The CHAIRMAN. All of the net, and the other two in the joint venture got nothing? Mr. MUNDIE. That is correct. The CHAIRMAN. Now, do you have your bank statements there, and the checks and accounts that you have referred to so that they may be made an exhibit? Mr. MUNDIE. Yes, sir; I do. The CHAIRMAN. What do you have there that can be introduced? Mr. MUNDIE. I have a photostat of the bank account, and also a photostat of the checks placing the money to the credit of the local union. The CHAIRMAN. Let the bank account be made exhibit No. 2 and the checks to which the witness has referred showing this money going into local 706, three separate funds of local 706-let those checks be made exhibits 2-A, B, and C. (The documents referred to were marked "Exhibits 2, 2-A, 2-B, and 2-C," and may be found in the files of the subcommittee.) Mr. MUNDIE. I would like to add, Senator, that in regard to this one large $1,000 item, that was payable to a Mr. J. C. Swales for expenses for delegation of nine men to Washington for a conference, which was the largest expenditure out of this account. I might add that local 706-prior to this money being transferred into the organizing fund and the building fund and the general account, I also analyzed that account which they had at the First National Bank of El Dorado, and none of this assessment money could possibly have gone into those accounts. The CHAIRMAN. In other words, this $103,000 bank account is all of the assessment money that you could trace? Mr. MUNDIE. That is correct. The CHAIRMAN. Now, this check that you speak of there, or these three checks that you speak of that total $93,000 plus that went into the three separate funds of local 706-what are the dates on those checks? Mr. MUNDIE. Those checks are dated June 29, 1953. The CHAIRMAN. That is June 29, 1953? Mr. MUNDIE. Yes, sir. The CHAIRMAN. In other words, this joint venture account was closed out at that time? Mr. MUNDIE. That is correct. The CHAIRMAN. These three checks wiped out the account. Mr. MUNDIE. Yes, sir. The CHAIRMAN. And all of the money, the net proceeds from this assessment that went into the bank account, went into the three separate funds of local 706? Mr. MUNDIE. That is correct. The CHAIRMAN. Now, do you have your worksheet there from the bank statement? Mr. MUNDIE. I have, sir. The CHAIRMAN. I would ask you to make your worksheets in support of the testimony that you have just given exhibit No. 3 with the bank accounts, they will be exhibits for the record. Exhibit 1 I have ordered printed in the record. (The document referred to was marked "Exhibit No. 3" and may be found in the files of the subcommittee.) Now I hand you here a copy of a telegram, or the original telegram, I am unable to determine, dated February 21, 1951, addressed to Earl Griffin at El Dorado, Ark., from Martin P. Durkin, and apparently sent from Washington, D.C. May I ask you to examine this document or this purported telegram that I hand to you, and ask you if you identify it, and where and how you procured it? Mr. MUNDIE. I identify this telegram as an official record of local 155 of El Dorado, Ark. The business agent at that local stated that this telegram was sent to him from the international president, or this copy was sent to him from the international president of the original telegram which was sent to Mr. Earl Griffin. The CHAIRMAN. This telegram may be made an exhibit. Just let this be printed in the record at this point. It states: I wish to inform you that I have granted local 706 jurisdiction over the Pine Bluff Arsenal located 15 miles north of Pine Bluff, Ark., as recommended by Gen. Jerry Ryan and agreed to by Ray Chambless of local union 655, and Dave Dove of local 155. Mr. MUNDIE. They are the business agents of the three respective locals. The CHAIRMAN. This was dated February 21, and the contract appears not to have been dated. I assume this telegram refers to this agreement? Mr. MUNDIE. That telegram refers to that, and we have established that this agreement was signed in 1951. The CHAIRMAN. You did establish that? Mr. MUNDIE. Yes, sir. The CHAIRMAN. How did you establish that? Mr. MUNDIE. Through the two business agents at Little Rock and Pine Bluff, Mr. Chambless and Mr. Dove. The CHAIRMAN. Mr. Chambless and Mr. Dave Dove told you that this contract, now exhibit 1 here, was executed in early 1951? Mr. MUNDIE. Yes, sir. That is Mr. Dove's and this is Mr. Chambless', and they both had copies of it. The CHAIRMAN. You have another copy there? Mr. MUNDIE. It is the same thing. The CHAIRMAN. Two parties to the contract advised you that it was executed in 1951. Does this wire, then, according to your investigation, refer to that contract? Mr. MUNDIE. It refers to the job of Pine Bluff, Ark. The CHAIRMAN. Now is there anything else we should make an exhibit at this point? All right, let us proceed. Now, then, how were you able to check the income of this fund? That is, did you undertake to make a check of how much money was actually received from this $3.50 per week per man? Mr. MUNDIE. Yes, sir; we did. Since Mr. Earl Griffin said that all records prior to 1955 were destroyed, we obtained information from the U.S. Army Audit Agency, Dallas, Tex., and New Orleans, La. The CHAIRMAN. In other words, there are no records available in local 706, so you were advised by Mr. Griffin, that would enable you to check these funds to ascertain whether the amount that was deposited in the bank covered the amount that was collected from the men? Mr. MUNDIE. That is correct. The CHAIRMAN. Since the local did not have any records to give you information regarding that, so you could check against the deposits to determine whether all funds had gone into that account, how did you then proceed? Mr. MUNDIE. First we went to the Blaw-Knox Co., Pittsburgh, Pa., who were the contractors on the job. The CHAIRMAN. They were the contractors on the Pine Bluff job? Mr. MUNDIE. They stated that they had no records, but the U.S. Army Audit Agency had some records. Mr. Duffy went to Dallas, Tex., and New Orleans, and obtained records from the U.S. Army Audit. The CHAIRMAN. Now just a moment. Mr. Duffy, you have been sworn. Mr. DUFFY. Yes, sir. The CHAIRMAN. Will you state your name and your present employment and your residence? Mr. DUFFY. My name is LaVern Joseph Duffy, and my residence is 110 D Street SE., and I am a staff investigator on the Permanent Investigating Subcommittee on temporary loan to this Senate select committee. The CHAIRMAN. You have been working for the Senate select committee since it was created, have you not? Mr. DUFFY. Yes, sir. The CHAIRMAN. Did you participate in the preliminary investigation the Chair directed be made and assist Mr. Mundie in undertaking to trace these funds? Mr. DUFFY. Yes; I did. The CHAIRMAN. Will you state what you did and what you found? Mr. DUFFY. First of all, we wanted to determine if all of the money which was collected on this Pine Bluff job was actually put in this bank account in El Dorado. The CHAIRMAN. In other words, you sought to find if there were records that would account for the fund. Mr. DUFFY. Yes; that is correct. We know that $103,000 went into the account and we wanted to determine if all or more should have gone in. So we went to the Blaw Knox Co. in Pittsburgh, and we found that those records had been destroyed. So then we went to the Army Audit Division in Dallas, Tex., and in New Orleans, and they had audit reports of the payroll records of the Blaw Knox Co. By making an analysis of those payroll records, we were able to determine exactly how much money was actually collected. The CHAIRMAN. Or should have been collected. Mr. DUFFY. Yes; I should say should have been collected from the Pine Bluff job for local 706, which would encompass the steam fitters, plumbers, and welders. The CHAIRMAN. That is for what period of time? Is it the same period of time covered by the account? Mr. DUFFY. The comparable period of the joint venture account, 1951 through 1953. The CHAIRMAN. Beginning with the time that the joint venture account was started down to the time that it was closed out? Mr. DUFFY. Yes, sir. The CHAIRMAN. During that period of time, Mr. Duffy, according to the check that you made of the records that you have referred to, how much money would have gone into this fund, assuming that each party who worked paid the $3.50 per week? Mr. DUFFY. We found from our analysis of these records that $224,388.50 should have been collected. The CHAIRMAN. That is $224,388.50 that should have been collected? Mr. DUFFY. That is right. The CHAIRMAN. In other words, if each man who worked as a plumber or steamfitter or welder on this job was required to pay the $3.50 per week, as many did, then the amount which should have been received was $224,388.50? Mr. DUFFY. Yes, sir; and only $103,000 was collected. The CHAIRMAN. Well, you say "was collected." You mean only $103,000 was deposited? Mr. DUFFY. That is right. The CHAIRMAN. So, based on the Army Audit Section records of this project, assuming it was all collected, only $103,000-plus went into the joint account. The balance of the $224,000 is unaccounted for, and you have been unable to trace it? Mr. DUFFY. And the difference, Senator, would be $120,531.78 that is short. The CHAIRMAN. In other words, on the basis of your preliminary investigation, there is that much of a shortage in the joint venture account for assessment against the members for working? Mr. DUFFY. Yes, Senator. Approximately 53.9 percent of the money is unaccounted for, if it was all collected, and if everyone paid that should have paid. The CHAIRMAN. Now, did either of you make interrogation of the foremen and supervisors or whoever they were with respect to whether all of the money was collected? Mr. DUFFY. Yes, sir. The CHAIRMAN. Mr. Mundie, what is that? Mr. MUNDIE. I would like to make an exhibit, an analysis of this. Senator ERVIN. These records in the possession of the Audit Section of the Army, did they have code indications as to the exact trade or craft of each individual? Mr. MUNDIE. That is right, Senator. Senator ERVIN. And also they showed how many weeks each worked? Mr. DUFFY. Yes, sir. Senator ERVIN. So it was a simple matter of mathematics, or by simple mathematics you could determine that a total of $224,388.50 should have been collected if this plan was carried out as originally made. Mr. DUFFY. That is correct, Senator. The CHAIRMAN. In your conversations with different people, what did you ascertain as to whether it was carried out. Mr. MUNDIE. I have taken a number of men per week times $3.50 and made a complete analysis, and I would like to submit this work paper as an exhibit showing that according to the U.S. Army Audit Agency of Dallas and New Orleans the number of men that worked per week during the life of the job totaled $224,388.50. 62255-61- -2 The CHAIRMAN. The work papers and the accompanying data may be made exhibit No. 4 for reference. (The document referred to was marked "Exhibit No. 4" and may be found in the files of the subcommittee.) The CHAIRMAN. Now, you said if those who worked paid, that is what your records showed, and you could establish that from the records? Mr. MUNDIE. Yes, sir. The CHAIRMAN. How do we know that all of them paid, or that some did not pay? What did you find out in that regard? Mr. MUNDIE. I took a sample of the men in the field of the general foremen and fitter foremen who collected the money. The CHAIRMAN. Did you interrogate them? Mr. MUNDIE. I interrogated them, and I secured affidavits from them. The CHAIRMAN. Do you have affidavits from them? The CHAIRMAN. How many are there? Mr. MUNDIE. Twelve covering 200 men. I think it was 250 men. The CHAIRMAN. Are these the affidavits I hold in my hand, one from Charles L. Roberts, of Smackover, and one from C. T. Matthews, of Spring Street, El Dorado? There is one from Plez W. Major, Route 4, El Dorado. There is one from H. C. Terry, 720 Marsh Avenue, El Dorado. There is one from Lance D. Gray, South Jackson Street, El Dorado. Mr. MUNDIE. Yes, sir. The CHAIRMAN. And one from S. O. Longing of Route 4, El Dorado. Mr. MUNDIE. Yes, sir. The CHAIRMAN. One from Joe Gammill, 927 East Main Street, El Dorado. Mr. MUNDIE. Yes, sir. The CHAIRMAN. Óne from E. W. Giles, 1216 D Avenue, El Dorado. Mr. MUNDIE. Yes, sir. The CHAIRMAN. And J. Howard Diffee, 411 South Oak, Little Rock, Ark. Mr. MUNDIE. Yes, sir. The CHAIRMAN. One from Max E. Hunt, 1323 State Street, Little Rock, Ark. Mr. MUNDIE. Yes, sir. The CHAIRMAN. Óne from V. L. Jackson, 1113 West 19th Street, El Dorado. Mr. MUNDIE. Yes. The CHAIRMAN. And one from John W. Garlington, Route 2, Box 61, El Dorado. Mr. MUNDIE. Yes, sir. The CHAIRMAN. Is that correct? Mr. MUNDIE. Yes, sir. The CHAIRMAN. These affidavits will be printed in the record at this point. They will also be made exhibit No 5A, B, C, D, E, F, G, H, I, J, K, and L. (The documents referred to were marked "Exhibit Nos. 5 through 5-L" and may be found in the files of the subcommittee.) |