Senator CHURCH. I think this, Mr. Chairman, indicates the extent of the various methods that have to be employed to clean up a situation of this kind, and I think that it highlights the fact that the heavy reliance, perforce, is upon the unions themselves to clean out much of the racketeering that the investigations of this committee have disclosed.

I have said before that I am hopeful that Congress will act, that we will have reform legislation at the national level. But even model legislation at the national level is but a first step. I have said also that great reliance has to be placed upon local law enforcement authorities, and that most of the abuses that have come to the attention of this committee have, in fact, been in breach of the peace laws of the local communities, and can only be effectively dealt with at that level, because the Congress is not an enforcer of the general law.

But I think that this also needs to be said: That a major portion of this cleanup job has to be done by legitimate labor unions through their international organizations. That is why it is so distressing to the members of this committee to find one of these international organizations, the Teamsters, shot through with the very kind of corruption that occurs at a local level.

So we have very little confidence that within that organizations the necessary steps are going to be taken. That is the largest single union organization in the country.

I want to commend you and, through you, the leadership of the Retail Clerks International, for the efforts that you have made in this difficult field. I think that it represents the kind of work that must go forward now through many of the international union organizations in this general effort to clean the racketeers out of legitimate unionism in this country.

Mr. VLADECK. Thank you very much.

Mr. KENNEDY. In that connection, I would like to ask you what you would feel the future holds in this field when you have to compete with a local such as 266 of the International Brotherhood of Teamsters?

Mr. VLADECK. In all honesty, Mr. Kennedy, I don't regard the future as bright for our local 1690. We are not going to engage in the kind of tactics which the other organizations in this industry have engaged in.

We will not seek finances from employers to do it, and we will not seek the strong arms that are going to be necessary to impose this kind of condition of unionization in this industry under the current climate.

All that we will continue to do, and which we must continue to do, is try to restrain, through available law and through local law enforcement officers, this invasion of our collective bargaining agreements, We have done it once in conjunction with the music operators. They have done it a second time.

Local 266 is going to be much harder to deal with in this regard, because they do have an international charter and they are an international union with a reputation. It is not a letterhead local.

Mr. KENNEDY. And the union which has more economic power than any other union in the country.

Mr. VLADECK. Certainly more than the Retail Clerks, Mr. Kennedy.

Mr. KENNEDY. And the union that is controlled, operated, and backed by the underworld in New York City, as local 266 has been shown to be.

Mr. VLADECK. Well, we are not optimistic as to our future. I can only say to this committee that we will continue to exercise any effort we can to preserve our jurisdiction in this field. But we just aren't going to play it according to their rules. We neither can afford to nor want to.

If that means that we are unsuccessful, at least we will have had an experience, I will characterize it that way, over the years in which we are attempting to accomplish this, at least.

Mr. KENNEDY. So it would appear that the monopoly that was discussed this morning of this industry in New York will be established unless there is some drastic change, which is not immediately foreseeable.

Mr. VLADECK. Well, I think Mr. Kasper stated in his testimony, which I heard this morning, that 266 has been slowed down. At least to the extent we can keep slowing it down, we are going to try to. That much I can say. I certainly cannot say with any confidence that we can avoid their gaining control of the industry.

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

The CHAIRMAN. Thank you very much.

The committee will stand in recess until 10:30 in the morning. (Members of the select committee present at time of recess: Senators McClellan and Church.)

(Whereupon, at 4:40 p.m. the select committee recessed, to reconvene at 10:30 a.m., Friday, February 13, 1959.)

INVESTIGATION OF IMPROPER ACTIVITIES IN THE

LABOR OR MANAGEMENT FIELD

FRIDAY, FEBRUARY 13, 1959

UNITED STATES SENATE,

SELECT COMMITTEE ON IMPROPER ACTIVITIES

IN THE LABOR OR MANAGEMENT FIELD,

Washington, D.C.

The select committee met at 10:30 a.m., pursuant to Senate Resolution 44, agreed to February 2, 1959, in the caucus room, Senate Office Building, Senator John L. McClellan (chairman of the select committee) presiding.

Present: Senator John L. McClellan, Democrat, Arkansas; Senator Frank Church, Democrat, Idaho.

Also present: Robert F. Kennedy, chief counsel; John P. Constandy, assistant counsel; Arthur G. Kaplan, assistant counsel; Walter R. May, investigator; Sherman S. Willse, investigator; Walter De Vaughn, investigator; Ruth Y. Watt, chief clerk.

The CHAIRMAN. The committee will be in order.

(Members of the select committee present at the convening of the session were Senators McClellan and Church.)

The CHAIRMAN. All right, Mr. Counsel, call the next witness.

Mr. KENNEDY. I thought before we started I might place in the record the names of the gangsters who attended the meeting at Apalachin whom we have found to be in the coin-machine business, for the most part in the cigarette-machine business, in the game-machine business, and in jukeboxes.

They would be Jerry Catena, from New York and New Jersey, who was a witness here the other day; John Anthony DeMarco, from Cleveland, Ohio; Joseph Falcone, from Utica, N.Y.; Michael Genovese, from Pittsburgh, Pa.; John LaRocco, from Pittsburgh, Pa.; Carmine Lombardozzi, from New York City; Gabriel Mannarino, from New York City, a witness earlier; John Scalish, from Cleveland, Ohio, who was a witness earlier; and Frank Zito, from Springfield, Ill., who was a witness the day before yesterday.

I might also say, Mr. Chairman, that we had another situation that developed. As you know, we have been investigating some coinmachine activity in Lake County, Ind. It has been a very active operation, but the night before last those who operated the machines, which in part are run by the syndicate, came and picked up all of the machines in and around Gary and in some other areas of Lake County. For the most part these were pinball machines such as were exhibited here on the first day, the gambling pinball machines, the so-called bingo machines. They were all picked up, over 1,000 of them, over a short period of time, shortly after the hearings began.

The CHAIRMAN. Have they been put out of operation?

Mr. KENNEDY. They were picked up by the syndicate and have been placed in warehouses in and around that area, and they are now completely out of operation.

As you know, we have had investigators there for several months. and we have been going into the matter. It is one of the most critical

of any areas that we have made an investigation of.

But these machines, since these hearings started, have all been picked up.

The CHAIRMAN. All right.

Mr. KENNEDY. The first witness, Mr. Chairman, is Mr. Albert Denver.

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. DENVER. I do.

TESTIMONY OF ALBERT S. DENVER, ACCOMPANIED BY COUNSEL, SAMUEL MEZANSKY AND JOSEPH GODMAN

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

Mr. DENVER. My name is Albert S. Denver, and my place of business is at 761 Park Place, Brooklyn, N.Y. I own and operate jukeboxes and cigarette machines.

I am also president and managing director of the Music Operators of New York, Inc., with offices at 250 West 57th Street, New York City.

The CHAIRMAN. Thank you. You have counsel, and will you identify yourself for the record, please.

Mr. MEZANSKY. My name is Samuel Mezansky, 350 Fifth Avenue, New York City, and my associate is Joseph Godman, 274 Madison Avenue, New York City.

The CHAIRMAN. All right. Proceed.

Mr. KENNEDY. I believe Mr. Denver had a prepared statement, Mr. Chairman, that he would like to submit to the committee. I do not believe that he intended to read the statement, but he would like to have it made an exhibit for reference, at least.

Mr. DENVER. I would like to do that, Mr. Chairman, with your permission.

Mr. KENNEDY. The statement was submitted yesterday and so it meets the rule.

The CHAIRMAN. I understand the statement was submitted under the rule, and therefore it may be received and the statement may be made exhibit No. 17 for reference.

(Statement referred to was marked "Exhibit No. 17" for reference and may be found in the files of the select committee.)

The CHAIRMAN. Mr. Denver, you may highlight it if you desire to do so, or if there is any comment you wish to make.

Mr. DENVER. Thank you, sir.

The CHAIRMAN. Do you prefer to be interrogated and you don't want to make any comment about your statement?