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INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD

HEARINGS

BEFORE THE

SELECT COMMITTEE

ON IMPROPER ACTIVITIES IN THE

LABOR OR MANAGEMENT HELD

EIGHTY-SIXTH CONGRESS

FIRST SESSION

PURSUANT TO SENATE RESOLUTION 221, 85TH CONGRESS,

AND SENATE RESOLUTION 44, 86TH CONGRESS

JANUARY 27, MARCH 10, APRIL 14, 15, AND JUNE 11, 1959

PART 50

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 ACTIVITIEiS IN THE

LABOR OR MANAGEMENT FIELD

EIGHTY-SIXTH CONGRESS

FIRST SESSION

PURSUANT TO SENATE RESOLUTION 221, 85TH CONGRESS,

AND SENATE RESOLUTION 44, 86TH CONGRESS

JANUARY 27, MARCH 10, APRIL 14, 15, AND JUNE 11, 1959

PART 50

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

^■"^

UNITED STATES
GOVERNMENT PRINTING OFFICE
36751 WASHINGTON : 1959

Boston Public Library
Superintendent of Documents

JUL 2 8 1959
DEPOSITORY

SELECT COMMITTEE ON IMPROPER ACTIVITIES IN THE LABOR OR

MANAGEMENT FIELD

JOHN' L. MrCLELLA.M, Arkansas, Chairman
KARL E. MI'XDT, South Dakota, Vice Chairman
JOHN V. KENNEDY, Massachusetts BARRY GOLDVVATEK, Arizona

SAM J. ERVIN, Jr., North Carolina CARL T. CURTIS, Nebraska

FRANK CHURCH, Idaho HOMER E. CAPEHART, Indiana

Robert F. Kennedy, Chief Counsel
Ruth Yoono Watt, Chief CUrk

C O N T E N 1' S

Miscellaneous

Pai?e

Appendix 18120

Suitemcnt of —

C:UJluin. Echvard J 18097

Testimony of —

Jiison, Edward 18121

I.apcnsohn, Benjamin 18099, 18115

Minnich, John 18117

Nulty, LeoC 18114

Philadklphia Te'm.sters, Food Fair Stokes, Int., and I{.olee
Publications, Inc.'

EXHIBITS

Introduced Appears
on page on page

til. Photographs of BenjaniJn Lapensolin on Un- hcacli at

Nassau 18113 (*)

02. Post card addressed to Mr. Emerson C. Custis, Phihidelphia,

Pa., postmarked at Philadelphia, Oetober 14, U)46 18115 (*)

62 A. Letter dated October 12, 1940. addres,sed to Ben Lapen-
sohn, Philafleli)hia, from Emerson C. Custis, president,
Emerson ('. Custis & Co --,•__--- 18115 (*)

62 B. Letter dated Au^usl ,30, 1946, addressed to Ben Lapen-
sohn, Philadelphia, froin Emerson C. Custi.s, president,
Emerson C. Custis & Co 1811 5 (*>

The Coin-Operated Amusement and Vendinc ALachine Industry -

EXHIBITS

80A. Subpena No. L-5497. addressed to the \A oodner, Wash-
ington, D.C., dated Januarv 8, 19.59 18122 (*)

SOB. Subpena .\o. L-6667. addressetl to the Woodner, Wash-
ington. D.C., datedMarch 1 IT 19.59. 18122 (*)

James H. Hokka and the International Brotherhood or Teamster.s, Chauf-
feurs, Warehousemen and Helpers of .\merica, .\llen M. Oorf.m.-v.n and
Paul .J. Dorkmax *

•exhfbit

-228A. .Mffmorandum dated December II, 1958, to Robert F.
Keiuiedy from .Martin S. I'lilmann, concerning report
submitted bv Northeastern Life Insurance Co. of .New
York to the sele;-t committee (exhibit No. 228) . 18125 (*>

Mafi.4 *

EXHIBIT

4. l{e\ ised chart, "Partial .Matia (Syndicate) Ri-lalionship

Study" ." 18127 ISliM*

Proceedings of—

January 27. 1959 . 18097

March 10, 19.59 (2 meetings) 18099,18117

April 14. 1959 18121

.\pril 15. 1959 _._ 18125

June 11, 19.59 _ 18121

' Sec pts. 27 and 28 of the committee hearings.

- See pts. 4t>-48 of the committee hearings.

3 See pts. ;<ft-}0 and Hi of the conmiittee hearings.

< See pt. .32 of the coujinittee hearings.

'M'ay he found in the files of the select eomniittep.

INVESTKJATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD

TUESDAY, JANUARY 27, 1959

U.S. Senate,
Sej.ect Committee on Improper Activities in

THE Labor or Management Field,

Washington, D.C.

The select committee met at 10 : 50 a.m., pursuant to Senate Resolu-
tion 221, a<)5reed to January 29, 1958, in the caucus room, Senate
Office Buiklinir, Senator John L. McClellan (chairman of the select
committee) presiding.

Present: Senator John L. McClellan, Democrat, Arkansas; Senator
Sran J. Ervin, Jr., Democrat, North Carolina; Senator Karl E.
Mundt, Republican, South Dakota; Senator Carl T. Curtis, Republi-
can, Nebraska.

Also, present: Robert F. Kennedy, chief counsel; Pierre Salinger,
investigator; Jotreph F. Maher, investigator; Ruth Y. Watt, chief
clerk.

The CiTATi:?.rAN'. The committee will be in order.

(Membci'^s of tlie select committee present ijt the convening of the
session were: Senators McClellan, Ervin, Mundt, and Curtis.)

The Chairman. Proceed, Mr. Kennedy.

Mr. Kennedy. Mr. Chairman, we have the attorney for Mr. James
Blakely, who is the vice president of the Plotel and Restaurant Work-
ers Union.

The Chairman. Counsel, identify yourself, please.

STATEMENT OF EDWAS-D J. CALIHAN, JR.

Mr. Calihan. My name is Edward J. Caliban, Jr., 105 West
Adams, Chicago, 111. I am a member of the bar of the Supreme Court
of the State of Illinois and the U.S. Supreme Court.

I appeared before the committee last August at a time when Mr.
Blakely had the heart attack which started out in the corridor here.
He was removed, after consultation with a heart specialist here in
Washington, removed to Chicago, here he was hospitalized for about
3 weeks.

Seiuitor, I am not exactly certain on the time. I came here on an-
other matter and Mr. Kennedy asked if I would step up and address
the committee.

He remained at home until about in October- November under pretty
much constant attention by the doctor, when he was permitted to go
down to hip office for about an hour a day, several days a week.

18097

18098 IMPROPER ACTIVITIf:.S IN THE LABOR FIELD

It appears that the International sent some trustees in who were go-
ing over matters revealed by this committee, and it was for the purpose
of assisting^ them. He is not able to travel.

An electrocardiogram was taken, or to be taken, on the 23d when I
received the telegram from Mr. Kennedy. At his request we acceler-
ated another examination and the results of that examination WfeiSe
forwarded to this committee. I have advised ]\Ir. Kennedy that if
he should care to send anyone to check with the heart specialist in
Chicago we would be happy to cooperate.

The Chairman. You are convinced that his condition is such that he
should not be required to testify ?

Mr. Calihan. 1 am, sir.

Mr. Kennedy. Based on the report that was furnished to us, Mr.
Chairman, as well as Mr. Blakely's age and general physical condi-
tion, we felt that he was in fact too ill to testify before the committee.

The Chairman. Do you have the documents ?

Mr. Kennedy. Yes, we do.

The Chairman. All right.

Mr. Calihan. Thank you.

(Whereupon, at 10 : 55 a.m., the committee proceeded to further
business.)

INVESTK^ATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD

TUESDAY, MARCH 10, 1959

U.S. Senate.
Select Committee on Improper Activities in the

Labor or Management Field.

Washington, D.C.

The select committee met at 2 : 15 p.m., pursuant to Senate Resolu-
tion 44, af^reed to February 2, 1950, in room 3302, Senate Office Build-
inor, Senatoi' John L. McClellan (chairnuin of the select committee)
presiding.

Present: Senator John L. McClellan, Democrat, Arkansas; Sena-
tor Barry Goldwater, Republican, Arizona; Senator Carl T. Curtis,
Republican, Nebraska ; Senator Homer E. Capehart, Republican, In-
diana.

Also present : Robert F. Kennedy, chief counsel ; Paul J. Tierney,
assistant counsel : Walter R. jNIay, assistant counsel ; John P. Con-
standy, assistant counsel; Robert E. Dunne, assistant counsel; Leo
C. Nulty, investip;ator; John Flana<>-an, investijjator: Georije L. Nash,
Investigator; Ruth Y. AVatt, chief clerk.

The Chairman. The committee will come to order.

(Members of the select committee present at time of convening:
Senators McClellan, Goldwater, and Capehart.)

The Chairman. Call the first witness.

Mr. Kennedy. Mr. Chairman, we have alx)ut four different matters
that we expect to go into this afternoon. The first witness is a wit-
ness that we have been searching for from about May of 1957, and
we finally located him after some period of time that he spent abroad.

His name is Mr. Benjamin Lapensohn. He is from Philadelphia.

The first witness, Mr. Chairman, is Mr. Ben Lapensohn.

The Chairman. Mr. Lapensohn, come fonvard, ])lease. Be sworn.

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

Mr. Lapensohn. I do.

TESTIMONY OF BENJAMIN LAPENSOHN. ACCOMPANIED BY
COUNSEL, WILLIAM A. WHITESIDE, JR.

The Chairman, Please state your name, your place of residence,
imd your business or occupation.

Mr. Whiteside. Mr. Chairman, before the interrogation of Mr.
Lapensohn begins, I would like at this time to renew a motion for a
continuance of the pi-oceedings pertaining to Mr. Lapensohn and

18099

18100 IMPROPER ACTIVITIES IN THE LABOR FIELD

would like to expand, if I could, for a })iief period on our reasons
therefor.

The Chairman. Let the witness be identified and get the record
started. Then the Chair will hear counsel.

Mr. Lapensohn, state your name, your place of residence, and your
business or occupation, please.

Mr. Lapensohn. Benjamin Lapensohn, Merion, Pa.

The Chairman. Proceed. Wliat is your business or occupation ?

Mr. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

The Chairman. You do what ?

Mr. Lapensohn. I decline to answer.

The Chairman. Because of what ?

Mr. Lapensohn. On the grounds that I am not required to give
evidence against myself under the fifth amendment.

The Chairman. All right.

Mr. Counsel, you may identify yourself, please.

Mr. Whiteside. My name is William A. Whiteside, Jr., Mr. Chair-
man. I am a member of the bar of the Supreme Court of Pennsyl-
vania. I am here as a member of the firm of Speiser, Satinsky, Gilli-
land, and Packel.

Under date of January 5, 1959, Mr. Packel sent a letter to the com-
mittee asking for a continuance in behalf of Mr. Lapensohn l)ecause
Mr. Lapensohn's attorney, Mr. Raymond Speiser, liad suffered a re-
lapse. Mr. Speiser, as the committee knows, has been IMr. Lapensolm's
attorney throughout these proceedings.

Also, the committee is aware of the fact that Mr. Speiser suffered
a condition in the middle of December which required him being out
of the office from that time until the present. Mv. Speiser and Mr.
Speiser only is familiar with this particular matter, and nobody in
our office has had an opportunity to look into the matter or to handle
any of Mr. Lapensohn's matters.

We expected Mr. Speiser back in the office early last week, but
unfortunately that weekend he suffered a relapse and was forced to
be hospitalized. I tliink the timing here becomes important to the
committee. We had already received notice for ISIr. Lapensohn to
appear here on the lOtli of March.

We expected Mr. Speiser to be in the office and be down here. He
then suffered a relapse and again we asked the connnittee to continue
the proceedings. This was denied, of course. We feel that liecause
of the seriousness of the situation, Mr. Speiser, the only one familiar
with the case, should be the "one to represent Mr. Lapensohn. Of
course, that is Mr. Lapensohn's desire.

I was alerted to the fact that I would be down here only this past
weekend. I do not know the file, did not know the matter. But we
thought that the committee would give the continuance that was
desired.

When it was denied, out of respect and courtesy to the committee.
we thought we should make an appearance and advise that we under-
stand Mr. Speiser will ))e out of the hospital the latter part of this
week. Of course, his type of illness requires some period of recupera-
tion. For that reason, sir, we would respectfully request that the
committee continue the matter for a period of 1 month so that Mr.
Lapensohn could be represented by his own personal cf)unsel.

IMPROPER ACTIVITIES IN THE LABOR FIELD 18101

The Chairman. Wliat is your name ?

Mr. Whiteside. William A. WTiiteside, Jr.

The Chairman. You and ]\Ir. Speiser are membei-s of the same
firm ?

Mr. Whiteside. Yes, sir ; that is right.

The Chairman. IIow long, Mr, Counsel, have we been seeking the
testimony of this witness ?

Mr. Kennedy. Since approximatelv April of 1957, March or April
of 1957.

The Chairman. Some 2 years ?

Mr. Kennedy. Yes.

The Chairiman. Is there any further information you have re-
garding the counsel — Mr. Speiser ?

Mr. Kennedy. I might give a little background, Mr. Chairman.
Mr. Lapensohn was being searched for by another congressional com-
mittee back in the late 19-10's. He managed to avoid service of the
subpena by staying out of the State of Pennsylvania and was not
called before that committee.

In February or March of 1957, shortly after this committee got
started, we started looking for Mr. Lapensohn, to interview him in
connection with improper activities in this field. He avoided the
subpena.

Then we understood that he had purchased tickets to go to Europe
on the Liherte, with his family, so we sent an investigator to interview
him at the boat and he was able to surreptitiously get aboard the ship
and leave for Europe. He sent his family in one entrance and he took
another entrance, so we were unable to get him there.

We sent notification to his attorneys, to him, for a period of some
14 or 15 months. He sent his family back from Europe but remained
out of the country himself. We ultimately found him in Canada.
We sent an investigator up there to interview him in Canada. He
refused to answer aiw of the questions and refused to return to the
United States.

The Chairman. He has been contacted by our investigators, as I
understand it, in Canada, since he returned from overseas?

Mr. Kennedy. He came back from overseas, but he went to Canada
and he spent the rest of tlie time outside of the jurisdiction of this
committee, outside of the United States.

The Chairman. Since he came back from overseas, members of the
staff have undertaken to interrogate him in Canada ?

Mr. Kennedy. That is correct.

The Chairman. And he refused to cooperate ?

Mr. Kennedy. Yes, sir.

Ultimately we developed the information before the committee on
his activities, including some activities up in New York City and
Xew York State where he had been running some of these labor pub-
lications, Mr. Chairman. He had been running the one in Pennsyl-
vania, the Pennsylvania State Federationist, which was supposedly
a labor publication. He had been going around to employei's, re-
questing that they submit ads or give ads to the publication, and sug-
gesting that it would help them as far as labor peace is concerned.
Then he had a New York operation of the same kind.

36751— 59— pt. 50 2

18102 UVIPROPER ACTIVITIES IN THE LABOR FIELD

The Chairman. As I understand, that is already developed; that
is in the testimony 'i

Mr. Kennedy. That is right.

The Chairman. That is, in the sworn record that we already have?.

Mr. Kennedy. He received out of the New York one alone some
$914,000.

Mr. Chairman, based on our hearings, Mr. Lapensohn was indicted
up in New York on 99 felony counts and 6 misdemeanors carrying a
maximum possible punishment of 501 years. He is under those in-
dictments at the i^resent time, which arose out of the hearings that
have been held before the committee.

I do not expect we will want to go into that matter in detail today,^
but we have many other matters we would like to ask about. That is
the history.

About 2 months ago Mr. Lapensohn was to appear. He finally
returned to the United States after the New York grand jury indicted
him, and he was under force of extradition that he returned to tlie
United States. He had to return to the United States.

He was subpenaed at that time. Arrangements were made for him
to appear before this committee in January, I believe, of this year.
His lawyer got in touch with me and asked for a postponement of
some 3 weeks on the ground that the lawyer was sick. We postponed
it. He has been called now some 2 months later and this is the report
that the partner is giving us.

The Chairman. Mr. Lapensohn, I asked you a few moments ago,
among other things, your name, your address, and your place of busi-
ness. You gave your name and your address, and you invoked the
fifth amendment with respect to your business or occupation.

May I ask you : Do you intend to invoke the fifth amendment to
all questions or pertinent questions that the committee may ask you?

Mr. Whiteside. I think Mr. Lapensohn, if I could answer somewhat
for him, Mr. Chairman

The Chairman. I am asking him.

Is it your purpose ? You know this already. You have conferred
with counsel enough to know whether it is your purpose to take the
fifth amendment on everything. I am under the impression, from my
observations and experience in this capacity, that when one takes the
fifth amendment on his occupation or place of business, he intends,
and they do, take it practically evei-y other thing they are asked.

Is that your intention ?

(The witness conferred with his counsel.)

The Chairman. Do you want to take the fifth on that ?

Mr. Lapensohn. Would you excuse me a minute. Senator?

The (^HAiRMAN. Yes. Consult your counsel.

(The witness conferred with his counsel.)

The Chairman. Is it your intention to take the fifth amendment
on all ])ertinent ({uestions that may be asked you regarding your
actions?

Mr. Lapensohn. Mr. Chairman, I don't luiow what the questions
aie going to be and, therefore, I can't fully answer your question.

The CiiAiRMAN. You can't answer it at this time.

Where were you born ?

Mr. Lapensohn. Philadelphia.

The Chairman. Where?

IMPROPER ACTIVITIES IN THE LABOR FIELD 1£1()3

Mr. Lapensoiix. Pliiladelpliia.

The CiiAiKjiAX. Wlien^

Mr. Whiteside. Mr, Chiiinnai), niav we have a riiliti^- on oiii- iiio-
t ion, please, sir?

The Chairman. Tliat is what 1 am tiyinj^ to (U) — take a little testi-
nioiiy on the motion, to ascertain. 1 will say to you, coimsel, we can
save time if it is the purpose just to invoke the Hftii amendment on
all questions that may be asked relative to the .subject matters that
the conuniltee is interested in, it will not be difficult for the Chair
to rule on your motion.

Mr. Whitesioe. May 1 say to the Chair that regardless of the state-
ments of Mr. IJobert Kennedy, the illness of Mr. Speiser is quite real,,
and 1 think the committee itself is (juite aAvare of it.

Mr. KENXEr>Y. I don't question that.

The Chaitoiax. I do not (luestion that.

Mr. WurrEsiDE. But on the other han<l, I think fie has a right to
l)e represented by coun.sel of his own choosing, ])articularly when;
that counsel has handled this matter throughout its entire course.
Whether or not Mr. Lapensohn intends to take the fifth amendment,
I think, would depend primarily on the questioning. But I think the
basic answer should be. Will the committee grant him this request,,
because it was made necessary by the relapse of liis own counsel,
which occurred quite recently.

Of course, we had no control over it. We certainly wnsh we did,
of course.

The CiiAinMAX. How long has your firm been representing the-
witness?

Mr. Whiteside. For a number of years, sir. I do not know.

The CiiAiRMAx. How many years ?

Mr. W 1 1 ITESIDE. I do not Icno w .

The CiiAiuMAX. In other words, your firm is regularly retained
l)y him?

Mr. Whiteside. Yes, sir; and, a.s a matter of fact, T understand
Mr. Speiser's- father was i-egiilarly retained by Mr. Lapensohn.

The Chaik:max. Does any member of the committee have any
duestions?

Tlie witness has failed to cooperate with the committee in the past.
We have had a gi-eat deal of trouble. For 2 years we have been try-
ing to have him available for testimony. When he was contacted^
when we finally were able to find him, apparently he refused to co-
operate, or didn't cooperate.

The information he has is of considerable importance. We have
always, as we did in this case, the conmiittee has always referred to
these circumstances, continuances that arise, which are an inconven-
ience, or which work hardship on a witness or a counsel, has continued
the iiearing as to that witness. That we ordinarily do. But I fec'l in
this instance, where a wit)iess is appai-ently going to take the fifth
amendment, it is a waste of the committee's time and an unnecessary
expense of the Govermnent simply to wait for his attorney to get
well, especially when he has the benefit of counsel available to him
liere to make this motion, who is a member of the firm that he lia.'^
regularly retained for many years.

So we will proceed with the interrogation of the witness.

18104 IMPROPER ACTIVITIES IN THE LABOR FIELD

All right, Mr. Counsel, proceed.

Mr. Kennedy. Just to <Tet some other dates straight, Mr. Chairman,
his family returned from Europe in Sei)teraber of 1957. So they were
all over from May 1957 to September 1957. We contacted him in
Canada on October 24, 1957, at the Mount Royal Hotel in Montreal,
Canada.

At that time, of couree, he again refused to come back to the United
States, and ultimately he returned, as I say, after he was indicted in
the State of New York.

The Chairman. Mr. Lapensohn, are those statements true? Do you
want to deny them, or do you admit that the}^ are the facts ?

Mr. Lapensohn. I respectfully decline to answer because of the
fifth amendment.

The Chairman. I am giving you the opportunity, if counsel is
making any statement with reference to the committee's contact with
you, or members of the staff, if he is making any erroneous statement
about it, I am giving you the oppoi'tunity to correct it for the record.

Do you wish to make any corrections in the statement that counsel
has made ?

Mr. Lapensohn. I respectfully decline to answer the question be-
cause of the fifth amendment.

The Chairman. You can say no, you don't, or yes, you do. It
wouldn't incriminate you. But at least the record shows you have
been given the opportunity to correct it, if you desire to do so, any
statement made by counsel.

When you are failing to correct it, the record will stand as it is.

(At this point Senator Goldwat^r left the hearing room.)

The Chairman. Proceed, Mr. Kenned}^ with the interrogation.

Mr. Kennedy. Mr. Chairman, our main interest in Mr. Lapensohn
was his connection with the campaign of Mr. Ray Cohen for president
of local 107 of the Teamsters in Philadelphia.

Mr. Ray Cohen, as 3^ou will remember, appeared before this com-
mittee and refused to answer an}' question on the grounds of self-
incrimination. We developed the fact tliat some $490,000 of union
funds were completely unexplained by him, and no vouchers. There
were checks to cash or cliecks to him on which there were no explana-
tions, over a period of 3 or 4 years.

Mr. Cohen, since appearing before the committee and taking the
fifth amendment, has been made an International trustee of the Inter-
national Brotherhood of Teamsters, and is now one of the three Inter-
national trustees in charge of making sure that all the funds of the
union are kept honestly.

Mr. Lapensohn played a prominent role in Mr. Cohen being elected
president of local 107 in 1954.

The Chairman. Let me ask Mr. Lapensohn if he is a member of
any union.

Are you ?

Mr. Lapensohn. I resj>ectfully decline to answer because of the fifth
amendment.

The ChaipuMan. Have you been a member of any labor organiza-
tion during the past few years?

Mr. Ivapensohn. I respectfully decline to answer because of the fifth
amendment.

IMPROPER ACTIVITIES IN THE Lu\BOR FIELD 18105

The Chairmax, Proceed.

Mr. Kennedy. Then, Mr. (Chairman, there was a ^jreat deal of ques-
tion as to who was linancin*): the campaij2:n in 1954, of Mr. Cohen. We
have the testimony before the coinniiltee that at least part of that was
financed by Mr. La])ensohn, Mr. Lapensohn at that time liad some
close associations with some of the employers in Philadelphia.

I wonld like to ask you if you, in fact, did linance a considerable
])art of the campaicrn of Mr. Cohen.

Mr. Lapensohn. 1 respectfully decline to answer because of the fifth
amendment.

The Chairman. Let me ask you this: Do you regard yourself as
beino^ in the field of management or employer, or do yon regard your-
self as being a laborer, in the field of labor?

Mr. LArENSoiTN. I respectfully decline to answer because of the fifth
amendment.

The Chairman. Or are you a kind of a middleman, on either side,
wherever it is convenient?

]\Ir. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

Mr. Kennedy. Mr. Chairman, in June of 1954,, shortly after Mr.
Cohen was elected secretary-treasurer of local 107, Mr. Lapensohn
was placed on the payroll of the Teamsters local 107 as a business
agent and received a salary of some $10,000,

The Chairman. "VYliat date was that ?

Mr. Kennedy. Juno of 1^54. Tie received $400 a week, Mr. Chair-
man, as a business agent for local 107.

What services were you performing for local 107 ?

Mr. Lapensohn. I respectfully decline to answer because of the fifth,
amendment.

The Chairman. Were you at the same time connected with busi-
ness, or the management side ?

Mr, Lapensohn. I respectfully decline to answer because of the fifth
amendment.

Mr. Kennedy, So he received some $400 a week salary plus his ex-
penses. Then, Mr. Chairman, during the calendar year 1955, in ad-
dition to his regular salary and expenses, according to the records, he
received a total of $12,186.22.

The Chairman. That is over and above his salary ?

Mr. Kennedy. Yes. But under some questionable circumstances,

I would like to ask you about that extra $12,000-plus that you re-
ceived. Can 3^ou tell us about that, Mr. Lapensohn ? That was 1955.

Mr. Lapensohn. I respectfully decline to answer because of the
fifth amendment.

The Chairman. That was received from Local 107 in Philadelphia.

Mr, Kennedy. Yes.

Now, Mr. Chairman, most all of the records for local 107 for this
period of time in connection with these cancelled checks are still in
existence. However, the $12,000 that went to Mr. Lapensohn that I
am speaking of. this special $12,000, was in the form of some 13 checks.
Ten of those thirteen checks are missing.

Could you tell us what happened in connection with those checks?

Mr. Lapensohn, I respectfully decline to answer because of the
fifth amendment.

18106 IMPKOPER ACTIVITIES IN THE I^VBOR FIELD

Mr. Kennedy. That is about $10,000 out of the $12,000 where there
is no explanation. All we can tell is that the money went to him. But
the checks themselves had been torn out of the books and are now
missing.

The Chairman. Mr. Lapensohn, any statement that is made by
counsel which is inaccurate, or untrue, you have the privilege, if you
care to, of denying it and setting the i"ecord straight. I do not want
to put anything into this record that is false or untrue, certainly not
without giving you the opportunit}^ to refute it and to set the record
straight if you desire to do so.

Bear that in mind. Any statement that counsel makes, if you want
to interrupt and point out the inaccuracy of it, you are certainly wel-
come to do so.

Proceed.

Mr. Kennedy. Mr. Chairman, on the salary tliat he re<ieived, it was
not $400 a week. It was $200 a week.

The Chairman. So that was an error ?

Mr. Kennedy'. Yes.

The Chairman. Anything else?

If we make one, we want to correct it. Will you help us correct any
error we may make ?

Mr. Lapensohn. I respectfully decline to answer because of the
fifth amendment.

The Chairman. All right.

Mr. Kennedy. Mr. Chairman, they followed this procedure in local
107. The checks were endorsed and handed over to the parties, and
tifter the checks were returned, they would scotchtape them back in
tlie book. These checks had been scotchtaped back in the book and
then had to be torn out again. That is what I am asking about. What
happened to those checks? Can you tell us anything about those?

Mr. Lapensohn. I respectfully decline to answer because of the
fifth amendment.

Mr. Kennedy. IVIr. Chairman, Mr. Lapensohn also was ])aying some
of the bills out of his own bank account, paying some of the bills of
other of the business agents and Teamster officials.

Is that correct ?

Mr. Lapensohn. I respectfully decline to answer because of the
fifth amendment.

Mr. Kennedy. That Avas from 1054, after he was made a business
agent, up to 1956 or 1957.

One of the items, JNfr. Chairman, is in 1956, where Mr. Lapensohn
look his own personal check for $17,000, went down to the bank and
])ui'chased a cashier's check for $17,000, whicli, in turn, was turned
over to Mr. Cohen, who was secretary-treasurer of tlie union.
Mr. (^ohen used tliat money as a downpayment on his boat.
Could you tell us aboiit that ^ Wliere did you gel the $17,000.
<>ri<'''nally ?

Mr. Lapensohn. I respectfully decline to :\ns\vei- because of the
1i+'*h iunendment.

Mr. Kennedy. Mr. Chairman, then showing his t ieup w itli manage
inent. we have on .Iiuk' 2.S, 1955. Mr. Lou Stein, who is pi-esident of
the F')od Fair Co., using a third party sis an intermediary, si^ld Mi-.
lyapensohn 5')0 sh;\r(^s of Dan IJivei- Mills slock, having :\ niai-ket

IMPROPER ACTIVITIES IN THE LABOR FIELD 18107

value of $15,000. He sold it to Mr. Lapeiisolm for $10,000. This is
Mr. Stein, who is president of the Food Fair Co.

Could you tell us why Mr. Stein would be willino; to sell you stock
that was "wortli $15,000 — why he was willinir to sell you that stock for
$10,000?

Mr. Latensoiix. T respectfully decline to answer because of the
Hftli amendment.

The Chairman. Was that stock on the board at the time ?

>\rr. Ki:xNEnY. 1 believe it was. Yes, Mr. Chairman.

The CuAiuMAN. As I understand, on the day the stock was sold
l)y Mr. Stein, it was sold to JVfr. Lapensohn, it was sold for about
one-third less than it was actually sellin«r for on the stock market
t liat day. Is that correct ?

Mr. Kexxkdv. Yes, Mr. Chairman.

The CiiAiioiAX. Is that correct, Mr. Lapensohn?

Mr. Lai'exsoiix\ I respectfully decline to answer because of the
fifth amendment.

The CiiAiKMAX. Just what were the arran<>ements about that?
AVliy was it handled in that way, so that apparently there woidd be
no ])rofit made out of it ? Can you tell us about that ?

Mr. Lapexsoiix. I respectfully decline to answer because of the
fifth amendment.

Mr. Kexxedv. At that time, Mr. Chairman, he was a union otlicial.
The transaction was handled tlirouoli this intermediary by the name
of Samuel Mandell. We have the documents in connection with it
which have already been placed into the record.

Tlie Chairmax. I han.d you here first some shares of stock, five
stock certificates. They have l)een made exhibit No. 60A, B, C, D, and
K in these hearings. I will ask you to examine these stock certificates
and state what you know about them.

It appears on the back of them that you endorsed and sold them.

Will 3'OU please examine the certificates and state if you identify
them?

( The documents were handed to the witness.)

( The witness conferred with his counsel.)

Mr. Kex'^xedy. Mr. Chairman, could I fill in the details?

The Chair:max'. While the witness is examining the stock certi-
ficates, you may.

Mr. Kexxedy. The transaction, to refresh your recollection, was
handled through this man Mandell. ]\Ir. ^NFandell is a supplier of
produce to the Food Fair Co. in Philadelphia. Mr. ]\Iandell ap-
peared before the committee and testified in substance that he had
been requested by Mr. Stein, president of Food Fair, to handle this
transaction; that the stock was sold to him; imd that he in turn, trans-
ferred the stock to Mr. Lapensohn, ^Ir. Lapensohn receiving the
$15,t)00 worth of stock for some $10,000. It was oln'iously handled
in that fashion in order to cover u]) the transaction.

It appeared on the books originally as a transfer to Mr. Mandell.
Actually, according to tlie testimony of Mr. Mandell, he just re^'eived
it in order to transfer it to ]S[r. Lapensohn, who was then a union
official.

The CiTAiRMAX'. Have vou examined the st ock (

18108 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Lapensohn. I respectively decline to answer because of the
fifth amendment.

The Chairman. The question was : Have you examined that stock
that you hold in your hand now that you are looking at? Have you
examined it ?

Mr. Lapensoiin. Yes, I have.

The Chairman. Fine. Thank you. Do you recognize it ?

Mr. Lapensohn. I respectively decline to answer because of the
fifth amendment.

The Chairmajst. Proceed, Mr. Kennedy.

Look on the back of it. Look on the reverse side. These are photo-
static copies of the stock. See if you find your signature on it, please,
sir. I^ok on the transfer certificate on the reverse side. Do you find
your signature ?

Mr. Lapensohn. I respectively decline to answer because of the
fifth amendment.

Mr. Kennedy. Mr. Chairman, to indicate that this was not just an
isolated transaction, in October of 1955 the same company. Food Fair»
some $14,000 worth of Food Fair Properties bonds were sold to Mr.
Lapensohn's brother-in-law. Jack Shore.

The Chairman. Is Jack Shore your brother-in-law ?

Mr. Lapensohn. I respectively decline to answer because of the
fifth amendment.

The Chairman. What is there about him ? How long has he been
your brother-in-law ? How many years ?

Mr. Lapensohn. I respectively decline to answer l^ecause of the
fifth amendment.

The Chairman. Is he married to your sister or did you marry his
sister ?

Mr. Lapensohn. I respectively decline to answer because of the
• '^bh amendment,
v^ f^T^'^ Chairman. How would that incriminate you ?

Mr. Lapensohn. It might.

The Chairman. How ?

Mr. Lapensohn. I respectfully decline

Tlie CHi^«fiBfW^.> 'Jf ' you are married to somebody's sister or he is
- 'itta^rJ^'d'fo 5*Jiir'-^yty^i,'ti^^ Wiight incriminate you ?

Mr. Lapensohn. I respectfully decline to answer because of the
^■«fth"^Ti'^W<!tmfe-ht7"'>Y. fl-'-''i^^i oT .ffoil'

'b{)'stiifiebbdyiWithiyou that might

^'j!iyiiftili^'6f^?t/«h1lsfe'th'<^rfe«oi<d*i^tt'M.-^i'-''^- •"'^'^^ vH h^.
-'''^^tH?^'^0<if*1)i*(^fM>4h-lnwfe<>l f>f"^ ^i-'^'f 'J'^o^f! 9ff! tijil) jiroi. .
'^'^1 MtfJlix^«k^i<^fi'ltffeJpefefcJuliy<I^Kft^loaMWifet fefe<^tls^^f tls«-'fifth
''aw^rtdir'^iWi "■/*''> '•':■'■'■ ^i OOO^mH ^xrion -u^^ /[-x^l- -lo dfuru 00(i.r;lK

The Chairman, -I-lidWd '5<6\i h^i-fe!ex'hi'Mt'K'<5.)&9Afttri'(f 'B^^^wllitgh ft^p-
•'pA'f"^# b'^^Wb^ chtof^'''Ahot^ta^'i«'c&pi^.&x^^

' ''^i'$W[0\mii itwkl Vht fyther'M (l^yevrtmrnifif bf ^^^000, t^d'they/.aJbe bo(h,
f'bi^'<Vii<K i<^ dkotl ill <Sei6teiilt'>^»'rtrtd^lM bth^t ^i6ih'Oc«bb>^r 105^5; Both
are made payable to Jack Shore and both are signed, appar<^lyj,-%y
Hon L!\})onsohn. • >'''^''l • '>if f l^'ui'uwr.y.' ffov ■rn;]T .y./.u.u\i.'.\[) •)(' I

I will hand you that exhibit and ask you to examine it and state if
you identify it.

IMPROPER ACTIVITIES IX THE LABOR FIELD 18109

(The documents were handed to the witness.)

(The witness conferred with his counsel.)

The Chairman. Have you examined the exliihits?

Mr. Lapensohn. I have.

The Chairman. Whose name do yon see on the clieck?

Mr. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

The Chairman. They are photostatic copies of checks, are they not?

Mr. Lapensohn. I i-espectfully decline to answer because of the fifth
amendment.

The Chairman. Your name is on there, is it not?

Mr. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

The Chairihan. Did j'ou not sign each of those checks, and is that
not your signature that appears there, as the giver of tlie check ?

Mr. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

The Chairman. What is there about your transaction with your
brother-in-law that might tend to incriminate you?

Mr. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

The Chairman. May I ask you, so far, regarding these checks, if
Mr. Kennedy has made any statement that is inaccurate or incorrect?

(The w^itness conferred with his counsel.)

Mr. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

The Chairman. Proceed, Mr. Kennedy.

Mr. Kennedy. Mr. Chairman, on this second transaction — now we
are talking about the Food Fair Properties bonds — these bonds were
transferred to Mr. Jack Shore, Mr. Lapensohn's brother-in-law. The
bonds at the time were worth $14,000 and were transferred for $10,000.
We have exhibit No. 58 from the Food Fair Co. records, which shows
under "D" suggested names of labor men for consideration in connec-
tion with Food Fair Properties, Inc., stock.

The first name on the list is Benjamin Lapensohn. Benjamin Lap-
ensohn's name is crossed out and Jack Shore's name is substituted, Mr.
Chairman.

It is of some interest, again, to show the efforts that were used by
the Food Fair people to hide this transaction, that the stock was sold
to Jack Shore and Mr. La])ensohn paid the money for the transfer of
the stock and got the stock. The stock, in fact, went to Benjamin
Lapensohn, although once again it went through an intermediary
which in this case was Mr. Lapensohn 's brother-in-law.

The Chairman. That is the second batch of stock ?

Mr. Kennedy. The second transaction, yes, sir. The fii^t transac-
tion of the Dan River stock went through Mandell and this one went
through his brother-in-law.

The Chairman. I present you here what is a photostatic copy of a
charge to a bank account showing that on the 23d day of June 1955
there was charged to your bank account $10,000. This has been made
exhibit No. 60-D. I present it to you and ask you to examine it and
state if you identify it.

(The documents were handed to the witness.)

36751— 59— pt. 50 3

18110 IMPROPER ACTIVITIES IN THE LABOR FIELD

( The witness conferred with his counsel.)

The Chairman. Have you examined the charge certificate?

Mr. Lapensoiin. Yes, I have.

The Chairman. Will you identify it ?

Mr. Lapensoiin. I respectfully decline to answer because of the
fifth amendment.

The Chairman. Proceed, Mr. Kennedy.

Mr. Kennedy. Mr. Chairman, that is two transactions. There was
a third a<>ain by the same company, the Food Fair Co. which, accord-
ing to the testimony, liad a favorable contract with local 107 in con-
nection with unloading. But in October of 1955, some 2,000 shares of
Food Fair Properties common stock was sold, again through Jack-
Shore, the brother-in-law, to Lapensoiin, for $2,000. At the time of
the transfer, the stock had a market value of $8,000.

The Chairman. In other words, he only paid about one-fourth
of what that was worth ?

Mr. Kennedy. That is correct.

The Chairman. Have you any comment about that ? Do you want
to correct that statement in any way ?

Mr. Lapensoiin. I respectfully decline to answer because of the
fifth amendment.

The Chairman. This is the same brother-in-law involved in this
transaction as was involved in the others; is that correct?

Mr. Lapensohn. I respectfully decline to answer because of the
iifth amendment.

The Chairman. Proceed.

Mr. Kennedy. We have already had testimony, Mr. Chairman, that
Mr. Lapensohn played a role in the nes-otiations of the contract on
behalf of local 107 with Food Fair.

The Chairman. Which side were you working for when you helped
negotiate that contract ?

Mr. Lapensohn. I respectfully decline to answer because of the
tifth amendment.

Mr. Kennedy. Mr. Chairman, I expect in view of the procedure
followed in the past, and in view of the fact that Mr. Lapensohn has
been indicted up in New York in connection with the embezzlement
and larceny of the money up there w^itli the Xew York magazine, the
New York Federationist, that we will not go into that at this time.

The Chairman. Well, not unless Mr. Lapensohn would like to go
into it. If he is indicted, we would not want to compel him to testify
about matters that are pending in the natui-e of criminal ])roceedings.
He knows what the i-ecord is here. I assume he is familiar with it.
Unless he wants to make any correction in the record or straighten
out any facts that he thinks may be inaccurate or untrue, w^e will not.

Mr. Kennedy. May I summarize the information ?

The Chairman. Summarize it briefly, and then if Mr. Lapensohn
desires to comment or correct the record in anv wav, he mav do so.

Mr. Kennedy. Some $1,167,637.83 was collected from 1049 to early
1958, when our investigation brought the operation to a halt ; $250,000
of this amount went to the union ; $914,000 went to Lapensohn.

The Chairman. What was that o])eration ?

Mr. Kennedy. This is called the New York Federationist.

The Chairman. This magazine ?

IMPROPER ACTIVITIES IN THE LABOR FIELD ISlll

Mr, Kexnedv. Yes; 44 ])ei(eiit, or about a half luillioii dollars, was
from firms wliicli made contrihiitions to the magazine but specifically
requested that no ads be placed.

The C'iiAiKMAN. AVliat was that '.

^Ir. Kennedy. Almost a half million dollars of the money that was
collected was made in contributions to the magazine from firms with
the understanding that there would be no ad oi- no name placed in
the magazine.

The Chaik.max. In other woi'ds, they paid as if they were buying
advei-tising, but with the understanding that no ad \\()uld actually
be published, identifying them with the publication '.

Air. Kexxkdy. That is correct. There was one company, the
Xiagara-Mohawk Power Co., which paid some $20,000 each year, even
though an ad woidd only cost a couple of thousand dollars at the
most.

Mr. Lapensohn, according to the testimony before our committee,
diverted some $l.'"i('.,0()() of the money he was supposed to transmit to
the labor organizations. We understand, and we are not certain of
this, that Mr. Lapensohii has made restitution of some $39,000 to the
Xew York State federation.

Is that correct 'l

Mr. Lapensojin. I respectfully decline to answer because of the
fifth amendment.

The Chairman. Y^ou have heard these other statements about this
magazine and so forth. Do you want to state whether you had any
connection with tlie publication of this magazine in any way, or if you
worked for anv<jnc who did^ Do vou want to make anv statement
about that?

Mr. Lapensohn. I respectfully decline to ansAver because of the fifth
amendment.

The Chairman. You have heard the statement of counsel here that,
according to the swoin testimony we have, a number (jf |)eople would
pay money as if purcliasing an ad, in this magazine, but with the
definite understanding that no ad was to be ]:)ublished. Do you know
anythitig about that '.

Mr. T^APKNsoHx. I respectfully decline to answei- because of the fifth
amendment.

Mr. Kennedy. Of course, the suggestion was made that ^Nlr. Lapen-
sohn could get the federation of labor to lobbv against certain mat-
ters being considered in the State legislature. In connection with
that, the one I mentioned earlier, the Niagara-Mohawk Power Corp.
of Syracuse, X.Y., advanced, through its ])resident, Mr. Karl J. Mac-
hold, some $93,000, of which, after it was s]dit u]). Mr. Lai)ens<)hn got
$84,750, and the State federation of labor got $8,250. Or Mr. La])en-
sohn got 01 cents out of everv dollar that was spent bv the Niagara
Co.

The Chairmax'. That would be a pretty good commission if true,
would it not? Do you want to make any comment on that?

Mr, Lapensohn. I respectfully decline to answer becau.se of the fifth
amendment.

The Chairman. Proceed.

Mr. Kennedy. ]Mr. Chairman, he had a similar situation in Penn-
sylvania. It was called the Rolee Advertising Agenc}' and the Penn-

18112 IMPROPER ACTIVITIES EST THE LABOR FIELD

sylvan ia State Federationist, During the period of 1946-54, they col-
lected $481,707.74.

Mr. Chairman, I stand corrected. During that period of 1946-54.
he received in commissions — this is how much Mr. Lapensohn col-
lected — some $481,707.74. He hired individuals with criminal rec-
ords — did you not, Mr. Lapensohn — to solicit from the employers? Is
that right?

Mr. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

Mr. Kennedy. For instance, Mr. Bogel, who worked for you, spent
eight terms in the jDenitentiary as a confidence man. He was one of
those that you hired to go around to employers to get ads. Is that
right ^

Mr. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

Mr. Kennedy. "We had a number of ])eo])le appear before the com-
mittee and say that your solicitors called them and threatened labor
difficulties unless they purchased an ad from you. Did you tell your
people to do that?

Mr. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

Mr. Kennedy. One of them testified that you did that, Mr. Burnet
Landreth III, an official of Penn Manor, Inc., said that you threat-
ened him with labor difficulty unless he took out an ad. Is that right?

Mr. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

Mr. Kennedy. And then another instance was the Kingston Trap
Rock Co. which paid $3,000 to Sam Kii-sch. one of your solicitors, of
which $1,000 Avas for an advertisement, and $2,000 was insurance for
labor peace. Can you explain that to us I

lAv. Lapensohn. I respectfully decline to answ^er because of the fifth
amendment.

Mr. Kennedy. Was it in order to avoid answering any of these
questions that you avoided the service of the subpena of this com-
mittee for some year and a half ?

( The witness conferred with his counsel.)

Mr. Lapensohn. May I consult again ?

Mr. Kennedy. Yes.

(The Avitness conferred with his counsel.)

Mr. Lapensohn. I respectfully decline to answer because of the fifth
amendment.

Mr. Kennedy. Where were you hiding? According to our infor-
mation, you hid first in Europe, then in Canada, and then in Cuba;
is tliat right?

Mr. IjApensohn. I respectfully decline to answer because of the fifth
an\endment.

Mr. Kennedy. And also in Nassau, in the Bahamas. Is it not cor-
rect that vou were trying to avoid an appearance before the commit-
tee? Is that right?

Mr. Lapensohn. I respectfully decl ine 1 o answer because of the fifth
amendment.

Mr. Kennedy. Do you know we sent an investigator to look into
your activities in Nassau, in the Bahamas?

IMPROPER ACTTVITTE? IN" THE LABOR FIELD IS 11 3

Mr. Lapensoiix. 1 respectfully decline to answer because of the fifth
amendment.

Mr. Kexxedy. Do you know we liave some pictures of you on t]ie
beach at Nassau (

The CiiAiKMAx. Take a look at at these. 1 liand you a series of five
])ictures. I will ask you if you identify them as shown f lie place wliere
you were wlien the committee wastryinp;to Hnd you.

(The p]ioto<2;rap]is were handed to the witness. )

(The witness conferred with his counsel.)

The CiiAiiniAX. Do you see anythino; in those |)ictures that is fa-
miliar to \-ou {

Ml". TjArExsoii x. I respect fully decline to answei- because of the fiftli
amendmeiit.

The CiiAiK.MAx. The other ({iiestion was, I belieA'e, if that was where
you were when we were lookin;L!: foi- you, or one of the places.

Mr. Lapexsoiix. I respectfully decline to answer because of the fifth
amendment.

The ('HAiiniAX. Let the series of picture^ l)e made exhibit Xo. (U.

(Phoro<2:raphs referred to were marked ''Exhibit Xo. 61"' for ref-
erence and nuiy be found in the files of the select committee.)

The Chairmax. Exhibit Xo. 61 will be for reference only.

Mr. Kexxeoy. Mr. Chairman, it was also of some interest that a
House committee was lookin*; for Mr. Lapensohn. It was in con-
nection Avith the fact that a Teamster official by name of Al Goldbero;,
who was ultimately involved with Joluniy Dioguardi in Local 102,
was then head of fvocal '290 of the Teamsters. He was active in Phila-
delphia, in charge of the mai-ket area. He told a man who intended
to build a new market that he could not do that, and ultimately the
man Avas referred to Mr. Lapensohn. Mr. Lapensohn said he could
build the market if he made a payment of some $86,000 to Mr.
Goldberg. Mr. Lapensohn was to make the arrangements. This was
beginning to be developed by a House conmiittee. Mi". (loldberg sub-
se(piently was convicted for labor lacketeering. but Mr. Lapensohn
avoided the service of the subpena.

It is of some interest that Mr. Fischbach, who played some role in
our investigation, Mr, Plyman Fischbach, was the counsel of that
connnittee. When we began our investigation into Mr. La})ensohn,
we received some of his files, and we found some of the records of the
House committee in Mr. Lapensohii's personal files.

The Chairman'. Did you get hold of some of the records of the
House committee, Mr. Lapensohn ?

]Mr. Lapexsohx'. 1 beg your pardon. I did not hear you.

Mr. Kexxedy. It Avas a subcommittee of the Committee on Ex-
penditures in the Executive Departments.

The Chairmax'. Did you get some of the committee records of the
House Committee on Expenditures in the Executive Departments, a
subcommittee theT"eof, that Avas making an investigation of this labor
racketeering? Did you get hold of some of their official records and
get them in your file ?

Mr. Lapexsohx. I respectfully decline to answer because of the
fifth amendment.

The Chairman. Let us get the investigator up here.

Mr. Kennedy. Mr. Nulty can testify.

18114 IMPROPER ACTIVITIES IN THE LABOR FIELD

The Chairman. Mr. XuKy, liave you been previously sworn in this
hearing^

Mr. NuLTY. No, sir.

The Chairman. Be sworn.

You do solemnly SAvear 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. NuLTY. I do.

TESTIMONY OF LEO C. NULTY '

The Chairman. State your name, by whom you are employed, and
in wdiat capacity.

Mr. NuLTY. My name is I^o C. Nulty. I am an investigator for
this select committee.

The Chairman. How long have you been working for this com-
mittee ?

Mr. Nulty. Since its inception.

The Chairman. In the course of your duties, did you have occasion
to obtain certain files, personal tiles, belonging to Mr. Ben Lapensohn,
the witness on the stand '\

Mr. Nulty. Yes, sir, we did.

The Chairman. How did you obtain them '.

Mr. Nulty. We subpenaed them from his accountant who had them
in his custody.

The (^HAiRMAN. I hand you here three documents. One seems to
be a post card, and the other seems to be photostatic copies of letters.
I ask you to examine them and state what they are.

(The documents wei-e handed to the witness.)

Mr. Nulty. The post card, Mr. Chairman, is a photostat of a post
card addressed to Mr. Emerson C. Custis, northeast corner, Third and
Walnut Streets, Philadeli)hia, Pa. It is ])ostmai'ked at Philadelphia,
October 14, 1946. ^ ^

On the other side of the post card is ])rinh'(l in handwriting, this
statement:

Any hour of day. Tuesday. October 22. 1!>4().

Thereafter, it is stamped like an ordinary rubber stamp with the
name Ben Lapensohn. Market Street National Bank Building. There
is a notation on here that this was exhibit No. V-\ for the Committee
on Expenditures in the Executive Departments.

TheCHAHaiAN. What about thelettei'^

Mr. Nulty. The letter dated August ;>(), 1946, to Mr. Ben Lapen-
sohn, from Mr. Emerson V. Custis, refers to the conversation which
they had had the previous Monday. It says :

At both of the.se meetings T shall i)resent your i»roi)ositiou as you request it, to
be paid .$2r)0 for eaeh store that may be leased in the new Wholesale Troduce
Market and Trucking Terminal, to be erected along Oregon Avenue in our city.
As 14(! of these modern stores are oontemi)lated. this will amount to ,$;i«»,.')()0.
While I am wondering how the RFC may take your proposition for labor protec-
tion, still I shall i-eport to you as you recpiested upon my retin-n from Washiugton.
Very truly yours,

Emkkson C. (^rsTis.

IMPROPER ACTIMTIKS IN THE LAUOR FIELD I Si 15

Mr. Kknxedy. You can see, Mr. (Miaii'inaii, he lias l)een active in
this Held for many years. Tliis was the payment.

The CuAiK^r.vN. These are lettei's that had been made exhibits in tlie
conunittee tile, in the House conunittee '.

Mr. Xii/rv. That is correct, ,Mr. Chairman.

The CiiAiKMAX. And you fouiul them as such, as exiiibits from the
committee's file, in his office \

Mr. Xi i/rv. AVe found them amono- the ])ersonal eifects of Mr.
La[)ensohn, wiiich we subpenaed.

Mr. Kenxkdv. These are the lettei's which show Mr. La})ensohn*s
})ei'sonal involvement in the shakedown in Philadeli)hia.

The Cir.Mini.vx. First I will make the card exhibit No. (i-i and then
make the letters exhibits Xos. KVl-S. and Kyl-~\S.

(Post card referred to was marked ''Exhibit Xo. 6'2"'; letters re-
ferred to were marked "Exhibits X"os. 62-A, and 62-B," both for
reference and may be found in the files of the select committee.)

TESTIMONY OF BENJAMIN LAPENSOHN. ACCOMPANIED BY
COUNSEL, WILLIAM A. WHITESIDE, JR.— Resumed

The CriAiK.MAx. 1 will hand you now these exhibits, ()'2, G^-A, and
62-B, and ask you to examine them and state if you recognize them.

(The dcx'uments were handed to the witness.)

(The witness conferred with his counsel.)

The Chaiioeax. All rip;ht, Mr. Lapensohn. Have vou examined
t he exhibits G2-A and C2-B ?

Mr. Lai'kxsohx. Xot fully. Just 1 miiuite.

(The witness conferred with his counsel.)

The Chaik.max. All riaht. Have you finished examining the docu-
ments 'I

Mr. Lapensohx. Yes, sir.

The Chairmax. The exhibits?

Mr. Lapensohx. Yes, sir.

The Chairmax. Will you identify them '.

^Ii'. Lapexsohx'. I respectfully dfM'line to aiiswei- because of the
fifth amendment.

The Chairmax. Did you ])rocure them or did they come into your
])osses.sion through a Mr. Eischbach. formerly attorney for that
House subcommittee?

Mr. Lapensohx'. I respectfully decline to answer because of the
fifth amendment.

The Chairman. You did not go to the conunittee files and take
them out yourself : did you ?

Mr. Lapensohx'. I respectfully decline to answer because of the
fifth amendment.

The Chairmax'. Is there anything further?

Mr. Kennedy. That is all.

The Chairman'. You will remain under your present subpena, sul)-
ject to being recalled for further testimony at such time as the coin-
mittee may desire to hear further testimony from you.

Do ' on acknowledge tluit recognizance?

18116 IMPROPER ACTIVITIES EN THE LABOR FIELD

Mr. Lai'ensohn. Yes, sir.

Tlie Chairman. Then you will be given notice of the time and place
where the committee may want you to testify again, and you will
respond thereto.

Mr. Lapensohn. Yes, sir.

The Chairman. Thank you. You may stand aside.

(Whereupon, at 3:40 p.m., the committee proceeded to further
business. Members of the select committee present at this point were
Senators McClellan and Capehart.)

INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD

TUESDAY, MARCH 10, 1959

U.S. Senate,
Select Committee on Improper Activities

IN THE Labor or Management Field,

Washington, D.G.

The select committee met at 3 : 40 p.m., pursuant to Senate Resolu-
tion 44, agreed to Febi-uary 2, 1959, in room 3302, Senate Office Build-
ing, Senator John L. McClellan (chairman of the select committee)
presiding.

Present: Senator John L. McClellan, Democrat, Arkansas; Sena-
tor Homer E. Capehart, Republican, Indiana.

Also present : Robert F. Kennedy, chief counsel ; Paul J. Tiemey,
assistant counsel ; Walter R. May, assistant counsel ; John P. Con-
standy, assistant counsel ; Robert E. Dunne, assistant counsel ; Leo C.
Nulty, investigator; Jolm Flanagan, investigator; George L. Nash,
investigator ; Ruth Y. Watt, chief clerk.

The Chairman. The committee will come to order.

(Members of the select committee present at time of convening:
Senators McClellan and Capehart.)

The Chairman. Call the next witness.

Mr. Kennedy. Mr. Chairman, the next witness is on an entirely
different matter. It will be a short witness. His name is Mr. John
Minnich.

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. Minnich. I do.

TESTIMONY OF JOHN MINNICH

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

Mr. Minnich. John Minnich, cabinetmaker. New York.

The Chairman. A what?

Mr. Minnich. Cabinetmaker. '''*'.'"

The Chairman. Thank you. YoiliWgtive counsel, do you ?

Mr, Minnich. Yes, sir. '\^.v.i\r\\\:

The Chairman. Proceed, Mr. Kennedy. ^ -. > .

Mr. Kennedy. Mr. Chairman, ^Ir. Minnich is being called in con-
nection with our inves-igation of i\\^ Cai-penters Union, and Mr.
Charlie Jolmson specifically.

18117

1S118 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Miniiich, how long have you been a cabinetmaker ?

Mr, MiNNicH. Well, I have been in it since I was 15; about 15
years now.

Mr. Kennedy. And your family has been in it for a long period ?

Mr. MiNNicH. Yes.

Mr. Kennedy. Your family owns the Minnich display at 503 East
72d Street ; is that correct ?

Mr. Minnich. Yes.

Mr. Kennedy. Were you performing in 1955 — were you doing some
work for Mr. Charlie Johnson, Jr. ?

Mr. Minnich. Yes. For whom?

Mr. Kennedy. Mr. Charlie Johnson?

Mr. Minnich. Yes.

Mr. Kennedy. His name is Charlie Johnson, Jr. You were install-
jiio- cabinets in an apartment that was owned by him; is that right?

Mr. Minnich. Yes.

Mr. Kennedy. And working on some closets; is that right?

Mr. Minnich. Yes.

Mr. Kennedy. Did you have any conversations with him in con-
nection with the work that you were doing?

Mr. Minnich. Only one.

Mr. Kennedy. Would you relate what happened ?

Mr. Minnich. He called up and said that

Mr. Kennedy. Kelate the whole conversation.

Mr. Minnich. Mr. Johnson called and asked if I knew wlio he
was, and I said, "No." He told me he was an official of the Carpentei-s
Union, and that he wanted his work in by the date he moves into the
apartment, and that if I did not install it by that date he would ])ut
a picket line around the shop.

The Cii AiKMAN. Around your shop ?

Mr. MiNNicTi. Yes.

The Chairman. In other words, if you did not get the work done
by a certain date that he wanted it done, he would picket your plant?

Mr. Minnich. Yes.

The Chairman. Saying you were unfair to labor, I guess.

Mr. Minnich. Well, he said that he had fully investigated us.

Mr. Kennedy. And knew that you were nonunion ?

Mr. Minnich. Yes.

Mr. Kennedy. And if you didn't get the work done on his apart-
ment, he was going to plac« a picket line around your .sliop?

Mr. Minnich. Yes.

Mr. Kennedy. Did vou work extra hard to get it done?

Mr. Minnich. I dropped everything else and speeded the work to
ti'et it in ahead of time.

The Chairman. You do not mean that he hired :i nonunion cabinet-
maker to make his cabinets, do you?

Mr. Minnich. Well, his decorator did. i • i--

The (^iiAiKMAN. The decorator hired you and Johnson liimselt
gave you llie orders?

Ml-. Minnich. Yes.

Mr. Kknnkdv. Who did you gee paid by ?

Mr. Minnich. Johnson.

Mr. Kennedy. He paid you himself?

Mr. MiNMCH, Yes.

IMPROPER ACTIVITIES IX THE LABOR FIELD 1<S119

Mr. Ki:n nedy. Woro you able to get it done in time ?

Mr. MixNiCH. Yes.

Mr. Kennedy. Did you h.'ive to work overtiuie to make sure you
^ot.itdone'^

Mr. MiNNicii. Yes. We worked overtime. It was the only time
that my father ever had an accident on a machine.

The Chairman. Did you get i)aid for overtime ?

Mr. MiNNicii. No.

The CiiAiKMAN. Did you say sometliiug about an accident ?

Mr. MiNNicn. AVell, J was pusliing him hard.

The (yiiAiRMAN. Your father^

Mr. MiNNicii. Yes.

The Chairman. And what happened^

Mr. MiNNicii. lie had an accident on a macliine.

The Chairman. He sustained personal injuries, do you mean ?

Mr. MiNNicii. Yes, because he was overdoing it. He worked too
jviany hours and because he was overtired he injured himself.

Mr. Kennedy. And y(ni were able to get it completed earlier than
necessary?

Mr. MiNNicH. Yes.

Mr. Kennedy. Did you ever have any trouble then from Johnson ?

Mr. MiNNicii. No, we had no trouble.

Mr. Kennedy. This was in 1955.

Mr. MiNNit'H. Right.

Mr. Kennedy. Are you st ill nonunion ?

M r . Ml N NIC H . Yes .

Mr. Kennedy. He i)aid you the money and that was the end of it ?

Mr. MiNNicH. Yes.

The Chairman. Are thei-e any otlier ({uestions ?

If not, thank you very mucii.

( 'all the next witness.

Mr. Kenne:dy. Thank you very much, Mr. Minnich.

Mr. Chairman, the previous witness cooperated with the commit-
tee, and I want to make smv that that was understood. Mr. Minnich
lias always cooperated with the committee. Sometimes because a
\vittiess appears before the committee, })articiilarly a short one, the
wrong inference might go out.

TIto-C-hairman. Mr. Mimiich has certainly cooperated today.

(Members of the select committee present at this point: Senat(n-s
McClellan and (^i))ehart.)

(Whereupon, at H :45 j).m., the select connnittee proceeded to further
business.)

INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD

TUESDAY, AFBIL 14, 1959

U.S. Senate,
Select Committee on Improper Activities

IN THE Labor or Management Field,

Washington^ D.C.
Tlie belecl committee met at 2:22 p.m., pursuant to Senate Resolu-
tion 44, agreed to February 2, 1959, in the caucus room of the Senate
Office Building, Senator John L. McClellan (chairman of the select
committee) presiding.

Present : Senator John L. McClellan, Democrat, Arkansas ; Senator
Homer E. Capehart, Republican, Indiana; Senator Carl T. Curtis,
Republican, Nebraska.

Also present : Robert F. Kennedy, chief counsel ; Jerome S. Adler-
man, assistant chief counsel ; Ruth Young Watt, chief clerk.

The Chairman. This next matter is not connected with the jukebox
matter out in Detroit. It is a matter that is local. This part of the
record will be kept separate.
Call the next witness.
Mr. Kennedy, Mr. Jason.

TESTIMONY OP EDWAED JASON, ACCOMPANIED BY COUNSEL,
JOSEPH M. WILLIAMSON

The Chairman. Will you be sworn ?

Mr. Kennedy. He has been sworn.

The Chairman. He was not sworn in public session.

Mr. Kennedy. Yes, he was.

The Chairman. Mr. Jason, you will remain under the same oath as
you took a few days ago. I was thinking you appeared in executive
session, but you did not appear in public session ?

Mr. Jaron. Yes, sir.

The CiiAiTtiviAN. The same oath will hold while you testify now.

Mr. Kennedy. ]\[r. Cliairman, we subpenaed certain records which
the witness has brought. Also, I would like to get this subpena made a
part of the record and also have these records identified which have
been brought to the committee, have them identified by the witness.

The Chairman. I have before me a subpena directed to the
Woodner, Washington, D.C, and it is dated the 11th of March 1959.
According to the retuiTi on it, it appears to have been served on Mr.
Jason, manager, on the 11th day of March 1959.

18121

18122 IMPROPER ACTIVITIES IN THE LABOR FIELD

I present this siibpena to you, Mr. Jason, and ask you to state if you
received a copy of it, if a copy of it was served on you.
(Document was handed to the witness.)

Tlie CiiAiRMAx. Or you can state if the original of it Avas served
on you.

Mr. Jason. Yes, sir, it was.

The Chairman. Tliank you.

The subpena will be made exhibit No. 80-B. ^

(Document referred to was marked ''Exhibit No. 80-13" for refer-
ence and may be found in the files of the select eonnnittee.)

The Chairman. This subpena calls for you to i^roduce your rec-
ords for the ]:)oriod fi-om January 1, 11)57, to the ]>resent time, includ-
ing but not limited to, Frank Chavez and Jinuny Landriazini.

Also, all ori<2:inal records of local and lon<r-distance calls char*^ed to
the hotel telephone, as well as. the restaurant, valet, drugstore, and
other charges made to all guests during this ]:)eriod.

Do you have those records in compliance witli the subpena^

Mr. Jason. Sir, as I understand it, we were c-omj)lying with a prior
subpena dated A]jril 2, that you asked me about in our previous }Miblic
hearing.

The Chairman. You mean a later subjjena '.

Mr. Jason. Yes, sir.

The Chairman. All right. The later one is dated April 2. That
has been made exhibit No. 80 already in the record of the coin machine
hearings. You are familiar with its directions, are you ?

Mr. Jason. Yes, sir.

The Chairman. All right, and have you complied with the liirec-
tive contained in that subpena, Mr. Jason ?

(The witness conferred with his counsel.)

The Chairman. Let the record show counsel appearing. I forgot
to have that noted for record. He is the same counsel who appeared
with Mr. Jason when he testified before in executive session last
Friday.

Mr. WiLLL\MsoN. That is correct.

The Chairman. Let the record show that.

Mr. Jason. Supplementing the records that I previously brought^
sir, I have these ledger sheets, and other records. The only respect in
which we have not complied with the present subpena would be our
current records which we are now checking against our present tele-
phone bills, and that will be finished by the end of this week and I
will be glad to bring those in also.

The Chairman. And when that is done, that will be full compli-
ance with the sub])ena.

Mr. Williamson. May I consult with my client because I want to
be certain it is accurate. We had an agreement witli Mr. Bellino
under which we brought down a listed number of named individuals,,
and you recall I said there are some ^30 boxes of records, which you
did not want, and we have to get together and nud<e some mechanics
by which you are going to, go through those and is tliat undei-stinxl
with the committee?

' All »'nrIi(^^ subpenu, No. L-r)497. .also iKldrossed to tlic \\ oodiifr. w.is injidi" rin .exhibit
ill an •■xiHMitlvc scs.<;ion of the select coininittee on Friday. .\i)1m1 10. 1!).")0. The said sub-
IHMKi was marked "Exliiblt Xo. SO-A" for refcreiiee aiKl'mav lie t'(i\iiid in tlie liles of thi-
select eonnnittee.

IMPROPER activitie:s in thk labor fikld 1S123

Mr. Kennedy. Yes.

Mr. WiLX-iAMSON. Thaiik you very much.

The Chairman. So you are in the process of complying and you
have these records hei-e to deliver and present now to the committee?

Mr. Jason. Yes, sir.

Mr. Kennedy. These are in compliance with the subpena, those in
the boxes ?

Mr. Jason. Yes, sir. and other records hitherto presented to Mr.
Bellino in addition to these present today.

The Chairman. Will you state briefly what these records are so
that the clerk may give you a receipt for them accordingly?

Mr. fJAsoN. These are all of the local tele])hone call records for the
entire building, as I understand it, from January 1, 11)58. Tliis re-
fers not merely to named individuals but all that we have.

The Chairman. All right. What else do you have there?

Mr. Jason. And I have here the ledger sheets and what are called
folios for all persons named in the subpena that we are replying to here
today, except for any named individuals whom we have no record on,
of whom I think there are three or four.

The Chairman. There are some three or four in the subj^ena about
whom you have no records ?

Mr. Jason. That's right, sir.

The Chairman. I suppose that the documents you are turning over
will indicate the three or four from which you have no records?

Mr. Jason. By process of elimination.

The Chairman. All right. Is there anything further ?

The documents will be received and the clerk will be dii-ected to is-
sue a receipt for them.

Mr. Kennedy. Mr. Chaimian, could I just ask him to identify the
names of the individuals for whom he has no records ?

Mr. Jason. The names of the individuals are Max Stem, O'Rourke,
John O'Rourke, and Browonick, and Provenzano.

Mr. Kennedy. These are all of the other records you have?

Mr. Jason. Yes, we have either now or hitherto given to you.

Mr. Kennedy. Thank you.

The Chairman. Is there anything further?

All right, sir. Thank you very much. The committee will take a
20-minute) re<;ess.

(Whereupon, at this time, the above-entitled matter was recessed
and the committee proceeded to other business.)

INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD

WEDNESDAY, APRIL 15, 1959

U.S. Senate,
Select Committee on Improper Activities in the

Labor or Management Field,

Washington^ B.C.

The select committee met at 12 :03 p.m., pursuant to Senate Resolu-
tion 44, agreed to February 2, 1959, in room 3302, Senate Office Build-
ing, Senator John L, ]\IcClellan (chairman of the select committee)
presiding.

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

Also present: Robert F. Kennedy, chief counsel; Walter R. May,
assistant counsel; John P. Constandy, assistant counsel; Arthur G.
Kaplan, assistant counsel; Martin S. Uhlmann, investigator; Ruth
Young Watt, chief clerk.

The Chairman. Tlie committee will be in order.

(Meml3ers of the select committee present at the convening of the
session : Senators McClellan and Ervin.)

Mr. Kennedy. AVe also have here, Mr. Chairman, a statement by
Mr. Martin Uhlmann, in connection with a statement that had been
issued earlier in connection with the Dorfmans, which we would
like to have made an exhibit for reference. We have had testimony
in connection with it. It is in connection with another hearing.

The Chairman. Who procured it?

Mr. Kennedy. Mr. XJlilmann.

The Chairman. That is in the other hearing.

That document will be made an exhibit with the next number.

(Document referred to was marked "Exhibit No. 228-A" for refer-
ence and may be found in the files of the select committee.)

The Chairman. The committee stands in recess, subject to the call
of the Chair.

(Members of tlie select committee present at the taking of the recess
were Senators McClellan and Ervin.)

(Whereupon, at 12 : 05 p.m., the committee recessed to reconvene
subject to the call of the Chair.)

18125

INVE8TI(jlAT10N OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD

THURSDAY, JUNE 11, 1959

U.S. Senate,
Select Committee on Improper Activities in the

Lap,or or Management Field,

Washington, D.C.

The select conuiiittee met at 10: 30 a.iii., [)ur.siiaiit to Senate Resolu-
I ion 44, agreed to February 2, 1959, in the caucus room, Senate Office
l^uilding, Senator Karl E. Mundt presiding.

Present : Senator Karl E, Mundt, Republican, South Dakota; Sena-
tor Carl T. Curtis, Republican, Nebraska.

Also present: Robert F. Kennedy, chief counsel; La Vern J. Duffy,
investicrator; Richard G. Sinclair, investigator; James F. Mundie, in-
vestigator; John T. Thiede, investigator; Robert E. Manuel, assistant
counsel ; Ruth Y. Watt, chief clerk.

Senator Mundt. The committee will come to order, please.

(Members of the select committee present at time of convening:
•Senators Mundt and Curtis.)

Senator Mundt. Mr. Counsel, you may call the first witness.

Mr. Kennedy. Mr. Chairman, we have an exhibit here in connec-
tion with a former hearing that I would like to have made a part of
t he record. It is self-explanatory.

Senator Mundt. "We will phu'e in the record at the appropriate
place exhibit No. 4, a partial Mafia relationship study corrected up
to date.

(Corrected exhibit No. 4, replacing that found opposite p. 12496
in pt. 32 of the committee hearings, was marked for reference and will
he found in the appendix on p. 18129.

(Members of the select committee present at this point: Senators
Mundt and Curtis.)

f Whereupon the select committee i)roceeded to other business.)

18127

APPENDIX

Senate Select Committee on Impeopek AcTivrriES in the Labob or Management

Field

errata sheet

It is requested that exhibit No. 4 found opposite page 12406, in part 32 of the
printed hearings entitled, "Investigation of Improper Activities in the Labor or
Management Field" be replaced with the attached corrected copy.

November 19, 1958.

18129

BOSTON PUBLIC LIBRARY

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