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

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INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



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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 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 H lyb. IndlTl dmaiy >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 

i TELEGRAM 



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S«>4 At IWbwM AWMtt. aitira • A< Mm OT Wet k<na/. oAiA era li<T<*> <«»<./ n> 



MAT 20, 19^ 



MR. BanST MARX HKSI 
AW. SfO TLKWr 
BIFZRB 8TATI BJILP IM8 
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 ggtlC T COtKO TB t (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 

i TAWPAM)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 <.???, 



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"" 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 WIT