  be 
a  witness  against  myself. 

Mr.  Kennedy.  Do  you  know  Mr.  Max  Eaddock  ? 

Mr.  Sawochka.  On  the  advice  of  counsel,  I  respectfully  decline 
to  answer  the  question  and  exercise  my  privilege  under  the  fifth  amend- 
ment of  the  United  States  Constitution  not  to  be  a  witness  against 
myself. 

Mr.  Kennedy.  Did  Mr.  Max  Raddock  speak  to  you  about  fixing  the 
case  of  the  Carpenters  in  Lake  County  ? 

Mr.  Sawochka.  At  this  time,  on  the  advice  of  counsel,  I  respect- 
fully decline  to  answer  the  question  and  exercise  my  privilege  under 
the  fifth  amendment  not  to  be  a  witness  against  myself. 

The  Chairman.  The  Chair  will  ask  you  if  you  honestly  believe  that 
if  you  gave  truthful  answers  to  these  questions,  that  a  truthful  an- 
swer might  tend  to  incriminate  you. 

Mr.  Sawochka.  Mr.  Chairman,  I  honestly  believe  that  if  I  am 
forced  to  answer  the  question,  that  I  may  be  forced  to  be  a  witness 
against  myself  in  violation  of  my  rights  and  privileges  under  the 
fifth  amendment  of  the  United  States  Constitution. 

The  Chairman.  You  state  that  you  honestly  believe  that  under 
oath? 

I  say,  you  state  under  oath  that  you  honestly  believe  what  you  have 
just  read  there  ? 

Mr.  Sawochka.  Yes. 

The  Chairman.  Proceed. 

Air.  Kennedy.  Did  you  discuss  the  matter  of  the  Carpenters'  in- 
dictments with  Mr.  James  Tloffa,  the  International  President  of  the 
Teamsters  ? 

Mr.  Sawochka.  On  the  advice  of  counsel,  I  respectfully  decline  to 
answer  the  question  and  exercise  my  privilege  under  the  fifth  amend- 
ment of  the  United  States  Constitution  not  to  be  a  witness  against 
myself. 

Mr.  Kennedy.  Did  he  tell  you  that  you  should  give  every  assistance 
to  Mr.  Hutcheson  or  his  representatives,  Mr.  Raddock.  or  Mr.  Charles 
Johnson,  Jr.  ? 

Mr.  Sawochka.  Again  on  tlie  advice  of  counsel.  Mr.  Kennedy,  I 
respectfully  decline  to  answer  the  question  and  exercise  my  privilege 
under  the  fifth  amendment  of  the  United  States  Constitution  not  to  be 
a  witness  against  myself. 


12036  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  Didn't  you  then  have  conversations  and  conferences 
with  Mr.  Raddock  and  Mr.  Charles  Johnson? 

Mr.  Sawochka.  On  the  advice  of  counsel,  I  respectfully  decline  to 
answer  the  question  and  exercise  my  privilege  under  the  fifth  amend- 
ment of  the  United  States  Constitution  not  to  be  a  witness  against 
myself. 

Mr.  Kennedy.  And  didn't  you  have  conversations  directly  with  Mr. 
Hutcheson  himself  in  connection  with  this  matter? 

Mr.  Sawochka.  Again  on  the  advice  of  counsel  I  respectfully  de- 
cline to  answer  the  question  and  exercise  my  privilege  under  the  fifth 
amendment  of  the  United  States  Constitution  not  to  be  a  witness 
against  myself. 

Mr.  Kennedy.  Would  you  tell  us  what  your  attorney,  Mr.  Joseph  P. 
Sullivan,  had  to  do  with  this  matter  ? 

Mr.  Sawochka.  On  the  advice  of  counsel  I  respectfully  decline  to 
answer  the  question  and  exercise  my  privilege  under  the  fifth  amend- 
ment of  the  United  States  Constitution  not  to  be  a  witness  against 
myself. 

Mr.  Kennedy.  Mr.  Sullivan  is  attorney  for  your  local ;  is  he  not? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Sawochka.  Again  on  the  advice  of  counsel  I  respectfully  de- 
cline to  answer  the  question  and  exercise  my  privilege  under  the  fifth 
amendment  of  the  United  States  Constitution  not  to  be  a  witness 
against  myself. 

The  Chairman.  I  think  that  is  a  matter  of  full  knowledge ;  if  you 
want  to  take  the  position  that  to  admit  that  he  is  an  attorney  for  your 
local  might  tend  to  incriminate  you 

Mr.  Sawochka.  I  honestly  believe,  Mr.  Chairman,  that  if  I  am 
forced  to  answer  the  question,  I  may  be  forced  to  be  a  witness  against 
myself  in  violation  of  my  rights  and  privileges  under  the  fifth  amend- 
ment of  the  United  States  Constitution. 

The  Chairman.  That  fact  can  easily  be  established,  I  think,  by 
other  proof.    Proceed. 

Mr.  Kennedy.  According  to  the  information  we  have,  Mr.  Chair- 
man, Mr.  Sawochka  was  continuously  in  touch  with  Mr.  Raddock  dur- 
ing the  period  of  time  just  prior  to  the  indictment  being  dismissed,  and 
for  some  period  of  tmie  afterwards. 

Isn't  that  correct? 

Mr.  Sawochka.  On  the  advice  of  counsel  I  respectfully  decline  to 
answer  tlie  question  and  exercise  my  privilege  under  the  fifth  amend- 
ment of  the  United  States  Constitution  not  to  be  a  witness  against 
myself. 

Mr.  Kennedy.  He  contacted  you  continuously  and  you  also  con- 
tacted him ;  is  that  right  ? 

Mr.  Sawochka.  Again,  Mr.  Kennedy,  on  the  advice  of  counsel  I  re- 
spectfully decline  to  answer  the  question  and  exercise  my  privilege 
under  the  fifth  amendment  of  the  United  States  Constitution  not  to  be 
a  witness  against  myself. 

Mr.  Kennedy.  And  you  also  made  contacts  with  both  Mr.  Charlie 
Johnson,  Jr.,  and  Mr.  Hutcheson  in  connection  with  this  matter? 

Mr.  Sawochka.  On  the  advice  of  counsel  I  respectfully  decline  to 
answer  the  question  and  exercise  my  privilege  under  the  fifth  amend- 
ment of  the  United  States  Constitution  not  to  be  a  witness  against  my- 
self. 


EMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12037 

Mr.  KJENNEDY.  It  is  true,  is  it  not,  that  you  played  a  major  role  in 
the  restitution  of  the  money  to  the  State  of  Indiana  ? 

Mr.  Sawochka.  Mr.  Kennedy,  on  the  advice  of  counsel  I  respect- 
fully decline  to  answer  the  question  and  exercise  my  privilege  under 
the  fifth  amendment  of  the  United  States  Constitution  not  to  be  a  wit- 
ness a<^ainst  myself. 

The  Chairman.  Do  you  know  the  amount  of  money  that  was  paid 
in  restitution? 

Mr.  Sawochka.  On  the  advice  of  counsel  I  respectfully  decline  to 
answer  the  question,  and  exercise  my  privilege  under  the  fifth  amend- 
ment of  the  United  States  Constitution  not  to  be  a  witness  against  my- 
self. 

The  Chairman.  Do  you  have  any  questions,  Senator  Curtis? 

Senator  Curtis.  I  think  not. 

Mr.  Kennedy.  Do  you  know  Mr.  Holovachka,  the  prosecuting  attor- 
ney? 

Mr.  Sawochka.  On  advice  of  counsel  I  respectfully  decline  to 
answer  the  question  and  exercise  my  privilege  under  the  fifth  amend- 
ment of  the  United  States  Constitution  not  to  be  a  witness  against  my- 
self. 

Mr.  Kennedy.  You  personally  contacted  Mr.  Holovachka  fre- 
quently during  this  period  of  time ;  did  you  not  ? 

Mr.  Sawochka.  Again,  Mr.  Kennedy,  on  the  advice  of  counsel  I 
respectfully  decline  to  answer  the  question  and  exercise  my  privilege 
under  the  fifth  amendment  of  the  United  States  Constitution  not  to  be 
a  witness  against  myself. 

Mr.  Kennedy.  Aiid  didn't  you,  starting  on  August  13, 1957,  or  there- 
abouts, call  the  prosecuting  attorney,  both  at  his  office  and  at  his 
unlisted  telephone  number  ? 

Mr.  Sawochka.  On  the  advice  of  counsel  I  respectfully  decline  to 
answer  the  question  and  exercise  my  privilege  under  the  fifth  amend- 
ment of  the  United  States  Constitution  not  to  be  a  witness  against 
myself. 

Mr.  Kennedy.  And  wasn't  this  after  you  were  contacted  by  Mr. 
Hoffa  and  by  Mr.  Raddock  ? 

Mr.  Sawochka.  On  the  ad\^ce  of  counsel,  Mr.  Kennedy,  I  respect- 
fully decline  to  answer  the  question  and  exercise  my  privilege  under 
the  fifth  amendment  of  the  United  States  Constitution  not  to  be  a 
witness  against  myself. 

The  Chairman.  Are  there  any  further  questions  ? 

If  not,  thank  you. 

Call  the  next  witness. 

The  Chair  will  state  to  the  witness  and  his  counsel,  you  may  be  re- 
called, but  we  hope  to  finish  today.    But  you  better  wait. 

Mr.  Allder.  I  will  consult  with  Mr.  Kennedy,  then,  Mr.  Chairman. 

The  Chairman.  Very  well. 

Mr.  Donohue  ? 

Can  you  give  us  at  this  time  a  report  on  Mr.  Johnson,  the  witness 
that  we  have  discussed  heretofore  ? 

Mr.  DoNOHTiE.  I  talked  with  Mrs.  Johnson  at  25  minutes  past  10. 
They  were  awaiting,  momentarily,  the  arrival  of  Dr.  Aaron,  who  has 
come  down  from  New  York,  and  who  had  treated  Mr.  Johnson  in  his 


12038  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

serious  heart  attack  of  some  2  years  ago,  and  Dr.  Yaeger,  the  local 
heart  specialist  who  treated  him  the  night  before  last. 

The  report  from  a  cardiograph,  which  was  taken  the  night  before 
last  in  his  room,  indicated  he  did  not  suffer  a  coronary  thrombosis,  but 
an  attack,  I  think  the  doctor  called  it,  of  angina  pectoris,  and  that 
the  examination  showed  no  additional  heart  damage  over  and  above 
that  which  still  was  evidenced  from  the  earlier  attack. 

I  hope  that  by  the  noon  recess  Dr.  Aaron  and  Dr.  Yaeger  will  have 
made  a  report  which  I  can  give  to  you,  Mr.  Chairman,  at  the  opening 
of  the  afternoon  session. 

The  Chairman.  Very  well.    We  will  meet  back  at  2  o'clock. 

The  committee  will  stand  in  recess  until  2  o'clock. 

(Whereupon,  at  11 :  50  a.  m.,  the  hearing  recessed,  to  reconvene  at  2 
p.  m.  of  the  same  day.  At  this  point,  the  following  members  were 
present :  Senators McClellan  and  Curtis.) 

AFTERNOON    SESSION 

(At  the  reconvening  of  the  session  the  following  members  were 
present :  Senators  McClellan  and  Kennedy.) 

The  Chairman.  The  committee  will  come  to  order. 

Mr.  Donoliue?  You  have  a  report  to  make  to  the  committee  now 
with  regard  to  Mr.  Johnson,  Charles  Johnson  ? 

Mr.  DoNoiiUE.  Yes,  sir. 

I  have  a  communication  under  today's  date  on  the  stationery  of 
Irwin  I.  Yager,  medical  doctor,  3065  16th  Street  NW.,  Washington 
8,D.C. 

To  Whom  It  May  Concern: 

In  the  evening  of  June  24,  1958,  I  was  called  to  the  Sheraton  Carlton  Hotel 
to  examine  Mr.  Charles  Johnson,  Jr. 

When  I  arrived  Mr.  Johnson  was  suffering  from  severe  pain  over  the  sternum 
(breastbone). 

It  took  two  injections  and  several  nitroslycedrin  tablets  to  get  him  some  relief. 

The  symptoms  and  the  history  were  those  of  coronary  heart  disease. 

He  was  ordered  to  complete  bed  rest. 

I  called  in  Dr.  Isadore  Shulman,  of  916  I  Street  NW.,  Washington,  D.  C,  in 
consultation  and  to  get  an  electrocardiogram  on  Mr.  Johnson. 

Dr.  Shulman,  too,  was  of  the  opinion  that  Mr.  Johnson  was  suffering  from 
coronary  artery  disease. 

The  electrocardiogram  revealed  a  previous  posterior  wall  infarction  (clot) 
and  coronary  insufficiency. 

I  also  learned  from  Mr.  Johnson's  physician.  Dr.  Harold  Aaron,  of  133  East 
58th  Street,  New  York  City,  that  Mr.  Johnson  has  been  under  the  doctor's  care 
for  his  heart  condition  for  the  past  5  years  and  that  in  1956  and  1957  Mr.  Johnson 
was  hospitalized  for  posterior  wall  infarctions  (coronary  thrombosis). 

In  view  of  these  facts  it  is  my  opinion  as  well  as  that  of  Drs.  Aaron  and 
Shulman  that  it  would  be  extremely  risky  to  subject  Mr.  Johnson  to  any  physical 
or  emotional  strain. 

Irwin  I.  Taqbhi,  M.  D. 

Approved  by  Mrs.  C.  J.,  Jr. 

The  Chairman.  The  Chair  has  a  telegram  from  Dr.  Aaron  stating 
after  a  brief  history  of  the  case,  that  he  would  be,  in  effect,  very  ap- 
prehensive to  have  Mr.  Johnson  testify ;  that  it  might  endanger  his  life. 
I  would  like  to  have  Mr.  Johnson's  te^^timony,  or  if  not  todav,  as  early 
as  he  would  be  able  to  testify,  but  we  do  not  feel  disposed  to  try  to 
override  the  judgment  or  the  medical  decision  of  reputable  doctors, 
and  I  take  it  these  are  reputable  doctors. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  12039 

Therefore,  we  have  no  alternative  except  to  grant  a  continuance  as 
to  Mr.  Johnson's  testimony.  He  will  remain  under  subpena,  of  course. 
Will  you  agi-ee  as  his  counsel  that  when  he  is  able  to  testify,  and  the 
committee  desires  his  presence,  he  will  respond  upon  notice  without 
further  subpena  ? 

Mr.  DoxoiiuE.  Yes,  sir. 

The  Chairman.  Thank  you  very  much. 

In  the  meantime  the  Chair  will  announce  that  Mr.  Johnson  did 
appear  before  the  committee  in  executive  session  on  June  9,  at  which 
time  he  testified.  That  testimony  can  be  made  public  and  be  made  a 
part  of  this  record,  on  approval  of  the  committee. 

Mr.  KJENNEDT.  The  approval  has  already  been  obtained,  Mr.  Chair- 
man. 

The  Chairman.  The  approval  of  the  committee  to  make  his  testi- 
mony a  part  of  this  record  and  a  public  document,  his  testimony  ^iven 
in  a  previous  session,  has  been  approved,  and,  accordingly,  it  will  be 
made  a  part  of  this  public  record  at  this  point. 


INVESTIGATION  OF  IMPROPER  ACTIVITIES  IN  THE 
LABOR  OR  MANAGEMENT  FIELD 

(On  June  9,  1958,  Charles  Johnson  testified  in  executive  session  before  the 
Select  Committee  on  Investigation  of  Improper  Activities  in  the  Labor  or 
Management  Field.  This  testimony  was  made  public  by  the  members  of  th« 
select  comitiittee  on  July  26, 1958,  and  follows  below) 


MONDAY,   JUNE   9,    1958 

United  States  Senate, 
Senate  Select  Committee  on  Improper  Activtties, 

IN  THE  Labor  or  Management  Field, 

Washington^  D.  C. 

The  select  committee  met  at  2  p.  m.,  pursuant  to  Senate  Reso- 
lution 221,  agreed  to  Januaiy  29,  1958,  in  room  457,  of  the  Senate 
Office  Building,  Senator  John  L.  McClellan  (chairman  of  the  select 
committee)  presiding. 

Members  of  the  select  committee  present:  Senator  John  L.  Mc- 
Clellan, Democrat,  of  Arkansas;  Senator  Irving  M.  Ives,  Republican, 
of  New  York;  Senator  Carl  T.  Curtis,  Republican,  of  Nebraska. 

Members  of  the  professional  staff  present :  Robert  F.  Kennedy,  chief 
counsel;  John  J.  McGovern,  assistant  counsel;  Paul  J.  Tierney,  as- 
sistant counsel,  Robert  E.  Dunne,  investigator;  John  Prinos,  investi- 
gator ;  Harold  Ranstead,  investigator ;  Karl  Deibel,  accountant,  Gen- 
eral Accounting  Office ;  Ruth  Young  Watt,  chief  clerk. 

Also  present :  George  Ives,  administrative  assistant  to  Senator  Ives. 

(At  the  start  of  the  hearing,  the  following  members  were  present: 
Senators  McClellan,  Ives,  and  Curtis.) 

The  Chairjian.  The  hearing  will  be  m  order. 

Mr.  KJENNEDY.  Mr.  Charlie  Johnson. 

The  Chairman.  All  right,  Mr.  Johnson. 

Be  sworn,  please. 

You  do  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.  Johnson.  I  do. 

TESTIMONY  OF  CHARLES  JOHNSON,  JR.,  ACCOMPANIED  BY 
COUNSEL,  F.  JOSEPH  DONOHUE 

(Other  counsel  present  during  the  taking  of  the  testimony  were 
Charles  B.  Tuttle,  of  Breed,  Abbott  &  Morgan,  15  Broad  Street,  New 
York,  N.  Y. ;  Francis  X.  Ward,  general  counsel,  United  Brotherhood 
of  Carpenters  and  Joiners  of  America,  Indianapolis,  Ind.,  222  East 
Michigan  Street,  Indianapolis,  Ind. ;  and  Thornton  C.  Land,  of  Breed, 

12041 


12042  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Abbott  &  Morgan,  15  Broad  Street,  New  York,  N.  Y.,  of  counsel  for 
the  United  Brotherhood  of  Carpenters  and  Joiners  of  America.) 

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

Mr,  Johnson.  Charles  Johnson,  Jr.,  1025  Fifth  Avenue,  New  York, 
N.  Y.  I  am  president  of  the  New  York  District  Council  of  Carpen- 
ters. 

The  Chairman.  Mr.  Reporter,  read  to  Mr.  Johnson  and  his  counsel 
the  preliminary  statement  made  by  the  Chair  and  the  chief  counsel 
at  the  beginning  of  this  session. 

(The  preliminary  statement  was  read  by  the  reporter,  as  requested.) 

The  Chairman.  Mr.  Johnson,  you  have  counsel  present  ? 

Mr.  Johnson.  I  do,  sir. 

The  Chairman.  Identify  yourself  for  the  record,  please. 

Mr.  DoNOHUE.  I  am  F.  Joseph  Donohue,  a  member  of  the  bar  of 
the  District  of  Columbia.     I  appear  as  counsel  for  Mr.  Johnson. 

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

Mr.  Kennedy.  Mr.  Johnson,  how  long  have  you  been  with  the 
Carpenters'  Union  ? 

Mr.  Johnson.  44  years. 

Mr.  Kennedy.  You  are  familiar  with  the  fact,  are  you  not,  that 
Mr.  Hutcheson,  Mr.  Chapman,  and  Mr.  Blaier  got  into  some  diffi- 
culty in  the  State  of  Indiana  in  connection  with  certain  road  situa- 
tions there  ? 

( The  witness  conferred  with  his  counsel. ) 

Mr.  Johnson.  I  read  about  it  in  the  paper,  sir. 

Mr.  Kennedy.  Did  you  have  any  discussions  with  Mr.  Raddock 
in  connection  with  that  matter  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Kennedy.  Counsel,  I  think  he  would  know  the  answer  to  that 
himself.     That  is  not  a  legal  question. 

Mr.  Johnson.  On  the  advice  of  my  counsel,  sir,  I  decline  to  answer 
the  question  upon  the  ground  my  answer  might  tend  to  incriminate 
me.  _ 

Mr.  Kennedy.  How  long  have  you  known  Mr.  Raddock  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Johnson.  Upon  the  advice  of  my  counsel,  I  decline  to  answer 
the  question  on  the  grounds  I  think  my  answer  might  tend  to  in- 
criminate me,  sir. 

The  Chairman.  Mr.  Johnson,  may  we  inquire  if  it  is  your  purpose 
to  invoke  the  fifth  amendment  privilege  to  all  pertinent  questions 
regarding  this  matter  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Johnson.  Yes,  sir. 

Senator  Cuktis.  May  I  inquire,  Mr.  Chairman  ? 

The  Chairman.  Senator  Curtis. 

Senator  Cttrtis.  Is  there  any  indictment  pending  against  you  at 
the  pi'osent  time? 

Mr.  Johnson.  No,  sir. 

Senator  Cttrtis.  To  your  ImoMledgp,  is  there  anv  investigation  by 
State  or  Federal  prosecuting  authorities  of  any  of  your  activities  at 
the  present  time  ? 

Mr.  Johnson.  I  have  no  knowledge  of  such,  sir. 

Mr.  Kennedy.  Could  T  ask  a  question  ? 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  12043 

Would  Mr,  Johnson  answer  any  questions  regarding  his  personal 
affairs,  or  is  it  just  this  one  phase  of  it  ? 

Mr.  DoNOHUE.  At  the  moment,  Mr.  Kennedy,  it  is  just  this  one  phase 
of  the  inquiry. 

Mr.  Ken  NEDY.  Where  he  would  invoke  the  fifth  amendment  ? 

Mr.  DoNOHUE.  Yes. 

Mr.  Kennedy.  Could  I  ask  a  few  brief  questions  ? 

You  were  in  Las  Vegas  in  1D51,  Mr.  Johnson,  October  of  1951  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Johnson.  Would  you  repeat  the  question,  please  ? 

Mr.  Kennedy.  You  were  in  Las  Vegas  in  October  of  1951,  I  be- 
1  io ve,  is  that  correct  ? 

Mr.  Johnson.  Mr.  Kennedj',  I  would  have  to  check  my  records  to 
refresh  my  memory. 

Mr.  Kennedy.  Let  me  ask  the  next  question. 

Lid  you  make  an  investment  in  Las  Vegas  at  that  time  ? 

Mr.  Johnson.  Just  what  type  of  investment  ? 

Mr.  Kennedy.  Any  kind  of  investment. 

Mr.  Johnson.  In  real  estate  ? 

jSIr.  Kennedy.  Any  kind  of  investment  whatsoever. 

Mr.  Johnson.  I  made  no  investment  in  real  estate  or  in  any  hotels 
or  anything  else  of  that  nature. 

Mr.  Kennedy.  Well,  what  kind  of  investment  did  you  make  at  that 
time  ? 

Mr.  Johnson.  I  don't  know  of  any  investments  that  I  made. 

Mr.  Kennedy.  Did  you  lose  a  large  amount  of  cash  at  that  time  in 
Las  Vegas  ? 

Mr.  Johnson.  Not  to  my  knowledge. 

Mr.  Kennedy.  You  made  a  number  of  checks  out  to  cash  at  that 
time,  which  were  cashed. 

Would  you  tell  us  what  you  did  with  that  ? 

Mr.  Johnson.  I  have  no  records  with  me.  You  have  all  my  records. 
I  would  like  to  have  the  records. 

Mr.  Kennedy.  Well,  in  Las  Vegas  they  were  amounting  to  many 
thousands  of  dollars,  checks  to  cash,  during  that  period  of  time. 

Mr.  Johnson.  Mr.  Kennedy,  in  order  to  answer  that  truthfully  I 
would  like  to  refresh  my  memory  and  view  my  records,  which  are 
not  in  my  possession. 

Mr.  Kennedy.  Would  you  look  at  these  briefly?  Here  is  one  for 
$5,000,  on  October  1;  $5,000  on  October  4:  $5,000  on  October  4;  and 
$11,000  on  October  5. 

The  Chapman.  Let  the  record  show  that  the  counsel  presents  the 
witness  with  a  series  of  four  checks  to  see  if  he  can  identify  them. 
He  is  presenting  them  to  the  witness  for  identification. 

(The  documents  were  handed  to  the  witness.) 

Mr.  Kennedy.  Do  you  identify  those  ? 

Mr.  Johnson.  I  do,  sir.     They  are  my  checks. 

The  Chairman.  They  may  be  made  exhibits  46A,  B,  C,  and  D. 

(The  documents  referred  to  were  marked  "Exhibits  Nos.  46A,  B,  C, 
and  D"'  for  reference,  and  will  be  found  in  the  appendix  on  pp.  12184- 
12187.) 

Mr.  Johnson.  I  have  no  direct  memory  of  the  purpose  for  cashing 
those  checks,  Mr.  Kennedy,  but  I  am  not  a  young  fellow  and  I  have 


12044  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

been  all  over  this  country  many  times.  That  was  one  of  the  few 
times  I  have  ever  stopped  there.  But  I  have  met  an  awful  lot  of 
people  I  know  from  the  west  coast,  from  the  Northwest,  and  from  the 
east  coast.  And  it  is  possible  that  friends  of  mine  asked  me  for  a 
loan  of  money  and  repaid  me  eventually. 

Mr.  Kennedy.  That  is  $21,000  in  a  period  of  5  days. 

Senator  Cubtis.  It  is  $26,000. 

Mr.  Kennedy.  It  is  a  good  deal  of  money  and  I  am  sure  it  is  more 
than  you  ordinarily  deal  with  even  though  you  were  an  older  man 
and  this  was  some  years  ago.  It  is  something  I  would  think  you  could 
remember,  $26,000  in  5  days. 

Mr.  Johnson.  It  is  possible.  But  I  just  don't  remember  the  pur- 
pose for  that,  for  those  checks,  at  this  time. 

Mr.  Kennedy.  Is  there  any  way  you  can  refresh  your  recollection 
on  it? 

Mr.  Johnson.  No,  sir,  that  is  about  the  only  way,  by  my  check 
stubs. 

Mr.  Kennedy.  You  can't  remember  the  $26,000  when  you  were  in. 
Las  Vegas,  what  you  did  with  it? 

Mr.  Johnson.  No,  not  at  this  moment. 

Mr.  Kennedy.  You  have  no  idea  ? 

Mr.  Johnson.  I  have  a  faint  idea  of  what  some  of  them  may  rep- 
resent, but  being  that  I  am  under  oath  and  I  am  trying  to  protect 
myself  and  only  tell  the  truth,  I  am  not  going  to  guess. 

Mr.  Kennedy,  Why  don't  you  just  give  to  the  best  of  your  recol- 
lection, what  you  did  with  the  money. 

Mr.  Johnson.  Maybe  one  of  those  checks  I  cashed  it  in  to  play  out 
there. 

Mr,  Kennedy.  Well,  that  is  maybe  5  or  even  11,  but  there  was 
$26,000.   Wliat  did  you  do  with  the  rest  of  it  ? 

Mr,  JopiNSON.  I  possibly  loaned  it  to  somebody. 

Mr.  Kennedy.  To  whom  did  you  think  you  could  have  loaned  it? 

Mr.  Johnson.  I  don't  know,  sir. 

Mr.  Kennedy.  WlioisT.D.? 

Mr.  Johnson.  I  have  no  idea  who  he  is  or  who  she  may  be. 

Mr.  Kennedy.  What  is  the  Trilon  Housewares  Mart,  Inc.? 

Mr.  Johnson.  Trilon  Housewares  Mart  is  a  hardware  store  that 
my  son-in-law  and  daughter  have  in  Long  Island,  N.  Y, 

Mr.  Kennedy.  Do  you  have  any  financial  interest  in  that  ? 

Mr.  Johnson.  I  have  no  financial  interest  but  I  loaned  my  son-in- 
law  money  to  expand  his  store,  and  he  repays,  as  Mr.  Tierney  prob- 
ably knows  from  my  financial  records,  $100  a.  month  to  me,  with 
interest. 

Mr.  Kennedy.  In  June  of  1951,  Mr.  Johnson,  you  transferred 
$20,000  from  your  personal  bank  account  to  a  safety  deposit  box. 
What  was  the  pur]:>ose  of  that  ? 

Mr.  Johnson.  I  have  no  recollection  of  that  particular  instance  at 
this  moment,  sir. 

Mr.  Kennedy.  Well,  there  is  no  sense  going  into  the  rest  of  it. 

The  Chairman.  Are  there  any  questions  ? 

Mr.  Kennedy.  I  will  say  this,  Mr.  Chairman,  we  have  been  trying 
to  for  a  long  period  of  time  to  interview  Mr.  Johnson  and  try  to  re- 
solve some  of  these  matters  and  have  been  unable  to  do  so.    His  at- 


IMPROPER   ACTIVITIES    EST    THE    LABOR    FIELD  12045 

torneys  felt  it  would  be  better  not  to  sit  down  with  us,  up  to  Mr. 
Donohue  arrived  on  the  scene.  I  don't  know  whether  there  will  be 
a  change  or  not.   That  is  all  of  this  witness. 

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

HEARINGS  OF  JUNE  26,195  8 — Continued 

The  Chairman.  There  are  two  other  witnesses,  Mr.  Phil  Weiss  and 
Mr.  Ed  Weiss.     Gentlemen,  be  sworn. 

IVIr.  Ed  Weiss  and  Mr.  Phil  Weiss.  Do  you  and  each  of  you  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.  Ed  Weiss.  I  do. 

Mr.  Phil  Weiss.  I  do. 

TESTIMONY  OF  ED  WEISS,  ACCOMPANIED  BY  COUNSEL,  JOSEPH 
LOUISELL;  AND  PHIL  WEISS,  ACCOMPANIED  BY  COUNSEL, 
HOWAED  EUBIN 

The  Chairman.  Beginning  on  my  left,  will  you  give,  the  witness 
on  my  left,  your  name,  your  address,  and  business  or  profession,  please, 
sir? 

Mr.  Phil  Weiss.  Phillip  Weiss,  2956  West  Park  Boulevard,  Shaker 
Heights,  Ohio.   I  am  a  salesman. 

The  Chairman.  And  will  you  give  your  name  and  place  of  residence 
and  business  or  occupation  ? 

Mr.  Ed  Weiss.  Edward  Weiss,  Groton,  Mass.,  gasoline  and  oil 
business. 

The  Chairman.  Gentlemen,  you  have  with  you  your  attorneys. 
Will  the  attorneys  identify  themselves  for  the  record,  please  ? 

Mr.  LouiSELL.  On  behalf  of  Mr.  Phil  Weiss,  Joseph  Louisell,  at- 
torney, Detroit  Building,  Penobscot  Building. 

Mr.  Rubin.  On  behalf  of  INIr.  Edward  Weiss,  Howard  Rubin,  82 
Devonshire  Street,  Boston. 

The  Chairman.  The  purpose  of  calling  you  at  this  time  is  to  recog- 
nize your  presence  here  today  in  response  to  a  subpena  previously 
served  on  you.  We  had  intended  to  hear  you  as  witnesses  during  this 
series  of  hearings  on  the  subject  matter  under  investigation. 

In  view  of  the  fact  that  Mr.  Charles  Johnson  is  unable  to  be  present 
and  to  testify,  it  is  the  judgment  of  the  committee  that  your  testimony 
should  not  be  taken  at  this  time.  We  would  like  to  take  your  testi- 
mony at  the  same  time  we  hear  him.  For  that  reason,  I  called  you  up 
to  place  you  under  oath  and  to  place  you  under  recognizance  to  re- 
appear without  notice  without  being  again  subpenaed. 

If  each  of  you  will  acknowledge  that  you  will  return  for  the  purpose 
of  testifying  before  the  connnittee  at  such  time  as  the  committee  may 
desire  your  testimony,  without  being  further  subpenaed,  and,  of 
course,  upon  reasonable  notice  given  to  you,  you  and  your  counsel, 
then  we  can  excuse  you  for  today. 

Is  that  agreeable,  Mr.  Phil  Weiss? 

Mr.  Phil  Weiss.  I  will  appear,  sir. 

The  Chairman.  You  accept  that  ari^ngement  ? 

ISIr.  Phil  Weiss.  Yes,  sir. 


12046  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairmax.  And  you  also,  Mr.  Ed  Weiss,  accept  that  arrange- 
ment ? 

Mr.  Ed  Weiss.  Quite  willingly. 

The  Chairman.  And  counsel  consents  thereto  ? 

Mr.  LouiSELL.  Correct. 

Mr.  KuBiN.  Yes. 

The  Chairman.  I  hope  Mr.  Johnson's  recovery  will  permit  him 
to  appear  at  an  early  date.  We  would  like  to  dispose  of  this,  but  I 
may  say  to  counsel  you  know  from  experience  of  trying  cases  that  there 
is  a  proper  way  of  presentation,  and  sometimes  you  organize  the  trial 
of  your  case  so  as  to  present  it  in  its  proper  light,  and  that  we  have  to  do 
here  some  times.  Taking  those  things  into  consideration,  we  are 
handling  the  matter  this  way. 

With  that  understanding,  gentlemen,  you  may  be  excused. 

Thank  you. 

Call  the  next  witness. 

Mr.  Kennedy.  Mr.  Joseph  Sullivan. 

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

Mr.  Sullivan.  I  do. 

TESTIMONY  OF  JOSEPH  P.  SULLIVAN,  ACCOMPANIED  BY  HARRY 
CLIFFORD  ALLDER,  COUNSEL 

The  Chairman.  State  your  name,  your  place  of  residence  and  busi-' 
ness  or  occupation. 

Mr.  Sullivan.  My  name  is  Joseph  P.  Sullivan,  1800  Central  Ave- 
nue, Whiting,  Ind. ;  occupation,  lawyer. 

The  Chairman.  Mr.  Sullivai)^  you  also  have  counsel  with  you. 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  Let  the  record  show  that  Mr.  Allder  is  appearing  as 
counsel  for  the  witness,  Mr.  Sullivan.  All  right,  Mr.  Kennedy,  pro- 
ceed. 

Mr.  Kennedy.  Mr.  Sullivan,  you  practice  law  in  Gary,  Ind.,  do 
you  ? 

Mr.  Sullivan.  No,  sir ;  Whiting,  Ind. 

Mr.  Kennedy.  Do  you  do  any  legal  work  for  the  Teamsters  Union 
in  Gary,  Ind.  ? 

Mr.  Sullivan.  Yes,  sir. 

Mr.  Kennedy.  What  union  is  that,  what  local  ? 

Mr.  Sullivan.  Local  142  of  the  Teamsters. 

Mr.  Kennedy.  Who  is  head  of  that  local  ? 

Mr.  Sullivan.  Well,  I  presume  you  are  alluding  to  the  secretary- 
treasurer,  Mr.  Sawochka. 

Mr.  Kennedy.  Mr.  Sullivan,  do  you  know  Mr.  Maxwell  Raddock? 

Mr  Si  LLivAN.  Yes,  sir. 

Mr.  Kennedy.  How  long  have  you  known  him  ? 

Mr.  Sullivan.  Approximately  a  year  or  thereabouts. 

Mr.  Kennedy.  When  did  you  first  meet  him  ? 

Mr.  Sullivan.  Well,  I  can't  define  the  exact  date,  sir,  but  I  would 
say,  roughly,  it  would  be  a  year  or  so  ago. 

Mr.  Kennedy.  About  August  of  1957?  Would  that  be  about 
riirht? 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  12047 

Mr,  Sullivan.  That  could  be  possible. 

Mr.  Kennedy.  A^Tiere  did  you  meet  him  ? 

Mr.  Sullivan.  Pardon  me,  sir. 

Mr.  Kennedy.  Where  did  you  meet  him? 

Mr.  Sullivan.  In  Indiana. 

Mr.  Kennedy.  Under  what  circumstances  ? 

Mr.  Sullivan.  Well,  just  simply  a  meeting,  through  a  mutual 
friend. 

Mr.  Kennedy.  Who  was  the  mutual  friend? 

Mr.  SiLLR'AN.  Ma}'  I,  sir,  consult  with  counsel,  please? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Sullivan.  The  person  who  introduced  me  to  Mr.  Haddock  was 
a  client  of  mine,  sir. 

Mr.  Kennedy.  Who  was  it  that  introduced  you  to  Mr.  Haddock? 

Mr.  Sullivan.  I  believe,  sir,  to  identify  the  client  by  name  would 
violate  the  privilege  existing  between  attorney  and  client. 

I  believe,  sir,  that  I  am  under  responsibility  to  that  client  in  the 
light  of  the  fact  that  he  asked  me  not  to  divulge  his  identity. 

The  Chairman.  Did  he  introduce  you  in  connection  with  his  own 
business,  a  matter  for  which  you  were  retained  ? 

Mr.  Sullivan.  I  am  sorry,  sir.     Will  you  repeat  the  question? 

The  Chairman.  You  said  you  were  introduced  to  him,  to  Mr.  Had- 
dock, by  a  client  of  yours.  Was  that  introduction  in  connection  with 
your  client-attorney  relationship  in  connection  with  the  business  that 
you  had  been  retained  by  your  client  to  handle  ? 

Mr.  Sullivan.  I  believe  there,  again,  sir,  I  must  assert  the  privilege 
existing  between  this  client  and  myself.  The  relationship  was  one 
of  the  attorney  and  client,  and  I  believe  to  divulge  it  would  be,  frank- 
ly, indirectly,  possibly  divulging  what  I  could  not  do  directly. 

The  Chairman.  There  is  a  privileged  status  then  between  an  at- 
torney and  client,  with  respect  to  anything  that  the  client  told  you 
with  respect  to  the  business  you  handled  for  him,  that  is  true. 

But  just  the  fact  that  a  fellow  is  your  client,  it  has  never  been  my 
understanding  of  it  that  that  would  preclude  you  from  testifying  as 
to  matters  outside  of  that  relationship. 

You  might  have  a  client,  and  I  will  use  this  as  an  illustration,  who 
may  get  into  some  trouble  or  did  something  in  your  presence  wholly 
unrelated  to  the  relationship  of  client  and  attorney. 

Certainly  you  would  not  be  privileged  not  to  tell  what  you  see  by 
reason  of  the  fact  that  the  man  happens  to  be  your  client,  or  anything 
that  he  does  that  is  not  in  relation  to  that. 

It  is  a  confidential  relationship  where  a  client  tells  you  something 
in  confidence  about  his  affairs  which  is  privileged.  We  have  had  this 
question  up  before  this  committee  and  also  before  the  Senate  Inves- 
tio-atin*^  Subcommittee,  and  we  have  always  ruled  that  the  witness 
wTll  be'i-equired  to  tell  who  his  client  is.  We  don't  know  whether  the 
relationship  can  be  established.  If  it  can  be,  of  course,  it  will  be  re- 
spected and  any  rights  under  it  and  privileges  under  it  will  be  ob- 
served bv  this  committee.  . 

Mr.  SuLLrv^AN.  Well,  Mr.  Chairman,  I  am  generally  m  accord  with 
your  premise  on  the  attornev-client  relationship  and  your  statement 
of  such.  Because  of  the  meeting,  and  the  meeting  being  between  this 
client  of  mine  and  Mr.  Haddock,  and  because  of  the  fact  that  I  was 

21243— 5S—pt.  31 18 


12048  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

there  on  an  attorney  relationship  with  my  client,  it  would  be  hard, 
frankly  difficult,  and  I  think  perhaps  contrary  to  all  the  ethics  of  the 
attorney  and  client  relationships  for  me  to  not  claim  the  privilege. 

The  Chairman.  What  you  are  saying  in  elfect  is,  and  1  wholly  dis- 
agree with  it — you  have  Mr.  Allder  present  here  today  as  your  attor- 
ney. Suppose  he  introduced  you  to  me  and  that  is  the  first  time  you 
ever  met.  If  that  happens,  and  a  year  later  someone  asks  you  when 
you  first  met  me,  and  you  say,  "Well,  a  client  of  mine  introduced  me." 

Mr.  Allder.  We  agree  to  that.  Senator,  that  he  would  have  to 
testify  about  it.  But  he  just  finished  saying  that  as  a  result  of  the 
attorney-client  relationship  existing  between  him  and  this  person  you 
are  asking  about,  he  met  Mr.  Raddock,  because  of  that. 

It  was  only  because  of  that  and  through  that  that  he  talked  to 
Raddock  at  all,  and  since  being  here  in  front  of  the  executive  session 
before  and  asked  this  question,  he  has  gone  to  that  client  and  asked 
the  client  again  could  he  not  divulge  his  name,  and  the  client  said, 
"No,  you  cannot,  because  I  told  you  before  you  could  not  divulge  my 
name  at  any  time  concerning  any  of  the  matters  that  you  have  rep- 
resented me  on." 

The  Chairman.  That  is  stretching  pretty  thin,  if  that  is  the  mean- 
ing of  the  law. 

Mr.  Allder,  There  is  a  case  in  this  jurisdiction,  Senator,  which 
says  exactly  that,  which  has  not  been  changed.  The  case  has  been 
standing  for  40  years. 

The  Chairman.  I  will  frankly  confess  I  have  not  practiced  law 
for  several  years,  and  there  have  been  many  decisions  that  changed  the 
Constitution  and  a  lot  of  other  things  since  I  was  actively  engaged  in 
the  practice  of  law,  and  you  could  be  correct.  But  I  still  maintain 
that  my  own  view  is  it  is  stretching  it  pretty  thin.  I  will  not  under- 
take at  the  moment  to  argue  with  you.  We  will  make  the  record. 
The  Chair  will  order  and  direct  you  to  answer  the  question  with  the 
approval  of  the  committee.  We  will  make  the  record  and  then  we 
will  determine  about  it,  if  you  want  to  make  that  kind  of  a  record. 

Mr.  Sullivan.  Mr.  Chairman,  I  must  stand  on  the  same  answer  I 
gave  in  executive  session,  and  also  here  in  public  session,  and  for  the 
very  same  reason,  that  to  divulge  the  identity  of  this  client  would,  in 
effect,  open  the  door  and  constitute  a  breach  of  the  attorney-client 
relationship  that  exists  between  he  and  I. 

I  might  say  this  to  you,  sir,  so  I  may  not  seem  impertinent,  that 
since  the  executive  session  I  have  gone  to  this  client  to  ask  him 
whether  or  not  I  had  his  consent  and  he  refused  the  consent.  I  so 
act  accordingly. 

The  Chairman.  The  order  still  stands.  We  are  making  the  record. 
I  don't  understand  that  one  can  come  into  court  or  before  a  tribunal 
and  announce  that  he  has  a  client  whose  name  he  can't  disclose.  I 
don't  know  how  a  court  can  deal  with  it  or  how  this  committee  can 
deal  with  it  to  determine  whether  a  client-attorney  relationship 
actually  exists  or  not.  That  is  not  a  challenge  to  ;5^our  saying  he  is 
your  client,  but  I  am  trying  to  rationalize  this  into  its  ultimate  legal 
potential. 

Any  time  you  would  bring  a  lawyer  up,  he  could  say  "Well,  I  have 
a  client  })ut  I  can't  afford  to  testify  because  my  client  introduced  me 
to  that  fellow,"  and  then  not  disclose  the  name  of  the  client. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12049 

That  would  be  a  complete  barrier  in  back  of  which  the  court  could 
not  go,  or  the  tribunal  making  the  inquiry  could  not  go  to  ascertain 
whether  the  witness  is  actually  telling  the  truth  about  having  such  a 
client. 

Mr.  Allder.  May  I  answer  that,  Senator  ? 

The  Chairman.  Yes ;  you  may.    I  don't  want  to  belabor  it. 

Mr.  Allder.  The  case  in  the  District  of  Columbia,  the  United  States 
court  of  appeals,  takes  up  that  point,  and  says  that  the  other  side  of 
this  matter  could,  by  cross-examination  or  by  producing  evidence, 
refute  the  fact  that  he  was  claiming  the  privilege  correctly  or  not, 
whether  it  was  true.  If  that  were  true,  then  he  would  be  prosecuted 
for  perjury. 

The  Chairman.  Well,  I  don't  think  anyone  has  a  right  to  come  into 
court  and  commit  perjury. 

Mr.  Allder.  No;  but  they  took  up  the  exact  point  that  you  have 
raised.  Senator. 

The  Chairman.  I  am  not  denying  what  you  are  saying.  I  am  not 
familiar  with  the  decision,  but  1  am  going  to  make  the  record. 

If  I  find  that  your  position  is  right,  the  record  will  stand,  of  course. 
And  if  I  find  that  your  contention  is  in  error,  then  the  committee  will 
be  free  to  take  such  action  as  it  deems  appropriate  within  the  limits  of 
its  authority. 

As  I  understand  the  witness,  you  are  refusing  to  identify  the  person 
who  introduced  you  to  Maxwell  Raddock  some  time  about  a  year  ago, 
because  the  person  that  introduced  you  was  or  is  your  client;  is  that 
correct  ? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  To  make  the  record  so  there  will  be  no  misunder- 
standing about  it,  the  Chair  again  orders  you  and  directs  you  to  in- 
form this  committee  now  under  oath  the  name  of  your  client  who  in- 
troduced you  to  Mr.  Haddock. 

Mr.  Sullivan.  Your  Honor — I  am  not  used  to  Senate  hearings,  and 
so  please  forgive  me  if  I  address  you  as  your  Honor. 

Let  me  say  that  I  say  it  with  all  sincerity,  though  it  may  not  be  ap- 
propriate to  the  proceedings  at  hand.  Mr.  Senator,  I  must  again  re- 
fuse to  answer  any  questions  by  reason  of  the  fact  that  it  would  be  in 
violation  of  the  attorney-client  relationship,  and  it  would  in  part  more 
or  less  do  indirectly  what  I  am  not  privileged  as  an  attorney  for  my 
client  to  do  directly. 

The  Chairman.  Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  Did  you  discuss  with  Mr,  Raddock  at  that  time  the 
matters  dealing  with  the  possible  indictment  of  certain  carpenter 
officials? 

Mr.  Sullivan.  Pardon  me,  sir  ? 

Mr.  Kennedy.  Pardon  me  what? 

Mr.  SuLLR-AN.  Would  you  please  define  as  to  when  ? 

Mr.  Kennedy.  When  you  meet  with  Mr.  Raddock,  the  first  time  you 
talked  to  him. 

Mr.  Sullivan.  The  first  time  I  talked  to  him  ? 

No,  sir. 

Mr.  Kennedy.  You  did  not  ? 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  Did  you  meet  him  by  appointment  ? 


12050  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Sullivan.  No,  sir;  it  was  a  very  inadvertent  chance  meeting. 

Mr.  Kennedy.  Then  if  you  state  that,  how  can  you  then  possibly 
claim  that  you  cannot  disclose  to  us  who  introduced  you,  if  it  was  just 
a  chance  meeting  ? 

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

(The  witness  conferred  with  his  counsel.) 

Mr.  Sullivan.  Mr.  Kennedy,  the  meeting  in  and  of  itself  was  a 
very  chance  meeting,  as  I  say.  It  was  not  prearranged.  But  because 
of  certain  things  that  came  to  my  knowledge,  information  subsequent 
to  that,  it  would  be  a  breach  of  the  attorney-client  relationship  inso- 
far as  my  client  is  concerned  and  myself  as  his  attorney. 

Mr.  Kennedy.  If  the  lawyer-client  relationship  did  not  exist  at  that 
time  in  connection  with  the  matter  you  w^ere  discussing,  and  in  your 
meeting  with  Mr,  Raddock,  certainly  you  should  disclose  that  infor- 
mation to  this  committee  as  to  who  introduced  you. 

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

(The  witness  conferred  with  his  counsel.) 

Mr.  Kennedy.  Do  you  still  refuse  to  do  so  ? 

Mr.  Sullivan.  No. 

I  am  not  clear  as  to  the  question.  I  am  not  refusing  to  answer 
anything,  sir,  that  is  proper.  I  don't  understand  the  question,  to  be 
perfectly  honest  about  it. 

Mr.  Kennedy.  The  point  is  that  if  this  were  just  a  chance  meeting 
and  was  a  meeting  where  the  subject  matter  of  the  lawyer-client  re- 
lationship was  not  discussed,  did  not  exist  at  that  time  as  far  as  Mr. 
Haddock  is  concerned,  that  this  information  regardino-  who  introduced 
you  should  be  disclosed  to  the  committee.  You  are  ]ust  like  an  ordi- 
nary citizen.  So  you  meet  somebody.  The  committee  is  interested  in 
determining  who  introduced  you  to  him.  It  is  very  important  in  the 
context  of  what  we  are  looking  into  at  the  present  time, 

Mr,  Sullivan,  Well,  sir,  I  have  to  again  claim  the  same  privilege  I 
have  before.  It  is  important  in  the  light  of  the  fact  that  if  it  were 
strictly  inadvertent  meeting  without  the  association  of  subsequent 
things  that  came  to  my  knowledge  as  an  attorney  representing  the 
client,  I  would  agree  with  counsel, 

Mr.  Kennedy.  Were  the  subsequent  things  that  came  to  your  loiowl- 
edge  dealing  with  the  possible  indictments  of  certain  Carpenter  offi- 
cials in  Lake  County,  Ind.  ? 

Mr.  Sullivan.  Sir,  I  again  can't  divulge  that,  because  that  would 
indirectly  be  a  breach  of  the  same  relationship. 

Mr.  Kennedy.  Was  Mr,  Raddock  involved  in  attempting  to  pre- 
vent certain  Carpenter  officials  from  being  indicted  in  Lake  County, 

Mr,  Sullivan.  That  would  certainly  be  beyond  my  knowledge,  sir. 

Mr.  Kennedy.  Were  you  an  assistant  district  attorney,  prosecuting 
attorney  ? 

Mr.  Sullivan,  No,  I  am  this,  so  we  get  mv  status  insofar  as  the 
prosecutor's  office  is  concerned  clear:  I  am  a  cleputy  assigned  to  the 
Whiting  City  court  which  has,  as  its  duties,  the  prosecution  of  mis- 
demeanors only.  I  have  no  connection  whatever  with  the  criminal 
court  at  Crown  Point  or  any  connection  with  the  grand  jury  proceed- 
ing or  anything  of  that  sort. 

Mr.  Kennedy,  You  do  work  for  the  prosecuting  attorney's  office? 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  12051 

Mr.  Sxji^LivAN.  That  is  correct,  sir. 

Mr.  Kennedy.  Who  is  the  prosecuting  attorney  ? 

Mr.  Sullivan.  Mr.  Holovuchka. 

Mr.  Kennedy.  All  right.  Was  Mr.  Raddock  interested  in  attempt- 
ing to  prevent  the  indictment  of  certain  Carpenter  officials  in  Lake 
County,  Ind.  ? 

Mr.  Sullivan.  Sir,  that  would  be  beyond  m^  knowledge. 

Mr.  Kennedy.  Did  you  have  any  conversations  with  Mr.  Raddock 
along  those  lines  ? 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  Did  you  have  any  conversations  with  Mr.  Raddock 
in  connection  with  the  possible  indictments  of  certain  Carpenter 
officials? 

Mr.  SuLLPv^AN.  No,  sir. 

Mr.  Kennedy.  You  did  not.  Did  you  have  any  conversation  with 
Mr.  Raddock  at  all  regarding  the  difficulties  or  problems  of  Mr. 
Hutcheson,  in  Lake  County  ? 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  How  many  times  did  you  meet  Mr.  Raddock  ? 

Mr.  Sullivan.  Very  sincerely,  I  can't  accurately  tell  you.  I  would 
say  several  times.    I  am  not  trying  to  be  evasive,  I  just  don't  know. 

Mr.  Ivennedy.  I  think  you  are.  I  don't  think  you  are  being  at 
all  frank  with  the  committee. 

Mr.  Sullivan.  I  certainly  don't  mean  to  be. 

Mr.  Kennedy.  I  think  you  could  give  this  information,  and  I 
think  as  we  proceed  it  will  develop  that  you  are  not  being  frank 
with  the  committee. 

Mr.  Sullivan.  Do  you  mean  because  I  can't  recall  the  number  of 
times 

Mr.  Kennedy.  No ;  just  in  the  answers  you  have  given  in  the  last 
few  questions. 

The  Chairman.  Is  Mr.  Maxwell  C.  Raddock  a  client  of  yours  ? 

Mr.  Sullivan.  No,  sir. 

The  Chairman.  Has  he  ever  been  a  client  of  yours  ? 

Mr.  Sullivan.  No,  sir. 

The  Chairman.  Then  that  relationship  never  existed  between  you 
two. 

Mr.  Kennedy.  What  did  vou  discuss  the  first  time  vou  met  Mr. 
Raddock? 

Mr.  Sullivan.  Probably 

Mr.  Kennedy.  Not  probably.    What  did  you  discuss  ? 

Mr.  Sullivan.  To  my  best  recollection,  it  was  a  chance  meeting, 
"This  is  Mr.  So  and  So."  "How  are  you?"  "Wliere  are  you  from?" 
"What  do  you  do,"  this  and  that  and  that.  That  was  about  the  ex- 
tent of  it. 

Mr.  Kennedy.  That  was  all  ? 

Mr.  Sullivan.  Yes,  sir. 

Mr.  Kennedy.  You  refuse  to  tell  the  committee  who  introduced  you 
when  that  was  the  total  gist  of  the  conversation? 

Mr.  SuLLWAN.  I  state  to  my  best  recollection  that  was  it. 

Mr.  Kennt:dy.  You  met  with  him  again  ? 

Did  you  see  him  again  ? 

Mr.  Sullivan.  Yes,  sir ;  I  did. 


12052  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  Who  was  present  when  you  saw  him  again  ? 

Mr.  SuLLR'AN.  There  again,  sir,  I  must  claim  tlie  privilege  that 
exists  between  attorney  and  client. 

The  Chairman.  Just  a  moment. 

Were  all  of  those  present  at  the  next  time  your  clients  ? 

Mr.  Sullivan.  Pardon  me,  sir  ? 

The  Chairman.  You  were  asked  a  question  as  to  who  was  present 
when  you  met  Mr.  Kaddock  the  next  time,  after  the  time  you  had 
been  introduced  to  him,  and  you  said  you  declined  to  answer  on  account 
of  the  client-attorney  relationship. 

I  am  asking  you :  Were  all  of  those  who  were  present  at  that  time 
your  clients  ? 

Mr.  Sttllivan.  No,  sir.  I  have  just  stated  that  Mr.  Eaddock  was 
not.    And  never  has  been. 

The  Chairman.  Were  any  of  the  others  present  not  your  clients? 

Mr.  Sullivan.  To  my  recollection,  no. 

The  Chairman.  How  many  others  were  present  besides  you  and 
Mr.  Kaddock? 

Mr.  Sullivan.  I  would  say,  sir,  to  my  recollection,  three,  including 
myself. 

The  Chairman.  The  other  two  were  your  clients  at  that  time  ? 

Mr.  Sullivan.  No,  sir,  I  included  myself. 

The  Chairman.  Well,  I  said  the  other  two.  You  said  there  were 
three. 

Mr.  Sullivan.  Three  people,  sir. 

The  Chairman.  Well,  there  were  you,  Mr.  Kaddock  and  one  other? 

Mr.  SuLLR-AN.  That  is  correct,  sir. 

The  Chairman.  Was  the  other  man  your  client  at  that  time  ? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  You  are  not  going  to  give  us  the  name  of  the  other 
person  you  met  at  that  time  ? 

Mr.  Sullivan.  Well,  Mr.  Kennedy,  I  don't  want  to  appear  im- 
pertinent, but  the  other  person  I  have  mentioned  is  my  client. 

Mr.  Kennedy.  What  did  you  discuss  ? 

The  Chairman.  You  have  it  now  that  he  was  there  with  Kaddock 
and  a  client  of  his  whom  he  declines  to  name.  The  Chair  is  going  to 
order  and  direct  him  to  give  the  name  of  his  client  who  was  present. 

Mr.  Sullivan.  I  must  again  claim  the  same  attorney-client  rela- 
tionship and  refuse  to  divulge  the  name  of  my  client,  inasmuch  as  the 
divulging  of  the  name  would,  in  effect,  be  opening  the  door  and  creat- 
ing a  breach  of  that  relationship,  which  I  am  bound  as  an  attorney  to 
preserve. 

I  do  not  have  my  client's  permission  to  divulge  the  name. 

The  Chairman.  Proceed. 

Mr.  Kennedy.  What  did  you  discuss  with  Mr.  Kaddock  at  that 
time  ? 

Mr.  Sullivan.  This,  Mr.  Kennedy,  would  be  the  second  meeting,  is 
that  correct  ? 

Mr.  Kennedy.  Yes,  that  is  right. 

Mr.  Sullivan.  I  believe  generally  it  was  just  general  conversation, 
gossip,  that  type  of  thing,  nothing  beyond  that. 

Mr.  Kennedy.  What  gossip — come  on,  Mr.  Sullivan,  you  are  not 
answering  any  questions  here. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12053 

Mr.  SrLLivAN.  Mr,  Kennedy,  I  don't  want  to  appear  to  be  evading 
your  questions. 

Mr.  Kenxedy.  Obviously  you  are. 

Mr.  SuLLR'AN.  Let  me  say  tliis  to  you,  when  I  say  gossip  certainly 
it  was  no  secret  in  Lake  County,  Ind.,  that  the  Carpenters  were  in 
some  difficulty,  and  it  was  in  all  the  newspapers. 

Mr.  Kennedy.  Just  answer  the  question.  Is  that  what  you  were 
discussing? 

Mr.  Sullivan.  Yes,  sir. 

Mr.  Kennedy.  All  right.  What  were  you  discussing  about  the 
difficulty  of  the  Carpenters  ? 

]Mr.  Sullivan.  More  or  less  the  troubles  they  were  in. 

Mr.  Kennedy.  And  the  fact  that  they  were  possibly  going  to  be 
indicted  ? 

Mr.  Sullivan.  I  don't  think  there  was  any  discussion  about  that. 

Mr.  Kennedy.  Well,  what  did  you  discuss  about  the  troubles  they 
were  in,  then;  relate  the  conversation  to  the  committee. 

Mr.  Sullivan.  Well,  the  fact  that  there  was  this  difficulty  in  Lake 
Count}^  rising  out  of  these  alleged  violations,  which  I  knew  nothing 
about,  had  no  personal  knowledge  about,  except  what  information  I 
may  know  as  any  citizen  may  know  that  reads  the  newspapers  in  Lake 
County.     The  paper  M^as  filled  with  it. 

Mr.  Kennedy.  So  you  discussed  that  ? 

Mr.  Sullivan.  Yes,  sir. 

Mr.  Kennedy.  Did  you  discuss  anything  else  other  than  that  ? 

Mr.  Sullivan.  Xo,  sir. 

Mr.  Kennedy.  You  just  discussed  the  problems  and  difficulties  of 
the  Carpenters'  Union  officials? 

Mr.  Sullivan.  Correct,  sir. 

Mr.  Kennedy.  Now  we  are  moving  along. 

The  grand  jury  in  connection  with  this  matter  was  sitting  at  that 
time? 

Mr.  Sullivan.  I  can't  say.   I  don't  know. 

Mr.  Kennedy.  Did  you  have  any  further  conversations  with  Mr. 
Raddock? 

Mr.  Sullivan.  To  the  best  of  my  recollection 

Mr.  IvENNEDY.  That  is,  after  the  second  meeting. 

Mr.  Sullivan.  Pardon  me  ? 

Mr.  Kennedy.  After  the  second  meeting. 

Mr.  Sullivan.  To  the  best  of  my  recollection,  any  subsequent  con- 
versations were  by  telephone. 

Mr.  Kennedy.  Did  he  telephone  you  ? 

Mr.  Sullivan.  Yes,  sir. 

Mr.  Kennedy.  After  the  second  meeting,  did  you  telephone  him 
first  or  did  he  telephone  you  ? 

Mr.  Sullivan.  To  the  best  of  my  recollection,  I  believe  he  tele- 
phoned me  always. 

Mr.  Kennedy.  You  never  telephoned  him  ? 

Mr.  Sullivan.  I  can't  be  sure.    I  don't  think  so,  sir. 

Mr.  Kennedy.  Wlien  he  called  you  the  first  time,  what  did  you 
discuss  ? 

Mr.  Sullivan.  This  may  seem  silly,  but  it  is  the  truth,  the  same 
thing,  what  do  you  hear,  what  is  going  on,  what  is  going  on  down 
in  Indianapolis. 


12054 


IMPROPER    ACTIVITIES    ESJ    THE    LABOR    FIELD 


Aiid  did  he  call  you  after 


I  would  say  several 


Mr.  Kennedy.  Well,  it  was  all  about  the  Carpenters  ? 

Mr.  Sullivan.  The  same  story. 

Mr.  Kennedy.  It  was  about  the  Carpenters  ? 

Mr.  Sullivan,  xinything  that  anyone  could  read  in  the  newspapers. 

Mr.  Kennedy.  But  it  was  about  the  Carpenters,  was  it  ? 

Mr.  Sullivan.  Yes. 

Mr.  Kennedy.  You  remember  that  now. 
that  time  ? 

How  many  times  did  he  call  you  ? 

Mr.  Sullivan.  I  can't  be  sure,  Mr.  Kennedy, 
times. 

Mr.  Kennedy.  Maybe  a  dozen  times  ? 

Mr.  Sullivan.  I  don't  believe  it  was  that  many. 

Mr.  Kennedy.  Eight  times? 

Mr.  Sullivan.  Well,  I  said  I  didn't  believe  it  was  a  dozen.     I 
don't  believe  it  was  eight. 

Mr.  Kennedy.  How  many  times,  approximately  ? 

Mr.  Sullivan.  Well,  I  can't  be  sure,  sir. 

Mr.  Kennedy.  It  was  at  least  eight  times ;  was  it  not  ? 

Mr.  Sullivan.  It  didn't  appear  to  me  to  be  that  long. 

Mr.  Kennedy.  Was  it  a  half-dozen  times  ? 

Mr.  Sullivan.  Well,  if  you  say  it  was  8,  it  probably  was  8,  all  to 
my 

Mr.  Kennedy.  What  did  you  discuss  in  the  second  conversation  ? 

Mr.  Sullivan.  It  was  always  the  same  thing, 

Mr.  Kennedy.  You  always  discussed  just  the  Carpenters  ? 

Mr.  Sullivan.  Yes. 

Mr.  Kennedy.  Did  he  ever  want  you  to  do  anything  ? 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  The  third  time,  what  did  you  discuss  then  ? 

Mr.  Sullivan.  It  was  always  the  same  thing. 

Mr.  Kennedy.  About  the  Carpenters  ? 

Mr.  Sullivan.  That  is  right. 

Mr.  Kennedy.  What  is  the  gossip  in  Lake  County  ? 

Mr.  Sullivan.  Yes,  sir. 

Mr.  Kennedy.  He  just  wanted  to  Imow  all  the  gossip ;  is  that  right? 

Mr.  Sullivan.  It  appeared  to  me  to  be  so. 

Mr.  Kennedy.  Were  you  in  touch  with  Mr.  Holovachka,  during 
this  period  of  time — the  prosecuting  attorney  ? 

Mr.  Sullivan.  No  more  than  I  would  be  during  the  time  I  have  been 
working  for  him,  which  encompasses  some  6  years  or  thereabouts. 

Mr.  Kennedy.  You  were  in  touch  with  him  during  the  period  of 
time? 

Mr.  Sullivan.  Well,  of  necessity,  I  would  have  to  be  in  connec- 
tion with  my  job. 

Mr.  Kennedy.  Were  you  in  touch  with  Mr.  Sawoclika  during  this 
period  of  time  ? 

Mr.  Sullivan.  Yes,  of  course  I  was. 

Mr.  Kennedy.  Did  you  discuss  the  problem  of  the  Carpenters  with 
Mr,  Sawochka  ? 

Mr.  Sullivan.  There  again,  sir,  I  can't  divulge  that  because  of  the 
fact  that  it  Avould  be  a  breach  of  attorney-client  relationship. 

Mr,  Kennedy.  Mr.  Sullivan,  we  are  looking  into  what  appears  to  be 
an  illegal,  or  at  least  an  improper  act,  in  the  State  of  Indiana,  and  there 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12055 

are  union  officials  involved.  You  have  some  very  pertinent  and  impor- 
tant information  to  offer  to  this  committee.  Certainly  your  coopera- 
tion can  extend  further  than  it  has  so  far  during  the  course  of  this 
interrogation. 

Certainly  you  could  tell  the  committee  and  give  the  information  to 
the  committee  as  to  whether  you  discussed  the  possible  indictment  of 
the  Carpenters  or  the  difficulty  of  the  Carpenters  with  Mr.  Sawochka, 
a  Teamster  Union  official. 

Mr.  Sullivan.  Mr.  Kennedy,  you  know  from  my  prior  testimony 
in  executive  session  that  Mr.  Sawochka  is  a  client  of  mine,  and  for 
that  very  sacred  reason  I  cannot,  as  a  lawyer,  divulge  the  conversation 
between  him  and  me. 

Mr.  Kennedy.  I  am  not  asking  you  what  the  conversation  was.  All 
I  am  asking  you  is  whether  you  discussed  the  situation  involving  the 
Carpenters  w^ith  Mr.  Sawochka. 

I  am  not  asking  you  what  he  said  to  you  or  what  you  said  to  him, 
but  I  want  to  know  whether  you  discussed  this  matter  with  Mr. 
Sawochka,  because  according  to  our  information  he  was  a  part  in  a 
conspiracy  to  subvert  the  laws  of  the  State  of  Indiana.  He  is  a  union 
official,  and,  as  such,  is  within  the  jurisdiction  of  this  committee. 

Mr.  Sullivan.  Sir,  for  me  to  divulge  by  way  of  answer  to  your 
question  would  be  simply  indirectly  breaching  that  relationship. 

You  are  a  lawyer,  Mr.  Kennedy,  and  so  am  I.  I  think  you  can 
appreciate  what  I  am  telling  you  about  an  attorney-client  relationship. 

Mr.  Kennedy.  No,  I  cannot  appreciate  it  at  all.  All  this  time  of 
contact  with  Mr.  Raddock  and  just  saying  that  you  are  gossiping  with 
him  on  the  telephone,  and  then  the  other  conversations  with  Mr. 
Sawochka,  you  say  j-ou  can't  give  us  any  of  that  information.  Did 
you  do  any  work  for  the  Carpenters'  union  during  this  period  of  time? 

Mr.  Sullivan.  No,  sir ;  never. 

Mr.  Kennedy.  Did  you  have  any  conversations  with  Mr.  Holo- 
vachka  in  connection  with  the  difficulties  of  the  Carpenter  officials? 

Mr.  Sullivan.  Only  in  a  civil  capacity. 

Mr.  Kennedy.  What  do  you  mean  by  that  ? 

]SIr.  Sullivan.  As  I  have  already  testified  in  executive  session,  I 
made  restitution  in  behalf  of  my  client. 

Mr.  Ivennedy.  Then  you  were  acting  for  the  Carpenters'  Union? 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  You  carried  the  money  to  the  State  of  Indiana? 

Mr.  Sltllivan.  I  believe,  sir,  it  was  a  check,  if  my  recollection  serves 
me. 

Mr.  Kennedy.  From  whom  did  you  <^et  the  check  ? 

Mr.  Sullivan.  I  cannot  divulge  that.  That  would  be,  again,  a 
breach  of  the  attorney-client  relationship. 

Mr.  Kennedy.  Did  you  get  the  check  from  Mr.  Hutcheson  ? 

Mr.  Sullivan.  I  don't  even  know  Mr.  Hutcheson. 

Mr.  Kennedy.  Was  he  a  client  of  yours  ? 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  Was  he  a  client  of  yours  ? 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  Did  you  get  it  from  Mr.  Chapman  ? 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  Was  he  a  client  of  yours  ? 

Mr.  Sullivan.  No,  sir. 


12056  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  Did  yon  get  the  check  from  Mr.  Blaier  ? 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  Was  he  a  client  of  yours  ? 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  Those  were  the  three  union  officials  that  made  the 
restitution.   Did  you  get  the  money  from  any  union  official  ? 

Mr.  Sullivan.  That,  sir,  by  way  of  answer,  would  be  an  attempt 
by  indirection  to  do  what  I  can't  answer  indirectly,  and  would  be  a 
breach,  again,  of  that  same  attorney-client  relationship. 

Mr.  Kjinnedy.  Was  the  Teamsters  Union  involved  directly  or  in- 
directly in  the  restitution  of  this  money  ? 

Mr.  Sullivan.  There,  again,  sir,  that  would  follow  the  same  prem- 
ise.    It  would  be  a  breach  of  the  attorney-client  relationship. 

Mr.  Kennedy.  Did  you  discuss  with  Mr.  Holovachka  the  fact  that 
there  would  be  no  indictments  in  connection  with  this  case  ? 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  Wlien  Mr.  Holovachka  made  his  announcement, 
he  announced  the  fact  at  one  time  that  there  was  restitution  and  that 
there  would  be  no  indictments.  You  say  that  you  made  the  restitu- 
tion but  never  discussed  the  fact  that  there  would  be  no  indictments? 

Mr.  Sullivan.  No,  sir. 

Senator  Curtis.  Mr,  Chairman  ? 

The  Chairman.  Senator  Curtis. 

Senator  Curtis.  Do  you  recall  when  this  restitution  was  made,  the 
date  of  it? 

Mr.  Sullivan.  No,  sir,  I  do  not.  I  heard  something  said  here  to- 
day, and  that  will  be  my  only  means  of  knowing  even  an  exact 
date,  I  think  someone  this  morning  said  something  to  the  effect  of 
August  20.  I  think  I  heard  Mr.  Kennedy  say  that  this  morning. 
I  have  no  recollection  of  my  own. 

Senator  Curtis.  Based  on  your  own  recollection,  was  it  before  or 
after  the  announcement  that  there  would  be  no  indictment  ? 

Mr.  Sui^LivAN.  I  would  say.  Senator  Curtis,  that  I  could  not  be 
sure.  I  don't  know.  I  would  say  this  to  you,  that  there  was  no 
connection  with  the  restitution  and  the  action  of  the  grand  jury. 

Senator  Curtis.  But  you  don't  know  which  occurred  first  ? 

Mr.  Sullivan.  No,  sir,  I  could  not  say  with  exactness. 

Senator  Curtis.  Do  you  know  why  restitution  was  made  ? 

Mr.  Sullivan.  Well,  it  was  given  by  way  of  civil  restitution  en- 
tirely, without  any  promises  whatsoever. 

Senator  Curtis.  Could  you  tell  us  whether  or  not  the  restitution 
was  made  by  someone  who  would  have  been  liable  for  restitution  if  a 
civil  action  was  instituted  against  them  ? 

Mr.  Sullivan.  There,  sir,  I  cannot  divulge  because  of  the  relation- 
ship between  attorney  and  client.  T  do  not  have  the  permission  of  my 
client  to  answer  that  question. 

Senator  Curtis.  That  is  all,  Mr.  Chairman. 

The  Chairman.  All  right. 

Mr.  Kennedy.  Mr.  Sullivan,  you  were  interviewed  by  Mr.  Tierney, 
were  you  not? 

Mr.  Sullivan.  Yes,  sir. 

Mr.  Kennedy.  And  did  you  state  to  him  that  you  had  no  connection 
whatsoever  with  the  Lake  County  investigation  of  the  highway  scandal 


IMPROPER    ACTFVTTIES    IN    THE    LABOR    FIELD  12057 

and  denied  at  that  time  that  you  were  the  lawyer  by  whom  restitution 
was  made? 

Mr.  Sullivan.  That  is  correct. 

Mr.  Kennedy.  You  did  not  tell  him  the  truth,  is  that  right? 

Mr.  Sullivan.  That  is  correct. 

Mr.  Kennedy.  And  that  interview  took  place 

Mr.  Sullivan.  In  my  office. 

Mr.  Kennedy.  On  April  23,  at  1 :  30  p.  m.,  did  it  not  ? 

Mr.  Sullivan.  Well,  I  can't  be  sure  of  the  date.  I  cannot  be  sure 
of  the  day.     But  it  was  in  my  office. 

Mr.  Kennedy.  Didn't  you  immediately  after  that  interview  call  Mr. 
Holovachka  on  the  telephone  at  his  unpublished  number  and  discuss 
the  matter  with  him  ? 

Mr.  SuLLWAN.  I  have  no  recollection  of  calling  Mr.  Holovachka, 
and  I  have  no  recollection  of  Mr.  Holovachka  having  an  unpublished 
telephone.     If  he  has,  I  don't  know  what  it  is. 

Mr.  Kennedy.  Did  you  call  him  at  3 :  42  p.  m.  on  April  23  ? 

Mr.  SuLLR'AN.  Sir,  I  could  not  answer  that  question.  I  don't  even 
know  what  I  did  yesterday,  let  alone  what  I  did  then. 

Mr.  Kennedy,  I  would  like  to  find  out  what  you  did  back  in  Au- 
gust of  1957.     Wliere  you  can  tell  us,  you  refuse  to  tell  us. 

Mr.  Sullivan.  "Well,  I  am  only  refusing,  sir,  on  the  basis  of  the 
attorney-client  relationship,  and  none  other. 

Mr.  Kennedy.  That  is  what  you  are  saying.  Shortly  after  the  in- 
dictments or  the  prosecuting  attorney,  Mr.  Holovachka,  announced 
that  there  would  be  no  inndictments  in  this  case,  did  you  handle  a  land 
transaction  for  the  Teamsters  Union? 

Mr.  Sullivan.  Yes. 

Mr.  Kennedy.  And  was  that  for  the  purchase  of  a  piece  of  prop- 
erty in  Gary,  Ind.  ? 

Mr.  Sullivan.  Yes,  sir. 

Mr.  Kennedy.  You  handled  the  legal  aspects  of  that? 

Mr.  Sullivan.  Strictly  the  closing  of  the  transaction. 

Mr.  IvENNEDY.  Was  there  any  appraisal  of  the  property  made  prior 
to  the  time  the  Teamsters  Union  purchased  that  property? 

Mr.  Sullivan.  That  would  be  beyond  my  knowledge  as  a  lawyer, 
sir. 

Mr.  Kennedy.  Do  you  know  of  any  appraisal  that  was  made  ? 

Mr.  Sullivan.  Do  I  personally  ? 

Mr.  Kennedy.  Yes. 

Mr.  Sullivan.  No,  sir. 

Mr.  Kennedy.  Did  you  suggest  at  that  time  that  an  appraisal  of  the 
property  be  made  ? 

Mr.  Sullivan.  Mr.  Kennedy,  my  only  relationship  with  the  trans- 
action was  simply  to  check  the  title  on  the  closing.  I  had  nothing  to 
do  with  its  inception. 

Mr.  Kennedy.  How  much  money  did  the  Teamsters  pay  for  that 
property  ? 

Mr.  SuLLWAN.  To  the  best  of  my  recollection,  $40,000,  lOi/^  acres 
of  ground. 

JNIr.  Kennedy.  ^Vhat  is  usually  the  scale  or  what  has  been  the  scale 
in  Gary,  Ind,,  the  connection  between  the  appraised  tax  value  of  land 
and  the  actual  value  ? 


12058  IRO'ROPER    ACTR'ITIES    IN    THE    LABOR    FIELD 

Have  you  sort  of  a  working  scale  ? 

Mr.  Sullivan.  There  used  to  be  years  ago  kind  of  a  rule  of  thumb 
that  frankly  isn't  accurate  any  more  whatever.  We  lawyers,  when  I 
first  started  to  practice,  used  to  use  a  3-to-l  ratio  that  very  honestly 
is  no  longer  practical  because  real  estate  in  Lake  County,  Ind.,  has 
gone  sky  high.  Its  availability  is  scarce.  Inflation  is  upon  us.  As 
a  matter  of  fact,  it  is  not  uncommon  to  pay  $5,000  and  more  an 
acre  for  undevelopd  land  in  the  vicinity  of  Lake  County,  Ind.,  what 
is  commonly  called  the  Calumet  district.  In  fact,  there  are  all  kinds 
of  transactions  going  forward  every  day  at  that  price  in  that  ap- 
proximate neighborhood. 

Mr.  Kennedy.  That  is  a  long  answer,  which  I  appreciate. 

Mr,  Sullivan,  Well,  I  was  trying  to  tell  you  about  Lake  Comity, 
Ind. 

Mr.  Kennedy.  Do  you  know  what  this  land  was  appraised  at,  tax- 
wise? 

Mr.  Sullivan.  No,  sir;  that  would  be  no  concern  of  mine  as  an 
attorney. 

Mr.  Kennedy.  You  didn't  look  into  that  matter  at  all  when  you 
handled  the  transaction  ? 

Mr,  Sullivan.  Well,  I  don't  think  it  was  derelict  on  my  part  as  a 
lawyer  attending  to  the  closing  not  to  pay  attention  to  that.  It  is 
not  common  to  do  it. 

Mr.  Kennedy.  From  whom  was  this  land  purchased  ? 

Mr.  Sullivan.  I  believe  it  was  purchased  from  a  concern,  to  the 
best  of  my  recollection,  called  the  1300  something  or  other,  possibly 
1300  Realty  Corporations  or  something  like  that.  The  deed  is 
recorded.   It  speaks  for  itself. 

Mr.  Kennedy.  Did  you  know  that  the  tax  appraisal  of  that  land  at 
that  time  was  about  $4,600  ? 

Mr.  Sullivan,  If  you  would  say  so,  I  dare  say  that  is  correct.  I 
don't  know. 

Mr.  Kennedy,  And  the  Teamsters  paid  $40,000  for  the  land. 

Mr.  Sullivan.  Yes,  sir. 

Mr.  Kennedy.  Do  you  know  if  during  that  period  of  time  the  1300 
Broadway  Corp.  from  whom  the  Teamsters  purchased  this  land,  do 
you  know  if  they  had  a  financial  transaction  about  that  time  with  a 
company  which  was  owned,  in  part,  by  the  prosecuting  attorney  ? 

Mr.  Sullivan.  I  would  have  no  knowledge  of  that  at  all. 

I  have  nothing  to  do  witli  the  1300  Corp.  or  nothing  to  do  with  the 
private  affairs  of  the  prosecutor. 

Mr.  Kennedy.  Do  you  know  anything  about  the  State  Sibley  Corp,  ? 

Mr,  Sullivan.  No,  sir, 

Mr.  Kennedy.  Do  you  know  what  financial  transactions  the  1300 
Broadway  Corp.  liad  with  the  State  Sibley  Corp,  ? 

Mr,  Sullivan,  No,  sir ;  nothing  at  all. 

Mr.  Kennedy.  You  know  nothing  about  that  ? 

Mr.  Sui.LivAN.  Nothing  at  all. 

Mr.  Kennedy,  You  didn't  know  thnt  there  was  a  finnncial  trans- 
action going  on  simuUaneously  with  this  purchase  of  land  by  the 
Teamsters  ? 

Mr,  SuT.LivAN.  No,  sir. 

Mr.  Kennedy.  And  you  wouldn't  tell  us  whether  you  discussed  the 
problems  or  the  difficulties  of  the  Carpenters  with  Mr.  Sawochka? 


IMPROPER   ACTIVITIES   IN    THE    LABOR    FIELD  12059 

Mr.  SuLLivAX.  It  isn't,  Mr.  Kennedy,  that  I  wouldn't.    I  can't.    I 
am  an  attorney.    I  dare  not,  or  I  would  breach  my  relationship  with 

"^Alr^^KENNEDY.  If  there  was  anything  improper  or  illegal  in  this 
transaction,  in  your  own  activity,  you  play  a  mapr  role  yourselt,  Mr 
Sullivan.     In  fairness  to  yourself,  I  would  think  you  would  want 
to  answer  these  questions.    As  you  point  out,  the  restitution  of  the 

'''''^T^t^l^'^^^^^  the  Carpenters'  Union  or  any 
officCil  of  the  (Carpenters.  You  would  have  the  information  that  would 
throw  a  great  deal  of  1  iiiht  on  this  subject. 

^E^^^T^^t  regard  that  as  a  question.    I  regard 

%^'i^^^:^^^U:'^i^ng  you  now,  do  you  have  anything  to 

'"^  M^r^  SuLLn-Ax.  Nothing  at  all,  sir.  I  am  at  peace  with  my  conscience 
and  with  mv  relationship  as  a  lawyer. 

Mr.  Kenxedy.  That  is  all,  Mr.  Chairman.  ,     ^     ,• 

The  CiiAiRMAx.  Do  you  have  any  questions,  benator  Uurtis. 

Senator  Curtis.  No";  I  think  not.  ,      .  ^    ,.     xi  4. 

The  ChaiLax.  All  right.    You  may  stand  aside  for  the  present. 

Call  the  next  witness. 

Mr.Kj^xxEDY.  Mr.O.WilhamBlaier. 

The  Ch  mraiax.  :SIr.  Blaier,  come  forward,  please. 

You  do  solemnlv  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  i 

Mr.  Blaier.  I  do. 

TESTIMONY  OP  0.  WILLIAM  BLAIER,  ACCOMPANIED  BY  COUNSEL, 

HOWARD  TRAVIS 
The  Chairman.  State  your  name,  your  place  or  residence,  and  your 

'^Mr^BiIiER'Ssc^'wiUiam  Blaier.  My  legal  .^ting  residence  is 
Philadelptm  I  maintain  an  apartment  here  "^Washington  D  C 
I  am  in  the  capacity  as  second  general  vice  president  of  the  United 
Brotherhood  of  Carpenters  and  Joiners  of  America  ^ 

The  Chairman.  Y^ou  have  your  counsel  present,  Mi .  lilaiei  . 

^^^LS^'S^unsel,  identify  yours^  for  tl- recc^d^  please ? 

Af     Tt^xm^^    Mv  Chairman,  my  name  is  Howard  Travis,  from  In- 

dianapolT^^^^^^^^^^^  at  loll  Fletcher  Trust  Building.    I  would 

^^^^;^??;!i:^S:^^ltn^tlr  what  you  want  to  make.  Is  it  some 
"'ArrTPvvT.    No  Senator  McClellan.    I  have  been  advised  by  counsel 

As  i  stated  to  the  committee  in  executive  session  a  couple  of  weeks  ago, 


12060  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Blaier  is  one  of  the  defendants  in  an  indictment  in  Marion 
County,  Ind.,  involving  certain  transactions  in  Lake  County,  Ind. 

With  the  assurance  that  there  are  no  questions  going  to  be  asked  on 
that  subject,  I  have  advised  Mr.  Blaier  that  he  is  perfectly  free  to 
testify  as  to  the  Perm  Products  or  Mercury  Oil  transactions  without 
waiving  any  rights  he  might  have  to  refuse  to  testify  to  other  personal 
matters. 

The  Chaiemax.  Is  Mr.  Blaier  under  indictment  ? 

Mr.  Travis.  He  is. 

The  Chairman.  The  subject  matter  of  the  indictment  will  not  be 
gone  into,  if  he  feels  that  it  might  jeopardize  his  defense.  I  don't 
know  just  what  matters  counsel  has  to  interrogate  him  about.  We 
can  proceed  and  if  we  reach  some  points  where  you  have  anything  you 
wish  to  address  the  Chair  about,  you  may  feel  at  liberty  to  do  so. 

I  can't  anticipate,  I  have  no  idea  what  his  testimony  is  going  to  be. 

Mr.  Travis.  I  would  like  to  have  the  understanding  with  counsel  of 
the  committee  that  the  only  personal  products  would  be  Penn  Prod- 
ucts and  Mercury  Oil,  as  I  was  told  the  day  before  yesterday. 

Mr.  Kennedy.  I  didn't  tell  you  that. 

Mr.  Travis.  Mr.  Tierney. 

Mr.  Kennedy.  He  said  he  didn't. 

The  Chairman.  All  I  can  say  is  that  we  will  go  into  anything  with- 
in the  jurisdiction  of  this  committee,  about  which  we  think  the  witness 
may  have  information,  and  can  give  testimony  regarding  except 
where,  even  though  the  committee  may  be  interested  in  it,  the  matter 
may  be  covered  by  our  jurisdiction,  and  would  be  clearly  within  the 
purview  of  these  hearings,  if  the  witness  is  under  indictment  for  the  of- 
fense for  which  he  was  indicted,  we  shall  not  interrogate  him  about 
that. 

If  he  feels  that  might  jeopardize  his  defense,  we  recognize  that, 
where  he  is  under  indictment  he  should  not  be  compelled  to  be  a  witness 
against  himself  on  the  subject  matter  involved  in  the  indictment. 
That  rule  or  policy  will  be  observed. 

Proceed  with  the  interrogation  and  we  can  rule  upon  anj^thing  that 
comes  up. 

Mr.  Traat:s.  My  problem,  if  I  may  interrupt,  Senator,  again,  is  that 
I  cannot  let  my  client  open  the  door  to  testifying  as  to  all  personal 
matters  if  we  don't  have  an  understanding  concerning  the  matters 
for  which  he  is  under  indictment  and  matters  relating  thereto  which 
may  have  occurred  after  the  specific  events  for  which  he  is  indicted. 

The  charge  is  a  conspiracy  charge,  and  the  indictment  charge  is  a 
conspiracy  charge,  and  it  is  very  clear  under  Indiana  criminal  law  that 
events  which  happen  after  the  specific  event  charged  in  the  indictment 
miglit  be  used  by  the  prosecution  to  show  the  origm  and  continuance  of 
the  indictment,  to  relate  it  back. 

The  matters  that  have  been  inquired  about  today  in  the  hearing 
relate,  to  my  mind,  directly  to  the  matters,  to  the  transaction,  for 
which  he  is  indicted. 

The  Chairman.  I  have  no  way  of  knowing  what  is  going  to  happen. 
I  don't  want  to  make  any  commitments  or  agreements  here,  other  than 
wliat  I  have  said.  We  have  done  that  heretofore,  and  I  made  the  gen- 
eral statement  as  a  matter  of  policy  of  tlie  committee,  and  I  think  it 
is  the  correct  policy  of  the  committee.    I  don't  know  what  he  is  going 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12061 

to  be  asked.  You  will  have  to  give  him  such  counsel  as  you  feel  under 
obligation  to  as  his  attorney. 

Proceed,  Mr.  Kennedy. 

Mr.  Kexnedy.  I  can  say,  Mr.  Chairman,  I  have  no  intention  of  go- 
ing at  all  into  the  matters  for  which  Mr.  Blaier  is  presently  under  in- 
dictment, namely  the  road  situation  out  in  Indiana. 

The  Chairman.  Is  that  what  he  is  indicted  for,  some  activity  in 
connection  with  that  ? 

Mr.  Kennedy.  With  the  purchase  of  property  and  the  sale  back  to 
the  State  for  excessive  and  exorbitant  profits.  We  don't  expect  to 
go  into  that  matter. 

Mr.  Travis.  Mr.  Chairman,  I  think  it  would  be  helpful  if  a  copy 
of  the  indictment  were  placed  in  the  record.    I  have  one  here. 

The  Chairman.  We  will  not  place  it  in  the  record.  It  may  be  made 
exhibit  No.  47,  for  reference. 

(Document  referred  to  was  marked  "Exhibit  No.  47"  for  reference 
and  may  be  found  in  the  files  of  the  Select  Committee.) 

Mr.  IvENNEDY.  You  are  second  general  vice  president  of  the 
Carpenters  ? 

Mr.  Blaier.  Yes,  sir. 

Mr.  Kennedy.  How  long  have  you  held  that  position  ? 

Mr.  Blaier.  Since  1952,  January. 

Mr.  Kennedy.  You  were  appointed  at  that  time  ? 

Mr.  Blaier.  At  that  time  I  was  appointed. 

Mr.  Ivennedy.  And  subsequently  you  were  elected  at  a  convention 
in  November  1954  ? 

Mr.  Blaier.  That  is  right,  sir. 

Mr.  KJENNEDY.  Did  you  have  any  opposition  at  that  time  ? 

Mr.  Blaier.  I  had  no  opposition. 

Mr.  Kennedy.  What  position  did  you  hold  prior  to  the  time  you 
became  second  vice  president  ? 

Mr.  Blaier.  I  was  a  member  of  the  general  executive  board,  repre- 
senting the  second  district. 

Mr.  Kennedy.  Were  you  appointed  to  that  position  ? 

Mr.  Blaier.  In  1948  I  was  appointed  to  succeed  William  K.  Kelly 
and  elected  in  the  1950  convention  by  acclamation. 

Mr.  Kennedy.  You  had  no  opposition  ? 

Mr.  Blaier.  No,  sir. 

Mr.  Kennedy.  What  does  the  second  district  cover,  what  areas  ? 

Mr.  Blaier.  New  Jersey,  Pennsylvania,  Delaware,  Maryland,  West 
Virginia,  and  the  District  of  Columbia. 

Mr.  Kennedy.  When  did  you  first  met  Mr.  Max  Raddock? 

Mr.  Travis.  At  this  point,  Mr.  Kennedy  and  Mr.  Chairman,  I  would 
like  it  understood  distinctly  that  tlie  question  may  be  answered  on  the 
condition  that  it  will  not  relate  to  anything  transpiring  in  Lake 
County,  Ind.  There  is  no  question  that  the  witness  has  known  Mr. 
Raddock  for  many  years,  but  in  view  of  the  line  of  questioning  that 
has  gone  on  today,  the  questions  could  lead  to  a  direct  inquiry  into  the 
matters  for  which  Mr.  Blaier  is  under  indictment. 

The  Chairman.  The  Chair  will  sustain  that  to  the  extent  of  the 
indictment,  the  matters  covered  in  the  indictment.  I  will  not  sustain 
it  beyond  that. 

Mr.  Travis.  Matters  occurring  after  the  event  ? 


12062  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  If  they  are  unrelated  to  the  things  contained  in  the 
indictment,  yes.  A  man  could  be  indicted  up  there,  or  could  be  under 
indictment,  for  one  offense,  and  miglit  subsequently  connnit  another, 
or  commit  some  inpropriety  or  violation  of  trust,  as  we  are  often 
inquiring  into  here,  and  still  would  have  no  relation  to  the  subject 
matter  contained  in  the  indictment. 

Therefore,  I  couldn't  excuse  a  witness  from  testifying  about  other 
things. 

Mr.  Kennedy.  Mr.  Chairman,  Mr.  Raddock,  as  I  understand  it,  is 
not  under  indictment  in  the  conspiracy  with  Mr.  Blaier,  at  least  as  of 
this  time. 

Mr.  Travis.  This  witness  is  under  indictment,  Mr.  Kennedy,  and  his 
rights  must  be  protected  and  preserved. 

Mr.  Kennedy.  This  is  a  question  on  the  relationship  with  Mr.  Rad- 
dock, and  as  I  understand  it  Mr.  Raddock  is  not  under  indictment 
at  the  present  time  in  connection  with  a  conspiracy  with  Mr.  Blaier. 

Mr.  Travis.  I  have  no  knowledge  about  Mr.  Raddock. 

Mr.  Kennedy.  We  are  just  asking  about  Mr.  Raddock.  I  am  sure 
he  can  answer  those  questions. 

Mr.  Travis.  If  the  inquiry  will  relate  to  transactions  in  Lake  County, 
Ind.,  the  witness  will  be  advised  by  me  that  he  cannot  answer  the  ques- 
tions, because  he  is  charged  with  conspiracy  under  indictment,  and 
anytliing  Avith  regard  to  that,  restitution  or  otherwise,  is  directly  re- 
lated, and  could  be  used  by  the  prosecution,  possibly,  against  him. 

The  Chairman.  Proceed  with  the  questions. 

Counsel  can  represent  his  client  as  he  wishes  to. 

Mr.  Kennedy.  How  long  have  you  know  Mr.  Raddock? 

Mr.  Blaier.  On  the  advise  of  counsel,  I  refuse  to  answer  the  ques- 
tion, Mr.  Chairman,  and  Mr.  Kennedy,  on  the  grounds  that  it  relates 
solely  to  a  personal  matter  not  pertinent  to  any  activity  which  this 
committee  is  authorized  to  investigate,  and  also  because  it  might  aid 
the  prosecution  in  the  case  in  which  I  am  under  indictment, 

Mr,  Kennedy.  Mr.  Chairman,  as  far  as  the  first  objection,  I  would 
like  to  ask  Mr.  Blaier  about  serving  on  a  committee  of  the  Carpenters 
which  was  to  handle  the  negotiations  and  the  interest  of  the  Car- 
penters' Union  in  connection  with  Mr.  Raddock  regarding  a  book  that 
Mr.  Raddock  was  expected  to  write  and  produce.  That  would  appear 
to  be  very  much  union  business, 

Mr,  Travis.  That,  Mr.  Kennedy,  is  very  pertinent  to  your  investi- 
gation, and  if  the  questioning  will  be  limited  to  that  in  connection 
with  the  relations  between  this  witness  and  Mr,  Raddock,  I  will  ad- 
vise him  to  answer  your  questions. 

Mr,  Kennedy.  We  found  that  Mr.  Raddock  got  an  overwhelming 
profit,  and  excessive  profit,  or  what  appears  to  be. 

The  Chairman.  He  says  he  would  advise  him  to  answer. 

Mr,  Travis,  If  it  is  limited  to  the  Carpenter 

Mr.  Kennedy,  But  I  am  not  restricted  with  regard  to  further 
questions.    I  want  to  make  sure  that  is  understood,  Mr,  Chairman. 

The  Chairman,  We  will  proceed  to  ask  the  witness  about  the  book 
matter. 

Mr,  Travis.  I  want  it  understood  we  are  not  waiving  our  right  to 
object  later  to  the  Lake  County  matter. 

The  Chairman.  You  are  not  waiving  your  rights  beyond  that.  As 
the  Chair  advised  you,  any  time  you  think  the  rights  of  your  client 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12063 

are  being  invaded,  you  may  make  your  objection  and  the  Chair  will 
rule  on  it. 

Mr.  Travis.  Thank  you,  Mr.  Chairman.  I  will  instruct  Mr.  Blaier 
to  answer  the  question. 

Mr.  Kennedy.  Mr.  Blaier,  do  you  know  Mr.  Raddock  ? 

Mr.  Blaier.  I  do. 

Mr.  KJENNEDY.  For  how  long  have  you  known  him  ? 

Mr.  Blaier.  I  believe  I  first  got  acquainted  with  Mr.  Max  Raddock 
in  December  1953. 

Mr.  Kjennedy.  Was  that  in  connection  with  Mr.  Raddock  possibly 
writing  or  authoring  and  producing  a  book  on  Mr.  Hutcheson  ? 

Mr.  Blaier.  It  was. 

Mr.  Kennedy,  "Were  you  appointed  at  that  time  to  a  subcommittee 
to  handle  the  negotiations  for  the  Carpenters  ? 

Mr.  Blaier.  No,  sir ;  not  at  that  time. 

Mr.  IvENNEDY.  Subsequently  were  you  appointed  to  such  a  sub- 
committee ? 

Mr.  Blazer.  No;  not  in  the  sense  that  you  direct  the  question.  I 
was  never  appointed  on  a  subcommittee  to  talk  to  him  about  publish- 
ing of  the  book. 

Mr.  KJENNEDY.  Were  you  ever  on  any  committee,  subcommittee, 
that  was  to  handle  the  negotiations,  handle  the  book  generally  for 
the  Carpenter's  Union  ? 

Mr.  Blaier.  Mr.  Kennedy,  I  have  to  answer  it  this  way 

Mr.  Kennedy.  Just  explain  what  your  position  was  and  we  will 
move  along. 

Mr.  Blaier.  If  you  will  bear  with  me  in  my  humble  explanation  of 
what  transpired,  that  will  lead  into  what  you  are  asking,  I  believe. 

Mr.  Kennedy.  All  right,  fine. 

Mr.  Blaier.  In  December  1953,  from  memory  I  am  quoting,  Mr. 
Raddock  was  presented  to  the  resident  officers  in  Indianapolis  where 
we  discussed  with  him  the  probability  of  publishing  a  biography  of 
our  late  departed  and  loved  general  president-emeritus  William  L. 
Hutcheson.  I  want  to  take  this  time  now  to  say  to  you  that  for 
previous  years,  many  of  those  concerned  in  the  United  Brotherhood 
had  requested  the  late  departed  William  L.  Hutcheson  to  have  a 
biography  made,  and  he  always  refused. 

Mr.  Ivennedy.  Mr.  Blaier,  I  don't  want  to  go  into  all  of  that  right 
now. 

Mr.  Blaier.  I  will  stop  there. 

Mr.  Kjennedy.  If  we  could  just  move  along,  then  you  could  get  on 
and  off  quickly. 

Mr.  Blaier.  Yes,  sir.  And  then  after  that  meeting  there  was  a 
proxy  vote  taken  from  our  board  members  as  to  whether  or  not  we 
would  go  into  the  publishing  of  6,000  books  on  the  biography  of  Wil- 
liam L.  Hutcheson.  At  our  board  meeting  following  that  December 
meeting  at  the  general  office,  with  the  resident  officers,  and  after  the 
proxy  vote,  the  general  executive  board  in  its  entirety,  discussed  the 
matter  with  Mr.  Raddock. 

We  felt,  and  I  speak  of  the  entire  board  at  that  time — some  have 
departed  since— we  felt  that  at  that  time  we  should  produce  an  iirticle 
outstanding,  a  book,  a  memorial  to  William  L.  Hutcheson,  and,  if 
possible,  add  some  of  the  history. 

21243 — 58 — pt.  31 19 


12064  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Raddock  at  that  time  had  along  with  him,  a  Dr.  Rayber  or 
Grayber,  who,  at  that  time,  started  to  interview  various  members  of 
the  board.  Then  we  had  a  subsequent  meeting  in  May  in  Chicago  in 
1954.  At  that  time,  Mr.  Haddock  came  before  the  board  again  and 
advised  that  in  his  research,  he  required  additional  funds,  because  we 
had,  from  our  February  meeting,  and  then  again  in  the  May  meetmg, 
decided  that  we  should  include  a  history  of  the  United  Brotherhood 
of  Carpenters  and  Joiners  of  America. 

What  brought  that  about,  if  you  permit  me 

Mr.  Kennedy.  I  think  you  have  given  me  the  background. 

Mr.  Blazer.  I  had  one  little  point,  if  you  allow  me,  that  might  add 
to  it. 

Mr.  Kennedy.  I  want  to  be  fair. 

Mr.  Blaier.  Our  late  general  secretary-emeritus  had  that  assign- 
ment to  prepare  the  history  of  the  brotherhood  for  many,  many  3^ears, 
and  never  completed  it,  and  then  it  was  reassigned  to  the  late  de- 
parted general  secretary  Fisher,  and  he  never  got  to  it,  and  that  is  why 
we  added  it  to  this  book. 

Mr.  Kennedy.  Did  you  go  to  any  other  individual  to  find  out 
whether  they  would  write  such  a  book  and  how  much  they  would 
charge  for  this  service  ? 

Mr.  Blaier.  Not  to  my  knowledge. 

Mr.  Kennedy.  Did  you  go  to  any  publisher  to  find  out  how  much  it 
would  cost  to  print  such  a  book  ? 

Mr.  Blaier.  You  are  asking  if  I  did  ? 

Mr.  Kennedy.  Well,  you,  or  anybody  to  your  knowledge. 

Mr.  Blaier.  I  have  no  knowledge  of  what  our  General  Secretary 
Fisher  or  anybody  else  on  the  board  did. 

Mr.  Kennedy.  Did  you  you  have  anything  else  to  do  with  the  book, 
other  than  being  on  the  executive  board  ? 

Mr.  Blaier.  No,  sir. 

Mr.  Kennedy.  You  weren't  on  the  board  or  committee  that  was 
considering  the  book  and  which  was  to  carry  on  discussions  with  Mr. 
Raddock? 

Mr.  Blaier.  Later  on  I  served  on  a  committee. 

Mr.  Kennedy.  When  was  that  ? 

Mr.  Blaier.  I  was  never  on  the  committee  about  the  book,  other 
than  in  a  full  board  action. 

Mr.  Kennedy.  I  thought  you  said  later  on  you  served  on  such  a 
committee. 

Mr.  Blaier.  Well,  I  came  to  this  point  where  we  advanced  him 
some  money.  I  was  on  that  committee  as  a  subcommittee.  That  was 
back  in  February,  1955, 1  believe,  sir. 

Mr.  Kennedy.  You  were  on  that  committee ;  is  that  right  ? 

Mr.  Blaier.  Yes,  sir. 

Mr.  Kennedy.  And  you  agreed  to  advance  him  $200,000  at  that 
time  ? 

Mr.  Blaier.  No,  sir. 

Mr.  Kennedy.  How  much? 

Mr.  1U.AIEU.  $100,000, 1  believe,  sir. 
Mr.  Kennedy.  $100,000? 

Mr.  Blaier.  Yes,  sir. 

Mr.  Kennedy.  How  many  books  was  he  to  produce  for  that? 
Mr.  Blaier.  5G,000. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12065 

Mr.  Kennedy.  Was  he  to  get  another  $100,000  oaice  he  produced 
the  56,000  books? 
Mr.  Blaier.  It  was  understood ;  yes,  sir. 
Mr.  Kennedy.  As  of  that  time,  $50,000  toward  that  total  of  $200,- 

000  had  ah'eady  been  paid  to  him  on  January  31, 1955? 
]\Ir.  Blaier.  How  much  ? 

Mr.  Kennedy.  January  31,  1955,  you  had  already  paid  him,  the 
Carpenters  had  already  paid  him  $50,000. 

Mr.  Blaiek.  We  "ave  him  $50,000  on  research. 

Mr.  Kennedy.  No;  you  gave  him  $50,000  January  8  and  May  18, 
1954,  you  gave  him  $25,000  on  each  occasion,  that  is  $50,000,  and  then 
another  $50,000  on  January  31,  1955. 

Where  did  you  get  permission  to  give  him  that  $50,000  ? 

Mr.  Blaier.  From  the  action  of  our  board  in  a  February  meeting. 

1  Mr.  ICennedy.  How  could  you  get  approval  on  February  14  for 
jpaying  a  check  that  is  dated  January  31  ? 

i  Mr.  Blaier.  Well,  there  was  a  reason  I  presume  by  the  genearl 
treasurer  and  secretary  to  date  it  January  31,  but  if  you  look  on  the 
[back  of  it,  it  was  transmitted  to  him  by  our  late  departed  general  sec- 
retary, I  believe  somewhere  in  the  neighborhood  of  February  14  or 
10,  when  he  got  the  other  $50,000.  He  got  the  $100,000  at  that  one 
time. 

Mr.  Kennedy.  On  February  14? 

Mr.  l^LAiER.  I  believe  that  is  close  enough,  Mr.  Kennedy. 

^Ir.  Kennedy.  Why  was  the  check  made  out  some  2  weeks  prior  to 
the  time  you  liad  approval  of  it  ? 

Mr.  Blaier.  I  don't  know. 

Mr.  Kennedy.  Then  you  approved,  then,  of  giving  him  $100,000 
then  and  $100,000  when  he  produced  the  rest  of  the  books.  Did  you 
try  to  find  out  how  much  it  would  actually  cost  to  produce  a  book, 
publish  a  book? 

Mr.  Blaier.  Well,  if  you  will  permit  me 

Mr.  Kennedy.  I  don't  know  what  I  am  going  to  permit  you  to  do, 
I  \\  ill  ask  you  to  answer  the  cpiestion. 

Mr.  Blaier.  If  you  will  permit  me  to  answer  it  in  my  way,  I  think 
\M'  have  a  wonderful  product  in  that  book.  That  is  my  opinion,  as 
I  member  of  the  general  executive  board.  I  heard  Mr.  Christie  as  of 
vesterday 

Mr.  Kennedy.  That  wasn't  the  question. 

Mr.  Blaier.  I  want  to  give  you  my  opinion,  Mr.  Kennedy. 

]\lr.  Kennedy.  I  didn't  ask  you  that.  I  didn't  ask  you  your  opinion. 
[  will  ask  your  opinion,  if  you  want  me  to.  First,  answer  the  question 
IS  to  whether  you  found  out  or  went  to  any  individual  companies, 
[groups,  or  organizations  to  find  out  how  much  it  would  cost  for  you 
:o  get  such  a  book  published. 

Mr.  Blaier.  Mr.  Kennedy,  no.  We  are  not  literary  artists  or  are  we 
)ook  reviev.ers :  no,  sir.  We  had  faith  in  Mr.  Raddock,  and  I  still  have 
|t,  that  he  gave  us  a  good  product,  and  we  have  80,000  books,  and  I 
hink  we  have  A^alue  received. 

Mr.  Kennedy.  We  have  had  testimony  before.  That,  of  course,  is 
lot  your  money,  Mr.  Blaier.    It  is  the  Carpenter's  money. 

Mr.  Blaier.  That  is  right. 


12066  IMPROPER    ACTIVITIES    IN   THE    LABOR    FIELD 

Mr.  KJENNEDY.  We  have  testimony  before  the  committee  that  this 
book  could  have  been  produced  at  less  than  a  dollar  a  copy,  while 
you  paid  Carpenter's  money  of  $4  a  copy. 

Mr.  Blazer.  Can  I  answer  that  ? 

Mr.  Kennedy.  Yes. 

Mr.  Blaier.  I  noticed  today  in  the  New  York  Times  that  Mr.  Loftus 
has  an  article  there  that  this  so-called  Empire  of  Wood  sells  for  $5.50, 
produced  by  Cornell  University.  I  feel  our  book  is  far  superior  than 
that. 

Secondly,  when  you  build  a  building,  which  I  know  something  about, 
and  the  architect  designs  it,  the  second  building  can  certainly  be  de- 
signed much  cheaper  than  the  first  one. 

Mr.  Kennedy.  This  is  a  question  of  producing  the  book.  If  you  hadi 
gone  to  an  independent  book  publisher,  you  could  have  gotten  thia 
book  published  and  sent  out  for  a  dollar  a  copy.  You  paid  $4  a  copy. 
And  later  on,  $5  a  copy. 

Mr.  Blaier.  Well,  I  don't  believe  that  yet,  Mr.  Kennedy. 

Mr.  Kennedy.  It  is  sworn  testimony  before  the  committee.  That 
is  all  Mr.  Kaddock  paid  for  it. 

Mr.  Blaier.  Well,  the  committee  and  Mr.  Christie,  I  only  heard 
his  testimony  yesterday 

Mr.  Kennedy.  This  has  nothing  to  do  with  Mr.  Christie.  This  is 
on  the  question  of  the  cost  of  the  book. 

Mr.  Blaier.  This  other  man  who  made  the  quotation  might  have 
been  biased. 

Mr.  I{JENNEDY.  This  is  what  Mr.  Kaddock  paid  for  it.  He  didn't 
do  it  himself.    He  sent  it  out.   How  do  you  explain  that  ? 

Mr.  Blaier.  I  wouldn't  know  that  at  the  time  we  ordered  the  book, 

Mr.  Kennedy.  That  is  the  point.  You  didn't  go  to  anybody  to  find 
out  how  much  you  could  have  gotten  the  book  for  ?  While  you  have 
been  working  for  the  Carpenters'  Union,  have  you  also  had  some 
outside  interest,  business  interests. 

Mr.  Blaier.  Very  little. 

Mr.  Kennedy.  Did  you  work  for  the  Mercury  Oil  Corp.  ? 

(Witness  conferred  with  counsel.) 

Mr.  Blaier.  Mr.  Kennedy,  that  is  a  long  time  ago.  Yes ;  I  repre 
sented  them  indirectly. 

Mr.  Kennedy.  'Wliat  were  you  doing  for  them  ? 

Mr.  Blaier.  Well,  I,  like  everybody  else,  tried  to  supplement  my 
income  back  in  1950  or  1951, 1  believe  it  was. 

Mr.  Kennedy.  1951, 1952,  and  1953;  was  it  not? 

Mr.  Blaier.  No,  sir;  1952  and  1953  I  received,  perhaps,  dividends 
or  commissions  from  what  I  had  performed  or  tried  to  perform  in 
1951,  I  went  to  Indianapolis  in  January  1952  and,  therefore,  wasn't 
able  to  follow  the  venture. 

Mr.  Kennedy.  You  continued  to  receive  money  from  the  Mercury 
Oil  Company  in  1952  and  1953 ;  did  you  not? 

Mr.  Blaier.  Yes,  sir ;  I  believe  it  ended  in  early  1953. 

Mr.  Kennedy.  What  were  you  doing  for  the  Mercury  Oil  Corp.?l 

Mr.  Blaier.  Well,  it  so  happens  that  my  good  friend,  and,  like 
Senator  McClellan,  I  liope  he  recovers  early,  brother  Charles  John- 
son, Jr.,  of  the  United  Brotherhood,  opened  an  avenue  for  me  to  try 
to  supplement  my  income  by  procuring,  if  possible,  some  orders  on 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12067 

oil  and  grease  sold  as  a  product  by  the  Penn  Products  Co.  and  the 
Mercury  Oil  Corp. 

Mr.  Kennedy.  T^Hio  owned  those  businesses  ? 

Mr.  Blaier.  At  that  time,  I  was  acquainted  with  a  Mr.  Ed  Weiss.  I 
didn't  know  who  owned  it.    I  don't  know  the  members  of  the  firm. 

Mr.  Kennedy.  Did  Mr,  Johnson,  Charlie  Johnson,  the  vice  presi- 
dent of  the  Carpenters,  work  for  these  oil  companies  at  that  time  ? 

Mr.  Blaier.  Well,  I  believe  he  represented  them,  and  I  believe  he 
had  an  interest  in  it,  because  he  was  good  enough,  as  I  tried  to  say,  that 
he  even  advanced  me  money  as  an  incentive  to  go  and  try  and  bring 
about  a  volume  of  orders,  through  some  friends  of  mine,  that  maybe 
don't  even  employ  my  membership. 

Mr.  Kennedy.  Did  you  go  to  some  of  these  corporations  to  try  to 
sell  this  oil  ? 

Mr.  Bi^viER.  I  tried  several  and  I  wasn't  very  successful.  I  am  a 
poor  salesman,  I  guess. 

Mr.  Kennedy.  Did  you  ultimately  get  successful  ? 

Mr.  Blaier.  No  ;  I  didn't. 

Mr.  Kennedy.  You  were  never  successful  ? 

Mr.  Blaier.  I  dichi't  sell  an  account. 

Mr.  Kennedy.  And  they  paid  you  commissions  anyway? 

Mr.  Blaier.  I  got  the  commission,  as  I  tried  to  say,  out  of  the 
goodness  of  Mr.  Johnson  sharing  with  me  his  accounts,  as  an  incen- 
tive to  try  to  go  out  and  procure  more  orders.  That  was  one  contract ; 
yes,  sir. 

Mr.  I^nnedy.  And  you  got  commissions  in  1951  for  $3,525,  and 
expenses,  according  to  our  records,  of  $2,014.25,  making  a  total  of 
$5,539.25.    What  did  you  do  for  that  ? 

Mr,  Blaier.  Well,  I  was  endeavoring  to  get  more  accounts,  even  on 
that  project,  through  contacts  that  I  had  with  engineers'  representa- 
tives and  workmen,  national  mechanics,  and  whatnot.  But  I  was  not 
successful,  as  I  said  before. 

Mr.  Kennedy.  Did  you  approach  the  Walsh  Construction  Co.,  of 
Morrisville,  Pa.  ? 

Mr.  Bl.\ier.  Mr.  Kennedy,  the  Walsh  Construction  and  Perrini  Co. 
and  the  Slattery  Co.  and  Groves  Co.  was  the  one  that  had  the  account, 
which  was  an  account  of  Charles  Johnson  at  that  time. 

Mr.  Kennedy.  Did  you  discuss  that  with  any  officials  of  the  Walsh 
Construction  Co.  ? 

Mr.  Blaier.  No,  sir.  I  introduced  Ed  Weiss  to  ISIr.  Jack  Murphy,, 
their  superintendent,  and  I  asked  Mr.  Murphy  if  he  wouldn't  try  to 
use  his  influence  with  some  of  the  other  men  around  the  job  and  try 
to  get  Mr.  Ed  Weiss  the  sale. 

Mr.  KJENNTiDY.  Did  he? 

Mr.  Blaier.  I  don't  think  he  was  successful,  no,  sir. 

Mr.  Kennedy.  Then  in  1952,  they  paid  you  $3,817.44  for  commis- 
sions and  $496  for  expenses,  for  a  total  of  $4,413.44.  In  1953,  $1,410.38 
for  commissions.  That  makes  a  total  for  1951,  1952,  and  1953,  of 
$11,363.07,    They  are  not  going  to  pay  you  that  just  for  doing  nothing. 

Mr.  Blaier.  Mr.  Kennedy,  it  might  be  hard  to  believe  but  I  just  told 
you  my  good  friend  Charlie  Johnson  shared  his  commissions  with  me. 

Mr.  Kennedy.  Do  you  know  how  Mr.  Charlie  Jolinson  got  into 
that  company  ? 


12068  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Blaier.  No,  sir ;  I  don't. 

Mr.  Kennedy.  Do  you  know  that  he  was  put  in  there  by  Mr.  Phillip 
Weiss? 

Mr.  Blaier.  No,  sir. 

Mr.  Kennedy.  Do  you  know  that  this  company  does  most  of  its 
work  with  contractors  who  have  contracts  wath  the  Carpenter's 
Union  ? 

Mr.  Blaier.  I  understood  that  that  company  services  many  com 
panics  on  a  competitive  basis,  sir. 

Mr.  Kennedy.  And  most  of  their  customers  are  companies  that  have 
contracts  with  the  CarjDenters'  Union  ? 

Mr.  Blaier.  Well,  they  miji:ht  have  it  with  some  carpenters,  employ 
some  carpenters,  but  the  majority  of  their  employees  are  not  car- 
penters. 

Mr.  Kennedy.  No;  but  the  companies  to  whom  this  oil  company 
sells  its  products,  are  companies  who  have  contracts  with  the  Carpen- 
ters' Union ;  isn't  that  right  ? 

Isn't  that  right  ?    Then  you  can  answer. 

Mr.  Blaier.  Well,  most  building  contractors  employ  carpenters. 
I  can  answ^er  it  that  way. 

Mr.  Kennedy.  Most  of  the  customers  of  these  oil  companies  are 
building  contractors ;  are  they  not  ? 

Mr.  Blaier.  Well,  Mr.  Kennedy,  I  don't  know  this  list  of  contrac- 
tors, honestly. 

Mr.  Kennedy.  You  know  that  to  be  a  fact,  that  most  of  the  com- 
panies with  whom  they  do  business  are  companies  that  have  contracts 
with  the  Carpenters'  Union. 

Mr.  Blaier.  I  have  to  answer  you,  Mr.  Kennedy,  that  I  do  know 
of  .some  building  contractors  but  I  don't  know  the  list  of  their  cus- 
tomers, honest. 

Mr.  Kennedy.  Then  you  know  of  a  number  of  companies  that  have 
contracts  with  the  Carpenters'  Union  ? 

Mr.  Blaier.  I  did  at  that  time,  sir ;  yes,  sir. 

Mr,  Kennedy.  The  Walsh  Construction  Co.  certainly  has  contracts 
with  Carpenters'  Union ;  do  they  not  ? 

Mr.  Blaier.  I  believe  they  are  a  fair  employer ;  yes,  sir. 

Mr.  Kennedy.  And  the  Perrini  Bros.  ? 

Mr.  Blaier.  Yes,  sir. 

Mr.  Kennedy.  Who  was  the  third  one  ? 

Mr.  Blaier.  At  that  time  it  was  a  joint  venture  of  four  contractors, 
Mr.  Kennedy,  Slattery,  and  I  believe  Groves  was  the  otlier  one. 

Mr.  Kennedy.  Don't  they  also  have  contracts  with  the  Carpenters' 
Union  ? 

Mr.  Blaier.  Thev,  ns  international  builders,  come  into  a  territory 
and  work  the  conditions  of  the  local  union  and  thov  are  considered 
fair  contractors;  yes,  sir. 

They  don't  necessarily  sign  in  every  area  they  go  into. 

Mr.  Kennedy.  Were  you  aware  that  there  was  a  jurisdictional  strike 
going  on  at  the  time,  in  1951,  in  this  Morrisville  project  of  the  Walsh 
Construction  Co.? 

Mr.  liLATER.  Not  with  the  Carpenters;  no,  I  don't  know  of  any. 

Mr.  Kennedy.  A  jurisdictional  strike  between  the  Carpenters' 
Union  and  the  Iron  Workers  ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12069 

Mr.  Blaier.  Well,  there  was  no  strike,  sir,  that  I  know  of. 

Mr.  Kennedy.  Well,  a  jurisdictional  dispute. 

Mr.  Bl.\ier.  There  was  differences,  there  always  is,  and  they  were 
adjudicated. 

Mr.  Kennedy.  Was  this  at  the  same  time  you  were  approaching  them 
to  try  to  get  them  to  take  some  of  the  oil  from  this  company? 

Mr.  Blaier.  No;  I  think  that  was  long  afterward.  I  believe  my 
last  adjustment  there  was  in  and  around  prior  to  my  going  to  Indian- 
apolis.    It  might  have  been  in  November. 

Mr.  Kennedy.  What  year '{ 

Mr.  Blaier.  1951. 

Mr.  Kennedy.  You  are  exactly  right.     November  of  1951. 

Mr.  Blaifj?.  That  was  about  the  last  time  I  processed  anything  on 
that  particular  project,  sir.  If  I  may,  I  just  want  to  get  into  the 
record  that  I  don't  do  any  negotiating  for  that  job,  for  conditions  or 
agreements.     That  was  done  by  the  district  council  itself. 

Mr.  Kennedy.  Would  you  identify  this  letter,  please  ? 

The  Chairman.  The  Chair  hands  you  a  photostatic  copy  of  a  letter 
dated  March  2,  1950,  addressed  to  "Dear  Billy :"  and  signed  Henry  W. 
Blumenberg.  It  is  on  Henry  W.  Blumenberg's  stationery.  Will  you 
examine  the  photostatic  copy  and  state  if  you  identify  it  ? 

(The  document  was  handed  to  the  witness.) 

Mr.  Blaier.  I  believe  that  I  was  recipient  of  that  original  letter. 

IMr.  Kennedy.  You  were  ? 

Mr.  Blaier.  I  believe  so. 

Mr.  Kennedy.  That  letter  may  be  made  exhibit  No.  48,  for  refer- 
ence. 

(The  document  referred  to  was  marked  "Exhibit  No.  48"  for  refer- 
ence and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Kennedy.  'Wi\o  was  Henry  W.  Blumenberg  ? 

Mr.  Blaier.  Henry  W.  Blumenberg,  the  writer  of  that  letter  was  at 
one  time  a  representative  of  the  United  Brotherhood  of  Carpenters 
and  Joiners  of  America. 

Mr.  Kennedy.  In  what  city  ? 

]Mr.  Blaier.  Well,  he  was  a  general  representative  and  he  was  as- 
signed to  various  areas. 

For  the  greatest  part  of  his  time,  to  my  knowledge,  in  the  latter  part 
of  his  emploment,  he  was  in  around  Baltimore,  Washington,  and  Vir- 
ginia ;  Washington,  D.  C,  I  mean. 

]\Ir.  Kennedy.  Is  he  still  in  the  Carpenter's  Union  ? 

Mr.  Blaier.  No,  sir. 

Mr.  Kennedy.  How  long  has  he  been  out  of  the  Carpenters  ? 

]Mr.  Blaier.  Well,  I  don't  have  exact  knowledge  of  that,  but  I 
would  say  he  was  expelled  maybe  in  1947,  I  would  say. 

Mr.  Kennedy.  "Wliat  were  the  circumstances  surrounding  his  ex- 
pulsion, briefly  ? 

Mr.  Blaier.  I  believe  it  had  to  deal  with  a  matter  in  Baltimore,  in 
101,  local  union  101,  and  the  international  union.  I  have  no  Icnowl- 
edge  as  to  the  reasons  of  his  expulsion,  sir. 

Mr.  Kennedy.  Was  he  and  several  of  his  colleagues  supposed  to 
have  misappropriated  some  $250,000  from  that  local  ? 

Mr.  Blaier.  Mr.  Kennedy,  I  can't  answer  that,  whether  he  was 
charged  with  that  or  not. 


12070  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  Isn't  that  how  much  money  was  missmg  from  the 
local,  approximately,  $250,000  ? 

Mr.  Blaier.  Well,  I  will  put  it  this  way,  I  think  that  local  union 
through  court  and  what  not  was  reimbursed  for  approximately  that 
much. 

Mr.  Kennedy.  ^Vlio  reimbursed  the  local  union  ? 

Mr.  Blaier.  I  believe  the  international  union.  That  is  prior  to  my 
time  of  being  on  the  board.    I  believe  that  was  in  1944,  I  believe 

Mr.  Kennedy.  I  have  some  questions  about  this  letter,  Mr.  Chair- 
man. 

Could  I  give  you  a  little  bit  of  background  about  local  101  ? 

Mr.  Blaier,  you  correct  me  if  I  am  wrong. 

The  Chairman.  The  statement  is  a  background  statement.  It  will 
not  be  evidence,  but  it  will  serve  as  a  premise  for  interrogation  of  the 
witness. 

Mr.  Kennedy.  On  October  3, 1927,  all  Baltimore  local  unions  of  the 
Brotherhood  of  Carpenters  except  the  colored  locals  were  consolidated 
and  merged  with  local  101.  General  Representatives  Henry  W.  Blu- 
menberg  appointed  all  officers  of  the  local,  which  proceeded  to  function 
under  his  general  supervision. 

There  had  been  several  unsuccessful  attempts  by  local  101  to  get 
permission  for  an  election  of  its  own  officers. 

Then  on  March  27,  1943,  some  16  years  later,  Hutcheson  instructed 
Blumenberg  to  survey  the  existing  conditions  of  local  101  and  to 
report  whether  an  election  should  be  held. 

Then,  later  in  1943,  Blumenberg  reported  to  the  local  membership 
that  a  partial  election  of  officers  would  be  held. 

In  June  of  1943,  the  election  was  held,  and  a  man  by  the  name  of 
Hanson  was  elected  president.  On  July  26,  1943,  at  a  meeting  of 
local  101,  Hanson  accused  Blumenberg  of  having  charged  personal 
purchases  to  the  local  and  having  put  the  paramour  of  his  son  on 
the  local  payroll  as  a  chauffeur. 

There  was  a  committee  appointed  to  investigate.  Then  the  financial 
secretary  resigned  later  on  in  1943.  In  1944,  a  suit  was  filed  in  Marion 
County,  Ind.,  against  the  United  Brotherhood  of  Carpenters  by  local 
101  to  recover  the  funds  embezzled  by  Blumenberg  and  the  financial 
secretary  during  the  trusteeship,  whose  name  was  Ford.  Then  in  May 
of  1945  the  lawsuit  was  settled  by  the  Brotherhood  agreeing  to  pay 
the  local  $244,038.30  as  reimbursement  for  the  shortages  which  had 
occurred. 

Then  on  February  8, 1946,  Hutcheson  filed  suit  against  Blumenberg 
and  Ford  to  recover  for  the  brotherhood  certain  citrus  groves  owned 
by  Blumenberg  and  Ford,  on  the  theory  that  the  money  they  had  used 
to  purchase  the  groves  could  be  traced  directly  to  lOl's  funds.  This 
lawsuit  was  later  settled.  That  brings  us  up  to  this  letter  that  is  dated 
March  2, 1950,  Mr.  Chairman. 

Would  you  read  that,  Mr.  Tiemev  ? 

Mr.  Tierney.  The  letter  is  datedMarch  2, 1950. 

It  is  headed  "Dear  Billy." 

The  first  paragraph  has  nothing  to  do  with  the  merits. 

I  had  hopes  of  getting  to  Lakeland  myself  while  the  board  was  in  session, 
as  .Tndge  Rontzohn  had  promised  me  some  time  in  .Tanuary  that  he  was  going^ 
to  be  in  Lakeland  the  week  of  Febrnary  20.  and  that  he  would  contact  me  to  see 
if  we  could  not  reach  a  settlement  as  to  the  101  matter.     But  like  all  other 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12071 

l)romises  it  was  just  talk.  No  doubt,  it  was  just  to  gain  more  time  to  sell  all  the 
sroves,  so  I  could  not  ask  for  the  return  of  some,  as  on  February  24  I  got  the 
list  of  groves  that  the  brotherhood  had  put  on  the  market  for  sale. 

1  got  the  entire  list  from  one  of  those  who  got  it  and  they  are  all  mine  as  well  as 
Ford's  groves.  Well  that's  O.  K.  with  me.  I  never  was  a  squealer  and  don't 
want  to  be  one  now.  But  if  some  settlement  is  not  made  with  me  shortly  I  will 
have  to,  and  come  out  with  it  as  to  who  were  all  in  on  the  101  matter.  That  is 
.$30,000,  the  only  one  I  know  anything  about,  and  that  was  divided  in  three  ways. 

Here  are  some  of  the  questions  that  may  have  to  be  answered : 

Why  was  I  told  not  to  get  a  lawyer  as  Ford  did,  that  the  brotherhood's  lawyers 
would  take  care  of  my  interests? 

Why  was  I  told  to  stay  away  from  Baltimore  so  that  Jacobs  could  not  serve 
any  papers  on  me? 

Why  was  I  told  not  to  come  to  court  when  the  case  was  being  heard? 

Why  was  I  asked  to  sign  over  my  groves  just  for  the  time  being  so  that  they 
could  get  Ford  to  sign  his  over  and  thereby  get  the  case  settled  out  of  court? 

Why  was  my  name  the  only  one  used  mostly  in  the  papers  as  to  the  $240,000 
shortage  Mr.  Jacobs  claimed  there  was,  when  in  fact  I  knew  of  only  $30,000 
that  was  divided  by  3? 

Why  was  Ford  permitted  to  keep  the  $90,000  in  cash  and  war  bonds  that  Mr. 
Jacobs  found  in  a  safe-deposit  box  in  Baltimore  as  well  as  a  home  in  Miami, 
Fla.,  when  the  brotherhood  should  have  attached  same  the  same  as  banks 
do  in  like  cases  ? 

Why  did  Mr.  and  Mrs.  Ford  tell  others,  "Ob,  Nelson  don't  have  to  worry  about 
anything;  Mr.  Hutcheson  said  he  will  take  care  of  him"? 

Now,  if  Ford  had  somebody  else  in  with  him  and  the  other  party  got  just  as 
much  as  Ford  did,  why  then  the  shortage  of  $240,000  that  Mr.  Jacobs  claimed 
there  was  must  be  about  right,  for  the  $90,000  and  the  home  at  Miami,  about 
$15,000,  makes  $105,000,  and  the  same  to  the  other  party  makes  $210,000  that  I 
knew  about  makes  $240,000. 

Now,  why  was  I  expelled  from  the  brotherhood  without  notice  of  charges  or 
time  and  place  of  trial?  And  the  other  party  that  got  f  10,000  the  same  as  I  did  out 
of  the  $30,000  is  still  an  officer  and  member  of  the  brotherhood?  Where  is  the 
living  up  to  the  brotherhood's  constitution  in  this  case? 

Now,  Bill,  all  this  will  not  look  good  in  the  newspapers  if  made  public,  even 
if  the  other  party  denies  it,  the  same  as  Maurice  said  to  me  at  the  time  he  ordered 
me  to  bring  the  minute  book  of  the  executive  board  of  local  101  to  him  in  Indian- 
apolis, and  when  I  gave  it  to  him  (the  biggest  mistake  I  ever  made)  "Now  don't 
tell  any  one  that  I  got  this  book,  as  Jacobs  wanted  it,"  as  he  would  deny  it. 

Well,  he  can,  but  I  stiU  have  the  bills  from  the  Columbia  Club  showing  that 
Maurice  had  made  the  reservation  for  me.  The  board  was  in  session  at  that 
time  and  he  told  me  not  to  go  out  so  that  none  of  the  board  members  could  see  me 
as  they  would  want  to  know  what  I  was  doing  in  Indianapolis.  I  also  took  a 
number  of  notes  out  of  said  book  as  to  the  actions  that  were  taken  by  the  board 
in  re  the  $10,000  that  I  delivered  to  the  other  party,  and  though  the  secretary  of 
the  board  is  dead  the  other  members  of  the  board  can  still  vouch  that  those  notes 
are  correct  as  to  their  action. 

Well,  Billy,  I  think  that  is  enough  of  this  chatter,  but  I  thought  it  best  to  let 
you  in  on  it  so  you  would  know  the  score  if  it  comes  up,  for  I  sure  will  want  the 
$10,000  back  that  I  turned  over  to  the  other  party.  For  the  groves  I  turned  over 
I  paid  about  $25,000  for  them  so  with  the  other  party  not  returning  his  share  of 
it  I  am  not  going  to  pay  for  it,  and  want  it  back. 

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

Mr.  Kennedy.  Mr.  Blaier,  what  steps  did  you  take  after  you  re- 
ceived this  letter  from  Mr.  Blumenberg  ? 

Mr.  Blaier.  I  did  nothing  other  than  send  the  original  to  the  late 
departed  brother  William  L.  Hutcheson. 

Mr.  Kennedy.  You  never  discussed  it  with  anyone  ? 

Mr.  Blaier.  No,  sir. 

Mr.  Kennedy.  Did  you  make  an  inquiry  to  find  out  who  the  other 
party  was  that  got  the  $10,000  ? 

Mr.  Blaier.  Prefacing  the  answer  "no"  is  because  I  understood 
from  the  convention  proceedings  and  whatnot,  that  that  had  all  been 
settled  in  court,  and  Mr.  Blumenberg  was  up  in  years  and  I  felt  that  he 


12072  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

was  only  addressing  that  to  me  as  a  new  member  of  the  general  ex- 
ecutive board.  At  that  time  I  had  no  other  interest  other  than  being  a 
member  of  the  brotherhood  and  an  international  representative. 
When  it  was  settled  in  court  and  restitution  made,  I  did  nothing  more 
about  it. 

Mr.  Kennedy.  Here  he  says — 

Now,  why  was  I  expelled  from  the  brotherhood  without  notice  or  charges  of 
time  and  place  of  trial  and  the  other  party  that  got  $10,000,  the  same  as  I  did  out 
of  the  $30,000,  is  still  an  officer  and  member  of  the  brotherhood? 

Mr.  Travis.  Is  that  the  letter  that  was  just  introduced? 
Mr.  Kennedy.  That  is  right. 

Where  is  the  living  up  to  the  Brotherhood's  constitution  in  this  case? 

Did  you  inquire  into  that  ? 

Mr.  Blaier.  No,  sir. 

Mr.  Kennedy.  You  weren't  interested  ? 

Mr.  Blaier.  For  the  same  reasons  I  just  told  you. 

Mr.  Kennedy.  You  weren't  interested  in  finding  out  what  the  an- 
swers to  these  questions  were  ? 

Mr.  Blaier.  Because  it  was  settled,  and  he  was  a  participant.  I 
believe  it  was  settled  in  court. 

IVIr.  Kennedy.  He  indicated  clearly  in  this  that  this  was  a  fix 
within  the  Cai-penters,  that  he  was  going  to  take  the  responsibility 
and  blame,  and  that  there  were  financial  arrangements  with  other 
officials  of  the  Carpenters.    Did  you  look  into  that  at  all  ? 

Mr.  Blaier.  No,  sir,  I  just  explained  why.  Restitution  was  made 
to  local  101  through  the  court,  as  I  miderstand  it,  two-hundred  and 
some  thousand  dollars. 

Mr.  KJENNEDY.  You  wouldn't  want  an  official  of  the  Carpenters  who 
stole  or  embezzled  $10,000  of  union  funds  not  to  be  known,  would  you  ? 

Mr.  Blaier.  Mr.  Kennedy,  be  assured  that  I  know  the  trust  that 
my  members,  over  800,000,  have  placed  in  me  for  many  years,  and  I 
wouldn't  betray  that  trust.  But  something  like  that  I  had  no  way  of 
interjecting  myself  into.    It  was  already  settled  by  the  courts. 

Mr.  Kennedy.  Did  you  ever  make  any  arrangements  for  Mr.  Max 
Haddock  to  fix  any  case  for  you  in  Indiana  ? 

Mr.  Blaier.  No,  sir. 

Mr.  Travis.  May  the  witness  withdraw  that  answer,  please  ? 

Mr.  Kennedy.  Excuse  me  ? 

Mr.  Blaier.  That  was  a  fast  switch.  On  the  advice  of  counsel  I 
refuse  to  answer  the  question  on  the  ground  that  it  relates  solely  to  a 
personal  matter  not  pertinent  to  any  activity  which  this  committee 
is  authorized  to  investigate,  and  also  because  it  might  aid  the  prosecu- 
tion in  the  case  in  which  I  am  under  indictment. 

Mr.  Kennedy.  Did  Mr.  Raddock  have  anything  to  do  with  this  mat- 
ter in  Indiana  in  connection  with  your  not  being  indicted  in  Lake 
County  ? 

Mr.  Blaier.  Mr.  Kennedy,  on  the  advice  of  counsel,  I  refuse  to  an- 
swer the  question  on  the  ground  that  it  relates  solely  to  a  personal 
matter  not  pertinent  to  any  activity  which  this  committee  is  author- 
ized to  investigate,  and  also  because  it  might  aid  the  prosecution  in  a 
case  in  which  I  am  under  indictment. 

Mr.  Kennedy.  Mr.  Blaier  was  in  the  hotel  in  Chicago  at  the  same 
time  as  Mr.  Raddock,  according  to  the  records. 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  12073 

The  Chairman.  I  believe  the  testimony  before  the  committee  is  that 
you  were  at  the  hotel,  the  Drake  Hotel,  in  Chicafi:o,  on  August  17,  at 
the  same  time  that  Mr.  Haddock  was  there,  about  which  he  was  inter- 
rogated this  morning. 

Would  you  want  to  give  us  any  information  about  that? 

Mr.  Blaier.  Senator  McClellan,  no. 

The  Chairmax.  That  would  come  within  the  purview  of  your  pre- 
vious statement  as  to  why  you  do  not  want  to  testify  ? 

Mr.  Blaier.  Yes,  sir. 

The  Chairmax.  We  have  here  what  purports  to  be  the  original 
hotel  account  of  your  stay  there  at  that  time.  If  3'ou  say  it  relates  to 
the  matter  about  which  you  are  under  indictment,  of  course,  I  will 
not  insist,  then,  that  you  answer  the  question. 

Mr.  Travis.  Mr.  McClellan,  I  believe  it  does.  Senator,  and  I  will 
have  to  instruct  the  witness  not  to  answer. 

Mr.  Kexxedy.  Mr.  Chairman,  so  we  understand,  this  has  nothing 
to  do 

The  Chairman.  I  thought  this  related  to  the  matter  of  the  indict- 
ment. 

Mr.  Kexxedy.  No.  Their  indictment  concerns  certain  transactions 
tliat  they  had  with  the  State  of  Indiana  in  connection  with  certain 
])roperty,  the  purchase  of  the  property,  then,  and  then  the  reselling  of 
the  property  back  to  the  State. 

This  has  to  do  with  the  activities  of  Mr.  Raddock,  Mr.  Charlie 
Johnson,  which  also  has  nothing  to  do  with  the  indictment,  Mr.  Hoff  a, 
Mr.  Sawochka,  and  other  individuals,  Mr.  Holovachka,  in  connection 
with  attempts,  through  improper  means,  to  keep  them  from  being 
indicted  in  Laice  County,  Ind.,  and  it  has  nothing  to  do  with  the 
merits  of  the  indictment,  per  se. 

This  is  when  they  were  up  in  Chicago. 

The  Chairman.  They  are  not  indicted  for  attempts  to  obstruct 
justice? 

Mr.  Kexxedy.  That  is  correct. 

The  Chairmax'.  They  are  indicted  for  offenses  with  respect  to  a 
conspiracy  to  defraud  the  State  of  Indiana,  is  that  correct? 

Mr.  Kexxedy.  That  is  correct. 

The  Chairmax.  I  have  not  looked  at  the  indictment.  Is  that  a  fair 
statement  ? 

Mr.  TRA^^s.  No,  sir.  The  indictment  is  in  two  counts.  One  is  a 
conspiracy  to  commit  a  felony,  to  wit,  bribery  of  a  State  official,  and  a 
second  count  of  bribery  of  a  State  official.  1  wish  to  say  at  this  time 
that  it  is  my  responsibility  as  attorney  for  this  gentleman  in  the  case 
under  which  he  is  under  indictment,  to  advise  him  whether  or  not  I 
think  the  questions  which  Mr.  Kennedy  is  asking  and  is  going  to  ask 
with  regard  to  Lake  County  could  be  used  in  that  prosecution,  and 
my  responsibility  will  be  carried  out  by  advising  this  witness  to 
answer  no  questions. 

The  Chairmax.  The  Chair  finds  that  the  indictment  is  an  indict- 
ment for  conspiracy  to  commit  a  felony,  to  wit,  bribery  of  State 
officers,  and  the  actual  bribery  of  State  officers.  Those  are  the  two 
charges. 

If  this  transaction  in  Chicago  relates  to  that  indictment,  I  will  not 
order  the  witness  to  answer  the  question. 


12074  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  It  does  not  relate  to  the  indictment.  It  relates  to 
steps  taken  in  a  later  conspiracy  to  present  an  indictment  in  Lake 
Comity,  Ind.  It  has  nothing  to  do,  once  again,  with  the  facts  sur- 
roundmg  the  purchase  and  reselling  of  the  lands.  This  involves 
entirely  different  individuals.  Max  Haddock  is  not  under  this  indict- 
ment, nor  is  Mr.  Charles  Johnson,  Mr.  Holovachka,  Mr.  Sawochka  or 
Mr.  Hoffa. 

I  can  understand  that  the  witness  will  not  want  to  answer  the  ques- 
tions on  the  grounds  it  may  tend  to  incriminate  him,  but  not  because 
he  is  under  indictment  or  that  I  am  asking  questions  dealing  with 
the  indictment,  because  I  would  not  do  that. 

The  Chairman.  I  will  go  this  far  with  it.  I  will  present  you  the 
hotel  bill  and  ask  you  to  examine  it  and  state  if  you  identify  it. 

Mr.  Travis.  With  all  due  respect  to  you,  Mr.  Kennedy,  as  an  able 
lawyer,  I  disagree  with  what  you  have  said. 

The  Chairman.  It  may  be  a  borderline  case.  I  am  unable  to  deter- 
mine it  at  this  time.     The  witness  can  exercise  his  privilege. 

(The  document  was  handed  to  the  witness.) 

( The  witness  conferred  with  his  counsel. ) 

Mr.  Travis.  Is  there  a  question  before  the  witness  at  this  time  ? 

The  Chairman.  There  is  the  question  of  the  bill  at  the  Drake  Hotel, 
at  the  time  the  Chair  referred  to.  I  believe  it  to  be  August  17,  1957. 
I  presented  it  to  the  witness  and  asked  him  to  examine  it  and  state  if 
he  identifies  it.     That  is  in  the  nature  of  a  question. 

Do  you  identify  it  ? 

Mr.  Blaier.  Senator  McClellan,  on  the  advice  of  counsel,  I  refuse 
to  answer  the  question  on  the  ground  that  it  relates  solely  to  a  personal 
matter,  not  pertinent  to  any  activity  which  this  committee  is  author- 
ized to  invest] o:ate  and  also  because  it  might  aid  the  prosecution  in  the 
case  in  which  I  am  under  indictment. 

The  Chairman.  The  Chair  finds  that  the  indictment  is  for  alleged 
actions  in  1956  that  the  crimes  charged  under  the  indictment  took 
place. 

This  is  something  like  a  year  later.  If  you  want  to  exercise  your 
privilege,  that  is  all  right.  But  I  do  not  know  how  this  could  be 
related  to  an  offense  that  was  committed  a  year  earlier.  It  could  be 
by  indirection,  but  certainly  not  directly,  if  the  indictment  is  any- 
where near  accurate. 

Mr.  Travis.  Indirection,  Mr.  Chairman,  can  be  just  as  harmful  as 
a  direct  matter. 

The  Chairman.  This  hotel  bill  may  be  made  exhibit  No.  49,  for 
reference. 

(The  document  referred  to  was  marked  "Exhibit  No.  49"  for  refer- 
ence and  may  be  found  in  the  files  of  the  select  committee.) 

The  Chairman.  The  witness  was  presented  with  the  copy. 

Proceed. 

Mr.  Kennedy.  Mr.  Blaier,  did  you  take  a  trip  to  Europe  m  the 
last  few  years  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Blaier.  I  had  the  honor  in  1956,  Mr.  Kennedy,  to  represent  the 
American  worker  or  the  United  States  worker  at  the  lEO  conference 
in  Geneva,  Switzerland,  representing  President  Eisenhower,  Secre- 
tary of  Labor  Mitchell,  the  A.  F.  of  L.,  and  the  United  Brotherhood. 


EVIPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12075 

Mr.  Kennedy.  Did  the  Government  then  pay  your  expenses  over 

there? 

Mr.  Blaier.  Sir  ? 

Mr.  Kennedy.  Did  the  Government  pay  for  your  trip  over  to 
Europe  ? 

Mr.  Blaier.  No,  sir. 

Mr.  Kennedy.  Did  they  advance  you  any  money  ? 

Mr.  Blaier.  They  did  Avhen  I  got  finished  in  Geneva. 

Mr.  Kennedy.  How  much  money  did  you  receive  from  them? 

Mr.  Blaier.  In  Geneva  ? 

Mr.  Kennedy.  How  much  money  did  you  receive  from  the  United 
States  Government  in  connection  with  the  trip  ? 

Mr.  Blaier.  Approximately  $1,100,  paid  in  Geneva. 

Mr.  Kennedy.  Did  you  receive  any  money  from  the  Carpenters  in 
connection  with  that  trip  ? 

Mr.  Blaier.  They  paid  for  my  transportation.  I  did  not  receive 
any  money. 

Mr.  Kennedy.  How  much  money  did  they  advance  for  you  ? 

Mr.  Blaier.  Mr.  Kennedy,  I  don't  have  those  figures  with  me,  but 
I  would  approximate  it  to  be  around — with  the  travel,  I  believe  it 
would  be  around  $3,800,  or  thereabouts. 

Mr.  Kennedy.  Is  that  all  the  money  they  advanced  to  you  ? 

Mr.  Blaier.  Well,  I  had  my  salary  and  my  per  diem. 

Mr.  Kennedy.  How  long  were  you  over  there  ? 

Mr.  Blaier.  I  sailed  on  May  2,  on  the  French  Line,  and  returned  on 
the  Italian  Line,  if  my  memory  serves  me  correctly,  about  June  11. 

Mr.  Kennedy.  What  was  the  date  of  the  conference  ? 

Mr.  Blaier.  I  think  I  allowed  9  days.  About  May  11  or  there- 
abouts, sir. 

Mr.  I^NNEDY.  About  May  14  to  May  26  ? 

Mr.  Blaier.  In  around  there,  sir. 

Mr.  Kennedy.  And  the  rest  of  the  time  over  there  was  spent  in 
travel,  was  it  ? 

Mr.  Blaier.  I  visited  trade  unions  in  the  interest  of  the  United 
Brotherhood  to  ascertain  their  methods  of  procedure  and  whatnot  in 
France,  Germany. 

Mr.  Kennedy.  Was  any  member  of  your  family  with  you  ? 

Mr.  Blaier.  Mrs.  Blaier  Avent  along  with  me,  acting  more  or  less 
as  my  secretary,  social  secretary. 

Mr.  Kennedy.  Did  the  union  pay  her  expenses? 

Mr.  Blaier.  Well,  it  was  combined  in  my  travel,  when  they  ar- 
ranged for  our  trip. 

Mr.  Kennedy.  Did  the  union  approve  of  that,  the  membership  ? 

Mr.  Blaier.  "Wlien  you  say  the  membership,  it  was  authorized  by 
those  in  authority  in  between  conventions. 

Mr.  Kennedy.  Who  was  that  ? 

Mr.  Blaier.  The  general  executive  board. 

Mr.  Kennedy.  It  was  taken  up  with  them  ? 

Mr.  Blaier.  They  approved  my  going,  yes,  sir. 

Mr.  Kennedy.  And  the  use  of  the  expenses  ? 

The  expenses  involved  in  the  trip  ? 

Mr.  Blaier.  Otherwise  I  would  not  have  been  able  to  go,  sir. 

Mr.  Kennedy.  That  was  some  $5,066,  was  it  not? 

Mr.  Blaier.  I  never  counted  it  up,  Mr.  Kennedy. 


12076  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  That  is  what  our  records  show. 

The  Chairman.  Have  you  any  questions,  Senator  Curtis  ? 

Senator  Curtis.  I  would  like  to  ask  you  something  about  this  trans- 
action with  Henry  W.  Blumenberg.  As  I  understand  it,  there  was 
a  claimed  shortage  on  the  part  of  the  members  of  this  local  of  some 
$240,000.    Did  the  international  union  pay  the  local  for  that  shortage  ? 

Mr.  Blaier.  Senator  Curtis,  you  understand  I  was  not  a  member 
of  the  general  executive  board  at  that  time,  so  I  am  going  by  what 
I  can  recall  as  being  in  the  1946,  I  believe,  general  convention  nota- 
tions, where  they  were  reimbursed  for  something  like  $240,000  or 
$244,000,  yes,  by  the  international. 

Senator  Curtis.  In  other  words,  the  international  made  good  the 
loss  that  incurred  to  the  local  in  that:  approximate  amount  ? 

Mr.  Blaier.  Yes,  I  believe  that  was  it,  sir.    I  don't  want  to 

Senator  Curtis.  How  much  did  the  international  recover  from  Mr. 
Blumenberg  or  others  ? 

Mr.  Blaier.  I  am  glad  that  you  asked  that  question.  Senator  Cur- 
tis, because  it  is  my  understanding,  after  I  had  been  on  the  board, 
that  what  they  had  repossessed  from  Blumenberg  and  Ford  more  than 
repaid  what  tliey  had  advanced  local  101.  That  is  my  understanding. 
I  don't  know  the  exact  figure,  sir,  but  it  is  my  understanding  that  it 
was  more  than  what  they  had  paid. 

Senator  Curtis.  Were  there  ever  any  prosecutions  in  connection 
with  it,  criminal  prosecutions  ? 

Mr.  Blaier.  Of  Mr.  Ford  and  Blumenberg  ? 

Senator  Curtis.  Yes,  or  anybody  else. 
Mr.  Blaier.  I  don't  know. 

Senator  Curtis.  ^Yh.o  is  this  other  party  that  Mr.  Blumenberg  re- 
fers to  in  his  letter  ? 

Mr.  Blaier.  I  wouldn't  know,  sir. 

Senator  Curtis.  How  long  was  this  union  under  trusteeship? 

Mr.  Blaier.  I  did  not  know  that  either.  I  believe  Mr.  Kennedy 
read  something  about  up  to  1943  or  something. 

Mr.  Kennedy.  16  years.     I  believe  from  1927  to  1943. 

Mr.  Blaier.  Where  they  were  under  trusteeship  all  that  time,  I 
have  no  knowledge,  sir. 

Senator  Curtis.  Is  it  a  common  practice  in  the  Carpenter's  Union 
to  let  something  go  unaudited,  in  a  trustee  account,  for  a  period  of 
15  or  16  years,  and  let  something  like  over  $200,000  of  the  workers' 
money  be  dissipated  ? 

Mr.  Blaier.  I  can  assure  you  that  is  not  the  policy  in  a  good  many 
years  in  the  past.  I  don't  know  how  many.  We  do  not  have,  to  my 
knowledge,  any  local  unions  under  what  .you  call  trusteeship.  They 
never  assume  it  unless  the  membership  in  that  area  made  the  request. 

In  everything,  I  believe  you  will  find  that  we  do  have  a  pretty 
strict  auditing  system  in  the  United  Brotherhood. 

Senator  Curtis.  That  is  all. 

The  Chairman.  Senator  Goldwater? 

Senator  Goldwater.  No;  I  have  no  questions. 

The  Chairman.  It  is  impossible  for  the  committee  to  conclude  this 
afternoon.  I  had  hoped  we  could,  but  the  Chair  has  to  leave  in  the 
next  few  minutes.  We  will  have  to  recess  over  until  in  the  morning  at 
10  o'clock. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12077 

Are  there  any  witnesses  that  you  can  excuse  or  who  will  be  required 
here  tomorrow  ^ 

Mr.  Kennedy.  Mr.  Hutcheson,  I  believe,  Mr.  Chairman.  Concern- 
in*?  the  money  on  the  Blaier  situation,  I  just  wanted  to  clarify  the 
record,  that  money,  the  $5,000  or  so,  for  the  trip  for  him  and  his  wife, 
was  charfved  in  the  books  as  o^eneral  officers'  expenses,  and,  of  course,  he 
received  that  money,  plus  the  regular  expenses  he  received  from  the 
United  States  Government. 

The  Chairman.  Very  well. 

AVe  will  stand  in  recess  until  10  o'clock  in  the  morning. 

Mr.  Travis.  Do  I  understand  that  Mr.  Hutcheson  is  my  only  wit- 
ness you  wish  back  ? 

Mr.  Kennedy.  AVlio  else  do  you  have  here  ? 

Mr.  Travis.  I  guess  that  is  all.    Mr.  Blaier  is  discharged? 

Mr.  Kennedy.  He  can  leave. 

The  Chairman.  The  committee  will  now  stand  in  recess  until  10 
o'clock  tomorrow  morning. 

(Whereupon,  at  4:25  p.  m.  the  hearing  was  recessed,  to  reconvene 
at  10  a.  m.  Friday,  June  27,  1958.  At  this  point,  the  following  mem- 
bers were  present:  Senators  McClellan,  Goldwater,  and  Curtis.) 


INVESTIGATION  OF  IMPROPER  ACTIVITIES  IN  THE 
LABOR  OR  MANAGE3IENT  FIELD 


FRIDAY,   JUNE   27,   1958 

United  States  Senate, 
Select  Committee  on  Improper  Activities 

IN  the  Labor  or  Management  Field, 

Washington^  D.  C. 

The  select  committee  met  at  10  a.  m.,  pursuant  to  Senate  Resolution 
221,  agreed  to  January  29,  1958,  in  the  caucus  room  Senate  Office 
Building,  Senator  John  L.  McClellan  (chairman  of  the  select  com- 
mittee) presiding. 

Present:  Senator  John  L.  McClellan,  Democrat,  of  Arkansas; 
Senator  Sam  Ervin,  Jr.,  Democrat,  of  North  Carolina;  Senator  Carl 
T.  Curtis,  Republican,  of  Nebraska. 

Also  present :  Robert  F.  Kennedy,  chief  counsel ;  Paul  J.  Tierney, 
assistant  counsel ;  John  J.  McGovern,  assistant  counsel ;  Harold  Ran- 
stad,  investigator;  Charles  E.  Wolfe,  accountant,  GAO;  Karl  Deibel, 
accountant,  GAO;  John  Prinos,  accountant,  GAO;  Richard  G.  Sin- 
clair, accountant,  GAO ;  Ruth  Young  Watt,  chief  clerk. 

(At  the  convening  of  the  session,  the  following  members  were  pres- 
ent :  Senators  McClellan  and  Ervin.) 

The  Chairman.  The  committee  will  come  to  order. 

Mr.  Ivennedy.  Mr.  Chairman,  we  have  a  staff  investigator  here  who 
is  leaving  for  Europe,  with  the  General  Accounting  Office,  at  noon 
today. 

He  has  some  information,  some  testimony,  that  he  has  to  give.  It 
is  a  little  out  of  order,  but  I  would  like  to  put  him  on  if  we  could  at 
the  beginning. 

The  Chairman.  All  right. 

Mr.  Kennedy.  I  will  call  Mr.  Karl  Deibel. 

TESTIMONY  OF  KARL  DEIBEL,  ACCOUNTANT,  GAO— Resumed 

The  Chairman.  Mr.  Deibel,  you  have  been  previously  sworn  during 
the  course  of  this  series  of  hearings  ? 

Mr.  Deibel.  Yes,  Mr.  Chairman. 

The  Chairman.  All  right,  ISIr.  Kennedy. 

Mr.  Kennedy.  Mr.  Deibel.  I  would  like  to  ask  you  first  whether  you 
have  made  a  study  of  the  books  and  records  of  the  International 
Brotherhood  of  Carpenters. 

Mr.  Deibel.  That  is  correct. 

Mr.  Kennedy.  Have  you  looked  into  the  financial  affairs  of  certain 
of  the  officials  of  the  Carpenters  ? 

Mr.  Deibel.  Yes,  sir. 

12079 
21243— 58— pt.  31 20 


12080  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  Specifically,  did  you  make  a  study  of  the  financial 
records  of  Mr.  Frank  Chapman  ? 

Mr.  Deibel.  We  did,  sir. 

Mr.  Kennedy.  What  was  his  position  with  the  Carpenters  ? 

Mr.  Deibel.  Pie  was  the  general  treasurer  of  the  United  Brother- 
hood of  Carpenters. 

Mr.  Kennedy.  He  was  in  charge  of  the  funds  and  moneys  of  the 
Carpenters  ? 

Mr.  Deibel.  That  is  correct. 

Mr.  Kennedy.  When  did  he  take  over  that  position  ? 

Mr.  Deibel.  He  took  over  in  the  spring  of  1954. 

Mr.  Kennedy.  We  have  requested,  have  we  not,  to  have  an  inter- 
view with  Mr.  Chapman  in  connection  with  some  of  these  matters? 

Mr.  Deibel.  Yes,  sir. 

Mr.  Kennedy.  And  he  refused  to  talk  to  staff  investigators? 

Mr.  Deibel.  That  is  correct. 

Mr.  Kennedy.  Now  he  has  submitted  a  doctor's  certificate,  Mr. 
Chairman,  which  states  that  he  is  unable  to  appear  before  the  com- 
mittee. But  I  would  like  to  put  these  things  into  the  record  anyway. 
We  attempted  to  discuss  the  matters  with  him  for  an  explanation,  but, 
as  I  say,  he  refused  to  be  interviewed  by  the  staff  investigators. 

The  Chairman.  How  many  times  did  you  attempt  to  arrange  an 
interview  with  Mr.  Chapman  ? 

Mr.  Deibel.  We  contacted  the  legal  counsel  for  the  Brotherhood, 
Mr,  Chairman,  and  the  counsel  suggested  originally  that  they  would 
prefer  we  keep  all  of  the  findings  or  other  matters  that  we  would 
like  to  talk  with  them  about  until  one  time,  and  at  one  time  discuss  it. 
Subsequently,  they  decided  that  they  would  not  talk  to  the  commit- 
tee investigators  but  would  only  present  their  side  of  the  picture  in  the 
committee  hearings. 

The  Chairman.  In  other  words,  you  undertook  to  interview  Mr. 
Chapman  regarding  the  matters  you  are  going  to  testify  to  ? 

Mr.  Deibel.  That  is  correct,  Mr.  Chairman. 

The  Chairman.  And  he  declined  the  invitation  ? 

Mr.  Deibel.  Yes,  sir. 

Mr.  Kennedy.  That  was  on  the  advice  of  personal  counsel,  the 
second  time? 

Mr.  Deibel.  Both  personal  counsel  and  also  the  Brotherhood's 
counsel. 

The  Chairman.  Also  whom  ? 

Mr.  Deibel.  The  Brotherhood's  counsel. 

The  Chairman.  All  right. 

Mr.  Kennedy.  He  took  up  residence  as  general  treasurer  of  the 
Brotherhood  in  the  spring  of  1954,  is  that  right  ? 

Mr.  Deibel.  Yes,  sir. 

Mr.  Kennedy.  In  Indianapolis  ? 

Mr.  Deibel.  That  is  correct. 

Mr.  Kennedy.  Would  you  tell  us  what  the  financial  records  show  as 
to  his  withdrawal  of  funds  at  that  time  ? 

Mr.  Deibel.  We  noted  shortly  after  he  took  his  position  in  Indianap- 
olis that  lie  was  withdrawing  sums  of  money  which  were  supported 
only  by  3  by  5  slips  of  paper,  upon  which  were  written  usually  the 
words  "withdrawal  for  petty  cash  for  general  treasurer." 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12081 

These  slips  bore  Mr.  Chapman's  initials,  authorizing  the  payment 
of  these  sums.  With  Mr.  Chapman's  approval  or  authorization,  the 
checks  were  drawn  payable  either  to  Mr.  Chapman  or  to  cash. 

]Mr.  Kennedy.  Do  you  have  any  samples  of  those  cards  ? 

Mr.  Deibel.  Yes,  sir. 

Mr.  Kennedy.  Would  you  show  them  to  the  chairman  ? 

Mr.  Deibel.  Yes,  sir. 

The  Chairman.  What  are  these  documents  you  have  passed  to  the 
Chair? 

Mr.  Deibel.  These  documents  are — the  first  document  is  an  author- 
ization to  withdraw  funds  from  the  Brotherhood  as  is  indicated  on  the 
document  for  i)etty  cash  for  the  general  treasurer.  The  second  docu- 
ment is  the  check  drawn  on  the  Brotherhood's  funds,  and,  as  I  say, 
some  of  them  are  payable  to  cash,  some  of  them  are  payable  to  Mr. 
Chapman  personally,  and  some  are  payable  to  petty  cash. 

The  Chairman.  These  documents  you  passed  to  the  Chair  are  merely 
samples  of  what  you  found  ? 

Mr.  Deibel.  That  is  right.   I  have  an  additional  supply. 

The  Chairman.  Have  you  made  a  compilation  with  respect  to  the 
total  amounts  ? 

]\lr.  Deibel.  Yes,  Mr.  Chairman.  We  found  that  in  the  period  of 
May  1954  to  January  1956,  there  was  a  total  of  $8,500  withdrawn  in 
this  manner. 

The  Chairman.  From  what  period  ? 

Mr.  Deibel.  May  1954  to  January  1956. 

]\lr.  Kennedy.  And  there  is  no  documentation  for  any  of  those 
withdrawals  other  than  just  these  small  slips  which  just  say  "petty 
cash"? 

Mr.  Deibel.  That  is  correct,  and  on  which  Mr.  Chapman  placed  his 
initials  authorizing  the  payment. 

The  Chairman.  In  other  words,  he  was  approving  the  withdrawal 
of  the  cash  and  making  the  checks  payable  to  cash  and  cashing  them 
or  making  them  payable  to  himself  ? 

^Ir.  Deibel.  That  is  right. 

Those  checks  were  then  generally  taken  by  an  employee  of  the  Broth- 
orhood  to  the  bank,  and  the  cash  was  Avithdrawn  and  given  to  Mr. 
Chapman  personally. 

The  Chairman.  You  ascertained  that? 

]N[r.  Deibel.  Yes,  sir. 

The  Chairman.  Even  where  the  checks  were  made  to  cash,  they 
were  sent  to  the  bank  by  some  employee  of  the  Brotherhood  and  the 
checks  were  caslied  and  the  cash  returned  to  Mr.  Chapman? 

^Ir.  Deibel.  That  is  correct,  ]\rr.  Chairman. 

The  CiiAiR^rAN.  At  the  conclusion  of  your  testimony,  all  of  these 
matters  may  be  made  exhibit  No.  49,  in  bulk.  The  whole  file  with 
reference  to  these  matters  may  be  made  exhibit  49  for  reference  only. 
T  want  the  documents  as  exhibits  for  further  interrogation  of  other 
witnesses. 

^h\  Kennedy.  From  your  interviews  of  tlie  bookkeeper  and  other 
officials  of  the  Carpenters,  it  was  understood  that  this  money  was 
going  to  Mr.  Chapman  liimself  ? 

^fr.  Deibel.  That  is  correct,  Mr.  Kennedy. 

Mr.  Kennedy.  Over  and  above  this,  did  Mr.  Chapman  draw  ex- 
penses ? 


12082  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Deibel.  Mr.  Chapman  also  drew,  as  is  the  Brotherhood's  custom 
at  that  time — the  amounts  have  been  increased  but  it  is  still  a  custom — ■ 
to  have  a  per  diem  allowance  when  the  ofiicer  is  away  from  his  home 
station,  which  was  Indianapolis.  This  amounted  to  $15  a  day.  In 
addition,  Mr.  Chapman  was  also  entitled  to  a  daily  allowance  of  $7. 

This  $7  was  to  cover  miscellaneous  expenditures,  such  as  luncheons 
or  entertainment  of  jjeople  at  the  Brotherhood's  offices,  tips,  et  cetera. 
We  also  found  tliat  Mr.  Chapman,  during  this  same  period  of  time, 
withdrew  in  this  manner  $4,400.  In  addition,  we  noted  that  Mr.  Chap- 
man held  membership  in  a  social  club  in  Indianapolis,  Ind.,  for  which 
the  Carpenters  paid  a  large  portion  of  his  bills. 

During  1955  and  January  1956,  the  Brotherhood  paid  bills  of  $865. 
During  this  same  period,  Mr.  Chapman  paid  from  his  personal  ac- 
count, social  club  bills  of  $150. 

In  addition,  Mr.  Chapman  was  given  a  monthly  allowance  of  $200  to 
pay  for  his  residence  in  Indianapolis.  During  the  period  of  May 
1954  through  January  1956  this  amounted  to  $4,200,  We  also  noted 
that  in  April  1955  Mr.  Chapman  withdrew,  through  the  use  of  a  3  by  5 
slip,  similar  to  the  one  previously  introduced,  $650,  which  was  charged 
on  the  Brotherhood's  records  to  miscellaneous  expense,  installation. 
Also  during  this  period  Mr.  Chapman's  hotel  bills  away  from  Indiana- 
polis were  paid  by  the  Brotherhood,  and  these  amounted  to  $1,430. 
Therefore,  during  this — — 

Mr.  Kennedy.  Have  you  included  the  $15  a  day  that  he  got  while 
he  was  away  ? 

Mr.  Deibel.  Right,  the  $15  and  $7  a  day  during  this  period  amount- 
ed to  $4,410.  Therefore,  during  the  period  of  time  Mr.  Chapman 
withdrew  $25,600  for  expenses. 

The  Chairman.  In  addition  to  these  other  items  ? 

Mr.  Deibel.  No,  this  is  a  total  of  these  items ;  that  would  be  in  addi- 
tion to  his  salary,  Mr.  Chairman. 

The  Chairman.  How  much  ? 

Mr.  Deibel,  $25,600, 

The  Chairman.  That  is  over  a  period  of  about  18  months  ? 

Mr.  Deibel.  Approximately  21  months,  sir. 

Mr.  I^NNEDY.  I  think  we  have  left  out  something.  You  have  the 
4,000 

Mr.  Deibel.  You  are  correct,  Mr.  Kennedy.  The  per  diem  allow- 
ance of  $15  a  day  amounted  to  $5,450.  The  miscellaneous  $7  a  day 
amounted  to  $4,400. 

Mr.  Kennedy.  The  $5,450  is  above  the  $4,000,  the  $7  payment. 

Mr.  Deibel.  That  is  correct. 

Mr.  Kennedy.  So  the  total  of  the  petty  cash  of  $8,500,  the  miscel- 
laneous alloAvance  of  $4,400,  the  social  club  of  $1,000,  the  incidental 
expense  of  $650,  the  apartment  allowance  of  $4,200,  the  per  diem  allow- 
ance of  $5,450,  the  hotel  of  $1,400,  made  a  total  of  $25,600? 

Mr.  Deibel.  That  is  correct,  sir. 

The  Chairman.  What  was  his  salary  ? 

Mr.  Deibel.  His  salary  was  approximately  $20,000  a  year. 

Mr.  Kennedy.  Did  Mr.  Chapman  also  take  a  trip  to  Europe  ? 

Mr.  Deibel.  Yes.  During  the  fall  of  1956  Mr.  Chapman  made  a 
trip  to  Europe,  partly  under  the  sponsorship  of  the  Italian  Govern- 
ment. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12083 

Tlie  Chaiitman.  All  of  the  files  and  documents  from  which  you 
have  testified  regarding  these  expenses,  you  are  now  delivering  those 
to  the  clerk  ? 

Mr.  Deibel.  That  is  correct. 

The  Chairman.  They  will  be  made  exhibit  50,  in  bulk,  for  reference. 

(The  documents  referred  to  were  marked  "Exhibit  No.  50"  for 
reference  and  maj-  be  foimd  in  the  files  of  the  select  committee.) 

The  Chairman.  Proceed. 

Mr.  Deibel.  We  noted  in  March  of  1956  Mr.  Meany,  president  of 
the  A.  F.  of  L.-CIO,  advised  Mr.  Hutcheson,  president  of  the  Car- 
penters Brotherhood,  that  the  Italian  Government  had  extended  an 
invitation  to  American  trade  leaders  to  visit  Italy  as  guests  of  the 
Italian  Government.  The  invitation  included  "all  expenses  for  ac- 
commodations, board,  and  travel  within  the  borders  of  Italy,"  and  it 
specifically  indicated  that  transportation  to  and  from  Italy  would 
have  to  be  borne  by  the  unions  and  that  the  invitation  did  not  include 
relatives  of  the  union  leaders. 

Through  a  series  of  correspondence,  Mr.  Hutcheson  appointed  Mr. 
Chapman  as  the  representative  of  the  Brotherhood  of  Carpenters, 
and  also  Mr.  Chapman's  wife  was  allowed  to  accompany  Mr.  Chapman 
at  the  union's  expense. 

In  August  of  1956,  a  bill  from  the  Indiana  National  Bank  for 
$7,000  was  paid  by  the  Brotherhood.  This  bill  represented  steamship 
passage  to  Europe,  air  transportation  while  in  Europe;  also  a  land 
tour. 

Mr.  Kennedy.  How  much  was  it  exactly? 

Mr.  Dehjel.  $7,088.40. 

Mr.  Kennedy.  For  how  many  people  ? 

Mr.  Deibel.  This  was  for  two  people,  Mr,  Chapman  and  his  wife. 
This  was  paid  by  Brotherhood  funds. 

Shortly  thereafter,  Mr.  Chapman,  over  his  own  authorization,  wrote 
a  check  for  $4,000  to  the  Indiana  National  Bank.  This  check  was 
subsequentlv  converted  into  traveler's  checks. 

The  Chair>l\n.  Is  that  in  addition  to  the  $7,000? 

Mr.  Deibel.  That  is  in  addition  to  the  $7,000. 

The  Chairman.  Making  more  than  $11,000  ? 

Mr.  Deibel.  Making  $11,000  at  this  point. 

Mr.  Kennedy.  "What  were  the  traveler's  checks  ? 

Mr.  Deibel.  The  traveler's  checks  were  made  $3,000  bearing  his 
signature  and  $1,000  bearing  his  wife's  signature,  for  cashing  purposes. 

Shortly  thereafter,  August  31,  the  bank  advised  Mr.  Chapman 
that  they  had  made  an  error  in  their  August  billing  and  were  in- 
creasing the  amount  of  that  bill  by  $500.  So  the  total  bill  of  the 
Indiana  National  Bank  was  $7,602.50.  On  September  10,  Mr.  Chap- 
man again  authorized  himself  to  withdraw  $1,000  payable  to  the  In- 
diana National  Bank.  This  $1,000  was  converted  into  American  Ex- 
press traveler's  checks.  So  at  this  point  he  had  withdrawn  $7,600 
payable  for  this  tour,  plus  $5,000  in  traveler's  checks.  We  noted  that 
Mr.  Chapman  left  the  United  States  about  September  20  and  re- 
turned around  December  25. 

He  visited,  in  addition  to  Italy,  Switzerland,  England,  the  Vatican 
City,  France,  Spain,  and  Germany.  During  this  period  of  time,  Mr. 
Chapman  charged  the  Brotherhood  with  $15  a  day  per  diem  allow- 
ance and  also  the  $7  a  day  miscellaneous  allowance. 


12084  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  Is  that  in  addition  to  the  other  $7  and  $15  per  day 
that  you  had  accounted  for  in  the  $25,600  ? 

Mr.  Deibel,  That  is  correct.  The  previous  amount  only  went  up 
to  the  period  of  January  1956.  This  period  we  are  dealing  with  now 
is  September  1956  through  December  1956,  Mr.  Chairman. 

Mr.  Kennedy.  Was  that  during  the  whole  period  of  time  that  he 
charged  the  $15  as  well  as  the  $7  ? 

Mr.  Deibel.  Mr.  Chapman  charged  the  Brotherhood  for  the  $15  a 
day  for  approximately  53  days.  This  was  a  little  more  than  one-half 
of  the  period. 

Mr.  Kennedy.  What  about  the  $7.00? 

Mr.  Deibel.  The  $7  a  day  was  charged  for  the  entire  period. 

Mr.  Kennedy.  How  much  would  that  total  ? 

Mr.  Deibel.  Therefore,  the  two  allowances  totaled  $1,370 ;  the  trav- 
eler's checks  totaled  $5,000,  and  the  transportation  and  land  tour 
charges  totaled  $7,600,  or  a  grand  total  of  $14,070,  in  addition  to  what- 
ever expenses  were  paid  by  the  Italian  Government  during  his  stay. 

Mr.  Kennedy.  How  long  was  he  supposed  to  be  in  Italy  as  a  guest 
of  the  Italian  Government  ? 

Mr.  Deibel.  He  was  to  be  in  Italy 

Mr.  Kennedy.  About  3  weeks,  was  it  ? 

Mr.  Deibel.  Approximately  3  weeks.  The  latter  part  of  Septem- 
ber until  the  middle  of  October. 

Mr.  Kennedy.  So  that  was  $14,070  above  and  beyond  that  ? 

Mr.  Deibel.  That  is  correct. 

Mr.  Kennedy.  Above  what  the  Italian  Government  paid.  Was 
that  broken  down  so  that  the  membership  of  the  Brotherhood  of  Car- 
penters would  know  how  the  money  was  spent  ? 

Mr.  Deibel.  No,  sir.  The  money,  the  $7,000  for  the  transportation 
and  land  tour  was  shown  on  the  financial  statements  in  the  general 
category  of  transportation  expenses  of  general  officers.  There  was  no 
indication  to  the  membership  that  this  particular  $7,000  was  part  of 
Mr.  Chapman's  personal  expense  or  part  of  the  expense  of  the  travel. 

The  $5,000  was  also  comingled  in  the  brotherhood's  statements  in 
such  a  manner  that  a  member  would  have  no  opportunity  to  be  ad- 
vised of  the  cost  of  his  trip. 

Mr.  Kennedy.  Can  you  find  if  the  executive  board  approved  of  the 
expenditure  of  this  amount  of  money? 

Mr.  Deibel.  We  were  unable  to  find  the  approval  in  the  board's 
minutes  for  Mr.  Chapman's  trip. 

Mr.  Kennedy.  Did  you  find  that  Mr.  Chapman  included  certain  of 
the  officers  of  the  brotherhood  who  had  tax  deficiencies  in  1954? 

Mr.  Deibel.  Yes,  Mr.  Kennedy.  We  found  that  in  1954  the  Inter- 
nal Revenue  Service  assessed  certain  officers  of  the  brotherhood 

The  Chairman.  Just  one  moment  before  you  go  into  that.  Have 
you  concluded  with  tliis  European  trip? 

Mr.  Diebel.  Yes,  Mr.  Chairman. 

The  Chairman.  That  file  may  be  made  exhiibt  No.  51,  for  reference. 

(The  document  refen-ed  to  was  marked  "Exhibit  No.  51"  for  ref- 
erence and  may  be  found  in  the  files  of  the  select  committee.) 

The  Chairman.  Now  you  may  proceed  with  the  other. 

Mr.  Deibel.  We  noted  that  the  Internal  Revenue  Service  assessed 
certain  of  the  brotherhood's  officere  for  prior  year  deficiencies.    The 


IMPROPER    ACTIVITIKS    IX    THE    LABOR    FIELD  12085 

brotherhood  then  paid  these  deficiencies  from  their  union  funds.  We 
noted  that  Mr.  F.  Duti'y,  former  general  secretary,  was  assessed 
$3,946.80. 

Mr,  A.  E.  Fisher,  the  general  secretary  at  that  time,  was  assessed 
$376.61.  Mr.  S.  P.  Meadows,  the  general  treasurer  at  that  time,  was 
assessed  $1,552.25. 

Mr.  Kennedy.  Were  those  deficiencies  all  paid  for  out  of  the  treas- 
ury of  the  Brotlierhood  of  Carpenters  ? 

Mr.  Deihel.  That  is  correct. 

On  January  3,  1955,  by  botherliood  check,  Mr.  Fisher's  deficiency 
was  paid  and  also  Mr.  Duffy's,  and  on  January  4,  Mr.  Meadows'  defi- 
ciency was  paid.   We  were  unable  to  find 

The  Chairman.  That  is  income  tax  for  these  officers  that  was  paid 
out  of  union  dues? 

Mr.  Deibel.  That  is  correct,  Mr.  Chairman. 

The  Chairman.  I  wish  I  had  somebody  to  pay  my  taxes. 

Mr.  Deibel.  We  also  attempted  to  find,  in  the  minutes  of  the  broth- 
erhood, authorization  for  payment  of  these  taxes,  and  we  weren't  able 
to  locate  any  authorization  until  February  12,  1958,  at  which  time 
the  board  of  trustees'  minutes  indicate,  and  I  will  quote  from  the 
minutes : 

The  general  president  called  attention  to  the  fact  that  early  in  1954  an  audit 
was  made  of  the  information  return  filed  for  the  year  1952,  the  1954  audit  was 
not  as  complete  as  the  audit  now  being  conducted,  as  the  internal  revenue  agents 
were  at  the  time  concentrating  on  expenses  paid  to  several  of  the  resident  offi- 
cers, as  a  result  of  the  investigation,  deficiencies  were  assessed  against  former 
General  Secretary  Duffy,  General  Secretary  Fisher,  and  General  Treasurer 
Meadows,  that  were  paid  by  the  brotherhood,  in  view  of  the  fact  that  it  had 
always  been  understood  that  expenses  paid  by  the  United  Brotherhood  to  repre- 
sentatives did  not  have  to  be  reported  to  the  Internal  Revenue  Service.  The 
board  in  session  November  11,  1954,  approved  of  these  payments,  but  through 
inadvertence  this  action  was  omitted  from  the  minutes. 

Motion  to  reaffirm  our  action  of  November  11,  1954,  was  approved  unani- 
mously. 

Mr.  Kennedy.  What  was  the  date  of  those  minutes  ? 

Mr.  Deibel.  February  12, 1958. 

INIr.  Kennedy.  Was  that  after  our  investigation  of  the  matter 
began  ? 

Mr.  Deibel.  Yes,  sir. 

Mr.  Kennedy.  And  it  was  after  we  requested  from  the  brotherhood 
what  authorization  they  had  secured  in  order  to  pay  these  tax  defi- 
ciencies ? 

Mr.  Deibel.  That  is  correct. 

Mr.  Kennedy.  And  it  appeared  some  4  years  later  ? 

Mr.  Deibel.  That  is  right. 

The  Chairman.  That  file  regarding  the  income  tax  payments  may 
be  made  exhibit  52  for  reference. 

(The  document  referred  to  was  marked  "Exhibit  52"  for  reference 
and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Kennedy.  Xext  is  a  matter  we  have  not  come  across,  I  believe, 
in  any  of  our  other  investigations,  and  that  deals  with  the  operation 
of  a  business  by  a  labor  union  and  the  fact  that  no  taxes  are  paid  on 
that  business.  I  would  like  to  have  Mr.  Deibel  set  before  the  com- 
mittee the  facts  that  we  have  regarding  the  groves  that  are  owned  by 
the  International  Brotherhood  of  the  Carpenters  in  Florida. 

Would  you  tell  the  committee  what  we  found  on  that  ? 


12086  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Deibel.  We  had  found  that  the  Carpenters'  Brotherhood  owns 
approximately  1,900  acres  of  property  in  Polk  County,  Fla. ;  this  prop- 
erty is  located  near  the  city  of  Lakeland.  Of  these  1,900  acres,  ap- 
proximately 1,000  acres  are  utilized  in  raising  citrus  fruits.  The  other 
acres  are  used  for  a  home  for  aged  members,  and  the  various  build- 
ings and  facilities  necessary  to  maintain  these  people. 

We  found  that  the  citrus  groves  are  administered  by  the  Adams 
Packing  Association  of  Auburndale,  Fla. 

Adams  pays  for  all  of  the  grove  expenses,  picks  and  hauls  the  crop, 
deducts  expenses,  and  remits  the  proceeds  to  the  Carpenters'  Brother- 
hood. 

During  the  1955-56  season,  the  Carpenters  Brotherhood's  groves 
were  the  second  largest  customer  of  Adams. 

During  the  seasons  1954  through  1957,  the  Carpenters  have  received 
a  net  return  upon  these  groves  of  $890,000.  This  is  broken  down: 
1954,  they  received  $301,897;  1955,  $145,116;  1956,  $219,571;  1957, 
$224,503. 

The  Chairmatst.  Is  that  net  ? 

Mr.  Deibel.  That  is  net  proceeds  to  the  Carpenters. 

The  Chairmax.  In  other  words,  that  is  after  all  expenses  have  been 
deducted  ? 

Mr.  Deibel.  After  all  expenses  have  been  deducted. 

The  Chairman.  Has  any  tax  been  paid  on  those  amounts  ? 

Mr.  Deibel.  We  have  found  that  the  brotherhood  has  not  con- 
sidered this  as  income  for  tax  purposes. 

The  Chairman.  I  wonder  if  the  other  farmers  down  there  have  to 
pay  taxes  ?    Did  you  find  out  about  that  ? 

Mr.  Deibel.  I  understand  that  the  Carpenter  officials,  certain 
Carpenter  officials,  or  former  officials,  also  own  groves  which  are  serv- 
iced by  Adams,  and  the  income  is  reported  for  tax  purposes. 

The  Chairman.  Maybe  the  Internal  Revenue  Bureau  would  be  in- 
terested in  this. 

Mr.  Deibel.  I  believe  the  Internal  Revenue  Service  is  presently 
very  interested,  Mr.  Chairman. 

The  Chairman.  Are  they  also  active  ? 

Mr.  Deibel.  Yes,  sir. 

The  Chairman.  All  right. 

Does  that  conclude  your  testimony  regarding  that  ? 

Mr.  Deibel.  I  believe  so. 

The  Chairman.  That  file  may  be  made  exhibit  No.  53,  for  reference. 

(The  document  referred  to  was  marked  "Exhibit  No.  53"  for  refer- 
ence and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Kennedy.  I  think  that  is  all. 

This  is,  of  course,  income  that  has  nothing  to  do  with  the  Carpenters' 
Union  itself.    It  is  an  independent  operation. 

Mr.  Deibel.  That  is  correct.  This  is  for  citrus  groves  and  hardly 
related  to  the  activities  of  the  Carpenters. 

Mr.  Kennedy.  And  a  competitor  in  that  area  is  any  ordinary  busi- 
nessman who  operates  a  citrus  grove.  He  would  have  to  pay  taxes 
on  that,  so  it  is  a  tremendous  competitive  advantage;  is  it  not? 

Mr.  Deibel.  Yes,  sir ;  very  definitely. 

The  Chairman.  Thank  you  very  much.  I  understand  you  are  leav- 
ing for  an  overseas  assignment. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12087 

Mr.  Deibel.  Yes,  sir,  Mr.  Chairman. 

The  Chairman.  The  Chair  on  behalf  of  the  committee  personally 
wishes  to  thank  you  for  the  splendid  service  you  have  rendered,  the 
assistance  you  have  given  us,  and  the  competency  of  your  work. 

You  have  been  very  helpful.  We  wish  you  a  pleasant  journey  and 
that  your  assignment  and  new  duties  will  be  pleasant. 

Mr.  Kennedy.  He  is  going  to  Paris,  Mr.  Chairman.  He  has  been 
one  of  the  outstanding  people  we  have  had  working  with  us. 

The  CiixViRMAN.  Thank  you  very  much,  Mr.  Deibel. 

Call  the  next  witness. 

]Mr.  Kennedy.  Mr.  Hutcheson. 

The  Chairman.  Be  sworn,  please,  sir.  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.  Hutcheson.  I  do. 

TESTIMONY  OF  MAURICE  A.  HUTCHESON,  ACCOMPANIED  BY 
HOWARD  TRAVIS,  COUNSEL— Resumed 

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

Mr.  Hutcheson.  M.  A.  Hutcheson,  general  president.  United 
Brotherhood  of  Carpenters  and  Joiners  of  America,  Indianapolis, 
Ind. 

The  Chairman.  Thank  you  very  much.  Mr.  Hutcheson,  you  have 
counsel  with  you.    Counsel,  identify  yourself  for  the  record,  please. 

Mr.  Travis.  My  name  is  Howard  Travis,  Indianapolis,  Ind.  I  have 
offices  at  1011  Fletcher  Trust  Buildmg.  Mr.  Chairman,  the  witness 
has  informed  me  that  the  bright  spotlight  is  distracting  to  him,  and 
I  would  like  to  request  that  it  be  turned  off. 

The  Chairman.  Well,  we  will  turn  them  off  if  the  witness  co- 
operates with  us,  and  I  assume  he  is  going  to  cooperate  with  the  com- 
mittee.  For  the  present,  you  may  turn  off  the  lights. 

Mr.  Tra\t:s.  Thank  you,  Mr.  Chairman. 

The  Chairman.  Proceed,  Mr.  Kennedy. 

Mr.  Travis.  I  should  like 

The  Chairman.  The  purpose,  of  course,  of  granting  such  a  request 
is  that  the  witness  is  endeavoring  to  testify  and  to  testify  accurately 
and  truthfully,  and  that  if  the  lights  are  a  detraction  it  might  inter- 
fere with  his  concentration  it  is  only  proper  that  they  be  turned  off. 

I  have  taken  the  position,  and  the  committee  has  sustained  me,  that 
it  does  not  take  a  great  deal  of  concentration  simply  to  read  a  state- 
ment that  "If  I  told  the  truth,  it  might  tend  to  incriminate  me."  We 
would  like  to  defer  to  every  reasonable  request  and  grant  it. 

But  we  must  reserve  the  right  to  determine  what  is  reasonable  and 
what  is  not,  under  the  circumstances. 

Mr.  Travis.  I  want  to  assure  the  committee  that  Mr.  Hutcheson  wiU 
not  resort  to  the  guaranties  of  the  fifth  amendment,  and  I  would  like 
to  correct  an  impression  that  was  apparently  gained  by  the  news- 
papers yesterday  as  to  Mr.  Blaier. 

It  was  not  Mr.  Blaier's  intention  in  his  refusal,  as  I  drafted  it,  to 
rely  on  the  fifth  amendment.  I  feel  that  there  are  other  guaranties 
that  a  man  under  indictment  has,  including  the  due-process-of-law 


12088  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

clause,  that  he  must  be  tried  only  before  the  court  where  the  indict- 
ment is  pending. 

I  would  like  to  repeat  for  the  record  this  morning,  that  it  is  a  well- 
known  fact  that  this  witness  was,  together  with  others,  indicted  on 
February  18,  1958,  by  the  grand  jury  of  Marion  County,  Ind.,  and 
such  indictment  is  now  pending  in  Marion  County  criminal  court, 
division  No.  1,  cause  No.  CR  19429 Y,  and  such  indictment  has  not  yet 
been  tried. 

The  indictment  is  on  two  counts. 

The  Chairman.  Mr.  Counsel,  is  that  the  same  indictment  that  was 
presented  yesterday  ? 

Mr.  Travis.  Yes,  Mr.  Chairman.  That  is  the  indictment  which  has 
been  tendered  to  the  committee. 

The  Chairman.  We  will  keep  that  in  mind. 

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

Mr.  Travis.  The  indictment  refers  to  transactions  occurring  in  con- 
nection with  the  sale  of  lands  to  the  State  of  Indiana  for  the  con- 
struction of  the  so-called  tri-State  expressway  in  Lake  County,  in  the 
vicinity  of  Gary. 

It  is  also  well  known  that,  in  connection  with  that  alleged  transaction 
certain  moneys  were  paid  to  the  State  of  Indiana  prior  to  the  return 
of  the  indictment.  The  alleged  transactions  are  purely  personal.  I 
submit,  therefore,  that  any  inquiry  by  this  committee  into  or  al)out  any 
of  the  facts  related  to  or  which  might  be  related  to  such  indictment 
and  the  transactions  recited  therein,  however  remote  the  same  may 
be,  and  whether  occurring  before  or  after  the  transaction  recited  in  the 
indictment,  or  as  to  any  matter  which  might  be  attempted  to  be  used 
in  furtherance  of  the  prosecution  thereof,  would  be  improper,  without 
appropriate  pertinency  and  outride  the  scope  of  the  investigation 
which  this  committee  is  authorized  to  make. 

It  would  viohite  and  impair  this  witness'  rights  as  an  American 
citizen  and  would  be  contrary — excuse  me,  Mr.  Chairman,  I  feel  ill. 

May  I  have  a  recess,  Mr.  Chairman  ? 

The  Chairman.  Yes. 

Mr.  Hutcheson,  you  may  accompany  your  counsel,  if  you  wish. 

(At  this  point,  the  following  members  were  present:  Senators 
McClellan,  Ervin,  and  Curtis.) 

(Brief  recess  taken.) 

(At  the  reconvening  of  the  session,  the  following  members  were 
present :  Senators  McClellan,  Ervin,  and  Curtis.) 

The  Chairman.  The  committee  will  come  to  order. 

Mr.  Kennedy.  Mr.  Chairman,  we  have  another  witness,  on  a  matter 
which  is  somewhat  unrelated. 

The  Chairman.  Mr.  Hutclieson,  you  may  be  excused  from  the  wit- 
ness stand  temporarily.  We  have  another  witness  that  we  can  proceed 
with  until  you  determine  about  your  counsel  as  to  whether  he  can 
continue. 

Call  the  witness. 

Mr.  Kennedy.  Mr.  Katz. 

The  Chairman.  Be  sworn,  please;  you  do  solemnly  swear  the  evi- 
dence you  shall  give  before  this  Senate  select  committee  shall  be  the 
truth,  the  whole  truth,  and  nothing  but  the  truth,  so  help  you  God? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12089 

TESTIMONY  OF  A.  MARTIN  KATZ 

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

Mr.  Katz.  a.  Martin  Katz,  Gary,  Ind.,  practicing  attorney  and  city 
judge. 

The  Chairman.  You  waive  counsel,  do  you  ? 

Mr.  Katz.  Yes,  sir. 

The  Chairman.  Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  Mr.  Katz,  you  are  the  treasurer  of  the  State  Sibley 
Corp.? 

Mr.  Katz.  Yes,  sir. 

Mr.  Kennedy.  Where  is  that  located  ? 

]\fr.  Katz,  In  Indiana,  in  Hammond,  Ind. 

Mr.  Kennedy.  Hammond,  Ind.  ? 

Mr.  Katz.  Gary,  Ind.,  I  suppose,  now. 

Mr.  Kennedy.  JMr.  Chairman,  I  woukl  like  to  have  IVIr.  Sinclair  ask 
a  few  questions  to  set  the  stage  on  this  and  get  the  preliminaries. 

The  Chairman.  ]Mr.  Sinclair,  you  may  interrogate  the  witness. 

jNIr.  Sinclair.  Mr.  Katz,  please  state  your  position  in  connection 
with  the  State  Sibley  Corp. 

I\Ir.  Katz.  I  am  the  secretary-treasurer. 

Mr.  Sinclair.  Please  identify  the  other  officers  in  the  State  Sibley 
Corp. 

Mr.  Katz.  Albert  Weinstein  is  the  vice  president.  At  the  present 
time,  the  office  of  president  is  not  filled. 

Mr.  Sinclair.  "When  was  this  corporation  formed  ? 

Mr.  Katz.  I  believe  in  1953.  Do  you  have  a  copy  of  the  article 
which  I  have  previously  given  to  you  ? 

Mr.  Sinclair.  No,  I  don't  have. 

Mr.  Katz.  August  10, 1953. 

Mr,  Sinclair,  When  did  your  group  buy  into  this  corporation  ? 

Mr.  Katz,  In  April  of  1956, 

Mr,  Sinclair,  April  1956? 

^Tr.  Katz.  Yes. 

Mr.  Sinclair.  What  did  you  pay  for  your  interest  in  the  corpora- 
tion? 

Mr,  Katz.  One  dollar. 

]Mr.  Sinclair.  Please  identify  the  group  who  purchased  this  cor- 
poration. 

Mr.  Katz.  Weinstein,  Holovachka,  and  myself. 

Mr.  Sinclair,  Would  you  furnish  the  full  names  to  the  committee  ? 

Mr.  Katz.  Metro  M.  Plolovachka,  Albert  E.  Weinstein,  and  Martin 
Katz, 

Mr.  Sinclair.  What  were  their  occupations  at  the  time  they  pur- 
chased it? 

Mr.  Katz.  Mr.  Holovachka  is  an  attorney.  Mr.  Weinstein  is  a 
businessman. 

Mr.  Sinclair.  Would  you  further  identify  Mr.  Holovachka  ? 

Mr.  Katz.  I  beg  your  pardon  ? 

Mr.  Sinclair.  Would  you  give  us  a  complete  identification  of  Mr. 
Holovachka  ?    Was  he  holding  a  county  office  at  the  time? 

Mr.  Katz.  He  was  prosecutor  of  Lake  County,  Ind. 


12090  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Sinclair.  And  he  purchased  a  one-third  interest  in  this  cor- 
poration ? 

Mr.  Katz.  We  each  purchased  100  shares. 

Mr.  Sinclair.  And  for  the  100  shares  he  paid  ZZVo  cents,  is  that 
right? 

Mr.  Katz.  No.    I  think  he  paid  a  dollar. 

Mr.  Sinclair.  So  there  was  $3  paid  for  the  corporation? 

Mr.  Katz.  It  may  be.    I  don't  recall. 

Mr.  Sinclair.  Who  actually  held  the  stock  in  this  corporation 

after  the  group  you  were  with 

Mr.  Katz.  Do  you  mean  the  stock  certificates  ? 
Mr.  Sinclair.  That  is  right. 

Mr.  Katz.  The  stock  certificates  are  held  by  the  State  Sibley  Realty 
Corp.,  who  are  the  owners  of  the  improvement  on  the  land  which  is 
owned  by  the  Merchants  Improvement  Corp.,  and  the  improvement 
consists  of  the  building  which  is  located  on  there,  and  which  has  been 
for  some  time. 

Mr.  Sinclair.  So  the  stock  was  assigned  at  the  time  that  it  was 
purchased  ? 

Mr.  Katz.  Yes. 

Mr.  Sinclair.  Then  you  received  no  stock  certificates  as  such? 
Mr.  IvATz.  Merely  the  assignment. 

Mr.  Sinclair.  What  have  been  the  earnings  of  the  State  Sibley 
Corp.  since  your  group  purchased  it  ? 
Mr.  Katz.  Profits,  are  you  referring  to  ? 
Mr.  Sinclair.  That  is  right. 
Mr.  Katz.  No  profits. 

Mr.  Kennedy.  And  it  had  been  losing  money  prior  to  the  time  you 
purchased  it  ? 

Mr.  Katz.  It  had  been  losing  money  in  the  sense  that  it  was  not 
making  any.  Everything  that  was  being  taken  in  from  the  opera- 
tion, at  least  in  the  rental  of  the  building,  was  being  used  to  retire  the 
contract  indebtedness  on  the  building. 

In  other  words,  at  the  time  it  took  the  building  over,  in  1953,  they 
reduced  the  outstanding  debt  on  the  building  by  $28,000  or  $29,000. 

They  did  that  from  the  moneys  that  were  received  in  rental,  or  they 
may  have  made  loans  to  make  the  payments  as  they  came  due. 

Mr.  Sinclair.  What  commercial  loans  were  procured  during  the 
period  1956  to  the  present  ? 

Mr.  Katz.  There  was  a  loan  for  $30,000  in  order  to  pay  for  a  new 
boiler  installation.  I  think  that  was  in  1956,  in  the  fall  of  1956. 
Two  boilers  and  the  furnace  ran  in  the  neighborhood  of  $28,000,  but 
$30,000  was  required  in  order  to  pay  for  that. 

Mr.  Sinclair.  What  contributions  have  the  incorporators  made  to 
the  corporation  ? 

Mr.  Katz.  Since  that  date  ? 

Mr.  Sinclair.  Since  your  group  acquired  the  stock  ? 
Mr.  Katz.  Mv  best  recollection  is  it  is  $12,000. 
Mr.  Sinclair".  $12,000  each  or  in  total? 
Mr.  Katz.  Each. 

Mr.  Sinclair.  Wliat  occurred  in  the  summer  of  1957  that  caused 
your  group  to  seek  additional  financial  support  for  in  this  corpora- 
tion? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12091 

Mr.  Katz.  Well,  it  was  not  in  the  summer  of  1957.  It  was  6  or  7 
months  prior  to  that.  We  could  see  that  we  were  unable  to  obtain  any 
tenants.  We  had  lost  two  tenants  in  the  building,  and  the  building 
was  not  paying  for  itself  and  paying  off  the  contract.  We  had  to  seek 
additional  tenants  in  order  to  have  a  sufficient  amount  of  money  com- 
ing in  to  make  the  payment  for  the  contract  payments  as  they  came 
due.  We  could  see  that  we  were  not  able  to  develop  it  and  exploit  the 
building  to  its  most  advantageous  use.  So  we  tried  to  interest  some- 
body in  either  taking  a  piece  of  the  building  or  taking  the  whole  build- 
ing and  developing  it.  We  talked  to  several  people  about  develop- 
ing it. 

Mr.  Sinclair.  Would  you  identify  those  you  contacted  please  ? 
Mr.  Katz.  I  beg  your  pardon  ? 

Mr.  Sinclair.  Would  you  identify  these  people,  for  the  record  ? 
Mr.  Katz.  Well,  I  talked  to  Mr.  Levenberg,  Mr.  Norman  Leven- 
berg,  Mr.  Charles  Gleuck,  Mr.  Sam  Emiis,  and  I  talked  to  various 
county  officials. 

I  thought  the  county  might  be  able  to  use  the  building  for  storage 
or  possibly  for  some  office  space. 

Mr.  Sinclair.  Did  Mr.  Levenberg  and  Mr.  Gleuck  of  the  1300 
Broadway  Corp.  express  some  interest  in  the  building  at  that  time? 

Mr.  IVATZ.  Yes ;  they  did.    They  did,  I  would  say  in  the  very  early 
part  of  1957. 

Mr.  Sinclair.  Did  they  make  a  proposal  to  you  at  that  time  and 
offer  either  a  financial  or  a  plan  for  improvement  of  this  property  ? 
Mr.  Katz.  Yes. 
Mr.  Sinclair.  In  writing? 
Mr.  lilATZ.  What  time  are  you  refer  ring  to? 

Not  when  we  first  began  talking  about  it,  no,  but  in  September,  I 
believe  it  was,  they  did.  ,        r     r^ 

Mr.  Sinclair.  Would  you  identify  the  firm  with  which  Mr.  Gleuck 
and  Mr.  Levenberg  are  associated  ? 

Mr.  KL\TZ.  Well,  they  have  several  down  there. 
Mr.  Sinclair.  Do  you  know  the  parents'  name  ? 
Mr.  Katz.  No;  I  don't. 

Mr.    Sinclair.  Would   the   1300   Broadway   Corp.   refresh   your 
memory  ? 

Mr.  ivATZ.  They  may  be,  I  don't  know 

Mr.  Sinclair.  I^Iid-Citv  Investments,  Inc.  ?  •  •  i, 

Mr.  Katz.  Possibly.    That  is  how  I  know  them,  in  connection  with 
Mid-City.    I  don't  know  what  other  corporations. 

Mr.  Sinclair.  Now,  in  August  of  1957,  what  occurred  m  your  ne- 
gotiations with  Mr.  Levenberg  and  Mr.  Gleuck? 
■    Mr   Katz.  I  think  it  was  in  Auffust  they  thought  they  had  tound 
somebody  that  was  interested  in  the  building,  and  they  gave  me  $1,000 
as  o-ood  faith  money,  earnest  money,  whatever  you  want  to  call  it. 

^Mr.  Sinclair.  Was  this  $1,000  in  cash  given  you  as  earnest  money 

around  August  27, 1957?  .  .  i     u  .  t  •  .a 

Mr.  Katz.  I  don't  recall  whether  it  was  m  cash,  but  I  received 

$1,000.  ^     _  ^  .  . 

Mr.  Sinclair.  In  September  of  1957,  did  you  execute  an  assignment 

of  stock  ? 

Mr.  Katz.  In  September?    , 


12092  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Sinclair.  In  September  of  1957. 

Mr.  Katz,  I  don't  think  it  was  in  September, 

Mr.  Sinclair.  Would  this  refresh  your  your  memory  ? 

The  Chairman.  The  Chair  presents  to  you  a  document  for  your 
examination.  See  if  you  can  identify  it,  and,  if  you  do,  whether  it 
refreshes  your  memory  with  respect  to  the  matter  the  counsel  is  in- 
terrogating you  about. 

(The  document  was  handed  to  the  witness.) 

Mr.  Katz,  I  have  this  document.  This  was  not  a  stock  transfer. 
This  was  the  option  to  buy  and  agreement  to  sell. 

The  Chairman.  All  right,  Mr.  Counsel. 

Mr.  Sinclair.  You  recognize  that  document,  do  you  not  ? 

Mr,  Katz,  Yes,  sir. 

Mr.  Sinclair,  That  was  executed  September  26,  1957,  for  the  as- 
signment of  $14,000  worth  of  stock. 

Mr.  Katz.  No  ;  this  isn't  an  assignment.  This  is  an  option  to  buy 
and  an  agreement  to  sell. 

Mr.  Sinclair.  An  option  to  buy  and  an  agreement  to  sell,  $14,000 
worth  of  stock  of  State  Sibley  ? 

Mr,  Katz,  100  shares  of  the  common  stock  of  said  corporation. 

And  one-third  of  all  the  notes  payable. 

Mr.  Sinclair.  On  September  27,  1957,  did  you  receive  a  check  for 
$5,000? 

Mr.  Katz,  I  received  a  check  for  $5,000.  That  may  be  the  date,  I 
don't  recall  the  exact  date. 

The  Chairman.  The  Chair  presents  to  you  a  check  payable  to  you 
on  the  Gary  National  Bank,  Gary,  Ind.,  signed  by  L,  Stillman,  a 
cashier's  check,  dated  September  27, 1957 ;  I  ask  you  to  examine  it  and 
state  if  you  identify  it, 

(The  document  was  handed  to  the  witness.) 

Mr.  Katz,  That  is  the  date  on  the  check.  I  would  think  that  I  re- 
ceived it  on  that  date. 

The  Chairman.  That  check  may  be  made  exhibit  No.  54. 

(The  document  referred  to  was  marked  "Exhibit  No.  54"  for  refer- 
ence and  will  be  found  in  the  appendix  on  p.  12188,) 

The  Chairman,  I  present  to  you  another  check  made  payable  to 
you  on  the  same  bank,  signed  M,  Rutherford,  a  cashier's  check,  in  the 
amount  of  $8,000,  dated  Novemlier  27, 1957.  I  ask  you  to  examine  that 
check  and  state  if  you  identify  it. 

(The  document  was  handed  to  the  witness.) 

Mr.  Katz.  I  don't  recall  your  question,  sir,  but  I  think 

The  Chairman.  State  if  you  identify  that  check,  if  you  received  it. 

Mr.  Katz,  Yes ;  I  received  this  check. 

The  Chairman.  All  right,  that  may  be  made  exhibit  No,  54A. 

(The  document  referred  to  was  marked  "Exhibit  No.  54A"  for  ref- 
erence and  may  be  found  in  the  appendix  on  p.  12189.) 

Mr,  Kknnedy.  This  check  dated  September  27,  1957,  is  a  cashier's 
check,  is  it  not? 

Mr.  Katz.  I  think  it  was,    I  don't  have  the  check  here, 

Mr.  Kennedy,  It  says  that  the  remitter  of  this  check  is  Joseph  E. 
Kopcha  ? 

Mr.  Katz.  I  think  that  is  what  it  says. 

Mr.  Kennedy.  This  is  also  a  cashier's  check  dated  November  27, 
1957,  for  $8,000.    It  states  on  here  from  Gary  National  Bank  that  the 


IMPROPER    ACTIVITIES    IN   THE    LABOR    FIELD  12093 

remitter  is  Joseph  E.  Kopcha.  Was  he  in  fact  the  remitter  of  this 
money  ^ 

Mr.  Katz.  As  far  as  I  know  he  was. 

]Mr.  Kennedy.  Did  this  money  in  fact  come  from  him  ? 

Mr.  Katz.  I  don't  know  who  it  came  from.    I  just  received  the  check. 

Mr.  Kennedy.  Do  you  know  if  a  man,  and  he  is  a  doctor  in  Gary, 
Ind.,  actually  put  up  $14,000  ? 

Mr.  Katz.  1  don't  know. 

Mr.  Kennedy.  Don't  you  know  that  the  money  did  not  come  from 
him? 

Mr.  Katz.  I  don't  know  that ;  no,  sir. 

Mr.  Kennedy.  Well,  you  were  handling  the  negotiations,  you  were 
conducting  and  participating  in  the  negotiations  to  try  to  sell  this 
interest.     Joseph  E.  Kopcha  was  not  involved  in  that ;  was  he  ? 

Mr.  Katz.  Involved  in  the  negotiations  ? 

Mr.  Kennedy.  Yes. 

Mr.  Katz.  Xo  ;  I  negotiated  with  Mr.  Levenberg. 

]\Ir.  Kennedy.  Isn't  it  a  fact  that  the  money  came  from  Mr.  Leven- 
berg ? 

Mr.  Katz.  The  check  came  from  Mr.  Levenberg,  sir. 

Mr.  Kennedy.  What  is  the  explanation,  if  it  came  from  Mr.  Leven- 
berg, what  is  the  explanation  of  putting  Mr.  Joseph  Kopcha 's  name 
on  the  check  ? 

Mr.  Katz.  I  didn't  put  it  on  there,  sir. 

Mr.  Kennedy.  What  was  the  explanation  given  to  you  as  to  why 
the  name  appeared  on  the  check  ? 

Mr.  Katz.  I  never  asked. 

Mr.  Kennedy.  It  would  appear  to  anybody  examining  this  trans- 
action that  this  money  had  come  from  a  man,  a  doctor,  in  Gary,  Ind., 
by  the  name  of  Joseph  E.  Kopcha,  when,  in  fact,  it  didn't  come  from 
him  at  all. 

It  came  from  Mr.  Levenberg,  isn't  that  right  ? 

Mr.  Katz.    I  don't  know. 

Mr.  Kennedy.  You  were  conducting  the  negotiations  with  Mr.  Lev- 
enberg ? 

Mr.  Katz.  That  is  right. 

Mr.  Kennedy.  He  is  the  one  that  said  he  was  going  to  buy  the  inter- 
ests ? 

Mr.  Katz.  Xo;  he  didn't. 

Mr.  Kennedy.  Didn't  he  agree,  ultimately,  and  his  corporation  or 
his  group,  that  they  would  put  up  the  money  ? 

Mr.  Katz.  Xo,  sir ;  not  to  me. 

Mr.  Kennedy.  How  did  you  find  out  that  you  were  going  to  sell 
the  third  interest  ? 

Mr.  Katz.  How  did  I  find  out  ? 

Mr.  Kennedy.  Yes. 

Mr.  Katz.  I  was  negotiating  with  Mr.  Levenberg. 

Mr.  Kennedy.  Didn't  he  finally  agree  to  do  it  ? 

Mr.  Katz.  He  never  represented  that  he  was  dealing  for  himself. 

Mr.  Kennedy.  Who  did  he  say  he  was  dealing  for? 

Mr.  Katz.  Dr.  Kopcha. 

Mr.  Kennedy.  For  Dr.  Kopcha  ? 

Mr.  Katz.  And  a  group. 


12094  IMPROPER    ACTIVITIES    IN   THE    LABOR    FIELD 

Mr.  Kennedy.  He  told  you  Dr.  Kopcha  ? 

Mr.  Katz.  Yes.    He  mentioned  his  name  to  me. 

Mr.  Kennedy.  Who  else  did  he  say  he  was  dealing  for  ? 

Mr.  Katz.  He  didn't. 

Mr.  Kennedy.  He  never  told  you  ? 

Mr.  Katz.  No,  sir. 

Mr.  Kennedy.  He  never  told  you  where  the  money  came  from  ? 

Mr.  Katz.  Nor,  sir.  I  know  where  the  checks  came  from.  I  don't 
know  where  the  money  for  the  checks  came  from. 

Mr.  Kennedy.  Who  did  the  check  come  from  ? 

Mr.  Katz.  Who  gave  me  the  checks  ? 

Mr.  Kennedy.  Yes. 

Mr.  Katz.  Mr.  Levenberg,  to  my  best  recollection. 

Mr.  Kennedy.  Where  did  the  money  ultimately  go  ?  Did  it  say  in 
the  State  Sibley  Corp.  ? 

Mr.  Katz.  No  ;  It  went  to  Mr.  Holovachka. 

Mr.  Kennedy.  The  checks  were  then  made  out  to  Mr.  Holovachka  ? 

Mr.  Katz.  No;  I  think  the  last  check  I  endorsed  directly  to  him, 
and  the  other  check  was  paid  out  through  my  own  personal  trustee  ac- 
count to  him. 

The  Chairman.  I  hand  you  here  an  original  check  made  to  Metro 
M.  Holovachka,  dated  October  29,  1957,  in  the  amount  of  $6,000, 
signed  by  you,  on  the  Gary  National  Bank,  of  Gary,  Ind.  I  ask  you 
to  examine  that  check  and  state  if  you  identify"  it. 

(The  document  was  handed  to  the  witness.) 

Mr.  Katz.  Yes,  sir. 

That  is  the  check  that  I  gave  to  Mr.  Holovachka  on  October  29. 

The  Chairman.  Was  that  out  of  or  part  of  the  proceeds  of  the  other 
checks  here,  the  1  for  $5,000  and  the  1  for  $8,000  ? 

Mr.  Katz.  No.  No;  the  $8,000  check,  I  think,  I  endorsed  directly. 
Or  if  it  was  made  out  to  me  I  may  have  cashed  it  and  gave  it  to  him. 

The  Chairman.  It  is  part  of  the  proceeds  about  the  transaction 
about  which  you  have  been  testifying  ? 

Mr.  Katz.  This $6,000  check? 

The  Chairman.  Yes. 

Mr.  Katz.  Yes,  sir. 

Mr.  Kennedy.  It  is  the  $1,000  in  cash  he  received  plus  the  $5,000  in 
the  check ;  is  that  right  ? 

Mr.  Katz.  Well,  you  said  cash.  I  really  don't  recall  if  that  was 
cash  or  another  check. 

Mr.  Kennedy.  All  right. 

The  first  money  that  was  put  up.    The  $8,000  check 

The  Chairman.  Let  this  check  for  $6,000  be  made  exhibit  55. 

(The  document  referred  to  was  marked  "Exhibit  No.  55"  for  refer- 
ence and  will  be  found  in  the  appendix  on  p.  12190. ) 

Mr.  Kennedy.  This  second  check  of  $8,000  you  endorsed  right  over 
to  Mr.  Holovachka ;  is  that  right  ? 

Mr.  Katz.  I  either  endorsed  it  directly  to  him  or  I  cashed  it  and 
gave  him  the  cash.  He  received  the  proceeds  from  the  check,  I  don't 
recall  exactly  which  of  the  two  I  did. 

Mr.  Kennedy.  So  through  this  transaction,  let  me  understand  this, 
Mr.  Holovachka  had  a  one-third  interest  in  the  State  Sibley  Corp ;  is 
that  right? 

Mr.  Katz.  It  amounted  to  that ;  yes,  sir. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12095 

Mr.  Kennedy.  For  that  one-third  interest,  he  had,  with  two  other 
individuals,  put  up  a  dollar  ? 

Mr,  Katz.  Yes. 

Mr.  Kennedy.  xVnd  he  had  also  invested  some  $12,000;  is  that 
right? 

Mr.  Katz.  Yes,  sir. 

Mr.  Kennedy.  And  this  corporation  had  not  been  successful,  had 
not  been  making  money ;  is  that  correct  ? 

Mr.  Katz.  Well,  I  wouldn't  say  it  had  not  been  successful.  I  would 
say  it  had  not  been  making  any  money. 

Mr.  Kennedy.  Well,  along  the  line  of  business,  success  being 
whether  it  is  making  money,  it  was  not  making  money  at  that  time. 
It  was  not  successful  at  that  time. 

Mr.  Katz.  The  way  you  put  it,  I  suppose  that  would  be  a  correct 
statement. 

Mr.  Kennedy.  So  for  his  interest,  for  which  he  had  paid  either  a 
'dollar  or  33  cents,  he  was  paid  some  $15,000;  is  that  right? 

Mr.  Katz.  No  ;  that  is  not  true  at  all. 

Mr.  Kennedy.  You  explain  it,  then. 

Mr.  Katz.  You  have  explained  it  yourself.  You  said  he  put  in 
$12,000. 

Mr.  Kennedy.  The  $12,000  was  an  investment  that  he  had  made, 
and  the  corporation,  as  I  understand  it,  was  not  making  any  money 
and  was  not  successful  at  that  time. 

Mr.  Katz.  He  was  paid  back  his  investment  plus  a  $2,000  profit  on 
his  investment  or  on  his  loan  to  the  corporation . 

Mr.  Sinclair.  Mr.  Katz,  I  have  before  me  a  statement  of  earnings 
of  the  State  Sibley  Corp.  Isn't  it  true  that  for  the  period  July  1, 1957 
to  September  20,  1957,  the  corporation  lost  $5,000? 

Mr.  IvATz.  Well,  I  don't  know  what  you  are  looking  at,  sir. 

The  Chairman.  I  will  ask  counsel,  where  did  you  obtain  that  state- 
ment? 

Mr.  Sinclair.  Mr.  Katz  supplied  the  statement  to  the  committee. 

The  Chairman.  Mr.  Katz,  did  you  supply  to  the  staff  a  financial 
statement  of  this  corporation  ? 

Mr.  Katz.  I  supplied  them  with  several  documents,  Senator. 

The  Chairman.  I  will  hand  you  this  document  and  ask  you  if  you 
supplied  that  to  the  staff  this  morning. 

(The  document  was  handed  to  the  witness.) 

Mr.  Katz.  Yes ;  I  think  I  did. 

The  Chairman.  What  is  that? 

Mr.  Katz.  This  is  a  balance  sheet  as  of  September  20,  1957,  of  the 
State  Sibley  Corp. 

The  Chairman.  What  does  it  show  with  respect  to  profit  or  loss? 

Well,  that  document  may  be  made  exhibit  No.  56. 

(The  document  referred  to  was  marked  "Exhibit  No.  56"  for  refer- 
ence and  may  be  found  in  the  files  of  the  select  committee.) 

The  Chairman.  INIr.  Katz,  what  does  the  financial  statement  show 
with  respect  to  profit  or  loss  ? 

Mr.  Katz.  I  am  trying  to  find  it,  Senator.  I  don't  see  the  fii::'ii"e  on 
here. 

Mr.  Sinclair.  Under  the  surplus  section  you  will  find  the  figure. 

Mr.  Katz.  On  the  first  page  ? 

21243 — 58— pt.  31 21 


12096  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

Mr.  Sinclair,  Yes. 

Mr.  IvATz.  Do  you  mean  earned  surplus  ?  It  shows  a  figure  here  of 
earned  surplus  $5,005.99. 

Mr.  Sinclair.  Is  that  an  earning  or  deficit  ? 

Mr.  Kl\Tz.  It  shows  earned  surplus.  Well,  I  don't  know  what  it 
it  is.    The  accountant  has  it  as  earned  surplus. 

Mr.  Sinclair.  It  is  earned  surplus,  but  it  is  shown  as  a  deduction 
from  the  capital  stock  account,  which  is  $25,000,  which  would  indi- 
cate that  there  had  been  a  loss  for  that  period.  Do  you  agree  with 
that,  Mr.  Katz  ? 

Mr.  Katz.  Well,  I  don't  know. 

Mr.  Kennedy.  Mr.  Katz,  the  point  was  that  you  had  money  in- 
vested in  this  corporation  which  was  not  successful,  was  it,  during  this 
period  of  time  ? 

Mr.  Katz.  Well,  you  are  trying  to  pin  me  down  to  say  it  was  not 
successful,  Mr.  Kennedy. 

Mr.  Kennedy.  It  was  not  a  financial  success, 

Mr.  Katz.  Well,  it  has  not  been  to  date,  no.  But,  of  course,  we 
realized  that  at  the  time,  when  we  took  it  over.  This  was  an  invest- 
ment. 

Mr.  Kennedy.  It  was  not  a  financial  success.  The  $12,000  that  Mr. 
Holovachka,  and  I  believe  some  of  you  others,  invested  in  it  had  not 
paid  off  as  of  the  middle  of  1957 ;  isn't  that  correct  ? 

Mr.  Katz.  Well,  as  of  the  middle  of  1957  we  didn't  have  that 
mucli  invested,  I  don't  believe. 

Mr.  Kennedy.  Well,  the  money  that  Mr.  Holovachka  had  invested 
was  some  $12,000? 

Mr.  Katz.  Up  to  the  time  he  disposed  of  his  interest,  he  had,  yes, 
sir. 

Mr.  Kennedy.  And  as  of  that  time,  as  of  the  time  he  disposed  of 
his  interest,  tlie  corporation  had  not  been  a  financial  success? 

Mr.  Katz.  I  would  say  up  to  that  time  the  corporation  itself  had 
not  paid  any  dividends.  I  think  if  you  understood  the  nature  of 
the  building  and  of  the  land  that  is  involved  here,  you  would  under- 
stand better  what  I  am  trying  to  say  to  you.  When  we  took  tliis 
building  over,  and  since  Ave  have  taken  it  over,  we  have  lost  several 
tenants,  several  tenants  that  paid  good  rentals  for  various  reasons, 
as  a  result  of  that  the  amount  of  money  that  has  been  coming  in  has 
not  been  sufficient  to  retire  the  building  contract  to  meet  the  annual 
payments  on  the  building  contract  and  maintain  the  operating  ex- 
penses of  the  building. 

As  a  result  of  that,  we  have  had  to  come  up  ourselves  with  additional 
monevs  in  order  to  meet  these  semiannual  payments.  We  have  re- 
duced the  indebtedness  of  tlip  building  on  the  building  itself — and  I 
want  to  ]ioint  out  to  you  at  this  time,  T  am  iroing  to  deviate,  that  the 
building  is  owned  by  one  cor]>oration.  We  have  it  on  a  lease.  I 
believf  Hie  buildinir  itself  has  about  .'^S  years  to  go,  the  building  on 
the  hmd.  and  tlie  land  is  owned  by  another  grou])  for  which  we  ])av 
monthly  land  rent.  We  have  reduced  the  indebtedness  on  the  build- 
ing contract  to  now  where  it  is  slightly  over  $13,000  from  the  $55,000 
that  existed  at  the  time  we  took  it  over. 

Monevs  for  that  Imvo  come  from  the  moneys  that  have  been  taken 
in  and  from  the  additional  moneys  we  have  contributed. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12097 

Tliat  all  goes  into  the  question  of  when  you  say  whether  or  not  this 
has  been  successful  or  not,  I  feel  tliat  it  has  not  been  as  successful  as 
that  could  have  been.  I  still  feel  that  the  building  has  a  tremendous 
potential.  I  don't  feel  that  it  has  not  been  a  success.  I  feel  that  it 
has  the,  possibilities  of  great  success.  It  was  gone  into  strictly  as  an 
investment  for  a  period  of  time. 

Mr.  Kennedy.  Has  it  made  money  since  this  new  group  took  it 
over? 

Mr.  Katz.  Well,  it  has  made  money  in  that  we  have  reduced  the  in- 
debtedness from  $55,000  to  $13,000  on  the  building  contract  and  paid 
the  land  rent  and  maintained  the  building. 

Mr.  Kennedy.  Did  you  know  that  the  money  that  was  put  up  in  the 
name  of  Dr.  Kopcha  actually  came  from  the  1800  Corp.  ? 

Mr.  Katz.  I  don't  know  where  that  monej-  came  from,  sir. 

Mr.  Kennedy.  Can  we  have  this  document  made  an  exhibit,  Mr. 
Chairman  ? 

The  Chairman.  Mr.  Katz,  I  hand  you  here  what  appears  to  be  a 
carbon  copy  of  an  affidavit  entitled  "Seller's  Affidavit  Liabilities." 

It  appears  to  be  dated  the  26th  day  of  November  1957.  I  will  ask 
you  to  examine  it  and  state  if  that  is  a  copy,  or  if  you  recognize  it  as 
a  copy  of  the  original  affidavit, 

(The  document  was  handed  to  the  witness.) 

Mr.  Katz.  I  think  so.  Senator.  I  think  that  is  a  copy  of  the  original 
affidavit. 

The  Chairman.  Did  you  prepare  that  affidavit  ? 

Mr.  Katz.  I  don't  recall  that  I  prepared  it  or  if  it  was  prepared 
at  my  direction. 

The  Chairman.  You  are  familiar  with  it  and  with  its  contents,  are 
you? 

Mr.  ICatz.  Yes,  sir. 

The  Chairman.  That  may  be  made  Exhibit  No.  57. 

(The  document  referred  to  was  marked  "Exhibit  No.  57"  for  refer- 
ence, and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Sinclair.  Mr.  Katz,  did  Mr.  Levenberg  prepare  that  affidavit? 

Mr.  IL\TZ.  I  don't  recall,  sir.  I  don't  recall  if  I  prepared  it  or  if  he 
asked  me  to  prepare  it  or  if  he  prepared  it  or  had  it  prepared. 

The  Chairman.  It  was  an  affidavit  that  was  prepared  and  that  was 
incident  to  and  a  part  of  the  proceedings  conducted  in  the  transfer 
of  this  property  ? 

Mr,  Katz.  That  is  correct. 

Mr.  Sinclair.  Is  it  true  that  this  affidavit  was  prepared  approxi- 
mately 3  months  after  you  had  received  checks  from  the  Kopcha  group 
purchasing  property  ? 

Mr.  Katz.  No,  it  is  not  true.  This  was  prepared  at  the  time  the 
stock  was  transferred,  to  my  best  recollection, 

Mr.  Sinclair.  The  agreement  to  sell  a  one-third  interest  to  this 
Kopcha  group  was  consummated  in  August,  isn't  that  right? 

Mr.  Katz.  You  are  talking  about  the  option  to  buy  and  agreement 
to  sell  ?^ 

Mr.  Sinclair.  That  is  right.     That  was  consummated  in  August, 

Mr.  Katz.  It  was  executed. 

Mr.  SiNci^MR.  And  this  was  prepared  in  November. 

Mr.  Katz.  It  was  executed  in  August  and  the  deal,  I  would  say,  was 
consummated  in  November. 


12098  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  Kennedy.  The  money  passed. 

Mr.  Sinclair.  The  money  passed,  previous  to  that. 

Mr.  Katz.  Not  all  of  the  money,  did  it  ? 

Mr.  Sinclair.  September  27,  1957,  is  the  date  of  the  check  for 
$5,000. 

Mr.  Katz.  That  is  correct,  sir. 

Senator  Curtis.  Mr.  Chairman  ? 

The  Chairman.  Senator  Curtis. 

Senator  Cltitis.  I  would  like  to  ask  a  question  or  two  in  order  that 
I  might  get  this  thing  a  little  more  clearly  in  my  mind.  The  principal 
asset  of  this  corporation  is  the  building ;  is  that  right  ? 

Mr.  Katz.  Correct. 

Senator  Curtis.  What  was  the  indebtedness  in  round  figures  when 
your  group  took  it  over  ? 

Mr.  Katz.  Approximately  $55,000. 

Senator  Curtis.  What  is  the  indebtedness  now  ? 

Mr.  I^Tz.  A  little  over  $13,000. 

Senator  Curtis.  So  the  indebtedness  has  been  decreased  by  $42,000  ? 

Mr.  Katz.  On  the  contract. 

Senator  Curtis.  How  much  of  that  $42,000  indebtedness,  decrease 
in  indebtedness,  could  be  attributed  to  new  money,  new  capital 
brought  in  ?  And  how  much  of  it  has  been  reduced  by  the  rents  or 
the  income  to  the  corporation  ? 

Mr.  I^Tz.  Well,  I  think  we  put  in  $12,000  each.  That  would  be 
$36,000. 

Senator  Curtis.  Contributions  of  capital,  $36,000.  So  by  applica- 
tion of  rents,  or  what  was  left  of  rent  after  you  paid  taxe.s  and  land 
lease,  has  reduced  the  indebtedness  by  $6,000  ? 

Mr.  Katz.  Approximately. 

Senator  Curtis.  In  other  words,  your  equity  in  the  building  has 
increased  by  $6,000? 

Mr.  Katz.  That  is  right.  Senator,  and  that  was  the  basis  that  was 
used  on  the  figure  that  we  thought  we  would  sell  it  at. 

Senator  Curtis.  Have  you  ever  had  it  appraised  ? 
Mr.  Katz.  No,  sir. 

Senator  Curtis.  Do  you  have  an  estimate  of  your  own  as  to  its  mar- 
ket value,  the  building  ? 

Mr.  IvATz.  Just  my  own  opinion. 

Senator  Curtis.  What  is  that  ? 

Mr.  I^Tz.  'My  opinion,  sir,  is  that  this  is  a  valuable  piece  of  prop- 
erty on  a  long-term  basis.  It  is  a  three-story  building,  located  on 
Holoman  Street,  which  is  not  right  downtown  in  the  city  of  Ham- 
mond, but  it  is  the  second  major  street  in  tlie  business  area. 

Senator  Curttis.  Based  on  those  facts,  what  do  you  think  it  is  worth  ? 
The  owner  is  a  qualified  witness  to  place  a  value  on  something.  W^iat 
do  you  think  it  is  worth  ? 

Mr.  Katz.  Well,  the  way  it  stands  now,  the  building  has  a  potential 
that  I  think  would  increase  its  value  greatly.  I  really  am  not  quali- 
fied to  say  what  it  could  be  worth.  I  think  that  the  building,  if  the 
fee  can  be  acquired,  and  it  can  be  acquired  for  a  certain  consideration, 
whoever  owned  the  building  together  with  the  fee  would  have  a  tre- 
mendously valuable  piece  of  property. 

Senator  Curtis.  Well,  what  is  the  value,  in  your  opinion? 
Mr.  Katz.  My  opinion  would  be  a  guess. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12099 

Senator  Curtis.  And  guessing  that  if  it  were  completely  rented 

Mr.  Kennedy.  What  is  the  value,  that  is  the  question. 

Senator  Curtis.  What  do  you  think  the  value  is  ? 

Mr.  Ivj\tz.  I  could  not  give  you  an  estimate. 

Senator  Curtis.  In  other  words,  would  you  sell  it  as  is  for  $55,000  ? 

Mr.  IvATz.  Today  ? 

Senator  Curtis.  Yes. 

Mr.  K!atz.  Well,  I  would  have  in  November,  in  November  of  1957 
I  would  have ;  yes,  sir.     I  agreed  to  sell  it  for  less,  actually. 

Senator  Curtis.  In  other  words,  you  took  the  stock  and  assumed  the 
indebtedness  as  the  purchase  price.  You  think  as  of  last  November 
it  was  worth  the  amount  of  indebtedness  that  it  had  when  you  took  it 
over  ? 

Mr.  'Katz.  I  think  so,  certainly. 

Senator  Curtis.  Do  you  think  that  the  present  value  is  less  or  more 
than  it  was  last  November  ? 

Mr.  IvATz.  Well,  to  me  it  would  be  worth  the  same,  or  maybe  more. 
But  to  somebody  who  had  some  definite  plans  and  who  had  some 
definite  use  for  it,  who  could  take  the  time  and  had  the  ability  to 
develop  it,  it  would  be  worth  a  great  deal  more. 

Senator  Curtis.  I  understand  it  is  your  opinion  that  in  the  long 
pull  its  value  will  increase.  But  do  you  think  you  could  sell  it  now 
for  $55,000? 

Mr.  IvATz,  I  don't  think  we  would  have  any  trouble  at  all. 

Senator  Curtis.  Do  you  think  you  could  get  more  than  $55,000  ? 

Mr.  Katz.  It  would  all  depend  on  the  person  who  would  be  in- 
terested in  it. 

Senator  Curtis.  I  understand.  But  you  have  some  idea  whether 
or  not  you  have  an  asset  there  that  if  you  sold  it  clear  of  indebtedness 
it  would  be  worth 

Mr.  Katz.  I  might  say  to  you  that  I  have  tried  to  interest  other 
j>eople  in  it,  but  I  have  never  found 

Senator  Curtis.  Well,  what  j5gure  did  you  have  in  mind  ? 

Mr.  KLatz.  No  particular  figure  at  all.  The  only  figure  that  I  ever 
had  in  mind  was  the  figure  of  that  $6,000,  and  we  thought  we  ought 
to  make  $2,000  apiece,  because  of  the  difference  between  what  we 
paid  in. 

Senator  Curtis.  In  other  words,  what  you  are  saying  is  if  ^ou 
could  come  out  whole,  if  you  could  recover  your  capital  contribution 
and  $6,000,  on  the  present  market  that  would  be  about  all  you  could  do  ? 

Mr.  Katz.  That  was  our  feeling  in  November:  yes,  sir;  or  Septem- 
ber of  last  year. 

Senator  Curtis.  Thank  you. 

Mr.  Kennedy.  Is  this  worth  anything  at  the  present  time  ? 

Mr.  Katz.  Of  course  it  is. 

Mr.  Kennedy.  It  is  worth  something  ? 

Mr.  Katz.  Certainly  it  is  worth  something. 

M.r  Kennedy.  Well,  when  you  bought  it  it  was  worth  a  dollar.  Is 
it  worth  more  than  that  ? 

Mr.  Katz.  Well,  the  fact  that  I  bought  it  for  a  dollar  doesn't  mean 
that  it  was  worth  a  dollar. 

Mr.  Kennedy.  Well,  you  bought  it  for  a  dollar.  That  is  how  much 
you  paid  for  it. 


12100  IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD 

Mr.  KIatz.  There  were  other  considerations  which  you  know  about. 

Mr.  Kennedy.  Could  you  get  more  than  a  dollar  for  it  at  the  pres- 
ent time  under  ordinary  circumstances  ? 

Mr.  Katz.  Yes,  we  did. 

Mr.  KIennedy.  You  did  on  that  instance,  but  could  you  under  ordi- 
nary circumstances  get  more  than  a  dollar  for  it  ? 

Mr.  Katz.  Certainly. 

Mr.  Kennedy.  Looking  at  the  liabilities,  you  have  notes  payable  to 
the  Merchants  Improvement  Corp.  for  $4,753.56,  is  that  right  ? 

You  have  notes  payable  to  the  Gary  National  Bank  for  $30,000. 
You  have  loans  payable  to  officers  of  $36,000 ;  loans  payable  to  others 
$20,300;  suspenses  $829.90;  making  a  total  of  $91,880.52.  Plus  other 
liabilities  of  $24,000,  current  liabilities  of  $24,798.51. 

The  Chairman.  $24,000? 

Mr.  Kennedy.  $24,798.51. 

The  Chairman.  In  other  words,  there  is  about  $17,000  in  round 
numbers  indebtedness  against  the  property,  in  this  business  ? 

Senator  Curtis.  Understand,  I  am  not  disputing  the  counsel's  word. 
I  am  trying  to  find  out  what  he  said  it  was  worth. 

He  told  me  that  the  indebtedness  was  $13,000  and  then  they  had 
contribution  to  capital  of  $36,000,  which  should  show  an  equity  of 
$6,000. 

Mr.  Katz.  I  didn't  tell  you  that,  sir.  I  told  you  that  the  balance 
on  the  building  contract  approximated  a  little  over  $13,000. 

Mr.  Kennedy.  Isn't  it  a  fact  that  if  somebody  offered  you  a  dollar 
for  your  interest  now  you  would  take  it  ? 

Mr.  Katz.  No,  sir.  * 

Mr.  KJENNEDY.  Mr.  Chairman,  there  are  some  further  facts  that  we 
will  liave  to  develop  on  this,  but  I  would  like  to  put  Mr.  Sinclair  on 
to  develop  where  this  money  came  from. 

Senator  Curtis.  Mr.  Chairman,  may  I  ask  the  counsel  one  question  ? 

The  Chairman.  Yes. 

Senator  Curtis.  What  is  the  total  according  to  the  staff's  figures  of 
the  liabilities  of  this  corporation?  He  has  stated  that  they  only 
have  the  one  asset. 

The  Chairman.  Senator,  this,  as  I  understand  it,  is  the  financial 
statement  that  they  turned  over  to  the  staff. 

Senator  Curtis.  I  understand. 

Mr.  Kennedy.  You  don't  even  have  the  building,  do  you  ? 

You  don't  own  the  building  ? 

Mr.  Katz.  We  are  buying  the  building. 

Mr.  Kennedy.  But  you  just  have  a  lease  on  the  building  at  the 
present  time. 

Mr.  Katz.  No,  we  are  buying  the  building. 

Mr.  Kknnedy.  You  keep  talking  about  the  future. 

Mr.  Katz.  The  building  is  on  property  owned  by  the  Merchants 
Improvement  Corp. 

Mr.  Kennedy.  Therefore,  you  have  a  lease. 

Senator  Curtis.  That  is  on  the  land. 

The  Chairman.  Give  the  Senator  the  total  as  from  this  document 
which  has  been  made  an  exhibit,  the  total  indebtedness. 

Mr.  Kennedy.  Current  liabilities  are  $24,798.51 ;  fixed  liabilities  are 
$91,880.52. 

Senator  Curtis.  By  fixed  liabilities,  that  includes  the  $36,000  con- 
tribution to  capital  ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12101 

Mr.  Kennedy.  Right. 

Mr.  Katz,  didn't  this  group  also  that  came  in  in  the  name  of  Dr. 
Kopcha — in  that  group  didn't  j\Ir.  Holovachka  put  up  some  stock  in 
order  to  get  this  loan  from  the  bank  of  $30,000?  Didn't  he  put  up 
other  stock  of  his  ? 

Mr.  Katz.  "Would  you  repeat  that,  please  ? 

Mr,  Kennedy.  Didn't  Mr.  Holovachka  put  some  stock  as  security 
for  a  loan  from  the  Gary  National  Bank  for  $30,000  ? 

Mr.  Katz.  Yes,  sir. 

Mr.  Kennedy.  And  didn't  this  group  that  came  in  in  the  name  of 
Dr.  Kopcha  take  over  that  security  and  allow  Mr.  Holovachka  to 
Avithdraw  liis  security.  Avithdra w  liis  stock  ? 

Mr.  Katz.  Tliey  didn't  take  over  tlie  securities. 

Mr.  Kennedy.  "Well,  they  replaced  the  security  ? 

Mr.  KjlTz.  I  don't  know  if  they  did. 

Mr.  Kennedy.  Didn't  tlie}'  let  liim  take  over  the  debt?  Did  they 
not  take  over  the  debt  ? 

Mr.  Katz.  I  don't  think  they  did. 

Mr.  Kennedy.  Do  vou  know  anv  transaction  they  had  regarding 
this  $30,000? 

Mr.  Katz.  I  think  I  can  clear  that  up  for  you.  We  executed  a  loan. 
They  arranged  a  loan  for  us  to  pay  off  that  debt. 

Mr.  Kennedy.  So  he  was  able  to  withdraw  this  stock? 

Mr.  Ivatz.  That  is  correct. 

Mr.  Kennedy.  So  they  paid  him  some  $15,000  and  the  money  went 
to  Mr.  Holovachka,  and  also  they  made  arrangements  so  that  he  could 
get  the  use  of  his  stock  once  again  ? 

Mr.  Katz.  I  don't  know  what  $15,000  you  are  talking  about. 

Mr.  Kennedy.  Well,  the  5^^8.000  plus  the  $6,000,  makes  $14,000.  It 
is  $14,000. 

That  is  all. 

The  Chairman.  Mr.  Sinclair,  be  sworn. 

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

Mr.  Sinclair.  I  do,  Senator. 

TESTIMONY  OF  KICHARD  G.  SINCLAIK 

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

Mr.  Sinclair.  My  name  is  Richard  G.  Sinclair.  I  reside  in  Wash- 
ington, D.  C.  I  am  a  member  of  the  professional  staff  of  this  com- 
mittee. 

The  Chairman.  Wliat  is  your  backgi-ound,  briefly,  of  experience? 

Mr.  Sinclair.  I  have  been  with  the  General  Accounting  Office  since 
1030  as  an  accountant  and  an  investigator. 

The  Chaik3Ian.  Some  10  years  you  have  been  following  this  pro- 
fession ? 

Mr.  Sinclair.  Yes,  sir. 

The  Chairman.  Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  Mr.  Prosecuting  Attorney,  Mr.  Holovachka,  made 
an  announcement  on  August  20,  1057,  that  Lake  County,  Ind.,  had  no 
jurisdiction  in  dealing  with  the  Carpenters,  did  he  not? 

Mr.  Sinclair.  He  did. 


12102  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  KJENNEDY.  Was  lie  also  considering  before  the  grand  jury  a 
company  called  the  Norgold  Co.  ? 

Mr.  Sinclair.  He  was  considering  the  transactions  of  the  Norgold 
Corp.,  yes. 

Mr.  Kennedy.  They  were  alleged  to  have  been  involved  in  some 
land  scheme  ? 

Mr.  Sinclair.  Yes. 

Mr.  KJENNEDY.  And  that  was  also  a  matter  to  be  presented  to  the 
grand  jury  ? 

Mr.  Sinclair.  Yes. 

Mr.  Kennedy.  Was  the  Norgold  Corp.,  the  officers  of  the  1300 
Broadway  Corp.  ?    Did  they  own  the  Norgold  Corp.  ? 

Mr.  Sinclair.  They  did. 

Mr.  Kennedy.  Did  the  1300  Broadway  Corp.  sell  to  the  Teamsters  a 
piece  of  property  ? 

Mr.  Sinclair.  The  1300  Broadway  Corp.  in  August  1957  sold  to  the 
Teamsters  a  piece  of  property  for  $40,000. 

Mr.  Ivennedy.  TVHiat  was  the  value  of  the  assessed  tax  value  of 
that  land,  approximately  ? 

Mr.  Sinclair.  The  assessed  value  of  the  property  was  approxi- 
mately $3,800. 

Mr.  Kennedy.  Approximately  $3,800  ? 

Mr.  Sinclair.  That  is  right. 

Mr.  Kennedy.  And  the  Teamsters  paid  $40,000  for  this  land? 

Mr.  Sinclair.  That  is  correct. 

Mr.  Kennedy.  Wliat  is  the  rule  of  thumb  that  you  found  in  the 
State  of  Indiana,  in  that  county,  as  far  as  the  relationship  between 
the  tax  value  and  the  actual  value  ? 

Mr.  Sinclair.  I  understand  that  the  rule  of  thumb  is  that  the 
assessed  value  is  one-third  of  the  sale  value  of  property. 

Mr.  Kennedy.  So  that  would  make  the  land  worth  about  $12,000 ; 
is  that  right  ? 

Mr.  Sinclair.  Approximately. 

Mr.  Kennedy.  Did  you  also  have  an  appraisal  made  of  that  piece 
of  property  ? 

Mr.  Sinclair.  I  did  have  an  appraisal  made  of  this  property. 

Mr.  Kennedy.  Do  you  have  a  copy  of  that  letter  ? 

Mr.  Sinclair.  Yes,  I  have  it. 

Mr.  Kennedy.  How  big  was  this  piece  of  property  that  was  pur- 
chased ? 

Mr.  Sinclair.  According  to  the  testimony  before  the  committee 
the  property  contains  approximately  10  acres. 

The  appraiser  however  estimated  the  property  to  contain  between 
12  and  15  acres. 

Mr.  Paul  Schleicher,  Sr.,  of  the  firm  Paul  Schleicher  &  Sons,  Build- 
ers, Developers,  and  Contractors,  and  located  in  Gary,  Ind.,  area  for 
many  years,  looked  at  this  property  on  June  23,  and  this  is  what  he 
said  about  it. 

Senator  Curtis.  June  23  this  year? 

Mr.  Sinclair.  Yes,  Senator,  June  23  of  this  year. 

This  statement  is  directed  to  me  as  a  member  of  the  professional 
staff  of  this  committee. 


IIVIPROPER    ACTIVITIES    IN    THE    L-\BOR    FIELD  12103 

At  your  request  we  have  looked  at  the  property  located  in  the  Lakewood  sub- 
division in  Gary,  Ind.,  and  further  located  between  Clark  Road  on  the  East, 
Mount  Street  on  the  west,  13th  Avenue  on  the  north  and  15th  Avenue  on  the 
south. 

The  area  that  we  have  mentioned  and  which  is  included  in  the  quarter  section 
map  as  displayed  to  us,  shaded  in  red,  appears  to  contain  approximately  14-15 
acres.  We  are  pleased  to  confirm  our  verbal  statements  to  you  that  if  we  were 
to  have  an  opportunity  to  purchase  this  land  merely  for  speculative  purposes,  we 
would  consider  it  to  have  a  value  of  approximately  $500  an  acre.  But  on  the 
other  baud,  if  we  had  a  program  just  for  developing  and  building  on  this  land 
we  would  be  willing  to  pay  as  high  as  $1,200  an  acre. 

Our  experience  in  building  and  subdivision  development  dates  back  to  1939. 

This  is  signed  by  Paul  E.  Shcleicher. 

Mr.  Kennedy.  So  if  there  was  considered  to  be  about  10  acres,  the 
maximum  value  of  that  land  would  be  about  $12,000? 

Mr,  Sinclair.  Provided  there  was  a  program,  Mr.  Kennedy. 

Mr.  IvENNEDY.  And  if  it  was  a  larger  piece,  if  it  was  a  larger  acre- 
age, the  maximum  value  would  be  about  $18,000,  the  maximum  value, 
is  that  right  ? 

Mr.  Sinclair.  That  is  correct. 

Mr.  Kennedy.  And  yet  the  Teamsters  paid  for  this  some  $40,000  ? 

Mr.  Sinclair.  Yes,  the  Teamsters  paid  $40,000. 

Mr.  Kennedy.  Now  that  is  that  transaction.  The  1300  Corp.,  as  we 
say,  the  officers  there  are  the  same  as  the  Norgold  Corp.,  right  ? 

Mr.  Sinclair.  Norgold  Corp.  is  affiliated  with  the  1300  Broadway 
Corp.,  yes. 

Mr.  Kennedy.  Were  you  able  to  find  out  and  trace  where  the 
money  that  was  transferred  in  the  name  of  Dr.  Kopcha  actually  came 
from  ? 

Mr.  Sinclair.  Yes,  according  to  an  officer  in  the  Norgold  Corp. 
they  put  up  the  money  for  Dr.  Kopcha.  They  supplied  the  funds  that 
were  paid  to  Mr.  Metro  Holova.chko. 

Mr.  Kennedy.  And  did  you  interview  Dr.  Kopcha  ? 

Mr.  SiNCLiViR.  I  did. 

Mr.  I\JENNEDY.  And  did  Dr.  Kopcha  tell  you  at  that  time  that  he 
had  not  put  up  any  money  in  this  transaction  ? 

Mr.  Sinclair.  'He  first  told  me  he  had  put  up  $5,000  in  the  trans- 
action.   He  later  told  me  he  did  not  have  a  dime  in  this  transaction. 

Mr.  Kennedy.  The  last  interview  was  that  he  had  not  put  up  any 
money  ? 

Mr.  Sinclair.  That  is  correct. 

Mr.  Kennedy.  And  this  money,  according  to  what  the  officer  of  the 
1300  Corp.  told  you,  this  money,  in  fact,  came  from  them ;  is  that  right? 

Mr.  Sinclair.  That  is  correct. 

Mr.  Kennedy.  And,  ultimately,  ended  up  with  Mr.  Holovachka? 

Mr.  Sinclair.  It  went  to  Mr.  Holovachka. 

Mr.  Kennedy.  And  it  was  the  interest  for  Mr.  Holovachka  which 
he  had  paid  either  a  dollar  or  33i/^  cents,  is  that  right,  that  they 
secured  ? 

Mr.  Sinclair.  That  is  right. 

Mr.  Kennedy.  The  facts  speak  for  themselves,  Mr.  Chairman. 

The  Chairman.  Is  there  anything  further  ? 

If  not,  thank  you.    Call  your  next  witness. 

Mr.  I^nnedy.  Mr.  Hutcheson. 


12104  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

TESTIMONY  OF  MAURICE  A.  HUTCHESON,  ACCOMPANIED  BY 
ATTORNEYS  HOWARD  TRAVIS  AND  F.  JOSEPH  DONOHUE— 
Resumed 

The  Chairman.  Let  the  record  show  that  Mr.  Donohue  also  appears 
as  counsel  for  Mr.  Hutcheson,  with  Mr.  Travis. 

Mr.  Travis.  May  Mr.  Donohue  finish  reading  my  preliminary 
statement,  please  ? 

The  Chairman.  Well,  let's  move  along,  or  you  can  -pvLt  it  into  the 
record.   We  are  going  to  proceed  as  we  did  yesterday. 

Mr.  Donohue.  It  is  not  very  long,  Senator. 

The  Chairman.  Proceed. 

Mr.  Donohue.  I  respectfully  submit  that  this  committee  should  not 
undertake  to  elicit  from  this  witness,  and  is  without  authority  to 
attempt  to  elicit  from  this  witness,  ar.y  matters  related  or  which  might 
be  related  to  such  personal  transactions,  or  which  could  be  used  or 
might  be  attempted  to  be  used  as  evidence  or  as  a  means  of  obtain- 
ing evidence  in  aid  of  the  prosecution  of  such  indictment. 

For  these  reasons,  I  respectfully  request  the  chairman  to  rule  that 
interrogations  of  such  character  are  not  pertinent,  and  are  outside 
the  scope  of  proper  inquiry.  If  such  ruling  is  not  made,  then  I  must 
respectfully  protest  the  making  of  any  such  interrogation,  and  shall 
feel  bound  to  advise  the  witness  to  refuse  to  answer  on  the  grounds 
which  I  have  stated. 

Inasmuch  I  cannot  foresee  the  interrogations  which  ma}-  be  made, 
I  also  respectfully  request  that,  if  any  interrogations  are  not  intended 
to  relate  to  the  matters  wdiich  I  have  stated,  I,  or  the  witness,  be  as- 
sured of  that  fact  in  order  that  the  witness  may  not  be  put  unwillingly 
in  the  position  of  waiving  any  right  by  reason  of  being  unaware  and 
unadvised  of  the  topic  of  inquiry,  and  the  connective  reasoning  where- 
by the  precise  questions  asked  related  to  it. 

The  Chaikman.  All  right.  We  will  proceed  as  we  did  on  yesterday, 
when  Mr.  Blaier  was  on  the  stand.  If  there  is  any  issue  raised  by 
counsel  with  respect  to  the  jurisdiction  of  the  committee  or  the  pro- 
priety of  the  questions,  M^e  will  rule  on  them  as  we  go  along. 

Proceed. 

Mr.  Kennedy.  Mr.  Hutcheson,  you  have  been  general  president  of 
the  Brotherhood  of  Carpenters  for  how  long? 

Mr,  Hui'cheson.  January  1, 1952. 

Mr.  Kennedy.  Were  you  elected  at  that  time  ? 

Mr.  Hui^cHESON.  I  was  first  vice  president  at  that  time,  and,  when 
the  former  genei-al  president  resigned  and  became  emeritus,  I  auto- 
matically became  general  president  under  the  constitution  of  our  or- 
ganization. 

Mr.  Kennedy.  How  had  you  become  first  vice  president  ? 

Mr.  Hutcheson.  I  was  appointed  in  1938. 

Mr.  Kennedy.  By  whom  ? 

Mr.  Hutcheson.  By  the  general  president. 

Mr.  Kennedy.  Who  was  the  general  president  ? 

Mr.  Hutcheson.  William  L.  Hutcheson. 

The  Chairman.  That  was  your  father  ? 

Mr.  Hutcheson.  Yes,  sir. 

Mr.  Travis.  Could  I  have  the  lights  turned  off  again,  Senator  Mc- 
Clellan? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12105 

The  Chairman.  Yes.  Does  your  constitution  provide  that  the  pres- 
ident of  your  union  may,  in  effect,  appoint  his  successor? 

Mr.  HuTCHESON.  When  tliere  are  vacancies,  the  general  president 
appoints,  subject  to  the  approval  of  the  general  executive  board. 

The  Chaieman.  So,  instead  of  there  being  an  election  for  general 
president,  it  can,  and  has  been,  in  effect,  handed  down  from  father 
to  son? 

Mr.  HuTCHESON.  Xo,  sir;  that  is  not  correct.  The  constitution  is 
very  clear  on  how  the  officers  shall  be  elected  and  the  vacancies  filled. 

The  Chairman.  Does  it  so  provide  ?  I  mean,  it  can  so  operate  and 
did  so  operate,  I  believe,  in  this  instance,  but  you  say  with  the  approval 
of  the  executive  board.  It  did  so  operate  in  this  instance  that  the 
presidency  was,  in  effect,  handed  down  from  father  to  son. 

Mr.  HuTCHESON.  Sir,  I  did  not  become  president  until  1952,  and 
I  became  general  president  automatically  through  the  constitution 
provisions  of  the  first  general  vice  president. 

The  Chairman,  Mr.  Hutcheson,  that  is  what  I  am  trying  to  estab- 
lish here.  One  of  the  primary  purposes  of  these  investigations  is  to 
determine  what  the  situation  is  in  management-labor  relations  and, 
also,  with  respect  to  the  internal  affairs  of  unions,  with  a  view  of  con- 
sidering legislation  that  might  be  needed  to  correct  some  conditions, 
some  things  that  we  might  regard  as  improper  practices. 

It  has  intrigued  me  that  a  man  can  become  president  of  a  great 
organization  like  this  simply  by  having  been  designated  as  such  by 
the  general  president.  Just  forget  the  relationship  for  the  moment 
between  you  and  your  father.  But  assume  he  had  designated  John 
Doe  in  the  way  he  designated  his  son,  and,  upon  his  passing  away,  you 
automatically  became  president.  What  I  wanted  to  point  out  was 
that  the  membership,  the  dues-paying  members,  under  your  consti- 
tution had  no  opportunity  to  vote  upon  you  as  first  vice  president, 
or  whatever  you  were  appointed  to,  did  they  ? 

Mr.  Hutcheson.  I  beg  your  pardon,  Senatoi-.  I  was  appointed  in 
1938,  and  I  got  elected  in  1940,  and  again  in  1946,  and  in  1950,  and 
I  was  elected  general  president  in  1954. 

The  Chairman.  Then  you  have  been  elected  ? 

Mr.  Hutcheson.  Yes,  sir. 

The  Chairman.  I  didn't  quite  understand.  That  is  why  I  wanted  to 
get  it  clear.  We  are  interested,  of  course,  in  democratic  processes  in 
the  election  of  officials  of  unions.  I  got  the  impression  from  what  you 
said,  and  that  is  why  I  wanted  to  clear  it  up,  that  the  office  just  in  effect 
had  been  handed  to  you. 

Proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  You  say  you  were  elected  in  1938.  Did  you  have 
opposition  in  1938  ? 

Mr,  Hutcheson.  In  1940. 

Mr.  Kennedt.  Did  you  have  opposition  in  1940  ? 

Mr.  Hutcheson.  No.     I  did  not  have. 

Mr.  Kennedy.  Wlien  were  you  elected  the  next  time  ? 

Mr.  Hutcheson.  1946. 

Mr.  Kennedy.  Did  you  have  opposition  ?    1946  ? 

Mr.  Hutcheson.  Yes,  sir,  I  had  opposition  in  1946. 

Mr.  Kennedy.  Wlio  was  the  opposition  then  ? 


12106  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  HuTciiESON.  From  Oklahoma  City.  Meyers,  I  believe  his 
name  was. 

Mr.  Kennedy.  Wlien  was  the  next  time  you  were  elected  ? 

Mr.  HuTCHESON.  1950. 

Mr.  Kennedy.  Did  you  have  opposition  then  ? 

Mr,  HuTCHESON.    No,  sir. 

Mr.  Kennedy.  Then  you  were  elected  general  president  in  1954? 

Mr.  HuTCHESON.  1954. 

Mr.  Kennedy.  Did  you  have  opposition  then  ? 

Mr.  HuTCHEsoN.  No,  sir. 

Mr.  Kennedy.  How  long  have  you  known  Mr.  Max  Haddock? 

Mr.  Travis.  At  this  point,  Mr.  Counsel,  is  your  line  of  questioning 
going  to  be  as  it  was  yesterday,  relating  to  the  book  rather  than  the 
Lake  County  transactions  ? 

Mr.  Kennedy.  Mr.  Kaddock  is  not  under  indictment  in  any  con- 
spiracy with  Mr.  Hutcheson.  I  am  just  going  to  ask  Mr.  Hutcheson 
about  his  relationship  with  Mr.  Raddock. 

The  Chairman.  Let  the  Chair  say  this :  I  have  gone  into  the  matter 
a  little  to  ascertain  where  the  line  of  questioning  may  go.  He  will 
be  interrogated  regarding  the  book.  He  will  also  be  interrogated  re- 
garding the  use  of  union  funds  in  a  project  which,  on  the  face  of  it 
at  least,  appears  to  have  the  objective  which  was  to  obstruct  justice. 

So  he  will  be  interrogated  about  those  things.  As  to  any  act  cov- 
ered in  the  indictment  for  the  period  of  which  the  crime  is  alleged  in 
the  indictment,  he  will  not  be  interrogated.  But  the  matters  that  he 
will  be  interrogated  about  are  subsequent  to  the  time  that  the  offense 
in  the  indictment  was  charged. 

All  right. 

Mr.  Kennedy.  How  long  have  you  known  Max  Raddock  ? 

The  CiiAiRiMAN.  And  it  is  not  something  for  which  he  is  now  under 
indictment.  ^1 

Mr.  Hutcheson.  I  don't  know  the  exact  number  of  years,  but  I  have 
known  him  for  some  time. 

Mr.  Kennedy.  Can  you  explain  to  the  committee  why  you  paid  him 
the  extra  $50,000,  which  ultimately  amounted  to  $25p,o60,  without  him 
producing  any  books  on  the  book  that  he  was  writing  and  producing 
on  your  father  ? 

Mr.  Hutcheson.  'V\Tiich  item  is  that  ? 

Mr.  Kennedy.  That  would  be  starting  on  March  31, 1955  ? 

Mr.  Hutcheson.  1955. 

Mr.  Kennedy.  Yes.  It  was  agreed  that  you  would  pay  him  $100,- 
000,  and  he  was  to  produce  the  56,000  books.  Wliy  did  you  pay  him 
this  $50,000  prior  to  the  time  that  he  produced  any  of  the  books? 

Mr.  Hutcheson.  That  is  the  first  item  ? 

Mr.  Kennedy.  You  paid  him  $25,000  to  write  and  furnish  6,000 
copies  of  the  book  by  November  1954,  This  he  failed  to  do.  Despite 
that  fact  you  paid  him  another  $25,000  in  May  of  1954.  Then  you 
wanted  50,000  more  books  and  it  was  decided  to  give  him  $200,000  for 
that. 

You  paid  him  $50,000  on  January  81, 1955;  another  $50,000  on  Feb- 
ruary 14,  1955,  and  it  was  the  understanding  that  he  wouldn't  receive 
the  second  installment  of  the  $100,000  until  after  he  had  produced  the 
books.  But  despite  that,  on  March  31,  1955,  vou  grave  him  another 
$50,000.    Why  did  you  do  that  ? 


IMPROPKR    ACTn'ITIES    ES'    THE    LABOR    FIELD  12107 

Mr.  HuTCHESON.  I  did  not  give  him  the  check  you  referred  to,  and 
if  you  will  check  the  endorsement  on  that  check,  I  think  you  will  find 
that  he  did  not  receive  it  until  the  end  of  November  or  the  first  of 
December  of  that  year, 

Mr.  Kennedy.  This  check  ? 

Mr.  HuTCHESON.  Yes. 
"     Mr.  Kennedy.  Why  was  it  made  out  on  March  31, 1955? 

Mr.  HuTCiiEsoN.  Sir,  I  can't  answer  that. 

Mr.  Kennedy.  Then  let's  go  to  Xovember  31,  1955.  Why  did  you 
give  him  the  $50,000  there  ? 

Mr.  Hutcheson.  1  was  not  present  when  that  check  was  given  to 
liim.  The  committee  that  was  handling  this  transaction  had  the  au- 
thorization, and  it  was  my  understanding  that  they  anticipated  that 
the  contract  would  be  filled  as  provided  for  on  March  31,  and  were 
then  prej^ared  to  take  care  of  it. 

Mr.  IvENNEDY.  Will  you  tell  the  committee  why — this  is  a  period 
of  time  when  you  were  general  president — you  paid  him  $250,000  to 
produce  56,000  books  and  the  most  he  produced  some  2  years  later 
were  5,000  books  ? 

Mr.  Hutcheson,  Mr.  Kennedy,  this  whole  transaction  has  been 
handled  by  our  general  executive  board,  and  because  of  my  relation- 
ship I  have  been  reluctant  to  get  into  it. 

Mr.  Kennedy.  You  are  international  president,  Mr.  Hutcheson  ? 

Mr.  Hutcheson,  I  am  international  president,  that  is  correct,  and 
the  general  executive  board,  when  the  book  was  completed,  felt  very 
well  satisfied  with  the  project. 

Mr.  Kennedy.  Who  is  chairman  of  the  executive  board  i 

Mr.  Hutcheson.  I  am. 

Mr.  Kennedy.  Don't  you  think  you  have  some  responsibility  as 
chairman  of  the  executive  board  and  international  president,  to  be 
giving  somebody  like  Mr.  Raddock  $250,000  and  getting  nothing  in 
return  ? 

Mr.  Hutcheson.  I  most  assuredly  do,  and  I  try  to  respect  my  re- 
sponsibility in  every  way. 

Mr.  Kennedy.  What  about  this  February  24,  1956  ?  What  was  the 
$50,000  for? 

Mr.  Hutcheson.  That  $50,000  was  for  additional  books,  and  I  au- 
thorized that  myself. 

Mr.  Kennedy,  For  how  many  books  were  you  going  to  get? 

Mr.  Hutcheson.  Well,  as  I  told  you,  when  you  interviewed  me  be- 
fore, there  was  no  definite  commitments  on  it.  There  was  a  discussion 
as  to  production  of  the  cheaper  book,  but  at  that  time  there  was  no 
conclusion  reached.    I  assumed  it  was  for  10,000  books. 

Mr.  Kennedy.  At  $5  a  copy  ? 

Mr.  Hutcheson.  Yes,  sir. 

Mr.  Kennedy,  Why,  during  all  of  this  period — did  you  ever  go 
to  any  other  book  publisher  to  find  out  how  much  it  would  cost  to 
produce  a  l)ook  ? 

Mr.  Hutcheson.  No,  I  didn't  personally  do  that. 

Mr,  Kennedy,  Don't  you  think  you  had  that  responsibility?  Would 
you  tell  the  committee  why,  when  they  produced  5,000  books,  a  verv 
limited  amount,  you  paid  him  another  $50,000  to  produce  10,000  books 
at $5  a  copy? 


12108  IMPROPER    ACTIMTIES    IN    THE    LABOR    FIELD 

Mr.  HuTCHESON.  I  did  not  realize  that  the  books  had  not  been 

Erinted.    We  knew  they  were  in  the  process  and  we  thought  they  were 
eing  mailed  out.    This  is  an  additional  item. 

Mr.  Kennedy.  But  you  ah-eady  paid  him  $250,000  ? 

Mr.  HxjTCHESON.  Yes,  sir. 

>Mr.  Kf:NNEDY.  And  you  gave  him  another  $50,000,  making  it 
$300,000? 

Mr.  HuTCHEsoN.  Yes,  I  did. 

Mr.  Kennedy.  It  wasn't  your  money. 

Mr.  HuTCHESON.  I  did  it  under  authorization  of  our  general  execu- 
tive board,  because  we  were  preparing  for  our  75th  anniversary. 

Mr.  E^ENNEDY.  Don't  you  know  you  can  buy  a  book  in  a  bookstore 
for  $4.50  or  $5.  Didn't  you  realize  that  you  didn't  have  to  pay  $5  a 
book  when  you  were  buying  it  wholesale  ? 

You  were  producing  the  book. 

Mr.  HuTCHESON.  Well,  Mr.  Kennedy,  I  don't  set  the  price  of  books. 
I  don't  know  how  the  price  is  established. 

Mr.  Kennedy.  Don't  you  have  one  of  the  largest  book  publishers 
right  across  the  street  from  the  International  Brotherhood  of  Car- 
penters in  Indianapolis  ? 

Mr.  HuTCHESON.  I  have  never  seen  them. 

Mr.  Kennedy.  You  have  them  three  or  four  blocks  down  the  street, 
then. 

Mr.  HuTCHESON.  I  don't  know  who  the^  are. 

Mr.  Kennedy.  Did  you  ever  confer  with  anybody  in  Indianapolis 
as  to  how  much  a  book  would  cost  ? 

Mr.  HuTCHESoN.  I  did  not,  sir. 

Mr.  Kennedy.  Did  you  ever  confer  with  anyone  to  see  how  much 
it  would  cost  ? 

Mr.  HuTCHESON.  I  did  not,  sir. 

Mr.  Kennedy.  Did  anyone  in  the  Brotherhood  of  Carpenters? 

Mr.  Htjtcheson.  I  don't  know. 

Mr.  Kennedy.  On  January  9, 1957,  you  gave  him  another  $10,000  ? 

Mr.  HuTCHESON.  Yes,  that  was  after  Mr.  Fisher  had  died,  and  the 
bill  came  into  the  office.  I  had  no  way  of  knowing  how  Mr.  Fisher 
had  arranged  for  it,  so  I O.  K.'d  that  bill  to  be  paid. 

Senator  Cttrtis.  Mr.  Chairman,  I  would  like  to  ask  a  question.  How 
are  expenditures  made  by  the  Carpenters'  Union  ? 

Mr.  Hutciieson.  For  what.  Senator  ? 

Senator  Curtis.  Do  you  have  vouchers?  '\Ylio  signs  the  checks? 
How  do  you  handle  an  expenditure  ? 

Mr.  HuTCHESON.  Well,  it  would  depend  on  the  type  of  expenditure. 
The  regular,  ordinary  expenses  go  through  the  secretary  and  the 
general  treasurer. 

Senator  Curtis.  And  who  signs  the  checks  ? 

Mr.  Hutciieson.  The  treasurer  and  then  there  are  three  cosigners 
who  are  eligible  to  sign  it. 

Senator  Curtis.  Wiio  are  those  three  cosigners,  what  officers? 

Mr.  IIuTC^HKsoK.  Myself,  the  first  general  vice  president,  and  the 
general  secretary. 

Senator  Citrtis.  How  much  was  the  total  expenditure  made  for 
writing  of  this  book  ? 

Mr.  ITuTciiKsoN.  Woll,  according  to  the  chart  liere,  it  is  $25,000  that 
was  irivon  for  research  would  be  the  total  amount. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12109 

Senator  Curtis.  The  research  and  the  writing.  Wliat  does  it  all 
total? 

Mr.  Hui'CHESON.  Well,  all  other  items  include  a  certain  number  of 
books,  Senator. 

Senator  Curtis.  Yes.  And  how  much  does  that  amount  to  ?  The 
grand  total  on  this  book  project  is  what  ? 

Mr.  HuTCHEsoN.  $310,000. 

Senator  Curtis.  $310,000. 

From  what  account  in  the  Carpenters  International  would  this  be 
paid  ?    Your  general  account  ? 

Mr. HuTCHESON.  Sir? 

Senator  Curtis.  From  what  account  was  this  $310,000  paid?  Was 
it  your  general  account  ? 

Mr.  Hutciieson.  From  the  general  fund ;  yes,  sir. 

Senator  Curtis.  And  that  is  made  up  from  the  remissions  that  are 
made  by  local  carpenters'  unions  ? 

Mr.  Hutciieson.  Yes,  sir. 

Senator  Curtis.  W^at  determines  how  much  money  they  contribute 
to  the  international  ? 

Mr.  HuTCHESON.  The  local  unions? 

Senator  CuTiTis.  Yes. 

Mr.  HuTCHESON.  The  per  capita  tax  ? 

Senator  Cirtis.  Yes,  tlie  per  capita  tax. 

Mr.  HuTCHESox.  The  membership  decides  themselves  on  a  per  capita 
tax.   At  the  present  time  it  is  $1.25. 

Senator  Curtis.  How  often  ? 

Mr.  HuTCHESON.  A  month. 

Senator  Curtis.  But  it  is  the  same  for  all  local  unions  ? 

Mr.  HuTCHEsoN.  No.  No,  sir.  We  have  two  diflferent  statutes  of 
local  unions,  what  is  known  as  beneficial  local  unions  paying  $1.25, 
and  a  semibeneficial  local  union  pays  65  cents. 

Senator  Curtis.  Wliat  is  the  difference  ? 

Mr.  HuTCHESON.  The  difference  is  in  the  funeral  donations  and  home 
and  pension  benefits. 

Senator  Curtis.  Those  that  share  in  what  might  be  determined 
fi'inge  benefits  pay  $1.25  and  the  others  pay  65  cents? 

Mr.  HuTCHESOx.  That  is  right,  sir. 

Senator  Curtis.  That  is  per  member  of  the  local  ? 

Mr.  HuTCHESON.  That  is  right,  sir. 

Senator  Curttk.  Not  all  of  your  membership  is  voluntary;  is  it? 

Mr.  HuTCHESON.  It  couldn't  be  any  other  way,  Senator. 

Senator  Curtis.  Aren't  there  situations  where  men  are  required 
to  belong  to  the  Carpenters'  I^'^nion  in  order  to  go  on  a  job  or  stay  on 
a  job? 

Mr.  HuTCHESON.  Well,  I  suppose  there  is  where  union-shop  agree- 
ments are  in  effect,  and  they  Avould  be  required  to  follow  out  the  pro- 
visions of  the  contract. 

Senator  Curtis.  You  ha^e  a  number  of  union  shop  agreements;  do 
you  not  ? 

Mr.  HuTCHESON.  Yes. 

Senator  Curtis.  The  point  I  wish  to  bring  out  for  the  record  is 
■this:  That  a  voluntary  association  certainly  could  spend  any  money 
-that  the  proper  body  or  the  membership  itself  decided  to  spend  on  a 


12110  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

book  about  a  president  or  a  history  of  the  organization,  but  I  seriously 
question  the  right  of  any  organization  to  spend  money  for  other  than 
the  collective  bargaining  purposes  where  their  membership,  in  part, 
is  maintained  under  a  requirement  that  men  must  pay  it  in  order 
to  hold  their  job. 

So  separate  and  apart  from  whether  or  not  the  arrangements  with 
Mr.  Raddock  were  wise  and  prudent  trusteeship,  I  further  raise  the 
question  of  the  right  to  compel  individuals  who  may,  over  a  long  pe- 
riod of  time  or  for  a  short  period  of  time,  have  to  contribute  a  part 
of  the  $310,000  for  a  book. 

Mr.  HuTCHESON.  Well,  sir,  our  general  executive  board  was  under 
directions  from  our  general  convention  of  1954,  directing  that  they 
see  to  it  that  a  sufficient  number  of  books  were  purchased  and  given 
proper  distribution.  The  general  executive  board  in  going  into  the 
project,  and  after  being  directed  by  the  convention,  felt  that  they 
were  required  to  carry  out  the  directive  issued  to  them. 

Senator  Curtis.  One  of  the  arguments,  and  the  principal  argument, 
as  I  see  it,  given  for  compulsory  unionism  and  the  union  shop  is  that 
every  man  should  pay  a  part  of  the  cost  of  the  collective-bargaining 
expenses  and  the  gains  that  he  gets  in  wages  and  other  benefits,  and 
that  there  shouldn't  be  any  free  riders. 

That  argument  is  freely  made.  But  I  can't  see  any  argument  for 
collecting  dues  from  people  who  are  required  to  join  an  organization 
or  lose  their  job,  and  collecting  them  in  the  amounts  that  call  for  items 
of  travel  to  Europe,  such  as  we  have  here,  and  the  purchase  of  citrus 
groves,  and  expenditures  of  $310,000  on  books  about  a  late  president 
of  the  organization. 

I  seriously  question  both  the  moral  and  legal  right  for  such  ex- 
penditures. 

Mr.  HuTCHESOX.  Well,  sir,  our  general  executive  board  and  I  am 
sure  the  convention  felt  the  same  way,  that  it  would  make  good  public 
relations  to  circularize  this  book.  Others  pay  certain  amounts  for 
public  relations  and  we  felt  that  this  was  our  way  of  making  out* 
contribution.  We  have  not  had  one  single  complaint  from  any  mem- 
ber in  respect  to  this  project. 

Senator  Curtis.  That  is  all,  Mr.  Chairman. 

Senator  ER\^N.  I  would  advise  the  next  time  j'ou  go  into  a  project 
like  that  you  sort  of  look  around  and  invite  a  little  com])etition.  The 
evidence  before  this  committee  indicates  very  strongly  that  you  could 
have  gotten  this  book  written  by  the  foremost  historian  in  the  United 
States  for  far  less  money. 

Mr.  HuTCiiESON.  Sir,  I  am  not  qualified  to  judge  that. 
Senator  Ervix.  That  is  the  reason  you  ought  to  do  a  little  inves- 
tigating befoi'e  you  commit  yourself  to  the  writing  of  a  book  by  one 
man  without  looking  around  and  trying  to  find  out  about  some  other 
folks  to  have  charge  of  the  writing  and  publication.  In  other  words, 
frankly,  the  evidence  indicates  that  your  board  was  about  as  inex- 
perienced in  matters  like  tliis  as  it  is  in  the  practice  of  medicine  and 
surgery,  or  sending  sputniks  into  the  stratosphere. 

Mr.  IfuTcnEsox.  I  don't  think  they  are  experienced  in  it,  Senator. 
I  would  have  to  agree  Avith  you. 

Senator  Ervin.  p]x('ei)t  now  T  think  you.  are.  Which  reminds  me  of 
these  two  nien  that  went  into  business  down  in  my  country,  and  the 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12111 

business  wound  up  with  one  of  them  having  the  business.  I  was 
talking  to  the  fellow,  one  of  the  members  who  had  been  ousted,  and 
he  said  Avhen  he  Avent  into  the  business  with  this  man,  that  he  fur- 
nished the  capital  and  the  other  fellow  furnished  the  experience,  and 
he  said  "Now  this  fellow  has  tlie  capital  and  I  have  the  experience." 

Mr.  Kennedy.  Did  it  ever  concern  you,  JMr.  Hutcheson,  that  this 
book  was  not  being  produced  on  schedule  ? 

Mv.  ITuTciiESON.  I  beg  your  pardon  ? 

Mr.  Kennedy.  Did  it  ever  concern  you  that  this  book  was  not  being 
produced  on  schedule  ? 

Mr.  Hutcheson.  Ye?-.  We  Avere  all  concerned,  because  we  were  in- 
terested in  having  production  and  getting  it  out  into  circulation. 

]Mr.  Kennedy.  Then  Avhy  did  j'ou  keep  giving  him  more  money, 
wdien  you  were  concerned  ? 

Mr.  PIuTCHESON.  Well,  I  am  sure  that  Secretary  Fisher,  and  I  know 
I  was  myself,  felt  that  the  book  was  being  published  and  was  being 
mailed  out  in  the  proper  time. 

Mr.  Kennedy.  When  was  it  in  fact  that  you  found  that  the  book 
was  not  being  mailed  out  ? 

lyir.  PIuTCHESON.  In  1957  I  received  information  at  that  time  that 
the  book  was  being  distributed  very  slowly. 

Mr.  Kennedy.  How  did  you  find  that  out  ? 

Mr.  Hutcheson.  I  had  a  survey  made  in  the  State  of  Indiana. 

]Mr.  Kennedy.  Why  did  you  have  a  survey  made  ? 

Mr.  Hutcheson.  To  determine — the  survey  originally  started  to  de- 
termine what  the  reaction  of  the  book  was,  which,  of  course,  then 
brought  out  the  number  of  books  that  had  been  distributed. 

Mr.  Kennedy.  How  much  did  you  pay  for  the  survey  ? 

Mr.  Hutcheson.  I  don't  recall. 

Mr.  Ivennedy.  Some  $2,900  ? 

Mr.  Hutcheson.  Possibly  so.     I  don't  recall  the  exact  figures. 

Mr.  Kennedy.  Did  you  find  in  the  survey  that  out  of  907  people 
that  were  supposed  to  receive  the  book,  only  39  were  known  to  have 
received  the  book  ? 

Mr.  Hutcheson.  Well,  whatever  the  report  was,  Mr.  Kennedy.  I 
don't  have  it  before  me. 

Mr.  Kennedy.  During  this  period  of  time  did  you  try  to  get  a  list? 
Mr.  Raddock  under  the  contract  was  supposed  to  furnish  you  a  list 
of  those  to  whom  he  was  sending  the  book.  Did  you  get  that  list 
from  him  ? 

Mr.  Hutcheson.  I  received  a  list,  and  that  is  what  the  survey  was 
based  on. 

Mr.  Kennedy,  Then  he  was  defrauding  you  at  that  time  ? 

Mr.  Hutcheson.  I  don't  know  that  I  could  say  he  defrauded  me. 

Mr,  Ivennedy.  Did  he  furnish  you  a  list  of  those  who  had  been  re- 
cipients of  the  book  ? 

Mr.  Hutcheson,  No,  I  did  not  say  that.  I  received  the  list  only. 
It  evidentally  was  the  list  that  he  intended  to  mail  the  books  to,  be- 
cause it  has  been  checked  against  the  list  noAv  that  we  have  received, 
and  all  but  three  on  that  list  have  received  the  book. 

Mr.  Kennedy.  When  did  you  finally  receive  the  list  of  those  who 
got  the  books?  As  of  the  time  I  interviewed  you  in  January  of  this 
year  you  hadn't  received  any  such  list. 

21243— 58— pt.  31 22 


12112  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  HuTCHESON.  We  had  the  list  delivered  to  us  at  Lakeland,  Fla., 
at  the  general  executive  board  meetinor  in  February  of  this  year. 

Mr.  Kennedy.  February  1958  ? 

Mr.  HuTCHESON.  That  is  right. 

Mr.  Kennedy.  Some  3  months  after  we  began  our  investigation? 

Mr.  Hxjtcheson.  That  is  right. 

Mr.  Kennedy.  Under  the  terms  of  the  contract,  Mr.  Hutcheson, 
you  were  supposed  to  receive  the  list  of  those  who  were  to  get  the 
book  back  in  1955,  March  of  1955,  and  you  didn't  receive  it  until 
February  1958,  some  3  years  later  ? 

Mr.  Hutcheson.  We  could  hardly  have  received  it  in  1955,  Mr. 
Kennedy,  when  the  book  wasn't  completed  until  December  of  1955. 

Mr.  Kennedy.  Well,  under  the  terms  of  the  contract,  the  contract 
that  you  signed  with  Mr.  Haddock,  you  were  to  receive  the  list  back 
in  March  of  1955.  I  have  the  contract  right  here.  Can  you  give  us 
any  explanation  for  that  ? 

Mr.  Hutcheson.  Well,  I  can't  give  you  any  explanation,  because 
there  could  be  no  list  at  that  time. 

Mr.  Kennedy.  It  says  "Being  agreed  the  contract  will  be  performed 
by  March  31, 1955."    That  is  what  the  contract  says. 

Mr.  Hutcheson.  That  is  true,  but  it  wasn't  completed,  as  is  shown, 
until  November  of  1955. 

Mr.  Kennedy.  Did  you  take  some  action  at  all  against  Mr.  Raddock 
to  try  to  get  your  money  returned  ? 

Mr.  Hutcheson.  No,  we  didn't  take  any  action  to  try  to  get  our 
money  returned.  What  we  were  interested  in  was  completing  the 
project  and  having  the  book  out  for  distribution. 

Mr.  KJENNEDY.  Now  that  you  found  from  the  testimony  before  the 
committee  that  you  should  have  only  paid  about  a  dollar  per  copy  for 
the  book,  are  you  going  to  take  any  legal  action  against  Mr.  Raddock  ? 

Mr.  Hutcheson.  Mr.  Kennedy,  when  this  hearing  is  completed,  I 
intend  to  obtain  a  transcript  of  the  whole  proceeding  and  have  each 
member  of  our  board  review  it  and  call  the  board  into  meeting  and 
let  them  make  the  decision. 

Mr.  Kennedy.  Based  on  the  information  you  have  so  far,  do  you 
intend  to  recommend  to  the  board  that  some  legal  action  be  talcen 
against  Mr.  Raddock  for  defrauding  the  Carpenters  ? 

Mr.  Hutcheson.  I  could  make  no  comment  on  that  until  I  review 
it  myself  and  read  the  testimony.  I  haven't  attended  all  of  these 
hearings. 

Mr.  Kennedy.  And  you  haven't  reviewed  the  testimony  ? 

Mr.  Hutcheson.  Not  completely,  no,  sir. 

Mr.  Kennedy.  Well,  you  know  what  the  situation  is.  Certainly  it 
has  been  brought  to  your  attention.  Certainly  you  must  be  intei-ested, 
being  the  international  president.  You  say  you  haven't  enough  in- 
formation yet  to  be  able  to  determine  whether  you  are  going  to  take 
any  legal  action  against  Mr.  Raddock  ? 

Mr.  Hutcheson.  I  cannot  make  any  commitment  in  that  respect. 
Mr.  Kennedy.  I  said  it  is  a  case  to  be  reviewed  by  our  general  execu- 
tive board  who  instituted  this  project,  and  this  and  any  other  subjects 
that  are  considered  in  this  hearing. 

Mr.  Kennedy.  Then  you  also  paid  Mr.  Raddock  some  $83,000  for 
the  75th  anniversary  dinner  and  for  other  public-relations  activities 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12113 

for  you.  We  found  from  a  review  of  the  records  that  the  most  he 
could  have  spent  in  that  connection  was  some  $25,000.  So  he  got 
overpaid  some  3  or  4  times  on  that  also. 

Mr.  HuTCHESON.  Well,  I  couldn't  determine  how  you  arrive  at  your 
figures.  I  know  that  during  1956  there  was  our  75th  anniversary  of 
the  Brotherhood  of  Carpenters.  It  consisted  of  eight  regional  con- 
ferences, and  Mr.  Eaddock  attended  each  and  e\ery  one,  and  pre- 
pared the  arrangements,  procured  the  speakers,  and  he  did  consider- 
able work,  and  working  night  and  day  all  during  that  period. 

Mr.  Kennedy.  Was  he  to  receive  a  salary  or  payment  for  the  work 
he  was  doing  during  this  period  ? 

Mr.  HuTciiESON.  He  did  not  receive  a  salary.  We  received  a  bill 
at  the  end  of  the  period. 

Mr.  Kennedy.  Did  you  get  any  breakdown  as  to  how  he  was  spend- 
ing the  money  you  were  giving  him,  if  it  was  supposed  to  be  for 
expenses  ? 

Mr.  HuTCHESON.  None  other  than  was  included  in  the  documents 
which  were  turned  over  to  you. 

Mr.  Kennedy.  Did  you  ask  for  any  vouchers,  any  support  for  any 
of  these  bills  ? 

Mr.  Hutcheson.  No. 

Mr.  Kennedy.  That  is  all  together  some  $400,000  that  was  paid  to 
Mr.  Raddock,  for  which  there  is  very  little  support.  Did  you,  Mr. 
Hutcheson,  order  these  paperback  books  from  Mr.  Raddock  ? 

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

Mr.  Hutcheson.  I  did  not  order  them  directly,  no,  sir.  They  had 
been  discussed  on  several  occasions. 

Mr.  KJENNEDY.  How  many  books  was  Mr.  Raddock  to  produce,  how 
many  hard-bound  books  was  Mr.  Raddock  to  produce,  under  the  con- 
trjict? 

Mr.  Hutcheson.  How  many  did  he  ? 

Mr.  Kennedy.  How  many  was  he  to  produce  ? 

Mr.  Hutcheson.  Fifty-six  thousand,  originally,  with  an  additional 
10,000  making  it  66,  plus  the  2,000. 

Mr.  IvENNEDY.  So  that  would  be  68,000? 

Mr.  Hutcheson.  I  would  say  so. 

Mr.  Kennedy.  How  many  has  he  produced  so  far?  Don't  you 
kii'.fW,  Mr.  Hutcheson? 

Mr.  Hutchkson.  Not  without  looking  at  the  figures.  I  don't  have 
that  report,  that  final  report. 

Mr.  Kennedy.  Do  you  know  if  he  has  met  all  the  terms  of  the  con- 
tract? 

Mr.  Hutcheson.  Sir  ? 

Mr.  Kennedy.  Has  he  met  the  terms  of  the  contract? 

Mr.  Hutcheson.  Yes,  he  has  now. 

Mr.  Kennedy.  He  what? 

Mr.  Hutcheson.  Yes,  sir,  he  has. 

Mr.  Kennedy.  Would  you  count  up  these  hooks  with  me? 

Here  is  5,000,  3,100  is  8,^100,  plus  10,000  is  18,100,  plus  40,00  is  58,000 
books.     He  is  still  9,900  short,  Mr.  Hutcheson. 

Mr.  Hutcheson.  Well,  there  is  an  additional  item  there,  Mr.  Ken- 
nedy, of  13,000  paperbacks  that  you  didn't  include. 


12114  IMPROPER    ACTIVITIES    IN    THE    L.\BOR    FIELD 

Mr.  Kennedy.  I  just  asked  you  that,  whether  that  was  under  the 
agreement,  and  you  told  me  it  was  not,  that  he  was  to  produce  68,000 
hard-covered  books.  That  is  according  to  your  own  testimony.  That 
is  what  you  told  me.  He  only  produced  58,100.  Are  you  going  to 
take  any  legal  action  against  him  on  that  ? 

Mr.  HuTCHEsoN.  Sir,  I  am  going  to  submit  the  entire  matter  to  the 
general  executive  board  for  their  consideration. 

Mr.  Kennedy.  But  you  are  not  even  going  to  say  whether  you  are 
going  to  try  to  get  your  other  9,900  books?  You  wouldn't  even  tell 
that  to  the  committee  ? 

Mr.  HuTCHESON.  The  general  executive  board  is  the  functioning 
body,  Mr.  Kennedy,  and  the  one  that  instituted  this  project.  There- 
fore, it  is  their  responsibility  to  review  the  transcripts  from  this 
hearing  and  make  their  decision  on  it. 

Mr.  Kennedy,  Why  have  you  had  such  a  friendly  relationship  with 
Mr.  Eaddock  during  this  period  of  time,  Mr.  Hutcheson?  Has  he 
performed  some  special  tasks  for  you  ? 

Mr.  Hutcheson.  No,  sir. 

Mr.  Kennedy.  He  has  not  ? 

Mr.  Hutcheson.  No,  sir. 

Mr.  Kennedy.  What  kind  of  work  has  he  done  for  you  ? 

Mr.  Hutcheson.  Public  relations  work  and  so  forth,  during  1956, 
Y5th  anniversary,  as  outlined  by  you  just  a  few  minutes  ago. 

Mr.  Kennedy.  Has  he  done  any  illegal  act  for  you  on  your  behalf  ? 

Mr.  Hutcheson.  On  advise  of  counsel,  I  refuse  to  answer  the  ques- 
tion on  the  ground  that  it  relates  solely  to  a  personal  matter  not  per- 
tinent to  any  activity  which  the  committee  is  authorized  to  investigate, 
and  also  it  relates  or  might  be  claimed  to  relate  to  or  aid  the  prosecu- 
tion of  the  case  in  which  I  am  under  indictment  and  thus  be  in  denial 
of  due  process  of  law. 

Mr.  Kennedy.  Mr.  Chairman,  this  is  a  man  that  has  received  over 
$500,000  from  the  Carpenters  over  a  period  of  time,  and  I  am  asking 
a  question  as  to  whether  Mr.  Raddock  has  performed  any  illegal  acts 
on  behalf  of  Mr.  Hutcheson.  I  think  it  is  very  pertinent  to  the  inves- 
tigation. 

The  Chairman.  Mr.  Raddock  is  not  in  the  indictment  ? 

Mr.  Kennedy.  No,  he  is  not. 

The  Cpi AIRMAN.  He  is  not  a  defendant? 

Mr.  Kennedy.  He  is  not. 

The  Chairman.  This  question  is  related  to  union  activities  ? 

Mr.  Kennedy.  That  is  correct,  and  does  not  affect  in  any  way  the 
merits  of  the  indictment. 

Senator  Ervin.  Mr.  Chairman? 

The  Chairman.  Let  me  suggest  that  the  question  be  rephrased  and 
ask  him  if  he  performed  any  illegal  acts  for  him  in  connection  with 
his  official  position  or  his  relationship  to  the  international  union  that 
he  represents. 

Senator  Ervin.  Mr.  Chairman,  I  was  going  to  make  a  suggestion 
like  that,  but  I  would  suggest  that  it  be  a  little  more  restricted,  if  he 
performed  any  illegal  act  on  behalf  of  the  union  rather  than  on  behalf 
of  Mr.  Hutcheson. 

Tlie  Chairman.  All  right. 

The  Cliair  will  ask  the  question:  Has  Mr.  Raddock  performed  for 
you  on  liehalf  of  the  union  any  illegal  act  ? 


IMPROPER    ACTrV'ITIES    IN    THE    LABOR    FIELD  12115 

Mr.  HuTcnESON .  Definitely  not. 

Tlie  Chairman.  Has  lie  received  from  tlie  union  payment  for  acts 
performed  in  your  behalf  and  for  you  as  an  individual  ? 

(Witness  conferred  with  counsel.) 

Mr.  TiiAvis.  May  I  have  the  question  read,  please  ? 

(The  pending  question  was  read  by  the  reporter.) 

(Witness  conferred  with  counsel.) 

Mr.  PluTCHESON.  On  the  advice  of  counsel,  I  refuse  to  answer  the 
question  on  the  ground  that  it  relates  solely  to  a  personal  matter,  not 
pertinent  to  any  activity  which  this  committee  is  authorized  to  inves- 
tigate, and  also  it  relates  or  might  be  claimed  to  relate  to  or  aid  the 
prosecution  in  the  case  in  which  I  am  under  indictment  and  thus  be 
m  denial  of  due  process  of  law. 

The  Chairman.  The  Chair  overrules  the  objection,  with  the  ap- 
proval of  the  committee,  and  the  Chair  orders  and  directs  the  witness 
to  answer  the  question. 

(Witness  conferred  with  counsel.) 

Mr.  HuTCHESON.  Mr.  Chairman,  I  renew  my  refusal. 

Senator  EitviN.  Mr.  Chairman,  I  would  just  like  to  make  an  ob- 
servation at  this  point. 

The  Chairman.  Let  him  finish,  if  he  will. 

Did  you  finish  your  answer?  The  Chair  is  now  ordering  and  di- 
recting you  to  answer  the  question,  with  the  approval  of  the  committee. 

Mr.  HuTCHESON.  On  advice  of  counsel,  Mr.  Chairman,  I  refuse  for 
the  same  reasons  as  given  previously. 

The  Chairman.  All  right.  Senator  Ervin. 

Senator  Ervin.  Mr.  Chairman,  I  just  wanted  to  suggest  that  in  my 
judgment  there  is  no  validity  in  the  first  point  of  his  objection.  This 
question  does  not  relate  to  a  purely  personal  matter.  It  relates  to  the 
use  of  union  funds,  and  certainly  this  committee  has  authority  to  in- 
vestigate the  use  of  union  funds. 

The  Chairman.  For  that  reason,  the  Chair  ordered  the  witness  to 
answer  the  question,  because  we  certainly  have  jurisdiction  to  inter- 
rogate about  the  expenditure  of  union  funds,  and  the  question  was 
predicated  upon  the  payment  out  of  union  funds,  which  might  be  an 
improper  expenditure  of  union  funds  to  perform  a  personal  service 
for  the  witness.  I  think  that  the  question  is  legitimate.  Its  objec- 
tive is  obvious,  to  ascertain  the  conduct  of  this  witness  with  respect  to 
his  position  in  a  fiduciary  capacity  as  trustee  of  union  money.  The 
qusetion  stands. 

Do  you  still  refuse  to  answer  the  question  ? 

Mr.  HuTCHESON.  Yes,  sir. 

The  Chairman.  Have  you  paid  out  of  union  funds  to  Mr.  Maxwell 
C.  Raddock  moneys  in  connection  with  services  rendered  for  you  in  a 
legal  matter  where  you  may  have  been  involved,  or  being  in  prospect 
of  being  involved,  either  by  civil  action  or  by  criminal  action,  other 
than  services  he  may  have  performed  for  you,  if  any,  in  connection 
with  the  matters  for  which  you  now  stand  indicted  ? 

(Witness  conferred  with  counsel.) 

Mr.  IIuTCHESON.  On  advice  of  counsel,  I  refuse  to  answer  the  ques- 
tion on  the  ground  that  it  relates  solely  to  a  personal  matter  not  per- 
tinent to  any  activity  this  committee  is  authorized  to  investigate,  and 
also  it  relates  or  it  might  be  claimed  to  relate  to  or  aid  the  prosecution 


12116  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

in  the  case  in  which  I  am  under  indictment  and  would  thus  be  a  denial 
of  due  process. 

The  Chairman.  The  Chair  excluded  in  the  question  the  case  for 
which  you  now  stand  indicted,  or  the  acts  for  which  j^ou  may  stand 
indicted.  I  am  asking  if  you  have  used  union  funds  to  pay  him  for 
services  rendered  to  you,  not  to  the  union  but  to  you  personally,  in 
connection  with  legal  matters,  either  civil  or  criminal,  in  which 
you  were  involved  or  in  which  you  potentially  may  have  become  in- 
volved. 

I  don't  want  there  to  be  any  misunderstanding  about  this  question. 
You  have  counsel.  I  am  talking  now  about  union  funds,  union  money, 
for  which  you  are  responsible  and  accountable  and  over  which  this 
committee  has  jurisdiction  to  investigate. 

Mr.  Travis.  Mr.  Chairman,  of  course,  the  refusal  was  not  limited 
soley  to  a  personal  matter,  as  you  will  recall. 

The  Chairman.  You  may  advise  your  client  as  to  what  5'Ou  want 
him  to  do.  I  am  sure  he  wants  to  take  your  advice.  But  the  Chair 
is  pursuing  what  he  conceives  to  be  this  committee's  duty. 

Mr,  Travis.  Mr.  Chairman,  very  respectfully,  in  view  of  what  I  have 
heard  in  the  prior  testimony  before  this  committee,  I  believe  I  know 
the  direction  that  the  question  takes,  and  it  is  my  duty  to  advise  this 
witness  not  to  answer,  and  I  do  so  advise  him. 

The  Chairman.  Then  the  witness,  on  the  advice  of  counsel  refuses 
to  answer  the  question  ? 

Mr.  HuTCiiESON.  Yes,  sir. 

The  Chairman.  I  understand,  it  very  clear  now,  that  you  are  not 
invoking  the  fifth  amendment  privilege  ? 

Mr.  HuTCHESON.  That  is  right,  sir,  I  am  not  invoking  it. 

The  Chairman.  You  are  not  exercising  that  privilege  ? 

Mr.  Hutcheson.  No,  sir. 

The  Chairman.  You  are  challenging  the  question  and  the  jurisdic- 
tion of  the  comniitiee  for  the  reasons  you  have  stated  and  for  those 
reasons  only  ? 

Mr.  Hutcheson.  Yes,  sir. 

The  Chairman.  All  riglit.  We  have  a  clear  understanding  about 
that. 

Now  I  will  ask  you  another  question.  Have  you,  unrelated  to  this 
offense  charged  in  the  indictment  now  against  you,  engaged  the  services 
of  Mr.  Raddock,  and  have  you  paid  liim  out  of  union  funds  for  the 
preformance  of  those  services,  to  aid  and  assist  you  in  avoiding  or 
preventing  an  indictment  being  found  against  you  or  being 
criminally  prosecuted  for  any  other  offense  other  than  that  mentioned 
in  this  indictment? 

(Witness  conferred  with  counsel.) 

Mr.  Hutcheson.  On  advice  of  counsel,  I  refuse  to  answer  on  the 
same  grounds  as  previously  stated,  sir. 

The  Chairman.  The  CJhair  witli  the  permission  of  the  committee, 
with  its  approval,  orders  and  directs  the  witness  to  answer  the  question. 

(Witness  conferred  with  counsel.) 

Mr.  Hutcheson.  I  still  refuse  to  answer  on  the  same  ground,  sir. 

The  Chairman.  Did  you  engage  the  services  of  Mr.  Raddock  and 
pay  him  for  those  services  out  of  union  funds  to  contact,  either  di- 
rectly or  indirectly,  the  county  prosecuting  attorney,  Mr.  Holovachka, 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12117 

given  name  Metro,  in  Lake  County,  Gary,  Ind.  ?  Bear  in  mind,  the 
question  is:  Did  you  engage  him  and  pay  him  to  do  that  out  of 
union  funds? 

(Witness  conferred  with  counsel.) 

Mr.  HuTCHEsoN.  On  the  advice  of  counsel,  I  refuse  to  answer  on 
the  same  ground  as  previously  related. 

The  Chairman.  The  Chair,  with  the  approval  of  the  committee, 
orders  and  directs  the  witness  to  answer  the  question. 

Mr.  HuTCHESON.  I  still  refuse  for  the  same  reason,  Mr.  Chairman. 

The  Chairman.  Have  you  engaged  Mr.  Raddock  to  perform  serv- 
ices, personal  services,  for  you,  of  any  nature  whatsoever,  and  paid 
him  for  such  services  out  of  union  funds?  I  will  ask  that  over  the 
period  of  the  past  5  years  ? 

(Witness  conferred  with  counsel.) 

Mr.  HuTCiiESON.  On  the  advise  of  counsel,  I  refuse  to  answer  on 
the  same  ground  as  previously  related. 

Tlie  Chairman.  With  the  approval  of  the  committee,  the  Chair 
orders  and  directs  the  witness  to  answer  the  question. 

Mr.  HuTCHESON.  I  still  refuse,  sir. 

The  Chairman.  The  witness  understands  that  the  Chair  is  interro- 
gating him  regarding  union  funds ;  do  you  not  ? 

(Witness  conferred  with  counsel.) 

Mr.  HuTCHESON.  Yes,  sir. 

The  Chairman.  With  that  understanding,  knowing  that  I  am  in- 
terrogating you  only  about  the  expenditure  of  union  funds  to  Mr. 
Raddock  for  personal  services  he  may  have  performed  for  you  and  not 
for  the  union,  do  you  still  decline  and  refuse  to  answer  the  question  ? 

(Witness  conferred  with  counsel.) 

Mr.  HuTciiESON.  Yes,  sir,  for  the  reasons  stated. 

The  Chairman.  And,  again,  not  invoking  the  privilege  of  the  fifth 
amendment,  you  stand  only  and  solely  upon  the  statement  you  have 
read? 

Mr.  Hutcheson.  Yes,  sir. 

The  (^iiair:man.  And  you  are  not  exercising  the  privilege  that,  by 
answering,  a  truthful  answer  might  tend  to  incriminate  you? 

(Witness  conferred  with  coimsel.) 

Air.  Hutcheson.  No,  sir. 

The  Chairman.  Then  the  record  is  made,  so  far  as  I  know.  As  I 
understand  your  position,  you  have  acted  on  the  advice  of  counsel  and 
it  amounts  to  simply  challenging  the  jurisdiction  of  this  committee  to 
interrogate  you  about  the  expenditure  of  union  funds  for  personal 
services  that  may  have  been  rendered  for  you  rather  than  for  the 
union.   Is  that  correct  ? 

(Witness  conferred  with  counsel.) 

Mr.  TR.VVIS.  Mr.  Chairman,  I  would  like  to  direct  the  committee's 
attention  at  this  time  to  the  fact  that  the  refusal  goes  over  and  above 
the  jurisdictional  question  of  the  committee,  and  it  goes  into  a  mat- 
ter which — when  the  statement  that  the  Chair  just  made  refers  to  the 
expenditure  of  union  funds  for  personal  matters — have  also  involved 
Maxwell  Raddock,  and  in  the  prior  testimony  the  committee  has  shown 
that  that  relates  to  this  Lake  County  transaction,  for  which  Mr. 
Hutcheson  is  under  indictment. 

Tlie  Chairman.  Well,  I  think  we  may  very  well  disagree  about 
that,  but  I  would  like  to  have  the  answer  to  my  question.    The  witness 


12118  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

can  answer  the  question  or  refuse  to  answer  it,  or  whatever  you  want 
to  advise  him  to  do. 

Mr.  Travis.  May  I  have  the  question  read,  please  ? 

(The  pending  question  was  read  by  the  reporter.) 

(Witness  conferred  with  counsel.) 

Mr.  HuTCHESON.  Mr.  Chairman,  the  answer  is  no,  because  the  ques- 
tion goes  beyond  the  question  of  a  personal  matter  and  reaches  into 
the  area  of  a  question  under  which  I  am  indicted. 

The  Chairman.  The  Chair  does  not  intend  to  and  is  not  interro- 
gating you  about  anything  concerning  the  indictment.  I  am  asking 
you  tlie  question  of  whether  you  have  used  union  funds  to  pay  -Max  C. 
Raddock  for  personal  services  rendered  to  you,  period. 

(Witness  conferred  with  counsel.) 

Mr.  HuTciiESON.  Sir,  counsel  advises  me  that  it  does  reach  into  the 
matter  under  which  I  am  indicted,  and  advises  me  to  refuse  to  answer. 

The  Chairman.  Do  you  mean  by  that  statement  that  you  have  just 
made,  that  counsel  advises  you  that  it  does  read  into  that  matter,  that 
he  was  employed  in  connection  with  the  matters  in  the  indictment 
some  way  ?  You  can  answer  that  "yes"  or  "no"  or  refuse  to  answer  it. 
I  am  not  talking  about  that. 

Mr.  HuTCHESoN.  On  advise  of  counsel,  I  refuse  to  answer  on  the 
same  grounds  as  previously  related,  sir. 

The  Chairman.  The  Chair,  with  the  approval  of  the  committee, 
orders  and  directs  you  to  answer  this  question.  I  will  try  to  repeat  the 
question,  just  as  it  is  in  the  record. 

Have  you  paid  Max  C.  Raddock  out  of  union  funds  for  personal 
services  rendered  to  you  at  any  time  within  the  past  5  years  ? 

(Witness  conferred  with  counsel.) 

Mr.  HuTCHESON.  On  advise  of  counsel,  I  refuse  to  answer  on  the 
same  ground  as  previously  related. 

The  Chairman.  With  the  approval  of  the  committee,  the  Chair 
orders  and  directs  the  witness  to  answer  the  question. 

Mr.  HuTciiESON.  I  still  refuse,  sir. 

The  Chairman.  Proceed,  Mr.  Kennedy. 

Senator  Ervin.  Mr.  Chairman  ? 

The  Chairman.  Senator  Ervin. 

Senator  Ervin.  Have  you  used  union  funds  to  pay  Max  C.  Raddock 
for  any  services  rendered  to  you  personally,  wholly  disassociated  from 
any  matters  out  of  which  the  pending  criminal  charge  arose? 

(Witness  conferred  with  counsel.) 

Mr.  HuTciiESoN.  On  advise  of  counsel,  I  refuse  to  answer  on  the 
same  ground. 

The  Chairman.  The  Chair,  with  the  approval  of  the  committee, 
orders  and  directs  the  witness  to  answer  the  question. 

Mr.  HuTCHESON.  I  still  refuse,  sir. 

Senator  Ervin.  Is  your  refusal  to  answer  questions  concerning  the 
use  of  union  funds  in  situations  wholly  disassociated  from  any  of  the 
circumstances  connected  with  the  indictment  against  you  based  upon 
the  theory  that  the  due  process  clause  embraces  the  protection  afforded 
by  the  fifth  amendment  against  self-incrimination  ? 

(Witness  conferred  with  counsel.) 

Mr.  HuTCHESON.  Sir,  my  attorneys  advise  me  that  that  is  a  ques- 
tion on  constitutional  law  and  I  am  not  qualified  to  answer  it. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12119 

Senator  Ervin.  Then  are  you  telling  this  committee  that  you  are 
not  refusing  to  answer  any  of  these  questions  concerning  the  use  of 
funds  in  areas  outside  of  the  matters  covered  by  the  indictment,  are 
not  based  in  any  way  ui)on  youi-  belief  tluit  your  answers  to  the  ques- 
tions would  tend  to  incriminate  you  ? 
(Witness  conferred  with  counsel.) 

Mr.  HuTCHESON.  Sir,  the  grounds  that  have  been  related  and  in- 
cluded in  the  record  are  the  grounds  that  I  am  going  to  stand  on,  on 
this  question. 

Senator  Ervin.  What  I  am  asking  j^ou  is  this :  You  say  you  are  not 
invoking  the  privilege  of  self-incrimination;  is  that  right? 
Mr.  HuTCHESON.  That  is  right. 

Senator  Ervin.  And  you  do  not  contend  that  due  process  of  law,  in 
and  of  itself,  includes  a  privilege  against  self-incrimination  ? 
(Witness  conferred  with  counsel.) 

Mr.  HuTCHESON.  Sir,  that  is  a  legal  question.  I  am  not  qualified 
to  answer. 

Senator  Ervin.  Well,  you  have  been  advised  by  your  counsel.  You 
base  your  right  to  answer  on  the  advice  of  counsel.  So,  I  ask  you  if 
your  counsel  has  given  you  to  understand,  and  if  that  influences  your 
refusal  to  answer,  that  the  due-process  clause  does  embrace  the  privi- 
lege against  self-incrimination. 
( Witness  conferred  with  counsel. ) 

Mr.  HuTCHESON.  Sir,  counsel  has  not  advised  me  on  that  particular 
issue. 

Senator  Ervin.  You  realize  that  the  invocation  of  a  constitutional 
privilege  is  a  matter  which  is  personal  to  a  witness,  do  you  not? 
(Witness  conferred  with  counsel. ) 

Mr.  HuTCHESON.  I  am  sorry,  but  I  just  don't  know  anything  about 
it,  sir. 

Senator  Er\^n.  Do  you  mean  that  you  don't  understand  the_  fact 
that  a  person  who  is  a  witness  does  not  have  to  invoke  a  constitutional 
privilege  against  testifying?  In  other  words,  don't  you  realize  that 
that  is  a  privilege  which  a  witness  is  allowed  by  the  Constitution  it- 
self to  waive  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  ITuTCiiESON.  Sir,  that  is  a  matter  on  which  I  am  not  informed. 
Senator  Er\tn.  Well,  you  can  ask  the  counsel.  You  are  taking  ad- 
vice from  your  counsel.  Ask  the  counsel  if  that  is  not  a  fact ;  that  a 
witness  has  the  right  to  waive  any  constitutional  privilege  against 
testifying,  whether  it  is  based  on' the  14th  amendment,  or  the  1st 
amendment,  or  the  5th  amendment.  You  are  acting  on  advice  of  coun- 
sel :  so  ask  your  counsel's  advice  on  that,  and  advise  the  committee. 
(The  witness  conferred  with  his  counsel.) 

Mr.  HuTCHESON.  Sir,  I  have  been  advised  that  certain  matters  re- 
lated to  this  subject  might  be  claimed  to  relate  or  to  aid  the  prosecu- 
tion of  the  case  in  which  I  am  under  indictment  and,  thus,  be  in  de- 
nial of  due  process  of  law. 

Senator  Er\^n.  The  committee  has  tried,  the  counsel  of  the  com- 
mittee, the  chairman  of  the  committee,  and  myself  have  tried,  to  make 
it  as  clear  to  you  as  the  English  language  permits  anyone  to  make 
anything  clear,  that  these  questions  relate  to  rnatters  that  are  wholly 
disassociated  from  the  circumstances  out  of  which  the  indictment  now 


12120  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

pending  against  you  arose,  and  you  tell  me  that  you  still  do  not  under- 
stand that  we  are  refraining  from  asking  you  questions  about  the  mat- 
ters out  of  which  the  circumstances  connected  with  the  indictment 
are  not  concerned  ? 

Mr.  Travis.  Senator,  I  am  a  little  confused  myself  on  that  ques- 
tion.    Could  it  be  read  again  ? 

Senator  Ervin.  We  have  repeatedly  stated,  to  Mr.  Hutcheson,  that 
we  are  not  asking  him  to  make  any  revelations  about  any  circumstances 
that  have  any  connection  whatever  with  the  indictment  pending 
against  him,  but  we  are  asking  him  about  the  use  of  union  money 
under  circumstances  entirely  disassociated  from  the  matters  out  of 
which  the  indictment  arises. 

(The  witness  conferred  with  his  comisel.) 

Mr.  Travis.  Mr.  Chairman,  of  course,  I  have  to  assume  the  respon- 
sibility for  advising  this  witness,  and  have  done  so,  and  the  specific 
question  which  I  believe  you  referred  to  about  the  expenditure  of 
union  funds  for  matters  not  connected  with  the  union,  if  answered,  and 
a  refusal  to  answer  the  other  question  as  to  whether  it  was  connected 
with  union  matters  might  lead  to  the  inference  that  Mr.  Raddock  was 
paid  moneys  out  of  union  funds  for  personal  matters. 

Senator  Ervin.  With  all  due  respect  to  counsel,  that  does  not  seem  to 
be  a  really  relevant  observation.  What  we  were  talking  about.  Coun- 
sel, was  that  we  were  asking  him  about  the  use  of  union  funds  for 
purposes  wliolly  disassociated  with  the  circumstances  out  of  which 
the  indictment  arises. 

Mr.  Travis.  I  think  that  is  just  where  the  inference  might  arise. 

Senator  Ervin.  In  other  words,  you  are  telling  the  committee  that, 
in  your  opinion,  if  he  answers  a  question  about  matters  wholly  dis- 
associated from  the  circumstances  out  of  which  the  indictment  arises, 
that  will  constitute  an  inference  that  he  made  payments  in  connection 
with  the  circumstances  out  of  which  the  indictment  arose  ? 

Mr.  Travis.  Yes. 

Senator  Ervin.  That  is  something  I  am  unable  to  comprehend,  with 
all  due  respect  to  counsel.  I  have  a  high  respect  for  the  function  of 
counsel.  Certainly,  as  a  practicing  lawyer,  and  while  in  this  commit- 
tee, I  always  have  resented  any  effort  to  question  a  man  about  circum- 
stances that  involved  a  pending  indictment.  But  the  fact  that  a  man 
is  involved  in  a  pending  indictment  does  not  give  him  a  right  under 
either  the  14th  amendment  or  any  otlier  amendment  that  I  know  of 
to  refuse  to  answer  questions  in  wholly  disassociated  areas.  That  is 
what  this  committee  is  talking  to. 

Mr.  Travis.  I  hope  you  realize,  Senator,  it  is  a  veiy  delicate  ques- 
tion for  me  and  a  very  heavy  responsibility.  But,  knowing  what  I 
do  about  the  matter  under  which  he  is  indicted,  I  have  to  exercise  my 
judgment  as  best  I  can.  There  are  certain  areas  that  I  have  determined 
I  cannot  safely  allow  Mr.  Hutcheson  to  testify,  and  which  I  think 
would  violate  his  fundamental  rights   if  he  was  forced  to. 

Senator  Ervin.  I  understand  your  position  very  clearly;  that  it  is 
your  opinion  that  Mr.  Hutcheson  can't  give  the  committee  any  in- 
formation about  the  use  of  miion  funds  in  any  area  of  his  personal 
activity  for  fear  that  it  might  raise  some  inference  against  him  in  a 
matter  wholly  disassociated.  I  was  interested  in  the  question  as  to 
whether  his  refusal  to  answer  is  based  in  any  way  upon  the  understand- 


I 


IMPROPER    ACTIVITIES    IX    THE    LABOR    FIELD  12121 

iiig  that  the  14th  amendment  inchides  a  ri^ht  to  refrain  from  self- 
incrimination. 

Mr.  Travis.  I  don't  think  the  witness,  himself,  understands  any- 
thing about  constitutional  law,  if  I  may  put  it  that  way. 

Senator  Ervin.  I  was  asking  so  that  this  committee  can  clarify 
itself,  and  so  that  some  day  maybe  some  court  will  rule  on  the  ques- 
tion of  where  the  people  that  drew  the  Constitution  wasted  the  ink 
that  wrote  the  fifth  amendment  on  the  provision  against  self-incrimi- 
nation when  they  put  in  the  due-process  clause.  I  was  trying  to  ask 
liini  to  ask  his  counsel  if  tho  advice  of  counsel  was  based  in  any  part,  the 
advice  of  counsel  that  he  should  refrain  from  answering,  was  based  in 
>art  upon  the  undei-standing  or  theory  that  the  due-process  clause  em- 
raced  within  its  purview  the  right  to  refrain  from  self-incrimination 
as  set  forth  in  the  fifth  amendment. 

Mr.  Travis.  Of  course,  I  think  any  man  under  indictmental  guaran- 
ties of  due  process  of  law  should  not  be  ((uestioned  in  any  form 
concerning  any  matter  that  might  remotely  in  any  way  aid  the  pro- 
secution in  that  case. 

Naturally,  this  committee  can't  sit  as  prosecutors  or  judges  or 
jurors  in  that  matter  under  which  Mr.  Hutcheson  is  indicted. 

I  think  there  are  fundamental  guarantees  to  any  person  under  indict- 
ment that  that  matter  shall  be  tried  solely  in  the  forum  where  the 
indictment  lies. 

Senator  Ervin.  Your  theory  is  a  very  intriguing  one,  and  that  is 
that  if  a  man  is  under  indictment  for  any  offense,  he  can't  be  asked 
any  questions  about  anything  else.  That  is  what  it  amounts  to,  even 
though  these  other  things  are  wholly  disassociated. 

But  I  am  interested  in  the  question  of  the  scope  of  the  14th  amend- 
ment on  this  basis  because  the  committee  wants  to  know  exactly  what 
the  man  is  refusing  to  answer  concerning  wholly  disassociated  thmgs. 

That  is  all. 

Before  I  pass  over,  I  respect  the  duty  of  counsel.  I  have  been  a 
lawyer  many  times  for  many,  many  clients,  and  I  regretted  many 
times  when  I  practiced  law  that  I  could  not  find  a  basis  for  getting 
quite  as  complete  an  exemption  from  testifying. 

Mr.  Travis.  I  think.  Senator,  you  have  found,  too,  since  you  started 
practicing  law  that  today  the  Constitution  might  have  a  little  differ- 
ent meaning  over  the  intervening  years  in  some  respects. 

Senator  Ervin.  I  will  make  the  confession  that  what  I  was  taught 
about  Constitution  in  law  school  and  what  I  used  to  read  in  lawbooks 
about  it  is  somewhat  outmoded  and  that  some  of  the  principles  that 
have  come  about  are  as  variable  and  changing  as  a  shifting  in  the 
temporary  occupants  of  the  seats  on  the  bench  of  the  Supreme  Court 
of  the  United  States. 

The  Chairman.  I  think  the  record  is  clear  from  the  witness'  tes- 
timony and  from  the  record  made  that  the  witness  has  not  and  does 
not  invoke  the  fifth-amendment  privilege  in  his  declining  to  answer 
the  questions  that  have  been  put  to  him. 

Are  we  correct  then  in  that  understanding? 

Mr.  Travis.  Very  definitely.  Senator. 

Mr.  Kennedy.  Let  the  witness  answer. 

The  Chairman.  I  am  asking  the  witness. 

Mr.  Hutcheson.  Yes,  sir. 


12122  IMPROPER   ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  My  understanding,  then,  is  correct. 

Mr,  HuTCHESON.  Yes,  sir. 

The  Chairman.  So  there  will  be  no  misinterpretation  of  the  record, 
I  simply  wanted  to  have  the  witness  state  it  again. 

All  right,  proceed. 

Mr.  Kennedy.  Mr.  Chairman,  we  have  some  material  that  I  will 
just  ask  Mr.  Hutcheson  about. 

One  is  Mr.  Raddock's  trip  down  here  to  Washington,  D.  C,  when 
he  stayed  at  the  Hotel  Washington,  and  his  bill  was  paid  out  of  union 
funds. 

Could  you  tell  us  what  he  was  doing  down  here  for  the  union  ? 

Mr.  Hutcheson.  I  would  have  to  know  the  date,  Mr.  Kennedy. 

Mr.  Kennedy.  I  will  give  it  to  you. 

He  was  here  on  September  3  of  1957,  September  3d  through  the  5th, 
1957,  and  he  stayed  at  the  Hotel  Washington. 

(The  witness  conferred  with  his  counsel.) 

Mr.  Hutcheson.  I  couldn't  answer  that  offhand,  Mr.  Kennedy, 
without  checking  up. 

The  Chairman.  The  question  primarily  would  be :  Was  he  here  on 
union  business,  if  he  was  paid  by  union  funds  ? 

Mr.  Hutcheson.  If  the  bill  was  O.  K.'s  and  paid  by  the  organiza- 
tion ;  yes,  sir.  Senator,  he  was. 

Mr.  Kennedy.  What  was  he  doing  here  in  Washington  on  that  day  ? 

Mr.  Hutcheson.  I  couldn't  answer  it  without  doing  some  checking 
up  on  it. 

Mr.  Kennedy.  You  were  down  here  with  him,  were  you  not,  at  that 
time? 

Mr.  Hutcheson.  I  don't  recall. 

Mr.  Kennedy.  You  were  also  here  on  the  third  and  fourth,  the 
record  shows,  and  both  of  your  bills  were  paid  by  the  carpenters. 

Then  there  was  the  transportation  down  here  to  Washington. 
Could  you  tell  us  what  it  was  that  you  were  doing  down  here  ? 

Mr.  Hutcheson.  I  couldn't  remember,  Mr.  Kennedy.  I  am  in  and 
out  of  Washington  so  often  that  I  can't  remember  just  what  each 
trip  is. 

Mr.  Kennedy.  Then  on  September  10.  Mr.  Raddock  flew  out  to 
Chicago,  111.    What  was  he  doing  out  there,  on  September  10,  1957? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Hutcheson.  Upon  advice  of  counsel,  I  ref  uSe  to  answer  on  the 
same  ground  as  previously  related. 

Mr.  Kennedy.  I  am  sorry. 

But  he  was  also  out  there  on  August  11,  in  Chicago,  would  you  tell 
us  what  he  was  doing  out  there  ? 

The  Chairman.  Was  that  paid  for  by  the  union  ? 

Mr.  Kennedy.  The  union  paid  charges  of  $94.27  for  that  trip  of 
Mr.  Eaddock  to  Chicago. 

Mr.  Hutcheson.  On  the  advice  of  counsel  I  refuse  to  answer  the 
question  on  the  same  grounds  as  previously  related. 

The  Chairman.  All  right.  The  (luestion  is :  Was  he  there  on  union 
business  for  whicli  the  union  had  the  responsibility  for  payment? 

Mr.  Hutcheson.  On  the  advice  of  counsel  I  refuse  to  answer  sir. 

The  Chairman.  The  Chair,  with  the  approval  of  the  committee, 
orders  and  directs  the  witness  to  answer  tlie  question. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12123 

(The  witness  conferred  with  his  counsel.) 

Mr.  HuTCHEsoisr.  I  still  refuse  on  the  same  jri'ounds. 

The  Chairman.  I  asked  you  a  moment  a^o  if  he  was  here  in  Wash- 
ington on  union  business,  the  trip  counsel  interrogated  you  about, 
and  you  said  if  the  union  paid  for  it,  yes,  he  was  on  union  business. 

Now  we  are  asking  you  about  the  trip  to  Chicago,  on  the  11th  of 
August  1957.  It  appears  from  the  records  that  the  union  paid  his 
expenses  on  that  trip.     Was  he  on  union  business  at  that  time? 

Mr.  HuTCHEsoN.  On  the  advice  of  counsel  I  refuse  to  answer  on 
the  same  ground. 

The  Chairman,  The  Chair,  with  the  approval  of  the  committee, 
orders  and  directs  the  witness  to  answer  the  question. 

Mr.  HuTCHEsoN.  I  still  refuse,  sir. 

The  Chairman.  Do  we  have  the  records  of  payments  by  the  union? 

Mr.  Kennedy.  Yes,  we  do. 

The  Chairman.  Who  can  testify  to  this  on  the  staff  ? 

Mr.  Kennedy.  Mr.  Tierney. 

TESTIMONY  OF  PAUL  J.  TIERNEY— Eesumed 

The  Chairman.  Mr.  Tierney,  you  have  been  previously  sworn  ? 

Mr.  Tierney.  Yes,  sir. 

The  Chairman.  Mr.  Tierney,  you  may  identify  the  document 
which  the  Chair  hands  you. 

Mr.  Tierney.  This  is  a  document  furnished  us  by  the  United  Broth- 
erhood of  Carpenters,  Indianapolis,  Ind. 

The  CiiairMxVn.  Is  that  a  document  from  their  records  ? 

Mr.  Tierney.  This  is  a  document  prepared  by  the  general  comisel 
of  Carpenters,  upon  our  request,  and  it  shows  Maxwell  Raddock  was 
issued  an  air  travel  card  by  the  United  Brotherhood  of  Carpenters, 
and  this  is  a  list  of  all  the  charges  made  against  that  air  travel  card 
for  travel  by  Haddock  from  April  1956  through  November  1957. 

The  Chairman.  That  document  may  be  made  exliibit  No.  58. 

(The  document  referred  to  was  marked  "Exhibit  No.  58"  for  refer- 
ence and  may  be  found  in  the  files  of  the  select  committee.) 

The  Chairman.  Does  that  document,  furnished  you  by  the  general 
counsel  from  the  Brotherhood  of  Carpenters,  show  that  Mr.  Maxwell 
C.  Raddock  submitted  or  received  payment  from  the  Brotherhood  of 
Carpenters  for  the  trip  to  Chicago  on  the  date  of  August  11,  1957  ?_ 

Mr.  Tierney.  It  does.  It  shows  that  he  was  paid  tor  a  round-trip 
passage  between  New  York  and  Chicago  on  August  11,  1957. 

The  Chairman.  May  I  inquire,  now :  Have  you  examnied  the  hotel 
records  there  to  ascertam  who  paid  the  hotel  bill  of  Mr.  Raddock  on 
that  trip  ? 

Mr.  Tierney.  I  have,  Mr.  Chairman. 

The  Chairman.  Has  the  hotel  record  previously  been  made  an 
exhibit  ? 

Mr.  Tierney.  Yes,  it  has. 

The  Chairman.  Exhibit  No.  45,  A  &B. 

I  hand  you  this  exhibit  and  ask  you  to  examine  it  and  state  who  paid 
the  hotel  bill  for  Mr.  Raddock  on  that  trip,  and  how  much. 

Mr.  Tierney.  This  exhibit  shows  that  the  United  Brotherhood  of 
Carpenters  and  Joiners  of  America  paid  for  Maxwell  Raddock's  stay 


12124  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

at  the  Drake  Hotel  from  August  11  through  August  17,  a  total  of 
$147.10. 

The  Chairman.  $147  plus  $97  is  what  the  records  of  the  brother- 
hood and  the  hotel  reflect  was  paid  by  the  union  for  that  trip  2 

That  much  at  least  ? 

Mr.  TiERNEY.  That's  correct,  sir. 

TESTIMONY  OF  TIAURICE  HTJTCHESON,  ACCOMPANIED  BY  HOWARD 
TRAVIS  AKD  F.  JOSEPH  DONOHUE,  COUNSEL— Resumed 

The  Chairman.  The  question  is,  Mr.  Hutcheson :  Were  Mr.  Kad- 
dock's  expenses  paid  on  that  trip  by  union  funds  while  he  was  on 
union  business  ? 

Mr.  Hutcheson.  On  the  advice  of  counsel  I  refuse  to  answer  the 
question  on  the  same  grounds  as  previously  related,  sir. 

The  Chairman.  The  Chair  orders  and  directs  the  witness  to  answer 
the  question,  with  the  approval  of  the  committee. 

Mr,  Hutcheson.  I  still  refuse,  sir. 

The  Chairman.  All  right ;  proceed,  Mr.  Kennedy. 

Mr.  Kennedy.  You  were  out  in  Chicago  at  the  same  time,  were 
you  not,  with  Mr.  Raddock  ? 

Mr.  Hutcheson.  On  advice  of  counsel,  I  refuse  to  answer. 

Mr.  Kennedy.  You  were  out  in  Chicago  at  the  same  time  ? 

Mr.  Hutcheson.  On  the  advice  of  counsel,  I  refuse  to  answer  on 
the  same  grounds. 

The  Chairman.  The  Chair  orders  and  directs  the  witness  to  answer 
the  question,  with  the  approval  of  the  committee. 

Mr.  Hutcheson.  I  still  refuse,  sir. 

Mr.  Kennedy.  The  records,  Mr.  Chairman,  indicate  that  Mr. 
Hutcheson  was  present  at  the  same  time. 

The  Chairman.  Were  your  expenses  on  that  Chicago  trip  paid  by 
the  union  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Hutcheson.  On  the  advice  of  counsel  I  refuse  to  answer  on  the 
same  ground  as  previously  related. 

The  Chairman.  You  are  ordered  and  directed  to  answer  the  ques- 
tion, with  the  approval  of  the  committee. 

Mr,  Hutcheson.  I  still  refuse,  sir. 

The  Chairman,  Again  with  respect  to  these  questions  that  have 
been  put  to  you,  we  are  to  understand  you  are  not  invoking  the  fifth 
amendment  privilege  ? 

( The  witness  conferred  with  his  counsel. ) 

Mr.  Hutcheson.  Yes,  sir;  I  am  declining  on  the  grounds  previously 
stated. 

The  Chairman,  And  not  invoking  the  fifth  amendment  privilege  ? 

Mr.  Hutcheson,  Yes,  sir. 

The  Chairman,  Yes,  or  no?    Are  you  or  not?    Yes  or  no, 

Mr.  Hutcheson.  No,  I  am  not. 

The  Chairman.  Thank  j^ou. 

Senator  Ervin.  Mr.  Chairman,  may  I  ask  one  or  two  questions  along 
that  line  and  tlien  I  will  subside  ? 

Mr,  Hutcheson,  you  are  familiar  with  the  provisions  of  the  AFL- 
CIO  ethical  code  concerning  officers  of  affiliated  unions  who  invoke 
the  fifth  amendment :  aren't  vou  ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12125 

Mr.  PIuTCHESON.  Yes,  sir. 

Senator  Ervin.  In  that  connection  I  would  like  to  state  that  this 
is  my  opinion  of  the  hiw,  though  it  may  not  be  your  counsel's.  The 
only  reason  for  recognizing  the  right  that  a  man  may  not  testify  con- 
cerning matters  involved  in  an  indictment  against  him  arises  out  of 
the  fact  tliat  the  indictment  is  probably  the  strongest  kind  of  evidence 
that  anything  he  may  say  in  reference  to  it  may  be  construed  to  in- 
criminate him,  and  that  the  only  reason  that  a  man  has  a  right  to  re- 
frain from  answering  matters  about  an  indictment  is  the  fact  that 
what  he  may  say  about  those  matters  may  tend  to  incriminate  him. 

Therefore,  Mr.  Hutcheson,  don't  you  realize  that  what  you  are 
doing  is  that  you  are  seeking  to  avoid  an  expressed  violation?  In 
otlier  words,  you  are  seeking  to  get  the  benefit  of  the  fifth  amendment 
without  invoking  it  so  that  you  will  not  run  the  risk  of  committing 
an  oflense  against  the  ethical  code  of  the  A.  F.  of  L.-CIO? 

(The  witness  conferred  with  his  counsel.) 

Mr.  HuTCHESQTsr.  Sir,  I  have  been  following  the  advice  of  counsel 
on  the  grounds  outlined  by  me. 

Senator  Ervix.  Well,  you  are  concerned  that  there  shall  be  no  actual 
or  apparent  violation  on  your  part  of  the  provisions  of  the  A,  F.  of  L.- 
CIO  code  of  ethics  concerning  union  officers  who  invoke  the  fifth 
amendment  when  asked  about  their  official  conduct,  aren't  you? 

Mr.  Hutcheson,  Yes,  sir. 

Senator  Ervix.  That  is  all. 

The  Chairman.  One  other  question  on  the  Chicago  matter. 

Were  you  out  in  Chicago  at  that  time  on  union  business? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Hutcheson.  On  the  advice  of  counsel,  I  refuse  to  answer  on 
the  same  grounds  as  previously  related. 

The  CHAreMAN.  The  Chair,  with  the  approval  of  the  committee,  or- 
ders and  directs  the  witness  to  answer  the  question. 

Mr.  Hutcheson.  I  still  refuse,  sir. 

The  Chairman.  Proceed. 

Mr.  Kennedy.  Do  you  know  Mr.  James  Hofi'a  ? 

Mr.  Hutcheson.  On  the  advice  of  counsel,  I  refuse  to  answer  on 
t  he  same  ground  as  previously  related. 

Tlie  Chairman.  The  Chair  orders  and  directs  the  witness  to  answer 
the  question,  with  tlie  approval  of  the  committee. 

Mr.  Hutcheson.  I  still  refuse,  sir. 

The  Chairman.  Proceed. 

Mr.  Kennedy.  That  is,  you  refuse  to  tell  the  committee  as  to 
\vl)ether  you  know  Mr.  James  Hoff a  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Hutcheson.  Yes,  sir. 

Mr.  Kennedy.  Did  you  make  an  arrangement  with  Mr.  HofFa  that 
lie  was  to  perform  tasks  for  vou  in  return  for  vour  support  on  the 
question  of  his  being  ousted  from  the  A.  F,  of  L.-CiO? 

Mr.  Hutcheson.  On  the  advice  of  counsel  I  refuse  to  answer  on 
the  same  gi-ounds  as  ])reviously  related. 

The  Chairman.  The  Chair,  with  the  approval  of  the  committee,  or- 
ders and  directs  the  witness  to  answer  the  question. 

Mr,  Hutcheson.  I  still  refuse,  sir. 

The  Chairman,  Proceed. 


12126  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  KJENNEDY.  Isn't  it  a  fact  that  you  telephoned  Mr.  Hoffa  from 
your  hotel  in  Chicago  on  August  12, 1957  ? 

Mr.  HuTCHESON.  On  the  advice  of  counsel,  I  refuse  to  answer,  sir, 
on  the  same  grounds. 

The  Chairman.  The  Chair,  with  the  approval  of  the  committee,  or- 
ders and  directs  the  witness  to  answer  the  question. 

Mr.  HuTCHESON.  I  still  refuse. 

The  Chairman.  Again  the  record  should  clearly  show  we  are  in- 
terrogating the  witness  about  union  affairs. 

Mr.  Kennedy.  And  wasn't  that  telephone  call  in  fact  paid  out  of 
union  funds,  the  telephone  call  that  you  made  to  him  on  August  12  ? 

Mr.  Hutcheson.  On  the  advice  of  counsel  I  refuse  to  answer  on  the 
same  grounds  as  previously  related. 

The  Chairman.  The  Chair  with  the  approval  of  the  committee 
orders  and  directs  the  witness  to  answer  the  question. 

Mr.  Hutcheson.  I  still  refuse,  sir. 

Mr.  Kennedy.  Do  you  also  know  Mr.  Sawochka,  of  the  Brother- 
hood of  Teamsters  ? 

(The  witness  conferred  with  his  counsel.) 

Mr.  Hutcheson.  On  the  advice  of  counsel,  I  refuse  to  answer  on 
the  same  grounds  as  previously  related. 

The  Chairman.  The  Chair,  with  the  approval  of  the  committee, 
orders  and  directs  the  witness  to  answer  the  question. 

Mr.  Hutcheson.  I  still  refuse,  sir. 

Mr.  Kennedy.  Isn't  it  a  fact  that  you  had  Mr.  Plymate,  who  is  a 
representative  of  the  Brotherhood,  telephone,  and  your  secretary  tele- 
phone, Mr.  Sawochka  from  your  room  on  August  13,  1057? 

Mr.  Hutcheson.  On  the  advice  of  counsel  I  refuse  to  answer  on  the 
same  grounds  previously  related. 

The  Chaikman.  The  Chair,  with  the  approval  of  the  committee, 
orders  and  directs  the  witness  to  answer  the  question. 

Mr.  Hutcheson.  I  still  refuse,  sir. 

Mr.  Kennedy.  And  isn't  it  a  fact  that  that  telephone  bill  and  that 
telephone  call  was  paid  out  of  union  funds? 

Mr.  Hutcheson.  On  the  advice  of  counsel  I  refuse  to  answer  on  the 
same  grounds. 

The  Chairman.  The  Chair  with  the  approval  of  the  committee, 
orders  and  directs  the  witness  to  answer  the  question. 

Mr.  PIuTCHESON.  I  still  refuse,  sir. 

Mr.  Kennedy.  Were  you  here  at  the  hotel  Washington  in  Septem- 
ber of  1957? 

Did  you  stay  at  the  Hotel  Washington  ? 

Mr.  Hutcheson.  Well,  I  don't  recall  the  trip.  I  probably  was,  if 
the  hotel  bill  shows  it. 

Mr.  Kennedy.  Going  on  to  October  13  and  14  of  1957,  were  you 
here  at  the  Hotel  Washington  at  that  time  ? 

Mr.  Hutcheson.  Well,  I  don't  recall  right  now. 

The  Chairman.  I  hand  you  liere  a  liotel  bill,  made  out  to  M.  A. 
Hutcheson,  running  from  October  13  to  October  15,  1957.  I  present 
it  to  you  for  your  inspection  and  identification. 

(The  document  was  handed  to  the  witness.) 

(The  witness  conferred  with  his  counsel.) 

Mr.  Kennedy.  What  is  the  answer  ? 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12127 

Mr.  HuTCHESON,  It  is  registered  to  me,  Mr.  Kennedy. 
Mr.  Kennedy.  What  were  you  doing  down  here  at  that  time? 
Mr.  HuTciiESON.  I  couldn't  answer  that. 
Mr.  Kennedy.  I  see. 

The  Chairman.  That  may  be  made  exhibit  No.  59. 
(The  document  referred  to  was  marked  "Exhibit  No.  59"  for  ref- 
erence and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Kennedy.  On  October  14,  Mr.  Kaddock  joined  you  at  the  Hotel 
Washington.    Why  did  he  come  down  to  Washington  ? 
Mr.  HuTCHESON.  I  don't  recall. 

Mr.  Kennedy.  That  wasn't  very  terribly  long  ago.  What  were  you 
doing  dow^n  here  at  that  time  ? 

Mr.  HuTCHESON.  Well,  Mr.  Kennedy,  I  must  have  been  attending 
some  meetings  of  some  kind,  but  I  do  not  recollect  just  offhand  what 
they  were. 

Mr.  Kennedy.  You  and  he  were  occupying  the  same  room.     You 
don't  remember  what  you  were  doing  here  ? 
Mr.  HuTCHESON.  No,  sir,  I  do  not. 

Mr.  Kennedy.  He  made  a  number  of  telephone  calls.  His  bill  was 
paid  out  of  union  funds.  The  first  telephone  call  he  made  on  October 
14, 1957,  w  as  to  Gary,  Ind. 

(The  witness  conferred  with  his  counsel.) 

Mr.  Kennedy.  Would  you  tell  us  what  he  was  doing  at  union  ex- 
pense calling  Gary,  Ind. '( 

Mr.  HuTCHESON.  I  know  nothing  about  the  telephone  call,  sir. 
Mr.  Kennedy.  It  was  to  Local  142  in  Gary,  Ind.    What  was  that 
for? 

Mr.  Hutcheson.  I  wouldn't  know. 
Mr.  Kennedy.  You  have  no  idea  ? 
Mr.  Hutcheson.  No,  sir. 

Mr.  Kennedy.  You  have  no  idea  why  he  should  be  calling  local 
142  of  the  Teamsters  in  Gary,  Ind.  ? 
Mr.  Hutcheson.  No,  sir. 

Mr.  Kennedy.  Did  you  have  any  business  with  local  142  of  the 
Teamsters  in  Gary,  Ind.  ? 

Mr.  Hutcheson.  On  the  advice  of  counsel  I  refuse  to  answer  on 
the  same  grounds  as  previously  related. 

The  Chairman.  The  Chair,  with  the  approval  of  the  committee, 
orders  and  directs  the  witness  to  answer  the  question. 
Mr.  Hutcheson.  I  still  refuse,  sir. 

Mr.  Kennedy.  We  have  a  number  of  others,  Mr.  Chairman,  but  I 
want  to  move  it  along. 

Mr.  Hutcheson,  do  you  have  some  property  adjoining  the  general 
offices  of  the  international  in  Indianapolis? 
Mr.  Hutcheson.  Sir? 

Mr.  Kennedy.  Do  you  have  a  parking  lot  that  adjoins  the  interna- 
tional headquarters  ? 

Mr.  Hutcheson.  Do  I  have  it? 

Mr.  Kennedy.  Does  the  international  have  a  parking  lot  ? 

Mr.  Hutcheson.  Yes,  sir :  the  international  does. 

Mr.  Kennedy.  To  whom  is  that  leased  ? 

Mr.  Hutcheson.  To  Wells,  James  Wells. 

Mr.  Kennedy.  Who  is  he? 

21243  O — 58— pt.  31 23 


12128  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Mr.  HuTCHESON.  He  is  my  brother-in-law. 

Mr.  Kennedy.  How  much  does  the  international  receive  for  that? 

Mr.  HuTCHESON.  $200  per  month. 

Mr.  Kennedy.  Do  you  know  how  much  he  receives  for  renting  out 
as  a  parking  lot  ? 

Mr.  HuTCHESON.  Well,  I  don't  know  how  much  he  receives;  no, 
without  the  records. 

Mr.  Kennedy.  The  Brotherhood  gets  about  $2,500  for  that  parking 
lot  for  the  year  ? 

Mr.  HuTCHESON.  $2,400  a  year. 

Mr.  Kennedy.  His  net  profit  in  1957  was  $8,000.  Did  you  know 
that? 

Mr.  HuTCHESON.  No ;  I  did  not. 

Mr.  Kennedy.  Did  you  try  to  get  any  other  lessee  for  the  prop- 
erty? Did  you  find  out  whether  anybody  would  pay  any  more  for 
the  property  ? 

Mr.  HuTCHESON.  We  did  at  the  beginning,  and  there  were  some 
around.  But  under  the  conditions  under  which  he  rented  it,  they 
were  not  interested  at  that  time.  The  lot  was  for  the  purpose  of  sup- 
plying the  employees  with  parking  spaces  for  our  building.  They 
didn't  require  the  whole  thing  so  then  we  decided  to  rent  out  the  bal- 
ance so  they  could  look  after  the  lot. 

Mr.  Kennedy.  Is  that  a  yearly  rental,  renewed  each  year? 

Mr.  HuTCHESON.  No,  sir;  it  is  on  a  30-day  basis,  a  month-to-month 
basis. 

Mr.  Kennedy.  Have  you  tried  to  see  if  anyone  would  pay  any  more 
for  it  since  1950  or  1951? 

Mr.  HuTCHESoN.  No;  we  have  not.  We  used  the  parking  lot  our- 
selves for  our  employees  up  to  1955,  the  beginning  of  1955,  and  he 
only  had  less  than  half  of  the  lot  up  to  that  time. 

Mr.  Kennedy.  Do  you  have  a  home,  a  hunting  and  fishing  lodge, 
in  Wisconsin  ? 

Mr.  Hutcheson.  Yes ;  I  do. 

Mr.  Kennedy.  Have  you  gone  up  there  at  union  expense?  Have 
you  traveled  up  there  at  union  expense  on  occasion  ? 

Mr.  HuTCHESON.  No,  sir. 

Mr.  Kennedy.  You  never  have  ? 

Mr.  Hutcheson.  Well,  I  might  have  used  an  air  travel  card  once 
or  twice.    I  don't  remember  that. 

Mr.  Kennedy.  And  has  Mr.  Charles  Johnson  joined  you  up  there 
on  occasion  ? 

Mr.  Hutcheson.  Well,  he  has  been  up  there. 

Mr.  Kennedy.  And  Mr.  Chapman  on  occasion  also? 

Mr.  PIuTCHESON.  Yes,  he  has  been  up  there. 

Mr.  Kennedy.  And  have  you  been  drawing,  you  personally  been 
drawing,  your  per  diem  while  you  were  up  there  ? 

Mr.  Hutcheson.  No,  sir. 

Mr.  Kennedy.  Well,  the  records  would  seem  to  indicate  that  you 
have,  Mr.  Hutcheson.    Is  tluit  incorrect  ? 

Mr.  Hutcheson.  Well,  I  don't  know  what  records  you  are  referring 
to,  sir. 

Mr.  Kennedy.  Were  you  up  tliere  for  about  fiO  days  in  1955  ? 

Mr.  Hutcheson.  No,  s'r. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12129 

Mr.  Kennedy.  How  lon^  were  you  up  tliere  ^ 

Mr.  HuTciiivsoN.  I  would  have  to  check  up  there  to  find  out.  I  have 
never  went  up  there  for  GO  days. 

Mr.  Kennedy.  Do  you  have  any  other  interests  up  there?  What 
other  reasons  would  you  have  for  ^oing  up  to  the  Iron  Mountain, 
AVis.  ? 

Mr.  Hutcheson.  The  airlines  goes  into  Ironwood. 

Mr,  Kennedy.  What  other  reason  would  you  have  for  going  up 
there  ? 

Mr.  Hutcheson.  What  other  reason  ? 

Mr.  Kennedy.  Other  than  to  visit  j-our  camp. 

Mr.  Hutcheson.  AVe  have  local  organizations  up  through  there. 

Mr.  Kennedy.  Have  you  traveled  very  much  to  visit  your  local  or- 
ganizations? 

Mr.  Hutcheson.  To  some  degree,  yes ;  the  same  as  other  places. 

Mr.  Kennedy.  How  long  would  you  stay  U])  there  in  connection 
with  that  ? 

Mr.  Hutcheson.  I  would  have  to  know  the  particular  trip. 

Mr.  Kennedy.  We  have  the  records  here.  On  June  9, 1955,  you  went 
u})  from  June  9  to  ,Iune  15,  and  then  on  July  1  you  drove  up  there, 
returned  on  the  18th;  then  flew  back  on  the  14th  and  returned  on  the 
2()th,  1955.     Do  you  remember  those  trips? 

Mr.  Hutcheson.  I  don't  recall  them  clearly;  no. 

Mr.  Kennedy.  August  29  you  drove  up,  with  Mr.  Chapman;  re- 
turned on  September  12;  went  back  up  again  on  September  29  and 
came  back  on  October  10.  The  cost  according  to  the  records  of  the 
international,  was,  for  you,  $1,560;  for  Chapman,  $870. 

In  1956 — do  you  want  to  say  anything  about  that  ? 

Mr.  Hutcheson.  I  couldn't  review  the  thing  or  discuss  it  without 
having  the  records  in  front  to  help  me. 

Mr.  Kennedy.  The  records  indicate  that  your  expenses  up  and  your 
expenses  back,  plus  per  diem,  were  paid  out  of  union  funds  while  you 
were  up  there,  for  a  total  of  $1,560  in  1955;  $1,350  in  1956;  $800 
in  1957;  for  a  total  of  $3,710  for  you;  in  1955,  Chapman,  $870;  and 
Johnson  in  1956,  $200.    These  are  the  records. 

Mr.  Hutcheson.  Mr.  Kennedy,  I  cannot  comment  on  what  records 
you  are  referring  to  without  having  copies  of  the  records  myself. 

Mr.  Kennedy.  Do  you  deny  that  your  trip  up  to  your  camp  was 
paid  out  of  union  funds  i 

Mr.  Hutcheson.  I  say  that  I  not  intentionally  at  any  time  have 
charged  it  to  the  union. 

Mr.  Kennedy.  What  about  your  per  diem  of  $7  or  your  per  diem  of 
$15  ?     Was  that  charged  to  union  funds  I 

Mr.  Hutcheson.  The  $7  was ;  yes. 

Mr.  Kennedy.  What  about  the  $15  ? 

Mr.  Hutcheson.  No,  sir ;  not  while  I  am  up  there. 

Mr.  Kennedy.  It  never  was  ? 

Mr.  Hutcheson.  Not  to  my  knowledge. 

Mr.  Kennedy.  Is  it  possible  that  it  was  ? 

Mr.  Hutcheson.  Well,  it  might  have  been  possible. 

Mr.  Kennedy.  The  way  that  your  bills  were  submitted,  you  see,  it 
was  just  traveling  expenses  for  a  particular  period  of  time,  and  the 
bills  show  they  paid  you  the  $15  while  you  were  up  there,  plus  the  $7. 
Mr.  Hutcheson.  I  would  have  to  look  at  them. 


12130  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  I  hand  you  what  I  understand  to  be  the  union 
records  regarding  these  payments.  I  ask  you  to  examine  them  and 
state  whether  those  records  are  correct. 

Mr.  Kennedy.  Mr.  Chairman,  maybe  he  could  look  those  over  and 
we  have  another  witness  we  could  put  on  briefly  ? 

The  Chairman.  All  right.  While  you  are  examining  those,  you 
may  stand  aside  briefly  and  we  will  call  another  witness. 

Mr.  Kennedy.  Mr.  Chairman,  this  is  on  a  matter  we  have  dis- 
cussed before,  which  is  a  matter  of  some  delicacy  and  some  problem, 
because  it  deals  mainly  with  a  man  who  is  now  deceased. 

I  have  explained  the  circumstances  to  you. 

The  Chairman.  Can  we  do  it  briefly  ? 

Mr.  Kennedy.  We  can. 

I  will  tell  the  chairman,  as  I  have  told  him  privately,  that  I  have 
gone  to  the  representative  of  the  International  Brotherhood  of  Car- 
penters and  also  the  representative  of  Mr.  Hutcheson,  who  is  now  the 
general  president  of  the  (^irpenters,  and  said  that  we  had  the  informa- 
tion indicating  that  tliere  was  a  misuse  or  embezzlement  of  some 
property  of  the  International  Brotherhood  of  Carpenters,  and  that 
the  embezzlement  was  on  the  part  of  the  former  president  of  the  Car- 
penters, Mr.  Hutcheson,  Sr.  I  said  that  in  view  of  tlie  fact  that  Mr. 
Hutcheson  was  dead  and  Avas  obviously  not  able  to  come  here  and 
answer  the  questions  himself,  the  committee  would  be  glad  to  settle 
this  matter  in  private;  that  if  we  could  have  an  impartial  third  party 
we  would  submit  the  information  that  the  committee  had  to  this  im- 
partial third  party  in  private  and  let  the  impartial  third  party  then 
make  a  decision  as  to  whether  this  property  in  fact  now  belongs  to 
the  International  Brotherhood  of  Carpenters  rather  than  to  the  heirs 
of  Mr.  Hutcheson. 

The  Chairman.  The  question  is  not  to  reflect  upon  anyone  otlier 
than  to  try  to  ascertain  whether  the  property  properly  belongs  to  the 
union,  is  that  correct  ? 

Mr.  Kennedy.  That  is  correct. 

As  I  said,  we  tried  to  work  it  out  so  that  tlie  matter  would  not  be 
made  public. 

The  Chairman.  In  other  words,  the  investigation  made  by  the  staff 
indicates  that  this  property  to  which  you  refer  properly  belongs  to  the 
union  and  not  to  the  heirs  of  Mr.  Hutcheson  deceased  ^ 

Mr.  Kennedy.  That  is  correct.  We  have  had  these  conferences 
and  discussions  with  the  re])resentatives  of  the  International  Bi-otlier- 
hood,  and  also  with  an  attorney  for  Mr.  Hutcheson,  Jr. 

Most  of  this  pro|)erty  is  now  in  trust.  It  was  the  feeling  of  the 
attorneys  for  the  international  that  they  could  not  make  any  commit- 
ment. It  was  the  feeling  of  the  attorney  for  Mr.  Hutcheson,  Jr.,  that 
this  was  a  matter  now  before  the  courts,  or  it  was  in  trust,  and  as 
being  pr<)j)erty  in  trust  that  Mr.  Hutcheson,  Jr.,  couhl  not  make  any 
commitment  on  it. 

The  Chairman.  What  is  the  api^roximate  sum  ^ 

(Jive  us  an  estimate  or  value  of  tlie  value  of  the  pro]>ei'ty.  If  it  is 
a  trifling  matter,  I  don't  think  the  conunittee  should  go  into  it. 

Mr.  Kennedy.  The  present  value  of  the  i)roperty,  Mr.  Chairman, 
is  approximately  a  quarter  of  a  million  dollars. 

The  Chairman.  Some  $250,000  value  is  involved  ? 


IMPROPER    ACTIVITIKS    IN    THE    LABOR    FIELD  12131 

Mr.  Kennedy.  At  the  present  time.  That  is  what  the  property  is 
worth. 

The  Chairman.  All  ri^rht.     Proceed.     AVho  is  your  witness? 

Mr.  KENNt^DY.  The  witness  has  an  extensive  memorandum,  Mr. 
Chairman,  on  this  whole  matter,  and  he  can  put  the  memorandum 
into  the  record  and  summarize  it,  if  you  wish. 

Ml-.  Travis.  Mr.  Chairman,  in  all  fairness,  so  that  no  inferences 
can  be  drawn,  I  answered  Mr.  Kennedy's  proposal  on  hehalf  of  Mr. 
Hutcheson,  and  I  would  like  to  have  the  committee  know  the  reasons 
I  <>;ave  for  having  to  refuse  that  proposal.  The  property  is  now,  as 
I  understand  it,  and  I  just  learned  this  myself  since  this  started^ 
I  knew  nothing  of  it — is  a  piece  of  real  estate  which  is  now  ownied  by 
the  trustees  of  William  L,  Hutcheson 's  estate.  As  I  pointed  out  to 
Mr.  Kennedy,  the  probate  court  of  Marion  County,  Ind.,  could  not 
dele<j:ate  its  functions  to  an  arbiter  even  if  we  wanted  to.  Mr.  Hutch- 
eson himself  is  a  trustee  and  as  a  trustee  cannot  commit  trust  property, 
of  course,  without  the  authority  of  the  court.  But  as  I  understand  it, 
the  matter  is  again  going  to  be  reviewed,  since  it  has  been  brought  up. 

Of  course,  William  L.  Hutcheson,  being  dead,  is  the  real  man  who 
can  tell  us.  As  I  understand  it,  no  man  is  alive  today  who  can.  But 
it  is  my  understanding  that  Maurice  Hutcheson  will  review  the  matter 
with  their  executive  board. 

The  Chairman.  They  may  do  so.  We  will  place  in  the  record  the 
work  that  the  staff  has  done  on  that  and  get  just  a  brief  summary 
so  that  if  we  have  information  here  that  is  of  interest  to  and  for 
the  welfare  of  the  membership  of  the  Carpenters'  Union,  it  should  be, 
of  course,  placed  in  the  record. 

Mr.  Travis.  I  wanted  the  committee  to  know  that  it  was  impossible 
to  accept  it. 

The  Chairman.  I  clearly  understand. 

Incidentally,  that  is  a  signal  for  a  rollcall  vote  in  the  Senate. 

Have  you  been  sworn  in  this  series  of  hearings? 

^Ir.  Ranstad.  Xo,  sir,  Mr.  Chairman. 

The  Chairman.  Do  you  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.  Ranstad.  I  do. 

TESTIMONY  OF  HAROLD  RANSTAD 

The  (^hairman.  State  your  name,  your  place  of  residence,  and 
business  or  occupation. 

Mr.  Kanstad.  My  name  is  Harold  Ranstad.  I  live  in  Washington, 
D.  (\,  and  1  am  a  member  of  the  professional  staff'  of  this  committee. 

The  Chairman.  Have  you  made  an  examination  of  the  real  estate 
matters  that  the  counsel  has  just  referred  to  ? 

Mr.  Ranstad.  Yes,  sir,  and  also  the  stock  transactions. 

The  Chairman.  Also  what  ? 

Mr.  Randstad.  Stock  transactions,  capital  stock  transactions. 

The  Chairman.  Have  you  made  a  summary  of  it  ? 

Mr.  Ranstad.  Yes,  sir. 

The  Chairman.  A  memorandum? 

Mr.  Ranstad.  Yes,  sir. 


12132  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

The  Chairman.  That  memorandum  may  be  made  exhibit  No,  60. 

(The  document  referred  to  was  marked  ""Exhibit  No.  60"'  for  refer- 
ence, and  may  be  found  in  the  files  of  the  select  committee.) 

Mr.  Kennedy.  He  has  made  a  more  exact  study  of  it.  What  is  the 
approximate  value  of  the  property  at  this  time  ? 

Mr.  Ranstad.  It  is  approximately  as  you  stated,  Mr.  Kennedy, 
roughly.  That  was  based  in  part  on  an  estimate  of  the  value  of  real 
estate. 

The  Chairman.  The  chairman  will  issue  the  following  statement: 

It  appears  that  at  the  very  least,  Mr.  Hutcheson,  as  president  of  the 
United  Brotherhood  of  Carpenters  and  Joiners  was  grossly  careless 
with  the  use  of  union  funds  and  completely  failed  to  meet  the  respon- 
sibility of  his  trust.  That  such  an  excessive  amount  of  money  should 
have  been  paid  for  the  printing  and  writing  of  the  book  on  his  father 
is  almost  inconceivable. 

0.  William  Blaier  and  Frank  Chapman,  as  well  as  other  top  officers 
of  the  Carpenters  Union,  bear  responsibility  with  Hutcheson  in  the 
handling  of  this  matter,  which  obviously  cost  the  Carpenters  some 
$185,000  in  excess  of  value  received. 

Mr.  Haddock  perpetrated  a  fraud  against  this  union.  From  the 
facts  developed,  it  is  apparent  that  only  a  small  number  of  the  books 
on  William  Hutcheson  would  likely  have  ever  been  printed  if  it  had 
not  been  for  the  investigation  this  committee  has  conducted. 

The  facts  that  lead  to  this  conclusion  are : 

1.  That  Mr.  Haddock  had  already  spent  almost  all  of  the  money 
that  the  Carpenters  had  paid  him  in  financing  his  other  businesses 
and  projects  and  paying  off  his  debts. 

2.  That  he  had  to  borrow  money  in  order  to  pay  for  the  books 
that  were  finally  published  in  January  and  February  1958. 

3.  He  predated  certain  letters  in  order  to  make  it  appear  that 
he  was,  in  fact,  intending  to  publish  the  book  prior  to  the  start  of 
this  investigation. 

Mr.  Raddock  was  involved  in  other  frauds;  in  the  operation  of  his 
newspaper;  in  claims  by  his  solicitors;  in  the  sale  and  purchase  of 
World  Wide  Press  bonds.  That  so  much  of  this  should  have  been 
financed  by  union  funds  is  extremely  unfortunate. 

The  testimony  further  indicates  that  certain  high  officials  of  both 
the  Teamsters  and  the  Carpenters  ITnions,  two  of  the  largest  unions 
in  the  country,  with  the  help  and  assistance  of  Mr.  Raddock  were  in- 
volved in  a  conspiracy  to  subvert  justice  in  the  State  of  Indiana. 

All  the  facts  regarding  this  conspiracy  undoubtedly  have  not  been 
developed  by  the  committee. 

Further  exposure  we  believe  can  and  should  be  made.  We  will  be 
glad  to  assist  and  help  law  enforcement  officials  in  the  State  of  In- 
diana if  they  determine  that  they  would  interest  themselves  in  the 
ma:tter. 

It  is  also  my  hope  that  the  Carpenters  T^nion  itself  will  take  what- 
ever action  it  is  possible  for  it  to  take  to  recover  the  moneys  now  in 
the  possession  of  tlie  heirs  of  Mr.  Hutcheson  which  would  appear  to 
rightfully  belong  to  the  international  brotherhood. 

The  Chair  would  also  like  to  express  the  appreciation  of  the  com- 
mittee for  the  fine  work  done  by  the  staff  of  the  committee,  under  the 
competent  direction  of  our  chief  counsel,  Mr.  Robert  Kennedy. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12133 

These  members  of  tlie  staff  include:  Karl  Deibel,  Charles  Mattox, 
(^harles  Wolfe,  John  Prinos,  P^rank  Ward,  Maurize  Frame,  Andrew 
Masyko,  Richard  Sinclair,  Harold  Ranstad,  Robert  Dunne,  and  Paul 
Tierney. 

The  committee  thanks  each  of  them  for  the  fine  work  they  have 
done. 

Mr.  Travis.  Do  I  understand  Mr.  Hutcheson  to  be  released  from 
hissubpena? 

Mr.  Kennedy.  Yes.     Does  he  want  to  make  any  statement? 

Mr.  Travis.  I  believe  not. 

Mr.  Kennedy.  Mr.  Chairman,  that  is  all. 

The  Chairman.  The  committee  stands  adjourned,  subject  to  the 
call  of  the  Chair. 

(Whereupon,  at  1 :  48  p.  m.  the  hearing  was  recessed  subject  to  the 
call  of  the  Chair,  with  the  following  members  present :  Senators  Mc- 
Clellan  and  Ervin.) 


APPENDIX 


Exhibit  No.  1 


UNITED  STATES  OF  AMERICA 


Congrestst  of  tiie  iHnitd)  Matti 


^A 


JV, llme^  Mark  Hlyb.  IndlTldmaiy  >nd  as  puLllsher  of  th« 

p.vi?.Ui».W.9fi.JI!Th.«..SppUiiht;!^  Ji^^  

_ __HsjtJ(5r)t...ii»_I.. ,«tte«na: 

$nr<uant  to  tou/itt  authority.    YOU  ARE  HERKBY  COMM^yDED  to 

appear  before  the  SEJfdTE  SELECT  Committee  on  IMPROPER  ACTITITJES 

IX  TEE  LABOR  OB  MAffAOEMEJfT  FIELD  of  the  Senate  of  the  Vnited 

State*,  on       .forthwith _ ,  196...,  at o'eloek 

m.,  at^their  committee  «>omi_M.JS!»t*..cmoe_.E\41dlaK,_jfea»liBg1,«W_2J,  D.C. 

then  and  there  to  teitify  what  you  may  know  relative  to  the  subject  matter* 

under  consideration  by  *aid  ooinmittee,    and  [.roduce  all  your  personal  books 

_ ajad  recoor^ s J. _^_sh .  re M 
e^ios  of  state  and  federal    incoae  tax  returns,  and  all   of  said  records 

all  advertising  or  elrculatloo  contracts,   employee  records,   withfaolding 

and  all  related  docvaents  for  the  period  January  1,  19$0  to  date. 


I^Ktof  (afl  mt,  a$  you  will  antwer  your  default  under  the  pain*  and  pen- 
altiee  in  lueh  ease*  made  and  provided. 

to  terve  and  return. 

•Om  under  my  hand,  by  order  of  the  eommittee,  thi* 
.iilL-  day  of !!!!?_ ,  in  the  year  of  our 


Lord  one  thoutand  nine  hundred  and  J^7r?i?^*. 


Chatrtnan,  B^ate  8»l»el  Committtt  on  Improper  itoUvitUt 
in  Ihr  Labor  or  JUanafntnt  Fltld. 


•i 


M! 


12135 


12136  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 


Exhibit  No.  2 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12137 

ExHiBrr  No.  3 


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:  WESTERN  UNION 

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p.  MAIKMALL.  xoiMa 


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MAT  20,   19^ 


MR.  BanST  MARX  HKSI 
AW.  SfOTLKWr 
BIFZRB  8TATI  BJILPIM8 
MBW  TMIK,   KW  TOnC 


FOnUAMT  TO  8UBFBHA  SDCSS  TBCUM  8XR7SD  ON  YOU, 
TOO  ARB  HBmnr  BZRBOfD  TO  APPIAR  IN  ROOM  101, 
8BIATX  OFFICI  BSTtJUm,  VASHDfOTON,   D.C.,   AT 
2i00  P.M.  ON  THDRSDAT,  MAY  22,   1958* 


OPPICIAL 
ROOM  101 


RXI>:KOf>:ann 


JOBN  L.  MoCLKLLAN 

CHAIRMAN 

SINATB  ggtlCT  COtKOTBt  (M 
ZMPROPBR  ACTIVITIES  IN  THB 
LABOR  OR  MANAOBfENT  FIBLD. 


12138  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  4 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12139 

Exhibit  No.  6 

iTAWPAM)T||fc|||||     ot.t<^T<»..<iWi»iU«TAMPA»DTIMBMpoliitc«3»a..«>o. 

:«T*577  flITIAL HUlf ,^  21    PM   9    0. 

ST   turn  «««  «».  eO^tt  Ki  IWK  ■!   21f 

>BOI  JOHN  L  ■CCLELUHf  CHAfRIIAIIf  SCiAtE    SELECT 

COWUmC  01  tiPROPCR  ACTlVJilEJ  IH  THE   LABOR  OR 
^  ■AHAGEWIlt  FIELD.     SEHATC  OFFICE   BLD6  lASHDCi 

ifisR  SECOBD  TELE6RAII  OF  THE   DAT   ARRIVED  PRfOR  TO  THE 
COIICLOSIOII  OF   A  UttCR  \   IAS  fREPARIK  EXPLAIIimG  THE 
lEASORS  FOR  REQ0ESr|i6  A  tlO  WEEK  EXtERSIOH  OF   %\ 
APPEARABCE    before  TOO*  «T   REQOESt  FOR  All  EXtENSlOi  IS 
■ADE    UPERAtlW   BT  MT    liABlMTX  TO  COMPLY  WltH  TOUR 
SOBfOERA   BECAISE  OF  ■?   PirSICAL  COHDltlOR.   I   FOLLT 

IltEND  to  COiPLT  II tH  YOOR   SUBPOEMA  AS  800»  AS  I    AM 
PBTSICAUT  CAPABU  OF   DOIRfi   SO.   AMOMG  OtHER    ILLNESSES   f 
SOFtER  FROM  A  •lAPHRAfiMATlC   HERHlA  AND  ACOTE 
PYPERtENSION  FOR  IHlCH  .1    RECENtLjr  IAS  TREATED   AT  A 
SAIATORjWifWvfMftTEEH  l£EKS#  THE   MEDICAL   StAFF 
IRANlMOtfSLT   AtREED  THAI  MY   HYPERTEHSION  IAS  AT  A  POlRt 
BOROERde  A  FATAL  STROKE*  tB.U  MORRllG  ORE   OF  THESE 
DOCTORS  IAR«W  ME  ACAllSt  OEtTllG  INTO   AH  ATMOSPHERE 
CHARGED  IITH   EXCXtEMEHT   AiD  TENSION  UNTIL  HE   COULD 
EXAMINE   ME   8NDER  CLINICAL  CONDITIONS  AND   BE  CERTAIN 
THAT  MT   APPfARAiCE  lO^LD   MOT  JEOPARDIZE  MY   CtFE« 
ARRANGEMENTS  FOR   SUCH  AN  EXAMINATION  HAVE   BEEN  MADE   AND    I 
■tHEREFOR  RESPECtFULLY   RENE!  MY   REQOEST  FOR   A  TIO  lEEK 
AD'JOORHHERt" 

ERNEST  M  HIGH  THE    SPOTLIGHT^* 

Mf  rn  OOMMMT  wiLi  *micutn  wuooumom*  now  i-rt  runamt  cowcinnMo  rr*  ••mci 


12140  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  14 


WESTERN  UNION 

TELEGRAM  <.???, 


DL»I>iT  L«ct«« 


Nl.»N«ht  LcncT 


Cxj>M  or  Strnvum 

Thti    h     ■     fM«     (»««M«B 

■Kt«t  Ulndkwcd  by  (be 
pcopM  •TX'tbat 

V. / 

""  PA015  DB586 

D   LLAi48  LONG  IL  PD«DALLAS   TEX   3> 

ROBERT  F   KERIEDYy   CHIEF   COORSEL* 

SENATE  SELECT  COMMITTEE  OR    IMPROPER   ACTIVITIES 
IR    THE   LABOR  MARAGEHERT  FIELD   ROOM    101   SENATE 
OFFICE   BLOe  WASHDC* 

/•ILL  REFERERCE   TO   CORVERSATI0R  IITH   A  MR   KOTA,   BE 
ADVISEB  THAT    I    AM  PRESIDERT   AND  6ERERAL  MANAGER  OF   A 
COMPART   ERGAGED    IR    THE  PROCESSING   ARD  DISTRIBOTION   OF 
DAIRY  PRODUCTS   AND  OPERATORS  OF   A   CHAIR   OF   SMALL  FOOD 
STORES*  ODR  PLART3»   SALES   BRARCHESy    ARD  STORES   ARE 
LOCATED  THROOGHOOT   RORTHy   EAST   ARD  WEST   TEXAS*    IR 

COHRECTIOR   WITH   ADMIHISTRATI VE   DOTIES    IT  HAS   BEER   FOUND 
TO  BE  CONVENIERT   TO  RECORD    INTERBRARCN    TELEPHORE 
CONVERSATIONS  TO  PRECLUDE  POSSIBILITY   OF   MEMORY 
FAILURE    AS   TO   DETAILS   ARD   TO  PROVIDE   ACCURATE  WRITTER 
CORF IRMAT ION   OF   SUCH   CORVERSATIONS*   THE   SAME  SITUATION 
PREVAILS  WITH   REFERENCE   TO   CONVERSATIONS   WITH 
SUPPLIERS   AND   CUSTOMERS    AS    TO  CONFIRMATION   OF   PRICES^ 
CONDITIONS*   SHIPPING    DATES   ETC.    THtS^OCCAS lONED   ROUTINE 
RECORDING   OF    CONVERSATION   WITH   MR   KOTA   SINCE  WE 

TKl  COurANT   win    ArPMCIATI   •UOO«»TIONS   mOM  IT»  MTIONS  CO_NCi«Nm^»Tt  »t«yic|    _ 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12141 


Cuua  Of  Smvici 

an  tin  in  dH«vt«d  €Km*- 


WESTERN  UNION 

o.     ^  TELEGRAM  <.r. 


DL^DavLcRM 


NL-Nld»  l-xMi 


W.  P.  MANVMALL.  ^««' 


TK.  lili.M  ■'"«  Jx"-"  '"  ■'>«  •*•«  ' 


.  u  STANDARD  TIME  ..  pc...  o(  -,*n  TW  ,«  ..c^  I.  STANDAKD  TIMI «  p.^~  o>  d^n.«o. 


T^TZTTT^v 


TRAISACT  BOSIMESS  FROM   TIME    TO    THE  WITH   SEVERAL  HEW 
YORK  FIRMS.   A  SIMILAR  CALL  REACHED  ME   AT  AUSTIN   TEXAS 
SEVERAL   YEARS   AGO  BOT    I    CARROT  STATE   POSITIVELY   THAT 
SAME  PERSON   OR   ORGANIZATION    INITIATED   THE   CALL* 
NOTHING  FORTHER  WAS  HEARD   FROM   THAT  CALL  NOR  IAS 
ANYTHING  HEARD   EITHER   BY  PHONE   OR  MAIL  FROM 
CONVERSATION   OF   fHlCH    TRANSCRIPT    IN    YOOR   HANDS*   FOR 
YOOR    INFORMATION   OUR   COMPANY  HAS    APPROXIMATELY   600 
EMPLOYEES*  WE  ARE   MOT  ORGANIZED*   RAVE   NOT  HAD   ANY 
DISPUTES    NOR  HAVE   ANY   AT  PRESENT*   NEITHER  HAVE  WE 
EMPLOYED   ANY   ODTSIDE  PERSONS   NOR   FIRMS   TO   ACT    IN    ANY 
CAPACITY   AS   ADVISORS   OR  SPOKESMEN    IN    OOR   EMPLOYEE 
RELATIONS   PROGRAM*    IF    ANY  FURTHER    INFORMATION   NEEDED 
PLEASE   ADVISE*   RESPECTFULLY* 

EARLE  CABELL   PRESIDENT   CABELLS    INCs* 


TBI  CX>urANI   W 


ILt    APWtClATI   »OOOirnONf   FtOM    IT«  »AT»ON.  CONCtMJmO  IT»  IKVICI 


12142  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  18 


CoinpOBitlon_ 

Preaswork 

Binding 


.  i.V2i/5^ 


TrrLE: 
PRICE: 
TYPE: 


:-.A     ■ 


-Mvi'i- 


AC..V.LL   i\A>  >. 


BOIWD  BOOK  DATE: 


TYPE 
PAGE: 


picas  WDRD6: 


.St.     ■■ 
PAGES: 


'/•  /   3?  PP 


BOOK  SIZE:      ^             x          V 

EDGES:   Top        ^    '     Front      ^         Foot           '■         BULK: 
BIND                                                               APPROVED 

PRINT               '-   •    ,       '   ^   -^ 

PLANT 

PUTES   -  TYPE  -  OFFSET 
COKP.  9                  per  page 

MANUFACTURING 

PAPER 

text:.      ;    S    ..ove 

lh,i,ol^,{ 

^0 

PUTES  or  LOCKUP  9 

ILLUS.      70    Coa'ed 

^,iV5'.' 

A. A. "8 

END  SH. 

ILLUS.   Halftones 
Line  cuts 
ART 

PRESSWDRK  Adv.    1  v  ''0 

TEXT       :^>    ♦<%. 

1,1)5^.  )0 
5,-j1o.  10 

BNGRAtlNGS 

ILLUS. 

l,+30.')o 

COMP.   CAPTIONS 

END  SH. 

ELECTROS 

BINDING 

MATERIAL 

JACKETS 
ART 

PLATES                      COMP. 

PER  COPY       ."^33 

<'-:^,'-yf-y. 

) ' 

STAMPING 

MSIGN      35            DOSS    75 

110.00 

JACKETS 
PAPER 

Rrn<AS 

PRESSWDRK 

TOTAL  PLANT 

TOTAL  MFG. 

iiM5l|. 

i^^ 

invest:>4ent 

UNIT 
COST 

i            investxent 

UNIT 
COST 

* 

WBOUSSALE  PRICE 

PLANT  (                 ) 

110.00 

MFG.      (                 ) 

I+8,15i+.00 

.7^3 

•ROYALTY   -  ADVANCB 

TOTAL  COST 

4fi,26!4..00 

GROSS  PROFIT 

O.K.    for  Composition 

O.K.    for  Presswork     

won:  Plates   •-:  paper  for  advance  run     o,^,   f^j.  Binding        

mTSl   be   at   printer  by    3   -^ov,    (You   to 

furnish  plated).  ,   x.    jn         j 

Additional   for    individual    cartons,    insert,    label    (furnished)    and 
delivered   to   i-.o.      .0/5'  per   copy. 

If   book  delivered   on   skids   not    cartoned,    deduct   ,01    per   copy. 
All   quoted  P.O. 'J.    Bin«harr,ton,    N.    Y. 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12143 

Exhibit  No.  19 

5«    *    ^«    5       a 


IS 
1g 


8 

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5        5?        '-        ^i  g 


9m 

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2 


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HO  4^ 


8*1 


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of  K 

OS  !«+> 


UO  OH 

*  an 


wi 


21243  O — 58 — pt.  31 24 


12144 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 


EST     MTB:  «»y   ^»    1955 


Cc«poa  It  ion 

Pr«*«vork    ___^.^____  

Btadlag        

THUt:     PORTRAIT  <F   AH  AMKHICAM  tAEOH   UBADHtR    AUTHOR:     Raddook,   II>ct«11  C. 


HtlCE: 


PUB.   CATB: 


BOUro  BC»K  DATE: 


TYPE 
PAGE: 


plc&a  WDRDB: 


BO(»C  SIZE: 

ruiiiT 


_21 


EDGES:  Top      T         Pront    T 
50,000-20,000         BIHD       $0,000-20»000 


PAGES:  384  ft  32 

T BUUC:     1-1/8* 


PIART 

MANUFACTURIHG 

PAPER 

TEXT 

50.000 

1  20,000 
3900.00 

PUTBS   -  TtPB  -  OFFSET 
COUP.  «                per  paffR 

9l<20.(X 

PUTBS  or  UOCKUP  • 

ILUJS. 

i/uu.ug 

7iU.UU 

A.A.'s 

EKC  SB. 

r. 

X 

HUB.  aalfto&es 
Line  cuts 
ART 

PRESSWORK 

TEXT 

3950. DC 

2935.00 

ENGBAVIBSS 

ILLUS. 

1080. od 

U95.0O 

COMP.   CAPTIOBS 

EIID  SB. 

X 

X 

ELECTROS 

BiHDiir; 

MATERIAL    HOT«l«X 

X 

X 

JACKETS 
ART 

PUTE8                     COMP. 

PER  copy  .'50i«-  ,315 

15,?50.[)0/73«).pO 

8TAMPIRG 

tMsvm              ons 

JACKETS 
PAPER 

X 

X 

Emus 

PRESSVDRK 

X 

X 

TOTAL  PLAirr 

TOTAL  MFG. 

31.900. 

30/15,1+00,  ( 

5 

0,000 

20,000 

mVESmERT 

UHIT 
COST 

# 

mvEsniaaiT 

UHIT 
COST 

* 

UBOtBBAUl  PRICE 

FLAirr  (            ) 

MfO.      (                ) 

31.900.00 

.638 

I5.li00.00 

.77 

•ROtALTT  -  ADVASCE 

TOTAL  COST 

GROSS  PROFIT 

O.K.   for  Coaposltion_ 
O.K.    for  Pre«ework 
RPTE:  O.K.   for  Binain*         ~_ 

F.O.B.  Blasbaaton.   R.Y.,  p«ok*d     In  eartona 

All  platca,  •ogntTlngs  ft  dl«s  fumlab»d 

V»*lgix  of  t«xtt  flOO.OO 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12145 

Exhibit  No.  20A 


tTAHLEY    THOMPSON    ASSOCIATES.    141   EAST    25TH    STREET.    NEW    YORK    10.    N.    Y  .    MU    5  4784 

Xcveaber  23,  1956 


Miss  R.   Qunsha 

Trwla  "nion  Courier  Publ.    Corp. 

Ui5  E.    3?nd  rtreet 

New  Tcrk  1*^,   \enir  Tork 

Desr  Yfas   "jaahjit 

^ttnched  hereirlth  l3  a  copy  of  the  1  fitter  to  iJr.   Jelvln  Frieanisn  of 
Book  P'Tj^'iction   Comjnny  n'thorlslng  luja  to  release  to  ..oar  carrier  the  text 
plntea,   electrotypes  of  illustrations,   Oi-it^in?!  halftor.'is   and  type  iised  ior  the 
production  of  yoir  ■ook  "rortrait  of    >n  Americin  Labor  Leader."     This  material 
is  n'jw  't   jeorgo  '^cKib^.in  ^  Jon,   5  ■  ^'^ney  Road   (Rt©  (f5)   Brattleboro,  Vermont. 
Tour  carrier  cin  ask  for    ■"  ~yone  of  the  folloAxiig   three  uiont     Mr.   Srdpiey,   Mr. 
Stewart  Anderson   nr  VIr.   Jxues    <allace. 

Tou  will  note  in  the  attached  letter  to  Mr.  Friedman  that  ainoe  you  do  not 
want   any  special  packing,   there  ia  a  great  cnancv    of  damage  to  this  material.  We 

In  ro  r.  •■',    can  be   r.eltl  ros,  oiislbld   for   any  daxn/Vie. 

If  "O'l  hive   any  further  questlone  regardinf;  the  arrangements   for  pickup, 
pleads  o:)..:act  Mr.   FriedTan  at  Qeorge  UcKib'oin       .'oa  in  Frooklyn  -  telephone  nuaber 
is  HT<^cinth  9  -  "^^OO. 

Tou  are  to  t  tm  c/nr  to  our  messenger  »  ^  t-rtified  check  in  the   nmount  of 
f3)0.'X)  wliich  will    :)e  settlement  in  fill  for  o'lr  invoices  now  outstanding. 


Uery  truly  yours, 

ST-KLEY  THOMPSON  ASSOCI  .TF^ 


PG:d-h 
''  signed) 


trnde  'Jnion  Courier 


12146  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  20B 


LX1  '.:  't 


:c!rh 
CC   -   7l9S      •      UAShx 

Tr«de     nlon  "o-irler 

lli!^  ■*.  3r*nd    "1,-     cw     or' 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12147 

Exhibit  No.  20C 


'    V'3        , 


c  n 


12148  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  21 


WE  COVER  THI  GLOBE  WITH  QUAUTY  PR/NTING  OF  EVERY  DESCRIPTION 


^^«iwm%nit 


763   SAW  MILL   RIVER   ROAD 
YONKERS    -    NEW  YORK 


Tel:  YOnkorj  9-2343 


A  COMPLETE  BOOK  •  NEWSPAPER 


LETTERPRESS  6  LITHOGRAPHY  PLANT 

June  12,    J.956 


Mr.  6tahi€y  Thompaon 
btahiey  Tborapson  Associates 
14i  East  25th  Street 
Mew  York  iO,   New  York 

Ltear  sir: 

As  I   tola  you  orer  the  telephone  today,   I  am  greatly  dlsturted  about  a 
complaint  reoelveo  iTom  the  United  Brotherhood  of  carpenters  alleging 
that  the  hutcheson  tslography  was  not  printed  in  a  100J6  union  plant,      ihe 
complainant  aiieges  that   the  composing   rooa  of  said  plant  is  non-union  — 
that  oniy  the  press   room  is  signed-up  with  a  local  oi    the  Pressmens '   and 
Assistants'   Union. 

when  we  entered  into  our  agreement  ror   tne  printing   and  binding  of  the 
Hutcheson  book  it  was   clearly  specified  that  the  production  would   have 
to   De  handieo  in  a  lOOJfc  union  shop  ana  we  wiiiingiy  agreed  to  pay  the 
proposea  price  over  ana  aboTe  those  submitted  by  non-union  printers. 

Evidently,  the  man  who  complained  to  Mr.  Hutcheson  sought  to  do  us  injury 
and  it  is  Important  therefore  that  we  obtain  from  you  the  necessary  proof 
to  confirm  the  fact  that  our  book  was  printed  under  100%  union  conditions 
and  that  we  didn't  misrepresent  the  truth  when  we  imprinted  our  union  bug 
"5"    (World  *iae  Press)    thereon. 

Trusting   that  you  win   transmit  this  Inlormation  to  us  within  a  week,   I 
remain 


MCR:rq 


Very   truii 

Maxwe'ii  C.  Radaock 

President, 

WORl.i>  WIDE  PRl!£S  b^MDICATE,lNC. 


•  OOKS    •    tOOK  JACKITS    •    MAOAZINtS    •    NEWSPAPERS     •    CATAIOOS    •    HOUSE  OROANS    •    tlOADIIDIt 
FOOD   AND    IIOUOR    lAIELS     ■•  TAOS     '     DISPLAYS     •     CARIONIZED    SNAPOUT    tUSINISt   PORMS 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12149 

Exhibit  No.  22 

J-ono  13,  1956 


.  Ve'ivin  \#  Friedran 
''oo'-  Trodrotion  Co.,  "^riC, 
_^  -  3l:th  "troet 

I 


cq  :ii^a  thnt  I  rttht   anowcr 


for  the  sooond 

aor.dor^  why  we  did  not  .  i-.cc  t,;*;  moiI-. 
no'.-un.on  plant. 

Th-ciivO  so  nnicli 

Cordially  y:  j'  , 


ST' 


12150  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  23 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 
Exhibit  No.  26  A 


12151 


•r 


Ill 


12152  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  26B 


January  B,  1954 


Mr*  N.  i«  ImteliaaoB 

&«a«ral  PiHiaidaat 

0ait«d  Br«th«rlio#4  ef  Carpaatars  k 

Jaiaara  of  Aaariea 

222  I.  mchlgaa  Straat 

ladiaaapalla,  ladiaaa 

9aar  Sir: 

Tkla  ia  to  aekaowla4ga  racalpt  of  a  ehaek  aada  PATa- 
bla  to  tha  msdaralgaad,  ia  tha  airoant  of  #25, 000.00, 
fraa  tha  Oaltad  Brotkarhood  of  Caraaatara  aad  Joiaara 
•f  laMirieaf  ia  aeeordaaca  with  ajr  lattar  to  70a  of 
Baeaabar  i,   1953* 

km   agroMMiBt  aabraeiag  all  dataila  of  tha  projaetad 
VllliaB  L.  HatehaaoB  biography  vill  ba  draftad  wlthia 
tha  wtak*  Saaa  will  ba  praaantad  to  yaii  oa  mj   aaxt 
Tiait  ta  Brotharhood'a  Haad<|ttartara. 

Tha  biagraphy  ia  to  ba  pabliahad  by  Eaddock  aad 
Brathars,  Ltd.,  or  Saw  Mill  Rirar  Praaa,  and  will  ba 
eoBplatad  prior  to  tha  Brotharhood*a  CoBToatioa  ia 
laTaabar,  1954* 

VaxT  tr^ly  yoars. 


(■^Viar^^^^^^ 


NaxMll  C.   Raddock 


]ICS:LM 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12153 

Exhibit  No.  28 


12154  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  29 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12155 

Exhibit  No.  31 


rujn: 

76S  Saw  Mill  River  RomI 
Yonker*.  New  York 
BOOK    PUBLISHERS  Tel:YOnk«r.9  2S4S 


RIIDDOCK  &  BROS.,  LTD. 

1150  A^ue  of  II.  Apjjj^  j^^ji^j^j^ 

.1955. unde 


MUrrty  Hill  2-1260 


Thli  lk%h  djiy  of  F«bruAryfl955»under«lgned  in 
p«rf  ox*Manoe  of  authorship  and  publloation  of 
PORTRAIT  OF  A  LABOR  LEADER:  Will laa  LctI  Hutoheaon. 
asreaa  to  dallTar  to  Oarpantaz*a  Brotharhood  6,000 
ooplaa  of  aboTa  in  ratium  for  I25.OOO  paid  to  hia 
par  orlginaLiaffl^eenant.Aoknowladseaient  is  alao  sada 
of  rsoaipt'wsf  12^,000  for  raaaaroh  work  par  orl^ 
inal  undJivstandins* 

Harain  is  also  aoknowl8(3ged  raoaipt  of  $100,000«00 
paid  in  adTanoa  to  Raddook  A  Bros  Ltd  by  tha  U.B, 
In  part  paysant  of  ordar  for  5O.OOO  oopies  of  said 
book  at  f^.OO  par  copy  induaiTa  of  mailing  and 
handlinS'Upon  publication  and  ahipaant  notioaa  by 
tha  author  and  publishar.U.B.   ahall  pay  to  RAddook 
A  Broa  balanoa  of  $100, 000* 00.   It  baing  agraed  that 
ooBtraot  will  be  parfomed  by  Maroh  31,1933. 

In  tha  awant  of  the  death  of  Maxwell  C.Raddook,tha 
tarns  harain  enuaerated  shall  be  faithfully  axa»> 
utad  by  Oharlea  Rfuldook,   Tica-Pre aidant  of  RMldook 
A  Broa*   and  aasooiate  of  the   author*  -v 


O.Raddook,?paa. 


Attested  by: 

Oharles  Raddo6k,Tica-Praaidant 


.    <^<^, 


O*^^^'*^'^^ 


^^.  rw"?''^-'^  ■irfwm' 


12156  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  32A 


PaK     TQ     ORDiTR     OF 

NUV(it» 


20,180 


In   Tfi^'   1  ce   on 
50,000  books 

INDIANA     NATIONAL    BANK  tto-Si 
INDIANAPOLIS,    IFfD, 


P.'^WUHJJMCA.    LNDU.NAKM.Iv   INDIAN  \ 


1 


*&     -.ST 


LV  .     NV^dH:  3'" 


[i^       t/       P^  JAN  ^  >  1955 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12157 

Exhibit  No.  32B 


r^  7/^ 


In  adYanc*  oh 
50,000  books 


mouiik  N^nONiiL  bank  wo  s) 

IMHAMArOUa.  IMO. 


j  50 1,00  0,00 


1^.    ■ik:>'S 


AiiaeLnmnr- 


>^-  '-^- 'y^:aJCMuXl.L^^ 


12158  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  32C 


20,532 


INDIANA  WTIONAl    RANK    105) 
INDIANAPOl  IS,  IND. 


^^        '^^J^^f''^^" 


:.    w^ 


'^^yr,iV4 


pft«)^\F"^^ ' 


.t)& 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12159 

Exhibit  No.  32D 


Kdt!)t)oc£C 


,^_^?U/^  '^ 


21243  O— 58 — pt.  31 25 


12160 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 


O 


UJ 

z 

UJ 

o 

•^ 
t 

s 


0) 

q: 
< 

J 
0 

Q 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12161 

Exhibit  No.  33 


12162  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  33A 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 
Exhibit  No.  33B 


12163 


IT. 


«m: 


•'A 


12164  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  35 


^^" 


from 
AMERICAN  IIVSTITIJTE  •! 
SOCIAL  SCIENCE,  Ine. 

7«3  SAW  MdlX  HIVEm  BttAB     •      YVNKBms.  N.  Y. 


VOmk«n  S.7712 


Deceaber  28,  1956 


^'^ECEIVED 

-i.o,}  11956 


Mr.  Maurice  A.  Hutcheson;  General  President 

United  Brotherhood  of  Carpenters  and  Joiners  of  America 

222  Sast  Michigan  Street 

Indianapolis  W,  Indiana 

Dear  Siri- 

Per  instructions  from  Mr.  Maxwell  C.  Haddock  we  have   shipped 
exactly  2-000  books   per   the  list  furnished  by  the    late  Mr.  Albert  E. 
Piacher,  General  Secretary  of   the  United   Brotherhood. 

A  bill  for   these  copies    Is   herein  enclosed. 

Mr.   Haddock  did  advise  us   that  you  and  he  had  discussed  a  re- 
duced rate  as   soon  as   you  authorize  a  very  substantial  order.     Naturally 
we  can't  apply  the  sane  reduction  to  the   above  mentioned   shipment  since 
these  were   printed  at   a  considerably  higher  cost  to  us.     As   a  matter  of 
fact   it  depletes   our  present   Inventory  of  Mr.  Haddock's   book,   except  for 
about   1,000  or   so  copies. 

In  view  of   the   fact  that  we  will  shortly  have  to  order  another 
reprint  of   Portrait  of  an  American  I.abor  Leader,   we  would  appreciate  it 
greatly  if  you  would  reach  a   decision  at  the  earliest  possible  date  con- 
cernlnf   your  own   plans  anent  wider   circulation  of   the    book  to  your   mem- 
bership and  to  incoming  apprentices   as   per  your  discussion  with  the 
author. 

Wishing  you  and  your   colleagues  a  Happy  Jfew  Year,   we  remain, 


Respectfully  yours. 


{(K^ 


MCRiRQ 


Hhoda  (Juasna.  Secret-ary 
American  Inatltute  6f 
Social  Sclenee,  Inc. 


I' 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 


12165 


c 


O 


CD 


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%^ 

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■♦-» 

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£8         ♦» 

«o  «>  c 

V^  t)  f-  ad 

O  -H  4J  ■^^ 

^1  W  -C 

O   B   C^ 

O  <   <A 

jC       m   - 

U*^  -H^ 

0?  o  ;c; 

^        o  « 

♦*    •  <H  <H 

o  V. ai'H 

*-J  so  * 

T3    O    03    C 

•  ►r>  w^ 

£ 

•H  -O  CsJ  t3 

5 

3 

8 

* 
O 


12166  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  35A 


File 
American  Institute  of  Social  Science. 


JaauAry  9,    1957 


Mr.    klaxwall  Raddoek 
145  E««t  32  Str«et 
New  York.    New    York 

Dear  Sir: 

Thin  will  Acknowledge  your  conununicetion  of  December  28 
tofethcr  with   statement  for  two  thoueeod  books.   PORTILAIT 
or  AN  AMERICAN  L.A50R  LCADER.   which  have  been  shipped 
as  per  list  f»riiished  by  the  late  General  Secretary,   Albert  £. 
Fischer. 

Enclosed  Is  ©»»  check  in  the  amount  of  $10,000.00  covering 

same. 

V  e  r  y  t  r 


GENERAJU  PRESIDENT 


MAH-JF-t 
End  -  ck 


Cross  reference 
Haddock 


' 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 
Exhibit  No.  35B 


12167 


ChirtttrfCiTD  Exchange  Bank      '^' 


12168  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  35C 


I 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12169 

Exhibit  No.  36 

o<  SocW  ScbKpf  tec.  . 


i 

1  " 

1 

■ 

1 

1  , 

—  i    2 


i 


:lJ 


I 


12170  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  38 


Aufost  7,  1«57 


BcMk 
f«fie1i:  «»«tt 
Wm  Iterki  lev  ToHt 

•  Thi«  will  eonflrm  o«r  ord^r  for  th«  blndlnf 

"00  mtpiAS  of  "^vrtr^'it  •#  an  &a«ri<)»n  I«lM»r 

W*  will  sui>|4y  foXd»d  8lgn*tures,  you  to  do 

IImi  eoIlMtlnCt  sii^li«  scwlcg,  easing,  and  placing 
J««k«t*  tm.  «»«nl«t«a  1»ooks  at  th«  agj-®«d  prlc«  of  J7# 


Vary  truly  yours,  •  ^^^9  jiuj^ 


J'OB«?>h'|[i:^Hi 

/ 


1 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12171 

Exhibit  No.  38A 


October  P,  1917 


im»Ttm&  Boflfe  -  Stndford 
75  Turlek  8tr»«t 
■•If  York,  »•¥  Torif 

ratlMMmt 

This  will  eoaflni  our  oHMr  for  you  to 

■■<•»■•  ......  .... 

pikptlt^  pftVtt^bKg  «f  tiM  t«>t  ^rt'i  eaHft]let«  Maniac 
30,000  eopifts  of  th«  •PDTtMlt  of  »n  JUwrrlcan  inbfjr 
»<Jer.» 

W«  mn  supply  •«  coit«<J  lB«#rt«  and   jackets. 


Flvas*  •icp«dlt.e' 


!s  ord«r»     Thftnk  you. 
~y  trtily  yoars, 


'*CI»L2 


,    IKC. 


12172  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  38B 


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if  MyttB  mgkm^  Mi  9iLm  Ifm  ppbiMf^ 


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IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 
Exhibit  No.  39 


12173 


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12174  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  40 


IMPROPER    ACTWITIES    IN    THE    LABOR    FIELD  12175 

Exhibit  No.  40A 


.<*>    t.%#t  TMiTty   "imrooA  "itrmmt 
%m   fvir*    :^.    <taw  Toi-fc 

P*«-     Id  .    iLft4<lock: 

In  r«p!.^    to   ytnar   l«tt«r   «ft    U*^:  ■ifci<y    lOrJ*.,    T   mm 
9vacm  ty^  coMKLctMt   of   thm  ■■..mmr*~i:  Xx«eatl\-»    ?^>JT«i  w^  J ).   k« 
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cQicx    -if    ^  'I  <  «   annth   «rK2   l>«    1  u    ckq:    hM»ds   <irl£i>ovtr    ^«i  :  . 

I  twr-^  noticed  trlth   |pro«t    tnrjw»<tt   rotsr   orHur 
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t'v«   <•'««•.■;.•.••    t'l   ooCalu   t±m    Laf  or-«r»ti./i«j    to   nkiicb    <;b«rr   /  r  » 
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tUaX  c«rc*tn  aatLwrxal  wunt    t«b«i.o  «lth   y-^v   Ittdttf iulc«].T ,    «fr.4r 
eonfcrriiig  wltb  Cwiwral  rxo«l<i«nt   K.    4      'firtrMAoa  kmI  a«    I 
ha-vx*    lTKllcJtt.«d   Co   CtM  Cmnmta.'^  TrmmLimnt,    I  am  ooC  coocmktmwS   ta 

Th«  astcrlal   I   tornisbmt  ywa  fr-nm  ehuLr  oifLe«   U 
■y   frt»«c   <«m4  '«:fti*«   cxMCCW,    wliJLrh   rem  kanw   ut    ta  rttf«r>anr«   re 
ocv   3c.r.<>*d   (iror'cS«ar'>K>o^  Ccmavmitxxm  Pror— itl iij^ ,   WDri.c<uji    l4«iM« 
of  THE  CAJtrCJC*  ML ,   AaMTlcAs  VwAm-aJLiom  of   Labor   PToc»««\ijni^, 
•tC.       T    «■    •«£«    79«    CiBD    r^  :«••*«    CLviJI    — tc".*.!    vlcivc*xt    f'jr-Xb«r 

^>^M■iy^'— mpta    f';<r  r«s*«rc^    LrrjK.f4icr  as   May  ot:l:<«r  projaet  aaj  )»• 

mtf   I   t«k«  tlMi  opporrvaKity  •&   thl«   tl*r.   v.-*  *K:tmaa4 
to  y<nu,    «a   «»ll   «•   to  Mr«.    R/iAiock.,    Clw  t^mm^x'*  <^-mniCin%*   mud 
bast  vlafa**   fare   gxx>4  h— ]th  «od  bapyiwa. 

Aucrr  E.  fL&CHiat, 

AST;  IK  (XmMJU.  OCMlTiAin 


21243  O — 58 — pt.  31^ 26 


12176  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  41A 


American  Federation  or  Labor 


if.  «.)... 

ft'  *■•    Ut 
55    ^••t 


he   Tru  !f 


1    1    s>3r' 


ronjt»»i   and 

--    BMnny 
Th    t    the 


fHit    1 1 

a  f  r  r>  1  r  P     I  .'     t 

no    tMll    th-  re     -f     ■     «■    .  ! 


:' >r    t.-.i»   »t  .t«    of 
nd    In   «>•    Judgr^nt 
it    naalth   of    itis 
:iy   loyil   to  tne   a. 


tft#     naj'i 
poll Cl»i 


lh«    «  »rn»«t    wl  •! 
r^t^mur*    of   •ucv« 


5.    •  ti  r  » 1  c  e    10    •- . .  • 
ccratlc    organliatl on* 

ri«r   upon   th«  coRpl^tlon 
x';r>'"r*    and    to  txprcaa 
'  jy    '1    ^tnaroua 


••ry  •lno»r«ly   youri, 


.»..w  ^^'^ 


•  cr/i»ry»Tr»»»ur«^ 


8 

Am«ric»n  r«d«r«ti6n  of  L*Mr.« 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12177 

Exhibit  No.  41  B 


-> 


Amlrican  Federation  of  Labor 


December  20,    1940. 


lir.   :'3zwell  C.    ;^ddock.    Editor, 
Trade  Union  Courier, 
55     -/est   42nd   Street, 
Ne*  York  City. 

Dear  L'r.   Haddock: 

I  wish   to  extend   to  you  and  to  the  staff 
of  the  Tndo  Union  Courlar  the  cordial  greetings  and  beat 
wishes  of  the  American  Federation  of  Labor  on  the  occasion 
of  the  5th  anniversary  of  this  labor  publication. 

The  Trade  Union   Courier  has  upheld  the 
traditions  of  the   labor  rress  and  has  remained   steadfastly 
loyal   to   the   Ar^erlcan  Federation  of  Labor  throughout   Its 
career.        It   has  shown  a  r.llltant   spirit   In   fighting  the 
battles  of  ort«nlzed  labor.        It   has  shown  a  loyal   spirit 
In  defending  the   prlnclflas  of  orfonlzed   labor.        Therefor* 
It   has   been  of  great   service   to  the   .iienberB  of  Anerlcan 
Federation  of  Labor  unions   in   the  oonRninltles   In  which  th« 
Trade  Union  courier  circulates. 

It  gives  ne  c^eat  pleasure  to  oon^ratulat* 
you  on  your  fine  record  and  to  wish  you  additional   suoocss 
In  the    future. 


FraterafTly^yourt, 


t3T 


rfteldent, 

Anerioan  Fsderatlon  of  Labor. 


12178  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  42 


IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12179 

Exhibit  No.  44A 


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12180  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  44B 


Offict  of  the  EiUoi 


Trade  Union  Courier 


' America  s  Leading  Labor  Newspaper' 

llfD   AVFNUE   or    TMf    AMEtlCAS.    NFW   TOKK    M.    NfW   YOKK  MUIOT    Hill    21260 


CabW:   TKACOUtll* 


Mr.     :  »^    ri:ar<-:    ;  .    •■  : 

Direct    r   o:'   ''os^^nrc        •       ;^'if  1 1  ::■  ti  on 

New  Yo'-K      t.;.tf  .'aiooi   -j:    J  n  ".Ubt. ri-.x 

flna   1,^00 r   rei'.  tlon? 

Cornell   Uiiiver.'.  ■;  ty 

Itnaca,    New  Yorrc 

Pear  Mr.    •"  a-tm.'. : 

Your  kIp.o    •:e-j.pfTa;.    r    .ei.-.    lor    -nicri  we    '  r-    ir.^ieen 
grateiui.      Pxf'ibe    .>^    r.-  (><■    <^r.  ugn    t  •>      enc    us   rnr-nu- 
scrinv    --t    your   »-   ftie.M    jc  .v'iien.-t-.      ^^est   a^   ur'='a 

it   wKi     i»e    r<--tuj-';-      -/.ji.'ti         •'-.••    r-i.in*^. 


our    t;.H.'  r. 
Konvltz.    1 


Io:r. 


'  ii"'.  ctor   of    'f  e';rcn 


'( 


■M,,ii 


I" 


I  ■ ' 


IMPROPEK    ACTIVITIES    IN    THE    LABOR    FIELD  12181 

Exhibit  No.  44C 


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iv^ 


U^-K^     -  -  t  t>//icr  of  Ikt  Eiitof 


VjtV'  irV-^  .^^''''     , 

Trade  Union  Courier^  K^^^ 


'America's  Leading  Labor  Newspaper' 


MJO  AVCNUf  O*   rH(  AMMICAt.   NIW  TOIX  M.   NfW  YOIIC  MUtlAY  NIU  r)I40  CaMw  TtACOUMOl 

November    i,    i954 

Mr.    Leonard   P.    /aa.'TiS 

rirector  of   Rf^jearcn    u'-.n   Puoiication 

New  York   .'t'  te   c'cho.j.    ol    Ir.'iustri&l 

nnrt   Labor   "ej...tion.s 

comexi   (J   iversity 

Ithaca,    New  York 

Dec-r  Mr.    AQa;as: 

Trirout'.  an  oversignt  we   failed   to   re.,aejt    renewed 
xoan  o..   0-toDer   27   of   tne   ^nrljtle  nianuacrlpt    lor 
ai.   ..dditi.'i.oi    triree   weeks.      Ii    an   extei.i^on  will 
InC'-'.-.veriience  you,    please  advise. 

Triankj    lor  your   Kir.:.ne-is . 


10:  rq 


Respectfully   yours. 

Dr.    I.    Graeber 
rirr_Lvjr   of   hesearcn 


r^.% 


■r:^^?^^ 


'  / 


A     ^ 


>^..... 


12182  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  44D 


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IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12183 

Exhibit  No.  44E 


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MM   AVINUI  Of   TNI   AMI 


Trade  Union  Courier 

'America's  Leading  Labor  Newspaper' 

1   NfW  row  S«.   NPW  YO«  MUMUT  HIU  1)M0 


November  9,    195ii 


:!r.    Leonard  P.    Adams 

Director  of  Research  and  Pubiloation 

New  York  State  School  of  Industrial 

and  Labor  Relations 

Cornell  University 

Ithaca,  New  York 

Pear  Mr.  Adams: 

Complying  witn  yours  of  the   3rd   Inst.,   we  are  her«ln 
returning   the  Christie  manuscript.      Should   it   becoa« 
:  vaiiabie   at:airi  at   aiiy   time   in   the  nfear   future,   would 
;■  ju   be   iCinv-.   enough   to    id  vise  uu . 

y.n..y   thanko    for  your  kindness. 


IGrr-i 


Sijacerely, 

Dr.  I.  Graeber 
Director  of  Research 


i^ 


12184  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  46A 


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A  V  oi  HHOA  -nav 

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IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD  12185 

Exhibit  No.  46B 


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12186  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  46C 


A   N    01  HMOl  MS.H 

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IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 
Exhibit  \o.  46D 


12187 


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12188  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  54 


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IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 


12189 


Exhibit  No.  54A 


12190  IMPROPER    ACTIVITIES    IN    THE    LABOR    FIELD 

Exhibit  No.  55 


X 


BOSTON  WBUCS;"J 


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