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Mr. KENNEDY. You gave him a better deal than you had gotten?

Mr. McCANN. Yes. Even though I did have a contract with him for the $15, when I sold the bar I had a written agreement with him, that I receive the $15. But actually it was only doing $15, so I couldn't collect that kind of money from him.

Mr. KENNEDY. During the first year in business for yourself, you jumped other locations and you were able to get 15 spots; is that right? Mr. McCann. I did; yes.

Mr. KENNEDY. During that period, you were nonunion and selfemployed?

Mr. McCANN. Correct.
Mr. KENNEDY. Here is another extremely important point.
I guess you sold that bar in July of 1955?
Mr. McCann. July of 1955; yes.

Mr. KENNEDY. In September of 1955, you went to the Parkchester Inn in the Bronx?

Mr. McCann. Yes.
Mr. KENNEDY. And did you get a machine placed there!
Mr. McCann. I did. I made an agreement with the owner,
Mr. KENNEDY. Was that a game machine?
Mr. McCann. A game machine.
Mr. KENNEDY. What happened there?
Mr. McCann. Well, there was a picket put on.
Mr. KENNEDY. After you took it over?
Mr. McCann. That is right.
Mr. KENNEDY. And that was from local 433 of the Retail Clerks!
Mr. McCann. Yes, sir.

Mr. KENNEDY. They put a picket line on, and somebody else's game machine was replaced by yours?

Mr. McCANN. That is right.
Mr. KENNEDY. So what happened then?

Mr. McCann. Well, the picket was on for quite a period of time, and then the owner started to complain about the picket, and so Í made an agreement and I paid $100 to the operator who had the machine in there previously, and then the picket was removed.

Mr. KENNEDY. You never became union yourself?
Mr. McCann. Not up to that time.
Mr. KENNEDY. You didn't become union at that time?
Mr. McCann. At that time, no.

Mr. KENNEDY. You just paid $100 to the former location owner, and then the picket was removed?

Mr. McCann. That is correct.

Mr. KENNEDY. Once again showing that the picket was placed there not to try to get the people to sign up, but in order to help the operator. The CHAIRMAN. It was a shakedown, that is what it was, wasn't it?

Mr. McCann. It was for the protection of the operator, that is what the union was for.

It was to protect locations.

Mr. KENNEDY. The union was run by Mr. Al Cohen and Mr. Caggiano.

The CHAIRMAN. The operator had already sold out?

Mr. KENNEDY. No, this is a location where he went in and gave the location owner a better deal. Then they took his game machine and threw the other game machine out, and the picket line appeared; and then when he paid the other operator $100, the picket was removed.

Then, at the Club 988 in the Bronx, you jumped a location there? Mr. McCann. I did.

Mr. KENNEDY. They had a collective bargaining agreement, the former operator, with Local 1690 of the Retail Clerks?

Mr. McCann. I believe he did.
Mr. KENNEDY. The picket appeared ?

Mr. McCann. They picketed the place for about maybe 2 to 3 months, but it was a night club, and the picketing was done in the daytime and it didn't do any harm.

Mr. KENNEDY. And then they went away; is that right?
Mr. McCann. Then he finally went away.
Mr. KENNEDY. And you didn't join the union?
Mr. McCann. Not at that time, no.

Mr. KENNEDY. And then you joined Local 433 of the RCLA in September of 1956; is that right?

Mr. McCann. Yes. Mr. KENNEDY. And you joined up with Seymour Howard and the M. & H. Vending Co. to do business in the jukebox field?

Mr. McCann. That is right.

Mr. KENNEDY. Now, M. & H. at that time had no union membership initially!

Mr. McCANN. Not that that time.
Mr. KENNEDY. And you started jumping locations; is that right!
Mr. McCann. Yes.
Mr. KENNEDY. And paying bonuses to location owners ?
Mr. McCann. Wherever there was no contract involved.

Mr. KENNEDY. And when you jumped locations where there were contracts with local 1690, or had 1690 members, the representative of the local came out and threatened to picket?

Mr. McCann. Yes, sir.

Mr. KENNEDY. Now, in December of 1956 you were approached by Mr. Moe Bloom, an operator who was a local 1690 association member!

Mr. McCANN. Yes, sir.

Mr. KENNEDY. And he wanted you to go to see Al Cohen about joining 531 of the UIU?

Mr. McCANN. Yes, sir.
Mr. KENNEDY. Did you go down and see Mr. Cohen!
Mr. McCANN. I did.
Mr. KENNEDY. Could you tell us what happened?

Mr. McCann. He told me he was going to form a new union, and he askeri me if I wanted to join.

Mr. KENNEDY. So did you?
Mr. McCann. Yes, I did.

Mr. KENNEDY. He said he could guarantee there would be no picketing?

Mr. McCANN. Yes, and he said it would be nice forming a new union and I wouldn't have any picketing by the other union because I already belonged to this union.

Mr. KENNEDY. And he would make it possible for you to go out and solicit stops?

Mr. McCann. Yes, sir.

Mr. KENNEDY. And that you wouldn't have any trouble from any union?

Mr. McCann. That is right.

Mr. KENNEDY. And you would not have to pay any dues at that time?

Mr. McCann. He said at that time, no.

Mr. KENNEDY. And that all locations that you got you could keep; is that right? : Mr. McCann. That is correct.

Mr. KENNEDY. But he suggested or told you that there were three companies that you shouldn't take locations from?

Mr. McCANN. Yes.
Mr. KENNEDY. What companies were they?

Mr. McCann. Well, he said they were big operators, that he was hoping they would go along with his union or join his union later on, and I don't remember exactly the names.

Mr. KENNEDY. Was it the LaSalle?
Mr. McCANN. It was LaSalle and Paramount.
Mr. KENNEDY. That is the one owned by Mr. Breheney?
Mr. McCANN. Yes.
Mr. KENNEDY. And Paramount?
Mr. McCANN. Yes, sir.
Mr. KENNEDY. That is owned by Mr. Miniacci?
Mr. McCANN. Yes.

Mr. KENNEDY. It is of some interest about Mr. Miniacci, Mr. Chairman, and he owns Paramount. He was the individual to whose party Frank Costello was going the night that he was shot in thọ head. And then Regal, that was another company that it was suggested that you stay away from?

Mr. McCANN. I believe so.
Mr. KENNEDY. That is owned by Mr. Charles Bernoff!
Mr. McCann. Yes, sir.

Mr. KENNEDY. And he will play a very important role in the hearings at a later time. He gave you labels from 531 ?

Mr. McCann. Yes, sir.

Mr. KENNEDY. And you paid no dues, and he just gave you 100 or so labels?

Mr. McCann. To put them on the machines.
Mr. KENNEDY. Nobody was paying dues ?

Mr. McCann. I didn't pay any, and I don't believe anyone paid at that time.

Mr. KENNEDY. You never got a union membership card!
Mr. McCANN. I don't recali.

Mr. KENNEDY. Now, in January of 1957, he asked for a check from your company for dues ?

Mr. McCANN. Yes.
Mr. KENNEDY. And you gave him a $16 check!
Mr. McCann. I gave him a $16 check.

Mr. KENNEDY. Neither one of those checks for some reason has ever been cashed?

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Mr. McCann. No; they never have been cashed.

Mr. KENNEDY. And then I have another incident I want to ask you about, the Midnight Cafe. About May of 1957 you secured a location from the new owners of a cafe, two brothers by the name of Masselli.

Mr. McCann. That is right.
Mr. KENNEDY. And you paid a $450 bonus; is that right?
Mr. McCANN. That is correct.

Mr. KENNEDY. And entered into a contract to place a jukebox and a cigarette machine?

Mr. McCann. That is correct.

Mr. KENNEDY. Now, the operator under the former cafe owner was the Metro-Urban Music Co.?

Mr. McCANN. Yes.
Mr. KENNEDY. Metro-Urban Music Co.?
Mr. McCann. Yes, sir.

Mr. KENNEDY. Now, that company had been owned by a man by the name of Yargo.

Mr. McCANN. I believe so.
Mr. KENNEDY. And also a man by the name of Sam Balanca.
Yargo's name is spelled Y-a-r-g-o. Did you understand that Mr.
Yargo and the owners of this company that formerly had the loca-
tion, came in and had a talk with the Masselli brothers ?

Mr. McCann. Yes; they did.
Mr. KENNEDY. Did Mr.

Cohen come to you also ?
Mr. McCANN. Yes.
Mr. KENNEDY. And did he suggest that you give up the location ?
Mr. McCann. Well, he suggested that I give back the location.

Mr. KENNEDY. Did he indicate that there were some gangsters behind this company?

Mr. McCann. No; he just said it was a friend of his, and he asked me if I would give back the location and do him a favor

Mr. KENNEDY. Did you understand that the Massellis became very frightened!

Mr. McCann. Well, yes; they were new in the business, and they were scared of all of the changing machines.

Mr. KENNEDY. Did you agree to give it back?
Mr. McCann. No.

Mr. KENNEDY. Do you know what their relationship was between the union official, Mr. Cohen, who tried to get this location back for the former owner?

Mr. McCANN. No.

Mr. KENNEDY. Did you know that at least one of the owners, Mr. Balanca, has had eight arrests and two convictions?

Mr. McCann. I didn't know that.

Mr. KENNEDY.. Did you understand that there were some underworld figures behind this company?

Mr. McCANN. I didn't know that for sure.
Mr. KENNEDY. Did you hear any discussion about that?

Mr. McCann. Well, you hear things, but you don't believe what you hear, not all of the time.

Mr. KENNEDY. But you kept the location ?
Mr. McCann. I kept the location.

The CHAIRMAN. Thank you, sir.
The committee will stand in recess until 2:15.

(Members of the select committee present at time of recess: Senators McClellan and Church.)

(Whereupon, at 12:25 p.m., the select committee recessed, to reconvene at 2:15 p.m. the same day.)

AFTERNOON SESSION

The CHAIRMAN. The committee will be in order.

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

The CHAIRMAN. Call the next witness.

Mr. KENNEDY. Mr. Chairman, we expect to hear some six witnesses this afternoon, and we are going further into this development and then the operations of the union and connections that some of these unions had, and the first witness is Mr. Charles Guerci.

The CHAIRMAN. Will you be sworn ?

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. GUERCI. I do.

TESTIMONY OF CHARLES GUERCI

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

Mr. GUERCI. My name is Charles Guerci, 28–35 153d Street, Flushing, N.Y. The CHAIRMAN. Did you tell us what your business is? Mr. GUERCI. Restaurant business. The CHAIRMAN. The restaurant business? Mr. GUERCI. Yes, sir. The CHAIRMAN. Will you proceed.

Mr. KENNEDY. Mr. Guerci, you have been in the restaurant business most of your life, except for a few years that you took off?

Mr. GUERCI. That is right.

Mr. KENNEDY. You became a union official in the intervening years; is that right?

Mr. GUERCI. Yes, sir.

Mr. KENNEDY. You were in the restaurant business. Prior to being in the restaurant business you ran a speakeasy? Mr. GUERCI. I will say,

"Yes." The CHAIRMAN. What is a speakeasy? That is where you tread lightly

to get what you want? Mr. KENNEDY. You ran a speakeasy during prohibition days, called the College Inn,

in New York City ? Mr. GUERCI. That is correct.

Mr. KENNEDY. And then you operated the Villa Grove Restaurant in Flushing?

Mr. GUERCI. That is correct.
Mr. KENNEDY. And up until 1952?
Mr. GUERCI. That is right.

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