Mr. KENNEDY. He owns the Mobile Marine Power & Equipment Co., which has one piece of equipment; is that right? Lieutenant MOONEY. One generator. Mr. KENNEDY. And that generator is used by the Monti Marine Co., and he is paid how much for the use of that generator? Lieutenant MOONEY. He is paid $750 per week. Mr. KENNEDY. The only thing that that company provides is the use of one generator; is that correct? Lieutenant MOONEY. Yes, sir. Mr. KENNEDY. And he has described himself as an individual who settles labor difficulties for some of the ship companies? Lieutenant MOONEY. Yes; he does. Mr. KENNEDY. And also for doing any public relations work that might be necessary for some of the ship companies with whom Monti Marine has a contract? Lieutenant MOONEY. Yes, sir. Mr. KENNEDY. Would you explain a little bit the kind of work that Monti Marine does? Lieutenant MOONEY. Monti Marine, when a ship is pulled into the yards in Brooklyn or in Manhattan, they will go aboard and they will scrape it down, clean it up, and this piece of equipment that Lombardozzi has, he rents to this Monti Marine Corp. The CHAIRMAN. What is the value of that piece of equipment? Lieutenant MOONEY. I believe, Senator, it was bought originally for $10,000. The CHAIRMAN. $10,000. What is the cost of operating it? I mean, who pays the cost of operating it? Is this just rent for it and then the person who rents it, or the corporation who rents it, pays the cost of operation, or does the $750 per week include the cost of operating? Lieutenant MOONEY. When he made this statement to the police department, he said that he realized $750 per week out of it. The CHAIRMAN. Out of a $10,000 piece of equipment, he gets $750 per week? Lieutenant MOONEY. Yes, sir. The CHAIRMAN. What are the other considerations involved; do you know? Lieutenant MOONEY. I think it is promoting good will with labor unions. The CHAIRMAN. Promoting good will means, "If you get along with us you won't get your head crushed in"? Lieutenant MOONEY. Yes, sir. The CHAIRMAN. Is that what it means? The CHAIRMAN. Is that the kind of good will you are talking about? The CHAIRMAN. Protection. Protection from injury and damage to property. Lieutenant MOONEY. "We will get the men to work." The CHAIRMAN. Very well. Proceed. First, I would like to ask you one question before we get entirely away from it. You say this Lombardozzi was fined $10,000 instead of being ordered killed? Lieutenant MOONEY. Yes, sir. The CHAIRMAN. That was up at the Apalachin meeting? The CHAIRMAN. Where does this $10,000 fine go? Who gets that money? He was fined $10,000, you said. Who fined him and where did the money go? Lieutenant MOONEY. Senator, I believe if we knew that answer we would have the whole story at Apalachin, which we don't. The CHAIRMAN. That is the mystery about it? Lieutenant MOONEY. Yes, sir. The CHAIRMAN. Presumably it goes into some central fund that is controlled by the higher-ups in the underworld? Lieutenant MOONEY. I believe it does. Mr. KENNEDY. We understand, do we not, that Mr. Lombardozzi does not work directly for Monti Marine since 1957 or early 1958? Lieutenant MOONEY. Yes, sir. The CHAIRMAN. That his connections with Monti Marine have been ended. We also have the information which was supplied to us by the Grace Lines that they had loaned Monti Marine some $400,000 at the time Monti Marine was in some difficulty? Lieutenant MOONEY. Yes, sir. Mr. KENNEDY. And all but some $108,000 of that has been repaid? Mr. KENNEDY. What else do we know about Mr. Lombardozzi? Lombardozzi also stated he had an interest in a factoring company which loaned money to other companies and when Monti Marine secured a contract for work on the carrier Saratoga, this factoring company loaned money to subcontractors doing work on the carrier. He has been a familiar figure on the New York waterfront for years, having been a hiring boss at the Army pier in Brooklyn when Albert Anastasia controlled it. During a maintenance strike on the waterfront, Lombardozzi is reported to have joined Buster Bell, who is a leader of a New York maintenance local, Joe Colazzo, who is the leader of a Brooklyn maintenance local, and Anthony "Tough Tony" Anastasia, in settlement of the strike. It is not known who Lombardozzi represented at this meeting. Lieutenant MOONEY. Yes, sir. Mr. KENNEDY. What date was that? Lieutenant MOONEY. I don't have the exact date, Mr. Kennedy, with me. Mr. KENNEDY. Was it 1955? Lieutenant MOONEY. 1955, I believe. Mr. KENNEDY. And it was a major problem at that time, the strike? Lieutenant MOONEY. Yes, sir. Mr. KENNEDY. And this meeting, this group that got together, was able to settle the strike? Lieutenant MOONEY. They settled it. Mr. KENNEDY. And Mr. Lombardozzi attended the meeting? Lieutenant MOONEY. Yes, sir; and that is the mystery of why he was there. Nobody knows. Then on November 10, 1958, Lombardozzi, with seven others, agreed to accept a New York Supreme Court injunction barring them from stock trading in New York. New York Attorney General Louis Lefkowitz stated that underworld elements had attempted to infiltrate the security businesses when that injunction was handed down. Mr. KENNEDY. Mr. Chairman, the witness spoke of Mr. Lombardozzi being tried in an Army court-martial. We have the information on that. He went AWOL on January 4, 1944. He was apprehended in Brooklyn, N.Y., by the military police. On August 5, 1944, he was tried by a special court-martial in Louisiana. In August 1944, the same month, he was sentenced to 6 months at hard labor and forfeiture of two-thirds of his pay and allowances. He was discharged on November 6, 1944, for "ineptness, inability to adapt, and general misconduct." He was described as being extremely high strung, hot tempered, undependable, a chronic drinker, and a user of marihuana. We also have information, do we not, Lieutenant, that immediately following the meeting at Apalachin, that Mr. Lombardozzi made certain withdrawals from his bank account? Lieutenant MOONEY. Yes, sir. Mr. KENNEDY. Do you have those figures here? Lieutenant MOONEY. I don't have the figures, Mr. Kennedy. Mr. KENNEDY. We have another witness. The CHAIRMAN. You do solemnly swear the evidence you shall give before this Senate select committee shall be the truth, the whole truth, and nothing but the truth, so help you God? Mr. COFINI. I do. TESTIMONY OF ROBERT J. COFINI The CHAIRMAN. State your name, your place of residence, and your present employment. Mr. COFINI. My name is Robert J. Cofini. I reside in White Plains, N.Y. I am employed by the U.S. General Accounting Office, and Í have been assigned to this committee for the past 2 years. The CHAIRMAN. How long have you been employed in the Accounting Office, and in what capacity? Mr. COFINI. Three years in the capacity of supervisory accountant. Mr. KENNEDY. How long have you been with this committee? Mr. COFINI. Two years. Mr. KENNEDY. Mr. Lombardozzi does most of his dealings, or a considerable amount of his dealings, in cash, as we know. But he did maintain a bank account, did he not? Mr. COFINI. Yes, he did. Mr. KENNEDY. At the Manufacturers Trust Co. in Brooklyn, N.Y. Mr. COFINI. That is right. Mr. KENNEDY. Did you make an examination of the bank account from September 1, 1957, to February 28, 1958? Mr. COFINI. I did. Mr. KENNEDY. Did you come upon certain substantial withdrawals in that account? Mr. COFINI. Yes, I did. Mr. KENNEDY. Would you relate it to the committee? Mr. COFINI. On November 6, 1957, a check cleared the account in the amount of $2,171. On December 2, 1957, three checks cleared the account in the amounts of $2,000, $2,000, and $1,000. Mr. KENNEDY. All on the same day? Mr. COFINI. All on the same day; that is correct. Mr. KENNEDY. Were we able to locate those checks! Mr. COFINI. NO. The Manufacturers Trust Co. does not keep a Recordak of the checks, and therefore they were unable to disclose exactly who the payees were on these checks. Mr. KENNEDY. But there were the three withdrawals, all on December 2, 1957, totaling $5,000. Mr. COFINI. That is correct. Mr. KENNEDY. And that was approximately 2 weeks after the meeting at Apalachin? Mr. COFINI. Yes. Mr. KENNEDY. Mr. Chairman, this has been the first time that any reliable information has been disclosed as to what was discussed at the meeting at Apalachin. It shows once again the importance that this coin machine business is to the major racketeers and gangsters in the United States which is, of course, the reason and purpose of this hearing, but because it shows also the relationship between the gangsters and hoodlums and their use of labor unions in order to enforce their wishes in the industry. The CHAIRMAN. Lieutenant Mooney, what was Lombardozzi charged with or tried for before his underworld lords? Lieutenant MOONEY. What was the crime, Senator? The CHAIRMAN. What was the crime? What was he charged with? Lieutenant MOONEY. The information we had related to the juke box industry. The CHAIRMAN. So he was tried on some offense in connection with the juke box industry? Lieutenant MOONEY. Yes, sir. The CHAIRMAN. You don't know the nature of the charge or what the charge was, exactly? Lieutenant MOONEY. No, sir. The CHAIRMAN. Or what code he is supposed to have violated? Mr. KENNEDY. The lieutenant is limited in the information that can be disclosed at this time to the information that was given in the prepared statement. The CHAIRMAN. You may have other information that you can't disclose, is that what I am to understand? Lieutenant MOONEY. Yes, sir. The CHAIRMAN. Very well. Mr. KENNEDY. That is all. The CHAIRMAN. Senator Kennedy? Senator KENNEDY. The description you gave of the payments for the use of the generator and so on, how old would that generator be? Lieutenant MOONEY. I believe it was a secondhand generator when it was bought, Senator. Senator KENNEDY. He bought it for $10,000 or was it $10,000 when new? Lieutenant MOONEY. I don't have the facts available right now. I do have them. Mr. KENNEDY. It was Army surplus. Senator KENNEDY. He bought it originally listed at $10,000? Mr. KENNEDY. We don't have that information. Senator KENNEDY. How long ago was that? 36751-59-pt. 46-15 Mr. KENNEDY. He purchased it from Army surplus. Senator KENNEDY. If it was World War II, the Korean war would be 5 years old, so the value of it must be now certainly not more than $3,000 or $4,000, if it was $10,000, even assuming it was new. Yet he gets $700 or $800 a week for the use of this generator? Lieutenant MOONEY. The rental. Senator KENNEDY. It is obvious that this is payment by companies to get money to him so that he can pay off the union people involved. Is that quite obvious? Lieutenant MOONEY. On the surface that is the way it appears, Senator. Senator KENNEDY. I can't think of any other explanation. So Mr. Lombardozzi's guilt is acknowledged by his own record, and the company and union people involved on the waterfront are equally to be condemned; is that correct? Lieutenant MOONEY. Yes, sir. Senator KENNEDY. This is just a front and a fraud in using this beat-up generator in order to get $700 a week when the generator itself isn't probably worth more than $3,000 or $4,000 today. Lieutenant MOONEY. That is right. Senator KENNEDY. This is their way of protecting themselves in case of investigation so that they would be able to explain the disbursements of money by the company to him, but it is a fraudulent front, isn't it? Lieutenant MOONEY. I think it is, Senator; yes, sir. Senator KENNEDY. Well, it would seem to me that the companies that engage in that practice, as well as, of course, the union people who are involved, and their tieups with a man of his character and numerous times he has been arrested, and so on, I would think represents a shocking breach of the law and the procedures which should govern normal labor-management relations. Lieutenant MOONEY. Yes, sir. The CHAIRMAN. Is there anything further, Mr. Counsel? The CHAIRMAN. Thank you, Lieutenant Mooney, and Mr. Cofini. Mr. KENNEDY. Mr. Chairman, I might say that Mr. Lombardozzi at the present time is in jail for contempt of a State body in New York, which was looking into the activities at Apalachin, that is, the New York State Commission of Investigation. The next witness is Mr. Eli Kasper. The CHAIRMAN. Do you solemnly swear that the evidence you shall give before this Senate select committee shall be the truth, the whole truth, and nothing but the truth, so help you God? Mr. KASPER. I do. TESTIMONY OF ELI KASPER The CHAIRMAN. All right, Mr. Kasper, will you give us your name, your address, and your business or occupation, please. Mr. KASPER. Eli Kasper, I reside at 182 Gerard Street, in Brooklyn, presently employed by the National Novelty Co. in Long Island. The CHAIRMAN. You waive counsel, do you, Mr. Kasper? Mr. KASPER. Yes, I do. |