(The list is as follows:)

Purchases-Unauthorized by the membership and paid for by check from union funds of local 706

Mr. DUFFY. In December of 1956 there were Christmas gifts for $1,594. It doesn't state exactly who those gifts went to. They were just Christmas gifts. There is nothing in the minutes to indicate these were authorized by the membership.

The CHAIRMAN. Who examined the minutes of the meetings?
Mr. DUFFY. Both of us.

The CHAIRMAN. Both of you examined the minutes of the union meetings. Was there anything in the minutes, at any period of time, authorizing these expenditures to be covered by this exhibit, that is, by your list and exhibit 15?

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Mr. DUFFY. No, sir.

Mr. MUNDIE. No, sir.

The CHAIRMAN. You examined all of the minutes that were available?

Mr. MUNDIE. I might add that the minutes run all of the way back to 1951 and 1952.

The CHAIRMAN. They have all of the minutes, and so you examined all of the minutes back to 1951?

Mr. MUNDIE. That is right.

The CHAIRMAN. There is nothing in the minutes authorizing these expenditures?

Mr. MUNDIE. That is right.

On some of these, I might add, on some of the notations we found in the file, these items were approved as of such-and-such minutes, but there was nothing in the minutes approving these items.

The CHAIRMAN. There was nothing in the minutes to show it, although the items may have been marked "Approved"?

Mr. MUNDIE. That is right.

The CHAIRMAN. Were there any minutes of the meeting of the board of directors or board of trustees or whatever other governing arm they have besides the regular union meetings.

Mr. MUNDIE. Of the regular meetings, I discussed the problem of minutes with a couple of the members of the executive board, and they just had a round table discussion of the affairs, and no record was made of them.

The CHAIRMAN. The board keeps no minutes?

Mr. MUNDIE. Well, talking to Mr. Longing, there was one; he was denied the privilege of any and all records of the union.

The CHAIRMAN. I understand, but could you find and were you able to examine any records or, rather, minutes of the board of directors or board of trustees or whatever the name was?

Mr. MUNDIE. It was the executive board, and there were no records. The CHAIRMAN. They have no minutes of the executive meetings? Mr. MUNDIE. No, sir; if they have them, they were not produced for our inspection.

The CHAIRMAN. Did you ask for them?

Mr. MUNDIE. Yes, sir.

The CHAIRMAN. And they did not produce any for your inspection?

Mr. MUNDIE. That is right.

The CHAIRMAN. No record was made available to you showing the authorization of the expenditure of moneys for these items that are of extraordinary or unusual nature?

Mr. MUNDIE. That is correct.

The CHAIRMAN. And apparently, from the list that has been read there, what he has read so far clearly indicates that they just went out and bought all of the officers and their wives some presents.

Mr. MUNDIE. Their officers and friends were bought fishing rods and outboard motors and boats.

The CHAIRMAN. That is shown on the list, is it?

Mr. MUNDIE. Yes, sir; and their wives would go to certain cafes and lunchrooms around there and sign the tickets for meals and everything else.

The CHAIRMAN. You mean the wives of the officers would go down and eat and sign a ticket and charge it to the union?

Mr. MUNDIE. Yes; and all of that that I have just discussed, besides a lot more, will be in that bulky exhibit 15. It was all pulled out and photostated.

The CHAIRMAN. Have you made any compilation of all these expenditures and what it totals?

Mr. MUNDIE. Yes. I don't have it all in totals, but from January 8, 1952, in the Randolph Sporting Goods Store in El Dorado, Ark., they expended $2,394.57 there for equipment.

The CHAIRMAN. Over what period of time?

Mr. MUNDIE. Seven years.

The CHAIRMAN. What are some of those expenditures for? If you have an account there, does it show what they are for?

Mr. MUNDIE. I don't have it broken down.

Mr. DUFFY. I have it: fishing tackle, 14-foot boat, de luxe fishing rod, trade-in on motorboats, trade-in of 10-horsepower motor for 18horsepower motor, fishing reels, spinning rods, and materials of that type.

The CHAIRMAN. This was paid for by the union out of union dues?

Mr. DUFFY. That is correct.

The CHAIRMAN. To whom did the equipment go, and who actually got the use of it?

Mr. DUFFY. The union officials got the use of it, but they explained to me that it is necessary on many occasions to have other union officials along to discuss these matters, so they go fishing and boating. That is how they carry on their business.

The CHAIRMAN. They go fishing to attend to business, is that how they explained it?

Mr. DUFFY. That is the way they explained it to me.

The CHAIRMAN. All right.

Mr. DUFFY. That is why they buy rifles for hunting, so they can go hunting and discuss matters.

The CHAIRMAN. How many rifles does it show they bought?

Mr. DUFFY. We have pump gun, one model 76 .30-06 rifle, and one automatic shotgun, $125; those are the guns.

The CHAIRMAN. You have a complete list there of all of these things, which has been printed in the record.

Mr. DUFFY. Yes, sir.

The CHAIRMAN. Now, there was some mention about airplanes. What did you find out about the airplanes? Who has that information?

Mr. MUNDIE. I have that.

The CHAIRMAN. All right, Mr. Mundie.

These planes were authorized, were they not, by a union meeting? Mr. MUNDIE. At a meeting.

The CHAIRMAN. You found that in union dues or minutes?

Mr. MUNDIE. Some of the fellows I talked to with reference to these airplanes said they were scared and they felt that the airplanes were not needed, but they wanted to work, so they just went along with it. The CHAIRMAN. Just briefly give that to us. Apparently they did approve the airplanes.

Mr. MUNDIE. On January 20, 1958, they bought an airplane from Kenneth Starnes, Little Rock, Ark., for $9,754.

The CHAIRMAN. Was that a secondhand plane?

Mr. MUNDIE. That was a secondhand plane, and it belonged to Earl Griffin.

The CHAIRMAN. And Earl Griffin bought it in his own name? Mr. MUNDIE. Earl Griffin had purchased this plane a year prior to this and decided that we wanted a new one, and so he traded it at Starnes', and Starnes sold it to the union.

The CHAIRMAN. Earl Griffin, the business manager and international organizer and president of this local, had a plane of his own? Mr. MUNDIE. Yes, sir.

The CHAIRMAN. That he traded in to whom?

Mr. MUNDIE. Kenneth Starnes, in Little Rock, Ark.

The CHAIRMAN. On another plane, as a part of the purchase price of another plane?

Mr. MUNDIE. That is right.

The CHAIRMAN. And then Starnes sold it back to this local union? Mr. MUNDIE. For $9,000.

The CHAIRMAN. In other words, it all happened at one time, did it? Mr. MUNDIE. Yes, sir.

The CHAIRMAN. In one transaction?

Mr. MUNDIE. Yes, sir.

The CHAIRMAN. So what it amounted to, Earl Griffin sold the plane he owned of his own to the union for $9,000?

Mr. MUNDIE. That is right.

Senator ERVIN. The union of which he was president?

Mr. MUNDIE. Of which he was business agent. And then on July 16, 1958, they remodeled this plane at Doyn Aircraft Co.

Senator ERVIN. This $9,000 plane?

Mr. MUNDIE. Yes, sir; in the amount of $3,469.10. In July they also had another expenditure there in the amount of $370. Then they turned that airplane in on December 11, 1958, after having the plane a year, for $47,500 and bought a new plane.

The CHAIRMAN. Turned it in for what?

Mr. MUNDIE. I wasn't able to establish the trade-in value, but at Starnes they said you give us your plane and take this plane, which is known as N6647B, and give us a check for $47,500, and the new plane is yours.

The CHAIRMAN. What it amounted to is they turned in this plane with $47,000-plus in cash.

Mr. MUNDIE. That is correct.

The CHAIRMAN. And bought a new plane.

Mr. MUNDIE. That is right.

The CHAIRMAN. Is there no way of determining how much was allowed for this $9,000 plane?

Mr. MUNDIE. Mr. Starnes couldn't tell us; he just made a package deal for this plane.

The CHAIRMAN. He did not know about the allowance?

Mr. MUNDIE. I didn't know, and he said you have these planes, and he figured by getting this plane, this old plane and a check for $47,000.

The CHAIRMAN. That is kind of like trading horses and paying also.

Mr. MUNDIE. In addition to the payment of $47,500 in December of 1958, in April they added $7,482.87 in equipment to this new plane. Making a total expenditure for the airplanes in a year and 4 months of $71,803.29.

The CHAIRMAN. Now that was authorized, apparently, by the membership?

Mr. MUNDIE. Yes.

The CHAIRMAN. What was the plane used for? Was it put to private use or did you find out?

Mr. MUNDIE. That we couldn't determine. I checked the log, and it was in the radius of maybe 100 or 100 and some odd miles. It went over to Pine Bluff and over to Little Rock in it, and it appears from my examination that even if they were coming to Washington, that they would just fly this union plane from El Dorado to Little Rock, where they would purchase tickets on the American Airlines and come the rest of the way. The plane was used very little. Maybe Ermon Griffin would go up and fly around half an hour, and it would say El Dorado to Crossett and return. I talked to the sales representative over at Kenneth Starnes', and he said that he would just fly over here for no reason at all and leave the plane and go uptown, and what business he had he didn't know. He just flew all over Arkansas with it.

Mr. ADLERMAN. Was there any evidence he used it in business transactions?

Mr. MUNDIE. We couldn't determine that. The men that we talked to, and Mr. Duffy will agree with this, men in the local said they went on hunting trips and fishing trips and things like that in the plane. But we were not able to pinpoint it.

The CHAIRMAN. Was there anything else in connection with it? Mr. DUFFY. I think that covers the airplane.

Mr. MUNDIE. Would you like to make these work papers of mine an exhibit for reference only?

The CHAIRMAN. What do those represent?

Mr. MUNDIE. These work papers represent practically a complete audit that I made for the years from 1955 to December 30, 1958, and then a transcript of an audit reports that they had on hand there. The CHAIRMAN. Of auditors' reports?

Mr. MUNDIE. Yes, sir.

These contain an analysis of their records from July 1, 1952, to December 30, 1958.

The CHAIRMAN. All right, they may be made exhibit 16 for reference.

(The documents referred to were marked "Exhibit No. 16" for reference and may be found in the files of the subcommittee.)

The CHAIRMAN. Is there anything else in that connection?

Mr. MUNDIE. That is all I have.

The CHAIRMAN. Mr. Duffy, do you have anything else?

Mr. DUFFY. There are a number of other examples on these exhibits which we are going to file for the record.

The CHAIRMAN. Just point them up.

Mr. DUFFY. I would like to refer to two more items.

The CHAIRMAN. It is a part of the record, and it will speak for itself, but you might point up one or two.