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Mr. KENNEDY. They have ruled in the past, we found, for instance in Nashville, Tenn., and in other areas, that if your dues are not received at the headquarters by the first of the month, although they inight be checked off in time, if they are not received by the first day of the month, you are declared ineligible.

Mr. BELLINO. Yes, sir.

Mr. KENNEDY. We have found in a number of cases that the only people eligible in some of the Teamsters Union locals, have been the incumbent officers who paid their own dues, have we not?

Mr. BELLINO. And which have been paid usually on a basis of a year in advance.

Mr. KENNEDY. But just the only people eligible to run for office are the incumbent officers.

Mr. BELLINO. Yes, sir.

Mr. KENNEDY. Now, this provision in the constitution was slightly changed in 1957; is that correct?

Mr. BELLINO. Yes, sir.

Mr. KENNEDY. And that provision that you just read of the constitution provides that in order to avoid this problem, that the union membership should pay their dues a month in advance, and if they were under the checkoff system.

Mr. BELLINO. Yes, sir.

Mr. KENNEDY. They should pay their own dues a month in advance, and then when the checkoff system was in effect they would be declared eligible.

Mr. BELLINO. Yes, sir. Mr. KENNEDY. Now, I will ask these witnesses about how that applied to them, in just a moment, but you have made a study to determine when these witnesses paid their dues or when their dues were received at the union headquarters?

Mr. BELLINO. Yes, sir.
Mr. KENNEDY. What did you find!
Mr. BELLINO. Insofar as the September dues, you mean?
Mr. KENNEDY. All of the dues prior to that time. And

you

found they were checked off regularly?

Mr. BELLINO. Insofar as taking Carelly and going back to 1956, his dues for the 1st of January 1956 were paid the 6th of the month; and in February they were paid the 2d of the month; and in March, the 6th of the month; and April, the 3d of the month; and then the 5th, and the 6th, and the 5th and in other words, before the 10th of the month his dues were paid off under the checkoff system, in almost every instance. There is only one period where it was paid on the 15th. Another period was on the 11th, and all others were prior to the 10th of the month.

Mr. KENNEDY. During this whole period of the time he was on the checkoff system the employer was checking off the money from his salary, and turning it in to the union; is that correct?

Mr. BELLINO. That is correct.
Mr. KENNEDY. And the same thing for Mr. Sammartino?

Mr. BELLINO. Sammartino the same thing, except that he was in advance starting in June. On May 27 of 1958 he paid his June dues, and so he was paid in advance; and on June 16 he paid his July dues; July 16 he paid his August dues. So he was in advance at the time of this nomination meeting on September 3.

The CHAIRMAN. But they disqualified him and declared him ineligible because of the checkoff in the past, when his dues had not actually reached the treasury from the employer for some 6 or 8 days after the 1st of the month?

Mr. BELLINO. That is correct.

Senator GOLDWATER. May I ask technically, when are the dues considered paid—when the checkoff occurs or when the money reaches the treasury ?

Mr. BELLINO. They have considered the employer as the agent of the union, and so I would say technically it is when the employer deducts the dues. However, the union goes on the basis of when they actually receive it.

Senator GOLDWATER. Is there anything in the contract that specifies the time of payment?

Mr. BELLINO. Well, I haven't seen his contract, but the usual provision is upon being notified by the union of what members are employed by that company, then they check off the dues at the next payroll period and send it into the union. So that in this particular case, insofar as Carelly is concerned, around the end of the month, the Islay Dairy Co. received a notice from the secretary treasurer of local 377 including Carelly's name as one of the members working for them, and they deducted, on the September 3 payroll period, which was á Friday, they deducted the dues. They paid it on September 5. I am sorry; it was September 5 that they deducted it, and the dues were in by September 10.

Senator GOLDWATER. The company is in effect the agent; is that right? Mr. BELLINO. Yes, sir.

Senator GOLDWATER. As soon as the agent had deducted the dues, are they not technically paid?

Mr. BELLINO. Yes, sir; I would say so. I would say they are technically paid.

Senator GOLDWATER. To your knowledge, has that ever been to the courts?

Mr. BELLINO. Not as far as I know, Senator.

The CHAIRMAN. I think it is more than technically paid. If I pay a duly constituted agent of a master a debt I owe, or an obligation, when I pay it to the agent, if he is an authorized agent, the debt is paid, whether that agent absconds with the money, or whatever he does.

So it is more than technically paid; it is actually paid insofar as. the employer and the union member are concerned.

Mr. BELLINO. I would believe so.

Senator GOLDWATER. Is this bill, the form that this gentleman identified, is that the receipt ?

Mr. BELLINO. That is the form sent by the union to the employer and listing the names of the union members that are working for that. company

Senator GOLDWATER. How does the union recognize receipt of that money? Do they receipt for it?

Mr. BELLINO. They deposit it and issue a receipt to the member.

Senator GOLDWATER. But receipting to the employer, how does hereceipt to the employer ?

Mr. BELLINO. They may actually tell us the actual procedures, Senator.

Mr. SAMMARTINO. Our employer, upon receiving the statement, they send in a check, and the same statement is sent back to our employer or sent back to the employees with the receipt marked paid, with receipts for each and every employee.

Senator GOLDWATER. Who sends that back, the company or the union?

Mr. SAMMARTINO. The union, sir. It is sent back to the shop steward, and the shop stewards distribute them to the membership, their receipt.

Senator GOLDWATER. When they say the first of the month, Mr. Bellino, do they mean the 1st actually, or the 10th ?

Mr. BELLINO. The first business day is the way the constitution reads, the first business day of the month.

Senator GOLDWATER. Most of these have been deposited from the 3d to the 10th!

Mr. BELLINO. Yes, sir.

Senator GOLDWATER. So it has been the general practice not to have them paid, and to keep the entire membership in a state of not having paid their dues, in case this ever comes up.

Mr. BELLINO. They have always been considered in good standing by paying their dues prior to the 10th of the month.

The CHAIRMAN. There is another phase of this that is intriguing to me. There is nothing in that section 4, the first item you read from the constitution, that makes the same condition of eligibility applicable to appointive officers, where a union is in trusteeship or something, is there?

Mr. BELLINO. Not in this section, and whether there is in any other, I don't know.

The CHAIRMAN. There is a big loophole where they can take a man right out of the penitentiary and appoint him to one of these high positions in the union is that correct-and not be in violation of the constitution?

Mr. BELLINO. I don't know the answer to that. Mr. KENNEDY. Senator, they can do that, but these people that they take out of the penitentiary and place in those positions of power are not eligible under the constitution. What has happened in the past is that they are not any more eligible than anybody else; the international president can just waive the constitution or they just don't pay attention to the constitution in those cases.

The CHAIRMAN. Speaking at least of practical application, they do not apply it in those instances.

Mr. KENNEDY. That is correct, and, of course, it is the same procedure followed by Mr. Harold Gibbons in St. Louis. This provision of the constitution that we have just read should apply to the Carnival Workers Union in operating supposedly out of S. Louis, but Mr. Gibbons, as the trustee of the joint council, waived the constitution and said, “This doesn't apply in this case."

So these people in the St. Louis situation were declared eligible by Mr. Gibbons and supported by Mr. Hoffa. They participated in the election, and with the switch votes that made the difference they gave the election to Mr. Harold Gibbons.

So the problem that we are dealing with is where the constitution can be interpreted one way to help the incumbent officers, Mr. Hoffa, Mr. Gibbons, and his fellow officials, and another way when the rank and file

attempt to run against these people. The CHAIRMAN. All right. Proceed.

Mr. KENNEDY. Now, will you tell what happened, Mr. Carelly, after the officers came back and said that you were all ineligible ?

Mr. CARELLY. I forgot to mention one fact. Before they entertained the motion of that eligibility, I think there was about 1 hour and 45 minutes before they finally agreed to check this eligibility that same night. In other words they wanted to rule us out just that night, you see, but we finally, or the membership finally voiced their opinion that they should go and check the elegibility that night. What happened after then, they declared my ineligibility, and I made the statement that I would fight it all of the way through, and I wouldn't back up for anybody. I then wrote a letter to Mr. Martin F. O'Donoghue, the

chairman of the board of monitors, and also sent the same letter to James Hoffa, president of the International, stating my case and why I should be declared eligible.

I waited approximately a week to 10 days, and when I didn't get an answer. I called Mr. O'Donoghue up here one evening, and I asked Mr. O'Donoghue what the final disposition, if any, on my case was.

Mr. O'Donoghue stated to me, and which he can verify, that Mr. Hoffa had declared me eligible, and he asked me if I didn't receive the telegram stating so.

I told him that I didn't, and he said that he would see Mr. Hoffa the following morning, and make sure that I would receive the telegram so we could go on with this election.

I waited the next day, and I received no telegram, and I waited in the afternoon, and I didn't receive it, and so I contacted Mr. O'Donoghue again that evening.

Now mind you, that is putting me through all of this expense. That money came out of my pocket. That is what these incumbent officers are doing to us today. Mr. O'Donoghue told

me that night that he had spoken to Hoffa, but Mr. Bill Presser from Cleveland, Ohio, sent in a letter of protest and stopped the eligibility. That is what happened.

Mr. KENNEDY. Mr. Presser was head of the Ohio Conference of Teamsters?

Mr. CARELLY. That is right.

Mr. KENNEDY. He has been a witness here, Mr. Chairman, and he is the one who intervened and stopped the election.

Mr. CARELLY. That is what Mr. O'Donoghue told me.

Senator GOLDWATER. Under what provisions of the constitution can that man stop the action?

Mr. CARELLY. Not being in good standing due to the dues not being paid 2 years prior.

Senator GOLDWATER. Mr. O'Donoghue and Mr. Hoffa had agreed that you are eligible, and how can Mr. Presser interject an objection and have it sustained?

Mr. CARELLY. I don't know.

Mr. KENNEDY. What obviously happened is that Mr. Presser is a very close associate of Mr. Hoffa's, and Mr. Presser has the immediate

jurisdiction over Ohio, and undoubtedly he intervened and stated that he did not want these gentlemen to be declared eligible, and so Mr. Hoffa reversed his position on this. Isn't that right? Mr. Hoffa then was the one who reversed his position after intervention of Mr. Presser.

The CHAIRMAN. I am wondering if Mr. Hoffa ever intended in good faith to declare you eligible.

Mr. CARELLY. I think the question should be asked of Mr. Presser.

The CHAIRMAN. I know, you couldn't answer that. But I have doubts that he ever had any intention whatsoever of declaring you eligible.

Mr. CARELLY. I am inclined to believe Mr. O'Donoghue's word. The CHAIRMAN. I can understand his position, and I am not sure Mr. Hoffa was in good faith when he intimated to Mr. O'Donoghue that he had sent a telegram.

Mr. CARELLY. I understand you now.

Mr. KENNEDY. The incumbent officers that were running against you were associates of Mr. Presser, were they not?

Mr. CARELLY. Yes, we assumed they are.
Mr. KENNEDY. Particularly Mr. Joseph Blumetti?
Mr. CARELLY. Yes, sir.

Mr. KENNEDY. He was one of those nominated on the other slate, as a trustee, was he not?

Mr. CARELLY. Yes, sir.
Mr. KENNEDY. He was going to be running against you?
Mr. CARELLY. Yes, sir.

Mr. CARELLY. The other slate, they were all declared eligible, were they !

Mr. CARELLY. Well, yes; they were the incumbents.

Mr. KENNEDY. And you had this conversation with Mr. O'Donoghue. Could you tell us what steps you then took?

Mr. CARELLY. It is not every day you walk into something like this, and I am trying to keep it straight. Sammartino called me up one afternoon and told me, "We are flying to Washington today.”

I said, “Not me; I have never flown; I am not getting off the ground.” And he said, “Well, we are going Monday morning; we are going on the plane to Washington," and I believe that was September 22. We came up to see Mr. O'Donoghue personally, and we then met his executive secretary, Mr. Bartosic, and he took statements from us as to what was going on in Youngstown.

Mr. KENNEDY. Now, subsequently, was this put up to the membership as to whether you should be declared ineligible?

Mr. CARELLY. Yes, sir. Last month, on November 5, this was brought up by the membership that we be placed on the ballot.

Mr. KENNEDY. What did the membership decide?

Mr. CARELLY. That these men should be placed on the ballot, that was their wish.

Mr. KENNEDY. Was that unanimous ?
Mr. CARELLY. Yes, sir; it was nearly unanimous.
Mr. KENNEDY. How many members were there at the meeting?

Mr. CARELLY. On that night there were approximately 1,500 members.

36751-59—pt. 46

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