of money. Nick DeJohn was called on to make this guaranty of his stand up, and he couldn't produce the money. We knew several weeks ahead of time that he was going to get killed. They finally did kill him. Mr. KENNEDY. Where did they kill him? Mr. BUTLER. He was finally located in San Francisco. Mr. KENNEDY. How did they kill him? Mr. BUTLER. They tied a wire around his neck and stuck him in the back end of a car. Incidentally, it was the same, identical way that Labriola and Weinberg were killed in 1954. Mr. KENNEDY. Labriola and Weinberg, who were also down there, were ultimately killed, also! Mr. BUTLER. In the same manner; yes, sir. Mr. KENNEDY. By the wire around their neck? Mr. BUTLER. Yes, sir. Mr. KENNEDY. Is that an old, gangland way of disposing of friends! Mr. BUTLER. It apparently does not make much noise or attract too much witnesses. Mr. KENNEDY. Mr. Jones, who was down there, did he ultimately talk and expose a lot of these things to the police department? Mr. BUTLER. Well, sir, in this investigation we found out some of the moves that the gang had planned to make, and some of the business ventures that they were going to enter into. It developed that they were going to muscle into the Continental Press, the nationwide wire service. That happened just like he said it would happen. Mr. KENNEDY. He described what they were going to do; is that right? Mr. BUTLER. Yes, sir. other communities, which muscled into Miami, Fla. ing into the labor unions. They would use this means to muscle into was followed almost to a letter when they Another venture, of course, was their enter Mr. KENNEDY. Did he discuss their entrance into the labor unions? Mr. BUTLER. Yes, sir; that was one of their prime objectives at that time. Mr. KENNEDY. Would you describe what was said about that? Mr. BUTLER. Well, he discussed many different angles of putting pressure on different companies and businesses. One of the things that he brought out was the fact that they were going to try to organize or unionize every truckdriver in the Nation. He said, "When we do that, we can bring industry to its knees, and even the Government, if we have to." He was talking about different angles. Mr. KENNEDY. Did he indicate that that was the most important area to get control of the truckdrivers? Mr. BUTLER. In the general conversation. For the most part, I let these people talk without pinning them down too much because when I did they would shut up. Another way that they worked was in this waiters union that they used, and one of the gimmicks there was some of these racket boys would go into a high-class restaurant and say, "We are going to sell you some meat. You are paying $1 a pound for this stuff, and we are going to charge you $1.25, but it will be better meat." Of course, the restaurant owner would be pretty well satisfied with what he had, and they would run the man off, and the next day, through these unions' control, the restaurant operator would not get any linens, and he would not have any tablecloths or napkins. The racket boys would go back and say, "I still want to sell you that meat, and it has gone up to $1.50." The man would run him off again, and finally this racket boy would have the union call and call all of his help out of the restaurant. So, eventually, he had to do business with them and that is just one phase of their activities, excessive charges on commodities that they used in the restaurants, and terror. He claimed that the coin-machine business was theirs. Mr. KENNEDY. Will you speak up a little louder? Mr. BUTLER. They told me that they had control of the coin-machine devices, and one of their big gimmicks was the cigarette deal, that they put these cigarettes in liquor stores because they controlled the liquor business, and they would sell you cigarettes at a very cheap price by simply cutting the retailer, the liquor-store operator, out of his profits and telling him that he could use only cheap cigarettes as a leader to get people to come into his store. Most of them did. Mr. KENNEDY. Did they indicate what the value of all of these operations was going to be at any time? Mr. BUTLER. The Dallas Survey, according to most people, would run about $18 million a year. The wire-service deal that they planned to muscle in, and did muscle in by killing Ragan Mr. KENNEDY. That was Ragan that was killed up in Chicago, was it, in 1948 or around then? Mr. BUTLER. I believe it was 1946 or 1947, or somewhere in there. Mr. KENNEDY. He had indicated just prior to that that he had expected to be killed? Mr. BUTLFR. That is right. They said that this thing would run them $1 million a week, the wire service, which is a pretty fat thing. Senator CHURCH. What is a wire service? Mr. BUTLER. It was the service that bookies used back when the country was wide open, and they would charge each bookie according to the volume of business that he did. All of them would get the same service, but a man who had 20 customers would not pay as much as a man that had 300 customers. It depended on the size of the operation. Mr. KENNEDY. Did you ever learn anything as to who was responsible for killing Ragan? Mr. BUTLER. Well, nothing that I could swear to. It was engineered by these people. Mr. KENNEDY. This same group down in Dallas? Mr. BUTLER. The same group that were behind this bunch, yes. Mr. KENNEDY. Wasn't Yaris involved in that? Mr. BUTLER. Dave Yaris, according to the information given out by these people was the man behind the killing, yes, sir. Mr. KENNEDY. Did they indicate what these enterprises would bring in in these other States they were moving into? Mr. BUTLER. No, sir. I never did hear any estimate give to that. Mr. KENNEDY. Just the $1 million a week for the wire services and then the $18 million in Dallas, Tex., alone, would indicate that it is a very profitable enterprise. Mr. BUTLER. Yes, sir. Mr. KENNEDY. Now, Jones was arrested and was convicted was he not, for the attempt to bribe the sheriff? Mr. BUTLER. That is right. Mr. KENNEDY. What was the sheriff's name? Mr. BUTLER. Guthrie, Steve Guthrie. Mr. KENNEDY. Did you have any more difficulty with Mr. Jones after that? Mr. BUTLER. He was given a 3- to 5-year sentence and while he was out on appeal we got him for bringing in 57 kilos of opium from old Mexico, and he had previously told us that he was not interested in narcotics. Later on, it developed that they had some plans to have decisions handed down by certain judges that they controlled, which practically handcuffed the law-enforcement field in their fight against narcotics. Mr. KENNEDY. Danny Lardino was called back to Chicago by John Lardino through Nick de John, and Weinberg and Labriola were actually there but he moved into this group. Mr. BUTLER. Yes, sir, they were arrested. Mr. KENNEDY. And you put them out of Texas, is that right? Mr. KENNEDY. Now, Mr. Chairman, as I explained, this is the same Danny Lardino that subsequently went back to Chicago and took over this local and controlled it, and John Lardino is the one that runs and controls the biggest hotel and restaurant workers union in Chicago. That is 10,000 members and both of them are still union officials. The CHAIRMAN. Are there any questions? Mr. KENNEDY. Just in passing, did you request to be transferred to juvenile delinquency? Mr. BUTLER. No, sir. In 1955 I worked for Senator Kefauver on his investigation into juvenile delinquency and when I got back to Dallas they assumed I was an expert on the subject and transferred me there. Mr. KENNEDY. Was there also a man by the name of Mirro down there? Mr. BUTLER. He was down there. They called him "Cowboy." Mr. KENNEDY. Do you know how he got the name "Cowboy"?" Mr. BUTLER. No, sir; I don't. Mr. KENNEDY. He also will be here in the course of our investigations further on, Mr. Chairman. Mr. Butler, was Lou Schneider down there? Mr. BUTLER. Yes, sir. Mr. KENNEDY. He was also down there? Mr. BUTLER. That is right. Mr. KENNEDY. Do you know what Schneider's position was? Mr. BUTLER. No, sir. They tell me that Lou Schneider was a pretty nice sort of person and he got in with those people and as soon as he did he realized he was over his head, and tried to get out, but he couldn't do it. Mr. KENNEDY. That is all. The CHAIRMAN. All right. Are there any further questions? Mr. KENNEDY. Was there anything else that you can think of? Mr. BUTLER. No, sir. The CHAIRMAN. Thank you very much, Lieutenant. All right, do you wish to interrogate Mr. Peterson any further? Mr. KENNEDY. Mr. Chairman, could I call Mr. Kelly who can put in the charter for local 658? The CHAIRMAN. All right. Mr. Kelly, come around. 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. KELLY. I do. TESTIMONY OF JAMES P. KELLY The CHAIRMAN. State your name, and your address, and your present occupation. Mr. KELLY. My name is James P. Kelly. I live in New York City and I am presently a staff investigator for the committee. The CHAIRMAN. All right, Mr. Kennedy, proceed. Mr. KENNEDY. Mr. Kelly, have you gone through the books and records of the International Union of Hotel and Restaurant Workers? Mr. KELLY. Yes, sir; I have. Mr. KENNEDY. Ánd did you obtain a photostatic copy of application for charter for local 658 in Chicago? Mr. KELLY. Yes, sir; I did. Mr. KENNEDY. Mr. Chairman, could I present that to the witness? (A document was handed to the witness.) The CHAIRMAN. Please examine the photostatic copy presented to you by counsel and state if you identify it. Mr. KELLY. Yes, sir; I do. I had this photostat made when I was Cincinnati, at the office of the Hotel and Restaurant and Bartenders International Union, the first week of June of this year. It is an application for charter of affiliation to the Hotel and Restaurant employees and Bartenders International Union. It is dated March 7, 1950, Chicago, Ill., and the name of the organization is the Drug Store, Soda Fountain, and Luncheonette Employees Union, and the address is 10 North Wells Street, Chicago, Ill. It is for local 658. The charter is dated March 8, 1950. The CHAIRMAN. Could you tell us whether Mr. Danny Lardino's name appears there? Mr. KELLY. Mr. Danny Lardino's name with the address, 10 North Wells Street, Chicago, Ill., appears as secretary, and the international vice president, James Blakely, appears as organizer with the address 10 North Wells Street, Chicago, Ill. There were 25 applicants on the original charter and it is interesting to note that of the names mentioned, Danny Lardino is listed as applicant No. 6, and he is the only one for whom no occupation is listed. He gave his address at that time as 4875 North Magnolia. The CHAIRMAN. That may be made exhibit No. 13A. (The document referred to was marked "Exhibit No. 13A" for reference and will be found in the appendix on p. 12855.) Mr. KENNEDY. Blakely, who appears on this local as an organizer, what is his position at the present time? Mr. KELLY. He has several positions, Mr. Kennedy. He is the secretary-treasurer of local 593. Mr. KENNEDY. That is the largest local? 21243-58-pt. 33-3 Mr. KELLY. Yes; the largest local in the joint executive board in Chicago and he also has been, since 1947, an international vice president of the fifth district which covers Chicago, Ill. Mr. KENNEDY. He was an international vice president at the time that he appeared on this local application charter as an organizer; is that right? Mr. KELLY. That is right. Mr. KENNEDY. And it would appear therefore, that he was the one that sponsored this? Mr. KELLY. Well, Mr. Duffy and I had a conversation with Mr. Lardino in our office in Chicago Mr. KENNEDY. He will be a witness later on, and so you need not testify. Senator CURTIS. This Danny Lardino as secretary and James Blakely as organizer, they are the same individuals that have been previously mentioned today in the hearings? Mr. KELLY. Yes, sir; they are. Senator CURTIS. Have you investigated this list of applicants to find out whether they were genuine employees and applicants? Mr. KELLY. Not each individual one; no, sir, Senator. Senator CURTIS. Did you investigate some of them? Mr. KELLY. No, sir. Senator CURTIS. This charter was granted? Mr. KELLY. The charter was granted. Senator CURTIS. By whom? Mr. KELLY. By the international in Cincinnati. Senator CURTIS. And by the president or by an executive board, or how was it granted? Mr. KELLY. Well, usually the approval is given by the international vice president, and in this case Blakely in District 5 in Chicago, and it is usually on his recommendation to the international that final approval is given. Senator CURTIS. Blakely files an application before himself and then approves it? Mr. KELLY. I don't know whether it exactly works that way, Senator, but Blakely in this particular instance on the application for local 658, does appear as the organizer for it. Senator CURTIS. How long has Blakely been a vice president? Senator CURTIS. How does he get that job? Mr. KELLY. By election. Senator CURTIS. Was he elected? Mr. KELLY. I believe he was; yes, sir. Senator CURTIS. When? Mr. KELLY. In 1947 there was a convention at that time, I think, in Milwaukee, Wis. Senator CURTIS. Who was the head of the international union at that time? Mr. KELLY. At that time I believe Mr. Hugo Ernst was president. Senator CURTIS. Is he still president? Mr. KELLY. No; he is deceased. Senator CURTIS. Who is president now? |