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Mr. KENNEDY. And you did not go; is that right?
Mr. MORRIS. That is right.

Mr. KENNEDY. Did you understand that there were some underworld figures connected with the union, local 19?

Mr. MORRIS. After I received the invitation, I checked into it and I decided from the different people I called up I found out that they possibly did have some underworld connections with that meeting.

Mr. KENNEDY. Were you scared to go?
Mr. MORRIS. Yes.

Mr. KENNEDY. Did you find ultimately at one of the meetings that at this meeting of this so-called local union that they had guns on the table ?

Mr. MORRIS. That is one of the reports that I had received.

Mr. KENNEDY. Subsequently, in February 1958, you decided to form an association amongst yourselves?

Mr. MORRIS. Yes. We had a couple of meetings of all the freelance mechanics, mechanics doing work for other operators, and decided to form an association of freelance mechanics.

Mr. KENNEDY. At that time, after you formed this association, did Mr. Jacob come down to see you?

Mr. MORRIS. Yes. Mr. Jacob came down.
Mr. KENNEDY. One of the Jacob brothers?
Mr. MORRIS. Yes.

Mr. KENNEDY. Did he tell you at that time that you should join up with local 266 of the Teamsters?

Mr. MORRIS. Yes. He suggested that I join, myself, and bring our association, all the members, into 266.

Mr. KENNEDY. Did he say that local 266 was going to be the major power in the area?

Mr. MORRIS. Yes. He said 266 would be the major power and they would provide benefits for the members.

Mr. KENNEDY. How were they going to provide benefits for the members if you were all self-employed ?

Mr. MORRIS. Well, he couldn't give me a straight answer on that.

Mr. KENNEDY. Did he tell you that local 266 would be able to put pressure on locations, stop deliveries?

Mr. MORRIS. Yes.
Mr. KENNEDY. And picket locations very effectively?
Mr. MORRIS. Yes.
Mr. KENNEDY. And force people to make arrangements ?

Mr. MORRIS. Yes. He said that they could picket, they could stop the beer deliveries, and force the operator and the location owner to toe the line.

Mr. KENNEDY. Did you understand that he was the one that had originally been behind local 19 and subsequently was the one that was behind local 266 ?

Mr. MORRIS. Well, I just surmised that he was with 19. I don't know if he was behind it, but I know that he was with it.

Mr. KENNEDY. Just as a general summary, the majority of the employees gained nothing from the union, or the employees themselves didn't get anything out of the union?

Mr. MORRIS. That is right; 1960 isn't a wonderful union. In the 10 years they have been in existence they have not given the employees practically anything. They never even let the employees see a copy of the collective bargaining agreement.

With this new trusteeship, they haven't done anything for the employees either. None of the employees of the business have received any benefits. They have one benefit they may have received. There is hospitalization which pays $10 a day while in the hospital, they may have received, and there is a death benefit.

Those are the only two benefits that some of the employees may have received.

Other than that, I doubt if there are other benefits that they know about. They don't even know about these benefits because they can't see the collective bargaining agreement,

Mr. KENNEDY. And a lot wouldn't know if they were in the union or not?

Mr. MORRIS. That is right. A lot of them don't know who carries the book in the company they work for and who is paying dues for what. Until recently, when the investigation started, they started to add the money to the employee's salary and then deduct it so it would legally look correct.

Mr. KENNEDY. But prior to the investigation, the owner or the employer himself was paying the dues and paying all the other things?

Mr. MORRIS. That is right. Mr. KENNEDY. So the employee knew nothing about the operations of the union?

Mr. MORRIS. That is right.
Mr. KENNEDY. It was just for the benefit of the operators?
Mr. MORRIS. That is right.
Mr. KENNEDY. That is all.
The CHAIRMAN. Have you any questions, Senator?
Senator CHURCH. I have no questions, Mr. Chairman.
The CHAIRMAN. All right. Thank you very much.
Call the next witness.
Mr. KENNEDY. Mr. McCann.

The CHAIRMAN. You do 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. McCANN. I do.

TESTIMONY OF JAMES G. McCANN

The CHAIRMAN. State your name, your place of business, and where you live, and your business or occupation, please.

Mr. McCann. My name is James McCann. I live at 1710 St. Peters Avenue, Bronx, N.Y. I go under the business of McCann Amusement Company, Inc., 16 Mt. Vernon Avenue, Mount Vernon, N.Y.

The CHAIRMAN. You waive counsel, do you?
Mr. McCann. Yes.

Mr. KENNEDY. Mr. Chairman, this witness' testimony is of some
significance, again, in connection with the operations of the union.
You and your family owned the Club Tremont?
Mr. McCann. Club Tremont, Inc.

Mr. KENNEDY. That was in 1955?
Mr. McCann. That is right.
Mr. KENNEDY. That is a bar and grill?
Mr. McCann. That is correct.

Mr. KENNEDY. In that bar and grill there was a game machine owned by an operator by the name of Harry Schildkraut?

Mr. McCann. That is right.

Mr. KENNEDY. You also had a jukebox owned by an operator by the name of Joe Hannon?

Mr. McCann. That is right.
Mr. KENNEDY. You had both the game machine and the jukebox!
Mr. McCANN. Yes.

Mr. KENNEDY. First, talking about the game machine, you had no written contract in connection with the game machine; is that right? Mr. McCANN. No written contract.

Mr. KENNEDY. Did you tell the man, the owner, of the game machine that you wanted him to remove the game because you wanted to purchase and install your own game?

Mr. McCann. Yes. I wanted to install my own game, so I asked him to remove his game, being we had no written contract, and he said that if I put my own game in, I would be picketed by 1690 union.

The CHAIRMAN. By what!
Mr. McCann. By 1690.
Mr. KENNEDY. Local 1690?
Mr. McCann. That is correct.
Mr. KENNEDY. Why did he say that you would be picketed?
Mr. McCann. Well, he said it was his location.

Mr. KENNEDY. Are you sure it would be 1690 that would picket you for the game?

Mr. McCann. 1690. No, wait, 433, that is right.
Mr. KENNEDY. For the game?
Mr. McCann. Yes.
The CHAIRMAN. What?
Mr. McCann. Local 433. 1690 is the jukebox union.
Mr. KENNEDY. We will come to that.

He told you that if you tried to put your own machine in there you would be picketed ?

Mr. McCANN. That is what he said.
Mr. KENNEDY. What did you do?

Mr. McCann. I gave him $150 and he guaranteed I would have no picket.

Mr. KENNEDY. And he removed his machine!

Mr. McCann. He removed his machine. I, in turn, bought my own and operated my own machine in my own place.

The CHAIRMAN. Who did you pay that money to?
Mr. McCann. Harry Schildkraut of the Chipson Amusement Co.

Mr. KENNEDY. In order to get him to remove the machine from your own premises, you had to pay him $1509

Mr. McCann. That is right, under threat of the picket.

Mr. KENNEDY. What about the jukebox? Did you want to remove the jukebox?

Mr. McCann. Later on I decide to buy my own jukebox. Mr. KENNEDY. Did you have a written contract with the operator of the jukebox?

Mr. McCann. No written contact, no.

Mr. KENNEDY. What happened on that? Well, what kind of an agreement did you have with

them? Mr. McCann. I did have a verbal agreement with Joe Hannon, of Gordon Amusement Co., that he would receive the first $15 that the machine would make. The machine was only making around $15 per week; $15, $16, $14, and I wasn't making any money at all from the machine.

Mr. KENNEDY. Do you mean if it made $16, for instance, you would get 50 percent

Mr. McCann. Fifty percent of anything over the first $15.
Mr. KENNEDY. What was the average that it was making?
Mr. McCANN. Around $15 or $16.
Mr. KENNEDY. What if it made $12!
Mr. McCANN. Then he would take the $12.
Mr. KENNEDY. What would he tell you?
Mr. McCann. Well, he just took the $12.
Mr. KENNEDY. Did he tell you anything about the $3?
Mr. McCann. Well, no, he just said he would take the whole $12.
Mr. KENNEDY. You got nothing out of it?
Mr. McCann. That is right.
Mr. KENNEDY. You decided to replace it?
Mr. McCann. I decided to buy my own machine.
Mr. KENNEDY. What happened?

Mr. MoCann. He said if I bought my own machine, I would run into union difficulties. That is where 1690 came in.

Mr. KENNEDY. That was local 1690 ?
Mr. McCANN. Correct.

Mr. KENNEDY. So what did you do? Did you offer to join the union

Mr. McCann. I did offer to join the union, but they told me I would have to have a minimum of 20 machines in order to join.

Mr. KENNEDY. Did you ever talk to any union official ?
Mr. McCann. I believe I spoke to Mr. Howard Henry.
Mr. KENNEDY. He is the treasurer?
Mr. McCann. I came down from my store.

Mr. KENNEDY. Did you speak to him at that time and say that you would join the union?

Mr. McCann. I did speak to him about it. Being I only had one machine, he said I couldn't join the union with one machine.

Mr. KENNEDY. Did you offer to hire a union mechanic!

Mr. McCann. I offered to, but he said I couldn't do that, because I, myself, was not a member of the association.

Mr. KENNEDY. Did you say to him anything about the difficulty of getting 20 locations?

Mr. McCann. I told him if it was that difficult for me to acquire my own machine on my own premises, it would be very difficult for me to get the 20 locations. He just laughed.

Mr. KENNEDY. How did you finally resolve that?

Mr. McCann. He said if I could make a settlement with Hannon, then everything would be all right. I made the settlement with Mr. Hannon. I gave him $175 and he removed his machine and I in turn bought my own.

Mr. KENNEDY. Did he agree there would be no picket line?
Mr. McCANN. Yes.

The CHAIRMAN. Have you ever joined either the union or the association ?

Mr. McCann. I did later on.

Senator CHURCH. When did all this happen? First of all, you talked about the game machine and then the jukebox. Can you tell us what the dates were? Just approximately.

Mr. McCann. The exact dates I don't know.
Senator CHURCH. Or what year it was?
Mr. McCann. I think it was 1955.
Senator CHURCH. With respect to both?

Mr. McCANN. No. I think it was about 6 months or maybe a year later on, between the game and the jukebox.

Senator CHURCH. So you had this game machine in 1955, and about 6 months later you had trouble with the jukebox?

Mr. McCANN. Yes.

Senator CHURCH. Did you have any difficulty buying these machines?

Mr. McCann. No. No difficulty.
Senator CHURCH. Where did you buy them?

Mr. McCann. Right on 10th Avenue where they sell machines. I just went down and bought one, with no difficulty.

Senator Church. The machines you bought, then, were new machines ? Mr. McCann. I bought new machines; yes. The CHAIRMAN. Did you find them profitable afterward? Mr. McCann. Pardon?

The CHAIRMAN. Did you find them profitable after you bought them?

Mr. McCann. Yes.
Mr. KENNEDY. Subsequently you sold the bar; is that right!
Mr. McCANN. That is right.
Mr. KENNEDY. That was at the end of 1955 that you sold the bar
Mr. McCann. Yes; 1955 I sold it.

Mr. KENNEDY. And you started an amusement company of your own?

Mr. McCann. That is correct.
Mr. KENNEDY. You thought that this sounded so profitable !

Mr. McCann. Well, the machines in my place were doing very good, because I was probably pushing the machines myself, but then I decided to go into the business myself.

Mr. KENNEDY. Did you make the same deal with the new bar owner about getting the first $15?

Mr. McCann. I did. I did make the same deal with him, but after the first couple of weeks he realized the machine was only doing around $15 a week and I made it 50-50.

Mr. KENNEDY. So what arrangement did you make then?
Mr. McCann. A 50–50 proposition.

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