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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 I 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. Corini. 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 ?
Lieutenant MOONEY. No, sir.

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?

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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 ?
Mr. KENNEDY. That is all, Mr. Chairman.
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. El 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.

Mr. KENNEDY. You are a jobber of games; is that right?
Mr. KASPER. Yes, sir.
Mr. KENNEDY. Of jukeboxes and a route operator?
Mr. KASPER. Yes, sir.
Mr. KENNEDY. What is a jobber of games?

Mr. KASPER. Selling equipment such as music machines and amusement machines.

Mr. KENNEDY. And you have 115 jukes and 75 games?
Mr. KASPER. Approximately.
The CHAIRMAN. You sell all three machines?
Mr. KASPER. Just two.

The CHAIRMAN. Amusement machines, and music machines and the vending machine ?

Mr. KASPER. No, sir.
The CHAIRMAN.'You don't sell vending machines?
Mr. KASPER. No, sir.

Mr. KENNEDY. As far as your past, you were a calculator on west coast racetracks, a sheet writer on New York racetracks prior to parimutuel, and a captain at the Brown Derby and Sardi's, waiter at the Stork Club, and a building supervisor of construction ?

Mr. KASPER. That is right.

Mr. KENNEDY. In January of 1955, you were hired by the association, AAMONY?

Mr. KASPER. That is right, sir.
Mr. KENNEDY. To survey locations; is that right?
Mr. KASPER. That is right.

Mr. KENNEDY. And determine locations, which ones were owned by the members and which by nonmembers? Mr. KASPER. That is correct.

Mr. KENNEDY. One of the purposes was to determine who was paying dues; is that right?

Mr. KASPER. In addition to solicit those who weren't members.
Mr. KENNEDY. Later on you worked in the office of the association.
Mr. KASPER. That is true.

Mr. KENNEDY. During 1954 and 1955, local 465 in New York City, and local 433 in Nassau and Suffolk Counties were having an organizational clash; is that right?

Mr. KASPER. That is correct.

Mr. KENNEDY. Did it ultimately end in a merger between the two locals?

Mr. KASPER. That is true. Mr. KENNEDY. Which became local 433 ? Mr. KASPER. That is right. Mr. KENNEDY. How did that come about? Mr. KASPER. They were picketing each other's locations, that is, local 433 was sending pickets to members of 465, and 465 retaliated by sending pickets to members of 433.

Mr. KENNEDY. 433 was RCIA, the Retail Clerks? Mr. KASPER. That is correct. Mr. KENNEDY. Who brought about the merger of the two unions? Mr. KASPER. Mr. Blatt, then the attorney for AAMONY. Mr. KENNEDY. The association itself brought about the merger; is that right?

Mr. KASPER. That is right.

Mr. KENNEDY. Now, when a complaint was made to AAMONY by an operator that his location was jumped by another association, what would the association try to do?

Mr. KASPER. If the complaint was sent into the association before the operator lost his location, we would make an attempt to bring about a settlement between the location owner and the operator, and if that failed and the equipment was removed and replaced by, a nonmember, at that time then it would be the problem of the union and not of the association.

Mr. KENNEDY. What would you do? What would you do as far as the union was concerned?

Mr. KASPER. As far as we are concerned, we rarely contacted the union, and we also instructed the members to contact the union directly, because at first we did contact the union and we were told to notify the member to contact them personally.

Mr. KENNEDY. The member would contact the union and the union would then send out a picket line?

Mr. KASPER. Not always.
Mr. KENNEDY. It was the purpose of contacting?
Mr. KASPER. That was the purpose.

Mr. KENNEDY. To picket the location where this other individual had come in and taken the location ?

Mr. Kasper. That is right.
Mr. KENNEDY. Is that right?
Mr. KASPER. Yes, sir.

The CHAIRMAN. The union members acted upon the instructions of the association ?

Mr. KASPER. If I understand you clearly, Senator, at first we would notify the union.

The CHAIRMAN. That is, the association would ?
Mr. KASPER. Yes.
The CHAIRMAN. Would notify the union?

Mr. KASPER. Yes, sir; and at some early date thereafter we were instructed to notify the members when they sent their complaints in, to notify the union directly instead of coming in from us.

The CHAIRMAN. The association then worked through the members! Mr. KASPER. I don't quite understand the question. The CHAIRMAN. Well, instead of the association making the complaint directly to the union, you were instructed to get your complaint in through the members of the union?

Mr. KASPER. That is correct.
The CHAIRMAN. That is the way you operated?
Mr. KASPER. That is right.

Mr. KENNEDY. If one member of the association took another member's location and this could not be settled within the association, then would the one who had acted improperly, would he be expelled from the association?

Mr. KASPER. Invariably, yes.

Mr. KENNEDY. Would that automatically mean that the union would then be notified and install a picket line?

Mr. KASPER. In some cases.

Mr. KENNEDY. When he is expelled from the association, he was almost automatically also expelled from the union?

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