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The CHAIRMAN. One of those locals was at Pine Bluff, Ark., where this job was being carried out ? Mr. DUFFY. Correct. The CHAIRMAN. The other was at Little Rock, about 40 miles away? Mr. DUFFY. That is correct, Senator.

The CHAIRMAN. So you had the members of three locals working on the job outside permit folks!

Mr. DUFFY. Correct.

The CHAIRMAN. Did these three locals enter into an agreement with respect to how this job would be handled between them?

Mr. DUFFY. They did, Senator.
The CHAIRMAN. Do you have a copy of that agreement ?

Mr. DUFFY. I do, Senator, and it has already been printed in the record as exhibit No.1.

The CHAIRMAN. It is exhibit No. 1 in the record. These three locals, through their officers, including Mr. Earl Griffin, who has been business manager for local 706, entered into an agreement, did they not, which has been made exhibit No. 1?

Mr. DUFFY. Yes, sir.

The CHAIRMAN. Whereby they agreed that the work would be under the jurisdiction of local 706, and that this assessment fee, these moneys that would be collected after the expenses were paid, would be divided equally among the three locals; is that correct? Mr. DUFFY. That is correct, Senator.

The CHAIRMAN. So there was an agreement with respect to jurisdiction entered into between the three locals in the area, and with respect to how the proceeds or the moneys received from these assessment charges would be divided after expenses?

Mr. DUFFY. Yes, Senator.

The CHAIRMAN. It provided that local 706 should have the jurisdiction over the

jobs ? Mr. DUFFY. That is right, Senator.

The CHAIRMAN. And that the moneys, then, should be divided as I have indicated ?

Mr. DUFFY. Correct.
The CHAIRMAN. Please proceed.

You said after that—well, what came up about the charging of these fees?

Mr. DUFFY. On September 3, 1951, a wire was sent to Dave Dove, business representative of local 155, and on the same day a wire was also sent by the international union to Mr. Ray Chambless, business representative of 665, informing them in effect that no assessments should be collected by local 706 from either local 655 or 155. As I say, the

date of this is September 3, 1951. The CHAIRMAN. That is about the time the project got underway? Mr. DUFFY. That is correct.

The CHAIRMAN. That is from the international representative to those locals telling them, in effect, that this arrangement was not proper and should not be done?

Mr. DUFFY. Assessments should not be collected from these two locals by local 706.

The CHAIRMAN. In other words, local 706 had no right to collect an assessment from the other two locals who were in the general vicinity?

Mr. DUFFY. Correct.

The CHAIRMAN. In fact, either of the other two locals were closer to the job at El Dorado; were they not?

Mr. DUFFY. That is correct.

Senator MUSKIE. Did this authorize 706 to collect these permit assessments ?

Mr. Duffy. The constitution itself prohibits the collection of permits. This says assessments should not be collected. So I would think that would cover any type of charges for these people being allowed to work on that job. But, Senator, I want to make this clear: People from local 655 and local 155 were members of their own locals. They were paying dues to their own local union. They were not members of local 706.

The CHAIRMAN. And they were objecting to the paying of this?

Mr. DUFFY. They felt if they were going to make any contribution, the equity should move in the direction of their own local union. That is probably why they got some of the money from the joint venture agreement, because they were making a contribution here, too.

Senator MUSKIE. What I wanted to make clear was whether or not 706 was prohibited from collecting from their own members.

Mr. DUFFY. No; 706 was allowed to collect from their own members. The constitution sets that forth.

The CHAIRMAN. In other words, they could legally do so by voting an assessment, the union voting an assessment, but they had no authority to vote an assessment—that is this point-against the union members in other locals.

Mr. DUFFY. That is correct. Senator MUSKIE. And nonunion members. Mr. DUFFY. And nonunion members, according to the constitution. The CHAIRMAN. Is there anything further? Mr. DUFFY. Those telegrams that you referred to are exhibit 8-A. They were printed in the record at page 83 of the executive session.

We have the Federal statute involved, the Federal kickback statute, title 18, section 874. Could I read that?

The CHAIRMAN. All right. Mr. DUFFY (reading): Whoever by force, intimidation, or threat of procuring dismissal from employment, or by any other manner whatsoever induces any person employed in the construction, prosecution, completion or repair of any public building, public work, or building or work financed in whole or in part by loans or grants from the United States, to give any part of the compensation to which he is entitled under this contract of employment, shall be fined not more than $5,000 or imprisoned not more than 5 years.

So it is a felony. The CHAIRMAN. Under that, would the question arise that if the officers of local 706 exacted this assessment and then converted that money to their own use instead of making it available to the union for union purposes, in other words, failed to account for it to their own local, they would be guilty of exacting and taking a kickback out of funds from which this statute prohibits their receiving any money; is that correct?

Mr. DUFFY. That is correct, Senator.
The CHAIRMAN. All right.

Mr. Duffy. I might state that in my interpretation of this law, the doby money, which would be permit money and moneys extracted from locals 665 and 155, would fall under this Federal kickback statute. Collections from both of those sources would be violative of that statute.

The Arkansas State statute has also been violated, title 81, sections 202 and 204. I will read section 202:

No person shall be denied employment because of membership in or affiliation with a labor union, nor shall any person be denied employment because of failure or refusal to join an affiliate of a labor unionand here is the important partnor shall any person, unless he shall voluntarily consent in writing to do so, be compelled to pay dues or any other monetary consideration to any labor organization as a prerequisite to conditions of or continuance of employment.

The CHAIRMAN. That is the State law, what is known as a rightto-work law.

Mr. DUFFY. That is correct. This law went on the books in 1947, the State statute.

The CHAIRMAN. I think it is an initiated act, voted for by the people.

Mr. DUFFY. Yes; in 1944. That clearly covers these permit people, Senator, who went into the office of the local union and signed nothing.

The CHAIRMAN. I may as well get this into the record at this point.

In the course of conducting this investigation and interrogating prospective witnesses for these hearings, have you talked to Earl Griffin, Ermon Griffin, and Red Yocom in an effort to get information from them regarding the subject matters under inquiry, pertaining to the business and affairs of this local union?

Mr. Duffy. I have attempted to interview each one of those three individuals, particularly with reference to this assessment money, and they have stated to me, and to Mr. Mundie, and through their attorneys, that they would not discuss this subject unless they appeared before the committee here in Washington.

The CHAIRMAN. You have tried, have you, to get the information ? In other words, have they been given an opportunity to give any explanation to you that they cared to about it, and you sought information from them about it?

Mr. DUFFY. A number of times, Senator.

The CHAIRMAN. And they have persisted in their position that they will only talk when they come before the committee?

Mr. DUFFY. That is correct, Senator.
The CHAIRMAN. Is there anything further?
Mr. ADLERMAN. Nothing further at this moment. We will have
Mr. Duffy back on the stand a little later.

We will call Mr. Gray as the next witness.
The CHAIRMAN. Would you be sworn, please, sir?

You do solemnly swear the evidence you shall give before this Senate subcommittee shall be the truth, the whole truth, and nothing but the truth, so help you God?

Mr. GRAY. I do.

TESTIMONY OF LANCE D. GRAY

The CHAIRMAN. State your name, your place of residence, and your business or occupation.

Mr. GRAY. I am Lance Gray. My residence is 1308 South Jackson. I have a drive-in cafe in El Dorado.

The CHAIRMAN. You now own a drive-in cafe in El Dorado?
Mr. GRAY. Right.
The CHAIRMAN. You waive the right of counsel; do you?
Mr. Gray. I beg your pardon?

The CHAIRMAN. You waive the right of counsel; do you? You don't want a lawyer representing you while you testify; do you?

Mr. GRAY. No; that is right.

The CHAIRMAN. You have talked to members of the staff of the committee regarding information you have in which the committee may be interested ?

Mr. GRAY. I have.
The CHAIRMAN. You know the general subject of this inquiry?
Mr. GRAY. Yes, sir.
The CHAIRMAN. Have you ever been a member of a local union?
Mr. GRAY. Yes, sir.
The CHAIRMAN. What union?
Mr. GRAY. 706.
The CHAIRMAN. There in El Dorado, Ark.!

Mr. GRAY. I have been a member of 706. I am now a member of 655, which is in Pine Bluff.

The CHAIRMAN. You are now a member of the same union, only the Pine Bluff local?

Mr. GRAY. Well, according to the United Association; that is right.

The CHAIRMAN. You are in the same international union but in a different local now in Pine Bluff?

Mr. GRAY. A different local.

The CHAIRMAN. The local in Pine Bluff is 655 and the local in El Dorado is 706?

Mr. GRAY. Yes, sir.
The CHAIRMAN. You were first a member of 706 ?
Mr. GRAY. Right.

The CHAIRMAN. You are now in private enterprise, business for yourself!

Mr. GRAY. Yes, sir.
The CHAIRMAN. Counsel, will you proceed, please?
Mr. ADLERMAN. Did you work on the Pine Bluff Arsenal job?
Mr. GRAY. Yes, sir.
Mr. ADLERMAN. And between what years?
Mr. GRAY. That was in, I believe it was 1951 to 1953.
(At this point Senator McClellan withdrew from the hearing room.)
Mr. ADLERMAN. What was your position there?

Mr. GRAY. I was foreman and then I got promoted to general foreman.

Mr. ADLERMAN. As general foreman you had how many foremen under you?

Mr. GRAY. It varied from maybe three or four to six or seven.

Mr. ADLERMAN. How much jurisdiction did you have? How many men did you have under you?

Mr. GRAY. Approximately at the most it was about 75, 65 or 75, something like that.

Mr. ADLERMAN. Were you given instructions by Mr. Yocom to collect the assessments while you were a foreman?

Mr. GRAY. Yes, sir.
Mr. ADLERMAN. And how much were you told to collect?
Mr. GRAY. Well, it was $3.50.
Mr. ADLERMAN. For each man in your crew?
Mr. Gray. For each member, per week.

Mr. ADLERMAN. Were you given any instructions about giving receipts?

Mr. GRAY. Yes, sir.
Mr. ADLERMAN. What were your instructions about giving receipts?
Mr. Gray. I was to give receipts to members of local 706 only.
Mr. ADLERMAN. How about the permitmen?
Mr. GRAY. The permitmen? No receipts to permitmen.

Mr. ADLERMAN. How about the men who came from other localities like 655 or 155 ?

Mr. GRAY. No receipts to nobody except the members of 706.

Mr. ADLERMAN. Were you told by Mr. Yocom that if a man did not pay his assessment he would be terminated ?

Mr.Gray. I was told by Mr. Yocom if a man did not pay it, for me to terminate him.

Mr. ADLERMAN. You were told to run him off.
Mr. GRAY. That is right.
Mr. ADLERMAN. You were told to run him off the job?
Mr. GRAY. That is right.
Mr. ADLERMAN. Did any of the men fail to pay their assessments!

Mr. GRAY. To my knowledge, the guys that worked for me all paid it.

Mr. ADLERMAN. Did the men ever complain to Mr. Yocom, in your presence, about the fact that they weren't getting receipts?

Mr. Gray. Yes, sir.
Mr. ADLERMAN. And what did Mr. Yocom say?

Mr. Gray. Well, he just "sung a song and a dance." I don't remember the particular words that was said, but it was just to tell them if they don't like their jobs they can find themselves another job. That was one statement that was made.

Mr. ADLERMAN. Did you, yourself, have a discussion with Mr. Yocom about the failure to give these receipts? Did he tell you who was responsible for it?

(At this point Senator McClellan entered the hearing room.)
Mr. GRAY. He said, “That is what the little man said to do."
Mr. ADLERMAN. Who did he mean by "the little man”?
Mr. GRAY. Earl Griffin.

Mr. ADLERMAN. Was that the term that was applied to Mr. Griffin generally around the job, “the little man”?

Mr. Gray. Yes, sir. He used that term quite frequently.
The CHAIRMAN. He had used it himself?

Mr. Gray. No; Red Yocom used the term of "the little man,” referring to Earl.

The CHAIRMAN. Everybody knew that "little man" meant him?
Mr. Gray. Yes, sir. The term was used quite frequently.

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