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2. No one must be pulled off the job.

I came back to the meeting and told them this and the meeting was continued. It was characterized by suspicion, distrust, and urgency.

In my statement I mention the fact that this incident had taken place which was the start of a week of incidents and culminated that Friday and Saturday night in civil disorders in Wilmington.

One of the statements made by a member of WYEAC during the course of the meeting was that "there was a need for what happened last night."

After much more discussion, George Brown, who was a member of WYEAC

The CHAIRMAN. What is his position?

Mrs. HERLIHY. He became the project director. He went into a long harangue berating the mayor, saying that the meeting was not going right, he didn't like the way it was going, that all the others present were getting paid for their jobs and he was not going to—and here he used an obscene phrase indicating that he was not going to kowtow to anyone to get Federal money and therefore give the Federal money back.

The CHAIRMAN. Was that a phrase you would not want to use?

Mrs. HERLIHY. I certainly would not, Senator. It is an obscene phrase.

The CHAIRMAN. This was a public meeting and this man used that expression, the man whom they promoted and gave the top job?

Mrs. HERLIHY. That is right.

The CHAIRMAN. It seems today if you want to get Federal funds you have to be one of that type.

Mrs. HERLIHY. I was one of three women present at that meeting, The CHAIRMAN. Very well. Mrs. HERLIHY. On Wednesday, July 26, the next day, a member of the city solicitor's staff called me, asking if I would provide Mr. Biondi, the city solicitor, with the names of the persons being hired by WYEAC. Since Community Action had a policy that all records were open to the public, I told Lieutenant-now CaptainJoseph Delloso that I would give him the names. The next day after that I went to the Community

Action office and picked up the employment applications in order to get the information for Mr. Biondi.

On examination I found the applications had no indication of what the family income was and no indication as to criminal records. I saw also that a number of the persons hired were already employed; and that on a number of applications the names of persons given as references were those of other WYEAC members.

The CHAIRMAN. You say they were already employed. They were not supposed to hire anyone who had a job.

Mrs. HERLIHY. That is right.
The CHAIRMAN. Take them off another job?
Mrs. HERLIHY. That is right.

The CHAIRMAN. But you observed that right in the beginning they were taking people off other jobs?

Mrs. HERLIHY. Yes, sir.

The CHAIRMAN. That was one rule that had not been relaxed? Mrs. HERLIHY. No. The CHAIRMAN. They had relaxed some rules for the summer term, of course, but they had not relaxed that rule?

Mrs. HERLIHY. No.

The CHAIRMAN. In other words, if two people applied, and there was a job available for one, you would give priority to the one with the low income?

Mrs. HERLIHY. That is right.
The CHAIRMAN. Were those rules being observed?

Mrs. HERLIHY. No. There was not enough information on the application to be able to choose the one with the low income.

The CHAIRMAN. Very well.

Mrs. HERLIHY. As a result of what I found, I called a conference of several staff members of the sponsoring agency and our staff. We went over the applications. I made a list of the persons who were already employed.

I told the staff people that they had to get this income information. As to the criminal records, I reminded them that, on July 21, Arthur Calvin, who was the executive director of the sponsoring agency, Community Services Council, and James Baker, a staff member, had agreed that this information should and would be asked for. James Baker at that time had remarked that it would be helpful information showing what kind of men they are and what impact WYEAC made on them.

Friday afternoon of that week Mr. Mello Cotton, of the regional office of OEO, called me from Washington and he asked me why Community Action was holding up the WYEAC project with local regulations. My answer was that the project had not been delayed by any local regulations, that Community Action was following the Federal OEO requirement in regard to income levels and in line with Mrs. Houghteling's telephone instructions on Tuesday.

Mr. Cotton urged me to relax procedures.

The CHAIRMAN. In other words, just ignore their own rules. Ile was telling you to forget about their rules and guidelines?

Mrs. HERLIHY. He said if a person was earning $1,800 instead of $1,500, Community Action should permit his being hired. When I replied that these were the income scales set by the Federal Government, he said they were too low. My reply was that the scales had not been set locally, they had been set by the Federal Government; and, instead of urging me to relax procedures, he should turn his efforts to getting the regulations changed in Washington. I told him his call was inconsistent with Louise Houghteling's directives and that I would not change procedures unless directed to do so in writing by Washington.

On August 1, Community Action received a telegram from Leveo Sanchez, Director of the Mid-Atlantic region office, OEO. I have a copy of that telegram and would like to submit it as an exhibit.

The CHAIRMAN. I see it is very brief. It may be printed in the record at this point.

(The telegram follows:)

WASHINGTON, D.C., August 1, 1967. GREATER WILMINGTON COMMUNITY ACTION INC., Wilmington, Del.:

Reference to funded summer program in Wilmington OEO. The special condition attached to the summer program states that all young people within the target area may participate in the activities of this program. Applicants selected for the non-professional positions must be from the target areas and must be either unemployed or underemployed. Some exceptions may be made when individuals with special qualifications are being considered.

LEVEO V. SANCHEZ,
Director, Mid-Atlantic Region,

Office of Economic Opportunity. Mrs. HERLIHY. The telegram stated, "All young people within the target area may participate in the activities of this program.” It did not state all young people in the target areas were eligible for employment. In my opinion the text of the telegram in no way changed the basic regulation as to income requirements for hiring.

In the meantime two members of the General Assembly of the State of Delaware had made charges that some of the poverty "funds were going into the hands of persons contributing to racial unrest.” Although they had publicly asked for a probe of the antipoverty program they had not mentioned WYEAC by name.

At a meeting of the executive committee with Mr. Evans he did bring up WYEAC. He did not name individuals or give any details on incidents. As a result of this meeting the executive committee voted to ask Mr. Alfred J. Lindh, a former assistant U.S. district attorney, to look into the charges and report his findings back to us.

The CHAIRMAN. Now, what date was that approximately? That was back when? About August 1, 1967 ?

Mrs. HERLIHY. The charges came out in the paper the latter part of July. I called Senator Holloway and Representative Evans and asked them to meet with the executive committee on August 2.

The CHAIRMAN. It was about the first of August?
Mrs. HERLIHY. Yes.
The CHAIRMAN. Very well.

Mrs. HERLIHY. Sometime after this a Mr. George Pitts came to Wilmington on behalf of OEO to look into these charges. He met with me and other public officials. Mr. Pitts told me he had been involved with the Woodlawn Organization in Chicago. I never received any indication whether he made a report to OEO regarding WYEAC and, if he did, whether it was favorable or unfavorable.

The CHAIRMAN. Who was this Mr. Pitts? What was his official position?

Mrs. HERLIHY. I never knew his official position.
The CHAIRMAN. Was he sent there from Washington?
Mrs. HERLIHY. He was sent there from Washington. He came from
Chicago at the request-

The CHAIRMAN. He came from Chicago there?
Mrs. HERLIHY. At the request of Washington.
The CHAIRMAN. From the Woodlawn Organization?

Mrs. HERLIHY. Yes. I don't know whether he was connected with the Woodlawn Organization at the time he came to Wilmington but he did tell me that his experience was with the Woodlawn Organization.

The CHAIRMAN. I see.

Mrs. HERLIHY. The result of the investigation made by Mr. Lindh can be summed up simply by two statements he made to the executive committee on September 6. He stated that the charges could not be substantiated specifically because there was not enough information or the parties were unwilling to be named.

The YMCA called a meeting for August 8 to discuss whether the YMCA should take over sponsorship of WYEAC. After many statements in support of WYEAC by other persons at the meeting, I was asked my opinion. I stated that WYEAC was not in compliance with Federal regulations and that Community Action was having great difficulty in getting information from them and their sponsor. WYEAC had not followed income requirement in hiring, they had not set up a separate governing or policymaking body, and they had not disclosed their criminal records. I stated that WYEAC was sponsored by the white power structure and the members of WYEAT should not be labeled the "leaders" of black youth, that the parents of black youth who were not in trouble with the law would resent this very much. I pointed out that WYEAC had no supervision, no professional stail, and that so far no program had been developed, and, in my opinion, to give money to a group like WYEAC without a program and without supervision was to perpetuate gangs and potentially could lead to great trouble.

The CHAIRMAN. Let me ask you, did OEO officials know of these things at the time? Did OEO have anybody from Washington down there looking after this?

Mrs. HERLIHY. Yes. Mr. Pitts had come in from OEO. We had field representatives come in.

The CHAIRMAN. Who were some of them? They knew this condition was developing?

Mrs. HERLIHY. I met with—in my statement I bring this out-I met with a Miss Joan Haner, from the OEO in Washington who was our field representative for Wilmington. I met with Mr. Mello Cotton, who was, I believe, assistant director of the regional office of OEO. They knew about this.

The CHAIRMAN. They knew of the things you are stating here?
Mrs. HERLIHY. Yes.

The CHAIRMAN. You had talked to them, you did talk to them about it? Mrs. HERLIHY. Yes.

The CHAIRMAN. So they were appraised in the very beginning that this was getting off on the wrong track?

Mrs. HERLIIY. That is right.
The CHAIRMAN. Proceed.

Mrs. HERLIIIY. On or about the first or second week in August 1 asked the city solicitor to give me what information he had learned about persons employed as WYEAC staff and whose names I had made available to him. It was understood between us that I did not want individual records. Of 44 employees taken on in the first 2 weeks, 13 had no records, 13 had arrest cards; that is, their arrests were listed but no photographs or fingerprints had been taken. The remaining 18 persons had jacket folders which disclosed that they had among

them approximately 105 arrests, 55 convictions, and six cases pendus. Lai ing in municipal and superior courts.

The CHAIRMAN. Now this is quite interesting.
What date was this? The second week in August you said ?
Mrs. HERLIHY. Yes.

The CHAIRMAN. Of 44 employees, 13 of them had no criminal recet ords; 13 had arrest cards; that is, their arrests were listed but no

photographs or fingerprints had been taken. That is 26 of the 44. Now 1. the remaining 18 that had already been employed had jacket folders

which disclosed that they had among them approximately 105 arrests.

Mrs. HERLIHY. Yes, sir.

The CHAIRMAN. And 55 convictions and 76 cases pending in munici- pal and superior courts.

Mrs. HERLIHY. That is right.
Et The CHAIRMAN. That was, of the first 44, 18 of them had 55 con-
Evictions, previous convictions?

Mrs. HERLIHY. Yes, sir.
The CHAIRMAN. And 105 arrests?
Mrs. HERLIHY. Yes, sir.

The CHAIRMAN. In other words, it was obvious from the beginning that, of the people being employed here, many of them were people who were more or less habitual criminals to some degree?

Mrs. HERLIHY. That is true, sir.
The CHAIRMAN. All right, proceed.

Mrs. HERLIHY. On August 14 I prepared a memorandum to the

executive director of Community Action of Greater Wilmington, PLE. George Johnson, asking him to determine if the WYEAC project was

in compliance with OÈO memo 22-A in regard to part A, standards To governing the selection of personnel for employment in OEO-assisted

programs, and part B, rules governing conflict of interest and nepotism.

I have a copy of that memo, Senator, if you would like to have that as an exhibit.

The CHAIRMAN. Very well.

You made this memorandum, yourself, as president of your sponsoring organization?

Mrs. HERLIHY. As president of the Community Action, the CAP
agency, the antipoverty agency.
The CHAIRMAN. The antipoverty agency?
Mrs. HERLIHY. Yes.
The CHAIRMAN. You made this report-
Mrs. HERLIHY. It was a memorandum-
The CHAIRMAN (continuing). To Mr. George Johnson, executive
director of what?
Mrs. HERLIHY. Of Community Action; my own executive director.
The CHAIRMAN. You made it to your superior?

Mrs. HERLIHY. I made it to the staff person. I was the president of the board; he was the executive director of the agency, Community Action. I was asking him as president of the agency to give me some answers on this.

The CHAIRMAN. Very well. It may be printed in the record at this point.

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