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The CHAIRMAN. What information do we have?
Mr. KENNEDY. It is an independent union, Mr. Chairman.

The CHAIRMAN. I am glad to know it is not affiliated with the federation.

Proceed.

Mr. KENNEDY. Mr. Chairman, this is the first of several witnesses on some of these international unions which are formed and then grant charters out to locals. A number of these locals, as will be demonstrated, are locals which are controlled by gangsters, who then appear with placards and start to picket. It is a situation that we felt was important for the committee to understand.

The CHAIRMAN. What it amounts to, as I understand it, and you will be able to show from the proof, is that charters granted by unions of this character, like the one this witness represents, those charters simply become in effect a license to go out and exploit and to racketeer and commit these improper acts; is that correct?

Mr. KENNEDY. Another way to describe them, Mr. Chairman, is that they are really hunting licenses. They hunt not animals, but they hunt shops in order to either shake them down or to make some collusive arrangement with some employer. That is what they do amount to.

I would like to call Mr. Constandy, Mr. Chairman, to trace the development of this union as much as we can from the records that are available.

The CHAIRMAN. All right, Mr. Constandy.
Mr. KENNEDY. What information, Mr. Constandy-
The CHAIRMAN. You have been previously sworn ?
Mr. CONSTANDY. Yes, I have.

Mr. KENNEDY. About this union and how long it has been in existence.

The CHAIRMAN. That is the United Industrial Union, International?

TESTIMONY OF JOHN P. CONSTANDY_Resumed

Mr. CONSTANDY. That is correct.

The international, according to Mr. LaRocco, has been in existence since 1937.

The CHAIRMAN. According to this witness?
Mr. CONSTANDY. That is correct.
The CHAIRMAN. You got your information about that from him?
Mr. CONSTANDY. That is correct.

The CHAIRMAN. All right. That was from the witness on the stand. Proceed.

Mr. CONSTANDY. I have before me the registration forms of the Department of Labor for 1950 through 1958. The forms for the years 1950, 1951, 1952, and 1953, on the reverse side, relative to the receipts and disbursements, each contain the notation "None" for each of those 4 years. The CHAIRMAN. No receipts and no disbursements? Mr. CONSTANDY. That is correct.

The CHAIRMAN. That is the kind of reporting this union has been doing?

Mr. CONSTANDY. For those 4 years; yes, sir. The CHAIRMAN. All right; proceed. Mr. CONSTANDY. Nor are there any assets or liabilities listed for the same period. In each of these, the address of the international is 76 Court Street, Brooklyn.

On the registration form for the year 1954, the address is moved to 1040 McLean Avenue, Yonkers, N.Y., and we find a different set of officers.

On the reverse side of this form we again find that there have been no receipts or disbursements, and the notation has been entered that no moneys of any kind have been received.

The CHAIRMAN. In other words, that is for 5 years that it has received no money and paid out no money, according to its report?

Mr. CONSTANDY. That is correct.
The CHAIRMAN. Who signed the report?

Mr. CONSTANDY. On the one for 1954, it was signed by the president, Mr. Gerard Perrault. Did you want it for the preceding years? The CHAIRMAN. Yes.

Mr. CONSTANDY. In 1950 the form was signed by President George Levine. In 1951, likewise; in 1952, likewise; in 1953, likewise.

Continuing with the runthrough of these, the form for 1955, the international again moved, this time to 38 Park Road, New York. The president is Al Pollock, the secretary-treasurer Sidney Dubin, and the recording secretary Robert Dizinno.

For this year there again is listed no income and no assets.

The CHAIRMAN. That is 6 years now, beginning with 1950, that they have reported no income and no expenditures?

År. CONSTANDY. Yes, sir. On the form for 1956, which has been signed by Mr. LaRocco, we find that the receipts listed are $75, with no disbursements, and total assets are $75, and no liabilities for that year.

The CHAIRMAN. That is the present witness who signed that one?
Mr. CONSTANDY. That is correct.
The CHAIRMAN. That is for 1956 ?
Mr. CONSTANDY. For 1956; yes, sir.
The CHAIRMAN. All right. The international union took in $75?
Mr. CONSTANDY. That is correct.
The CHAIRMAN. And paid out nothing ?
Mr. CONSTANDY. That is right.

The CHAIRMAN. You have accounted for 7 years. In 6 years there was nothing taken in and nothing paid out, and in the 7th year they collected $75, according to the report.

Mr. CONSTANDY. On the 1955 form, there is a notation to the effect that the union is inactive in 1955. The CHAIRMAN. Inactive? Mr. CONSTANDY. That is correct. Mr. KENNEDY. Now we get to the part that directly involves this investigation.

The CHAIRMAN. They couldn't be very active if they weren't taking in any money or paying out any.

Go ahead. Mr. KENNEDY. What occurred in the following year that is significant ?

36751-59-pt. 46——20

Mr. CONSTANDY. For one thing, the 1955 form contains the initiation fee and the regular dues of $1. At the time that Mr. La Rocco signed the form, the initiation fee was changed to $1 and the dues were dropped to 25 cents. That is one significant fact.

The fiscal period covered by the 1956 return runs from September 24, 1955, until August 31, 1956. The fiscal period of the preceding year ended July 31. Therefore, there was a gap in the fiscal period for the international of 3 months.

Mr. KENNEDY. Get into the chartering of local 531, Mr. Constandy, which is of significance to us. Local 531 then came into existence, is that right, in September of 1956 ?

Mr. CONSTANDY. That is correct.

Mr. KENNEDY. That is the local, Mr. Chairman, that we have had the testimony on, which was headed by Mr. Al Cohen.

Would it appear from the minutes that the union was reactivated in order to grant this charter to local 531 ?

Mr. CONSTANDY. Both from the minutes and the cash receipts and disbursements books which begin in August of that same year, 1956.

Mr. KENNEDY. Mr. Cohen began his operations in the coin machine business and tied up then with this so-called international union?

Mr. CONSTANDY. That is correct.

Mr. KENNEDY. Briefly tell us the inconsistencies about the chartering of this union.

Mr. CONSTANDY. I have before me a letter dated September 10, 1956, addressed to the UIU and signed by Al Cohen.

The CHAIRMAN. Addressed to whom !
Mr. CONSTANDY. Simply, UIU, 1 Nevins Street, Brooklyn, N.Y.
Shall I read the letter?
Mr. KENNEDY. Just summarize it.

Mr. CONSTANDY. Well, the letter requests a charter and states that there will be a meeting between Mr. Cohen and the UIU on September 20. That letter is dated September 10.

On September 12, there is a letter from Mr. LaRocco to Mr. Cohen, acknowledging receipt of his letter and agreeing to the meeting on September 20.

The CHAIRMAN. Those two letters may be made exhibits No. 19A and 19B, in the order they were referred to.

(Letters referred to were marked "Exhibits 19A and 19B” for reference and may be found in the files of the select committee.)

Mr. CONSTANDY. Now I have before me the charter, issued to Electrical Equipment and Fabrication Employees Union, Local 531, which bears the notation, “Charter issued September 20, 1958,” which is the same date as the meeting, according to the letters.

The CHAIRMAN. The charter may be made exhibit No. 19C.

(Charter referred to was marked "Exhibit No. 19C” for reference and may be found in the files of the select committee.)

Mr. KENNEDY. What do the minutes show!

Mr. CONSTANDY. The minutes show the chairman on September 5 met with Al Cohen and a committee who requested a charter of the IUE. The letter requests a meeting on September 20, but the minutes of the international show the chairman met on September 5. The minutes then go on to state that the charter will be issued effective

September 10, 1956, but the charter bears the date September 20, the date of the meeting referred to in the letter.

Mr. KENNEDY. And the letter requesting the meeting was not sent until September 10?

Mr. CONSTANDY. That is correct. Mr. KENNEDY. But the minutes would appear to indicate that this all occurred on September 5!

Mr. CONSTANDY. Yes. I would like to call attention, too, to the fact that there are only two preceding entries in the minutes of the international-I am sorry; there are three preceding minutes.

Mr. KENNEDY. Then 531 came into existence?
Mr. CONSTANDY. That is correct.

Mr. KENNEDY. And became 531 of the UIU, with Mr. Al Cohen as the president. Then they started to get membership, is that right? From then on the UIU began to receive some money?

Mr. CONSTANDY. Yes, according to the registration forms of the Department of Labor again, the income reported for the fiscal period July 1, 1956, to June 30, 1957, show dues amounting to $1,386, with initiations at $97. With initiations being $1 apiece, it would indicate that there were 97 new members taken into the international during that period.

The report for 1958 shows income from dues at $3,090.65. This could be divided at the rate of 25 cents per member per month. The income from initiations is listed at $235, which, at $1 apiece, would indicate 235 members for that year, July 1957 to June 1958, for a total of those listed in the two forms of 332.

Mr. KENNEDY. If all of them stayed in?
Mr. CONSTANDY. If all of them stayed in; yes.

Mr. KENNEDY. What about local 531? They became active, but how long did they remain active?

Mr. CONSTANDY. They remained active until the early part of 1957, when they were enjoined by supreme court action in New York County.

Mr. KENNEDY. Did Mr. La Rocco also tell us about Local 815 of the Cafeteria and Restaurant Employees of the UIU?

Mr. CONSTANDY. Mr. LaRocco mentioned that there were eight employees at the Olean Restaurant which were members of local 710, of whích Mr. LaRocco was president; that a new local, local 815, was chartered really to service these eight employees, who were employees of a Japanese restaurant, which is the only distinguishing feature with them.

The secretary, as reported to Mr. Kelly of our staff, was the U.S. mailman who services the office of the international, and Mr. LaRocco, through Mr. Kelly, stated the mailman is active in organizational work on his route. Mr. KENNEDY. And this local union, which has eight members? Mr. CONSTANDY. That is correct. Mr. KENNEDY. And the U.S. mailman who brings the mail to the office is the secretary-treasurer of the union, while delivering the mail he is supposed to also try to attempt to organize the employees?

Mr. CONSTANDY. Yes.

Mr. KENNEDY. Is there anything about this, Mr. LaRocco, that you wish to tell us?

TESTIMONY OF JOSEPH LaROCCO, ACCOMPANIED BY COUNSEL,

JULIUS HELFAND-Resumed

Mr. LaRocco. No.

Mr. KENNEDY. Was the union reactivated in order to set Mr. Al Cohen up in the business of attempting to organize the coin-machine employees in the New York City area?

Mr. La Rocco. I refuse to answer on the ground that the answer might tend to incriminate me.

Mr. KENNEDY. That is all, Mr. Chairman.
The CHAIRMAN. All right. Call the next witness.
Mr. KENNEDY. Mr. Morris.

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. MORRIS. I do.

TESTIMONY OF HAROLD MORRIS

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

Mr. MORRIS. My name is Harold Morris. I live at 745 Park Lane, East Meadow, Long Island. I am a self-employed mechanic. I do service work for various operators in the business.

The CHAIRMAN. Various operators in what business?
Mr. MORRIS. In the jukebox and game business.
The CHAIRMAN. Do you waive counsel ?
Mr. MORRIS. Yes.

Mr. KENNEDY. Mr. Chairman, this witness has been an employee active in the jukebox business for a number of years, and has had a considerable amount of experience with various unions that we have discussed in the past and which we will continue to discuss. So his testimony is important along those lines.

In 1947, Mr. Morris, you worked for the Emby Co., which was a company operated and owned by Meyer Lansky.

Mr. MORRIS. Yes, sir.

Mr. KENNEDY. And they distributed the Wurlitzer machine, and you worked as a repairman on their machine route?

Mr. MORRIS. Yes, sir.

Mr. KENNEDY. At that time they had union labels on their machines?

Mr. MORRIS. Yes.
Mr. KENNEDY. Were you a member of the union ?
Mr. MORRIS. No.

Mr. KENNEDY. Were any of your fellow employees members of the union?

Mr. MORRIS. I don't know.
Mr. KENNEDY. Did you understand any of them were !
Mr. MORRIS. I believe none of them were.
Mr. KENNEDY. But you certainly were not a member of the union!
Mr. MORRIS. That is right.

Mr. KENNEDY. Do you know how it was arranged, therefore, for all of the machines of Mr. Lansky to have union labels?

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