Mr. MUNDIE. Special agent, U.S. Treasury Department, Internal Revenue Service.

The CHAIRMAN. How long have you served as a special agent for the Treasury Department?

Mr. MUNDIE. Since August of 1948.

The CHAIRMAN. Did you have previous service with the Government in any capacity?

Mr. MUNDIE. Yes, sir. Since 1921 I have been with the U.S. Treasury Department.

The CHAIRMAN. You have been with the Treasury Department since 1921?

Mr. MUNDIE. Since September of 1921.

The CHAIRMAN. During the life of this committee, have you served on its staff, and if so, in what capacity and under what arrangements? Mr. MUNDIE. I served as a staff investigator from March 25, 1957, until January 31, 1960, on a detail basis.

The CHAIRMAN. You were detailed from the Treasury Department to assist the committee?

Mr. MUNDIE. That is correct.

The CHAIRMAN. In other words, you were on loan, in effect.

Mr. MUNDIE. That is correct.

The CHAIRMAN. During your work as a member of the committee staff, were you directed to, and did you, participate in the making of a preliminary investigation into charges that the committee had received pertaining to the conduct of affairs of local 706 of El Dorado, Ark., of the Steamfitters and Plumbers Union?

Mr. MUNDIE. I did.

The CHAIRMAN. When did you begin this preliminary investigation, do you recall?

Mr. MUNDIE. During January of 1960.

The CHAIRMAN. During January of 1960?

Mr. MUNDIE. Yes, sir.

The CHAIRMAN. You began your investigatiton early in January of 1960?

Mr. MUNDIE. That is correct.

The CHAIRMAN. What particular charges did you look into? Mr. MUNDIE. During the course of my investigation, I made an analysis of the books, records, cash receipts, disbursements, canceled checks, and audit reports

The CHAIRMAN. Let the record show, please, that Senator Ervin enters the committee room at this point.

(Senator Ervin entered the committee room.)

Mr. MUNDIE. For the period July 1, 1952, to December 30, 1958. The CHAIRMAN. What records were those that you examined? Mr. MUNDIE. The cash receipts, disbursements, canceled checks, and audit reports.

The CHAIRMAN. Did that pertain just to the union funds, that is, dues money?

Mr. MUNDIE. That is correct.

The CHAIRMAN. Did you investigate any other funds?

Mr. MUNDIE. I did.

The CHAIRMAN. What were they?

Mr. MUNDIE. There was a joint venture between local 665 at Pine Bluff, local 155 at Little Rock, and local 706, El Dorado, Ark.

The CHAIRMAN. Briefly, what was this joint venture between these locals?

Mr. MUNDIE. This was a joint venture between the locals on a particular job, the U.S. arsenal being constructed at Pine Bluff, Ark. The CHAIRMAN. Was there some agreement entered into between the officials of these three locals regarding the handling of financial matters?

Mr. MUNDIE. There was an agreement entered into for the three business agents, namely, Earl Griffin from local 706; R. S. Chambliss from local 655, Pine Bluff; and Mr. David Dove from local 155, Little Rock, Ark.

The CHAIRMAN. Was that agreement entered into in writing?

Mr. MUNDIE. That agreement was entered into in writing and signed by all three business agents.

The CHAIRMAN. Do you have a photostatic copy of it before you? Mr. MUNDIE. I do.

The CHAIRMAN. Is the original on file with you?

Mr. MUNDIE. Yes, sir.

The CHAIRMAN. You have the original in the committee files? Mr. MUNDIE. No, we do not have the original. We have a photostat that was obtained from local 155, and also a photostat from local 665. The CHAIRMAN. Did you obtain these photostats?

Mr. MUNDIE. I did.

The CHAIRMAN. You have then a photostatic copy of that agreement?

Mr. MUNDIE. Yes, sir.

The CHAIRMAN. That photostatic copy may be made exhibit No. 1. (The document referred to was marked "Exhibit No. 1" and may be found in the files of the subcommittee.1

The CHAIRMAN. That document may be printed in the record. (The document referred to follows:)

AGREEMENT BETWEEN PINE BLUFF LOCAL 665, LITTLE ROCK LOCAL 155, AND EL DORADO, ARK., LOCAL 706 OF THE UNITED ASSOCIATION

Adherence to our obligations in the United Association is the paramount interest of the officers of the above three local unions in the State of Arkansas. We must have the common interest of all United Association members at heart and our separate interests should be and are subordinate.

There being inequality in wage rates throughout the State of Arkansas, local union 706 has accepted the responsibility of securing for journeymen employed on Pine Bluff Arsenal Depot the prevailing wage of local union 706 for all UA members employed thereon.

It is hereby agreed that a mutual understanding exists between the three organizations who are to participate equally in the revenue derived from the project.

Local union 706 shall have complete control and jurisdiction over any expansion program developing in connection with the present arsenal, shall supervise the expenditures, the jurisdiction, and the employment and be the sole representative of the journeymen and apprentices of the plumbing and pipefitting industry employed there. The local shall employ journeymen who are available in either of the other two local unions in equal proportion if available as nearly as possible through commonsense judgment.

1 The Senate Select Committee on Improper Activities in the Labor or Management Field was discontinued on Mar. 31, 1960. By sec 5, S. Res. 255, 86th Cong., the jurisdiction of the select committee was transferred to the Committee on Government Operations. By the same resolution all files of the select committee were placed in the custody of the Committee on Government Operations. Thereafter, the investigative jurisdiction and custodial responsibilities were delegated to the Permanent Subcommittee on Investigations.

It is the intent of the three organizations to assist the general membership and not necessarily promote the interest of any one particular local union.

A periodic audit of the finances of the joint venture will be made and after expenses are deducted for operation of the office and supervision the remaining moneys will be equally divided.

LOCAL UNION 706, By EARL GRIFFIN.

LOCAL UNION 665, By R. S. CHAMBLESS. LOCAL UNION 155, By DAVE DOVE.

The CHAIRMAN. This provides that Mr. Griffin acted as agent for all three of the locals in the collection of certain moneys from the members who work on the job?

Mr. MUNDIE. That is correct, sir.

The CHAIRMAN. By this arrangement, what amount was collected per member per week or per day, as the case may be?

Mr. MUNDIE. According to the records of the National Bank of Commerce, El Dorado, Ark., an account was opened by Mr. Earl Griffin with one authorized signature of local 706, 155, and 665. The account was to be known as a joint venture.

The CHAIRMAN. Now, I understand this money, or part of it, at least, was put into what is known as a joint venture account in this bank that you have identified.

Mr. MUNDIE. That is correct.

The CHAIRMAN. And it was subject to being withdrawn upon the signature of Earl Griffin?

Mr. MUNDIE. That is correct.

The CHAIRMAN. But it was a joint account or a joint venture of the three locals.

Mr. MUNDIE. That is correct.

The CHAIRMAN. Now, what I asked you a moment ago, and your answer was not exactly responsive to that, is this: How much was charged or collected from each worker to go into that fund?

Mr. MUNDIE. $3.50 per week.

The CHAIRMAN. In other words, plumbers and steamfitters who worked on this job, and who were members of any one of these three locals, had to pay $3.50 per week in order to work on this Government construction job or arsenal project at Pine Bluff.

Mr. MUNDIE. That is correct, including the welders, too.

The CHAIRMAN. Now, this written contract among the three locals to set up this joint fund does not state, I believe, the amount that each one was to pay each week.

Mr. MUNDIE. It does not, sir.

The CHAIRMAN. But that was worked out by arrangements and you found that is what was actually charged them?

Mr. MUNDIE. That is correct, $3.50 per week.

The CHAIRMAN. Did you interrogate men who worked there to ascertain whether those funds were actually paid or not?

Mr. MUNDIE. I did, sir.

The CHAIRMAN. How many would you say?

Mr. MUNDIE. I would say some 10 or 12 foremen, and some 5 or 6 general foremen. Now, the general foreman had from 4 to 6 fitter foremen in their crew, and each fitter foreman had from 10 to 12 to

15 men.

The CHAIRMAN. Were you given to understand from those you interviewed, these foremen, that every man who worked had to pay this amount of money?

Mr. MUNDIE. Had to pay or lose their job, yes.

The CHAIRMAN. In other words, no one worked that did not pay this $3.50 per week.

Mr. MUNDIE. This is correct.

The CHAIRMAN. And that was supposed to go into this joint venture fund, this account in the bank that you have referred to?

Mr. MUNDIE. That is correct.

The CHAIRMAN. All of it?

Mr. MUNDIE. That is correct.

The CHAIRMAN. Now, this $3.50 a week that was assessed against them for the right to work, the privilege of working, was that in addition to their regular union dues?

Mr. MUNDIE. Yes, sir.

The CHAIRMAN. Now, they had to pay their dues in each union?
Mr. MUNDIE. They had to pay their dues each month.

The CHAIRMAN. In the union.

Mr. MUNDIE. Yes, whether they worked or not.

The CHAIRMAN. But in addition to the dues, in order to work on this particular project, members of these three locals had to pay $3.50 per week.

Mr. MUNDIE. That is correct.

The CHAIRMAN. That runs to about $15 per month; is that correct? Mr. MUNDIE. That is correct.

The CHAIRMAN. It would average between $14 and $15 a month that they had to pay.

Mr. MUNDIE. Yes.

The CHAIRMAN. For the privilege of working?

Mr. MUNDIE. Yes, sir.

The CHAIRMAN. Now, in pursuing this fund, did you examine the bank records to ascertain how much money came into this fund that was actually deposited in the joint venture account in the bank? Mr. MUNDIE. Yes, sir.

The CHAIRMAN. All right. You examined the bank records, did you?

Mr. MUNDIE. I did, sir.

The CHAIRMAN. State in summary the total amount that was deposited in this fund.

Mr. MUNDIE. During the year 1951, $9,221, and in 1952, $63,503.51. In 1953, it was $30,807.27. It made a total of $103,531.78, deposited to the joint venture account in El Dorado, Ark.

The CHAIRMAN. That was over a period of how many years?

Mr. MUNDIE. That is over the period from August 7, 1951, to June 30, 1953, some 23 months.

The CHAIRMAN. A total of $103,000 was deposited in this joint venture account from moneys collected at $3.50 per week from workers on the project.

Mr. MUNDIE. That is correct.

The CHAIRMAN. Do you have any disbursement records of these funds?

Mr. MUNDIE. The only disbursement records that I have are the bank statements which shows small checks being withdrawn for evi

dently expenses of someone. They were $34.90, $129.14, and $50, and small amounts like that. However, there was one large check in the amount of $1,000 that we could not find the identity of. During the period of the bank account until Mr. Griffin decided to split the account three ways for his own benefit, that is the money to go to his own local, there was a total withdrawal of $10,421.22. That was during the period from August 1951 to June 30, 1953.

The CHAIRMAN. Let me ask you, under this contract that we filed here which was made exhibit 1, the money was to be equally divided among the three locals, was it not?

Mr. MUNDIE. After expenses, yes.

The CHAIRMAN. Incurred in the collection of the money and so forth.

Mr. MUNDIE. Or any other incidentals on the Pine Bluff job. The CHAIRMAN. Other incidentals on the Pine Bluff job, and the money was to be split three ways.

Mr. MUNDIE. Yes, sir.

The CHAIRMAN. Was there ever any split of these funds, and did local No. 655 of Pine Bluff and local No. 155 of Little Rock-did either of those locals ever get any of the money?

Mr. MUNDIE. No, sir.

The CHAIRMAN. No part of it?

Mr. MUNDIE. No part of it.

The CHAIRMAN. Notwithstanding the contract that they were to share in it?

Mr. MUNDIE. That is correct.

The CHAIRMAN. Now, have you traced that money to see what local did share in it, or did get the benefit of it?

Mr. MUNDIE. I have. On June 30, 1953, Mr. Griffin drew three checks and transferred $26,603.78 to his general account.

The CHAIRMAN. That is to his general account?

Mr. MUNDIE. To local 706 general account.

The CHAIRMAN. He transferred it from this joint venture project fund to his own local, local 706?

Mr. MUNDIE. That is right, and then on the same day he transferred $26,603.78 to his organizing fund.

The CHAIRMAN. In other words, the first check you mentioned there went into the general fund of his local, 706?

Mr. MUNDIE. That is correct.

The CHAIRMAN. Now, the second check went into the organizing fund of that local.

Mr. MUNDIE. That is right, and the third check went into his building account in the amount of $39,903, making a grand total withdrawn and placed to the benefit of local 706 of $93,110.56.

The CHAIRMAN. So that the $93,110.56 apparently was the net after paying all of the expenses of collecting the money and other incidental expenses in connection with the project?

Mr. MUNDIE. That is correct.

The CHAIRMAN. So this contract then with the other locals was never complied with?

Mr. MUNDIE. That is correct.

The CHAIRMAN. And local 706 got all of the money.

Mr. MUNDIE. That is correct.