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Mr. KENNEDY. And it was your local, which is backed by the underworld in New York, where there is going to be this attempt, together with the Jacob brothers, to take over the coin machine business in New York City, is that right?

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

Mr. KENNEDY. The other strategic spot in this field, in the Teamsters Union, is local 805, and that is controlled by Miltie Holt, who is a close associate and friend of Johnny Dioguardi's He is the one who heads up local 805, which handles the cigarette machines in New York City, and you handle the other coin machines, the main coin machines, which are the jukeboxes and the amusement machines; is that right!

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer, might tend to incriminate me.

Mr. KENNEDY. Isn't it the point of the union not to help the employees, but in both your cases it is the aim to give a monopoly to certain favored operators? Isn't that right?

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

Mr. KENNEDY. And the union is financed by these label fees; is that right? As of now, according to the international records, the union has less than 100 members. Isn't it a fact that it is financed at the present time by these label fees that you charge for?

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

The CHAIRMAN. What official position do you hold in 266? Are you president of it?

Mr. DEGRANDIS. I respectfully decline to answer
The CHAIRMAN. Is that correct?
Mr. KENNEDY. Yes.
The CHAIRMAN. You are the president of local 266?

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

The CHAIRMAN. Believing you are, I present to you some stickers entitled “Vending Machines." It says "Teamsters." It has a wagon wheel or something like that on it. It is local 266. They are numbered.

I will ask you to look at them, at the exhibit, and state if you identify what they are.

(The documents were handed to the witness.) Mr. ALLDER. What is the question, Senator? The CHAIRMAN. Do you identify them?

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

The CHAIRMAN. Is there anything honest, decent, upright at all about local 266 and you officers who belong to it; anything at all!

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

The CHAIRMAN. Is that sticker incriminating; do you think?

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

The CHAIRMAN. The whole thing is designed as a racket, isn't it, to extort money out of people?

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

The CHAIRMAN. That particular badge of local 266 is the badge of an extortion, is it not?

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

The CHAIRMAN. Make those stickers exhibit No. 38.

(Stickers referred to were marked "Exhibit No. 38" for reference and may be found in the files of the select committee.)

The CHAIRMAN. Proceed.

Mr. KENNEDY. Mr. Chairman, could I call Mr. Constandy to put in the information that we have ? The CHAIRMAN. Come forward, Mr. Constandy.

TESTIMONY OF JOHN P. CONSTANDY-Resumed

Mr. CONSTANDY. Pursuant to a subpena served on local 266, there was furnished to the committee what purports to be the minutes of local 266, a looseleaf binder and 100 pages of looseleaf paper, 98 of which are blank. It reports one meeting which purportedly took place on December 5, 1957, and gives the place of the meeting as 799 Coney Island Avenue, in Brooklyn; 799 Coney Island Avenue is the premises of the Empire Automatic Corp., which is an operating company of coin machines, and which is owned by Albert Koondel. Mr. Koondel was one of the people whose names appear on the certificate of incorporation of the United Coin Machine Operators. So he was one of the founders of this association, and it was on his premises that the first union meeting was held.

The minutes go on to reflect local 266 transactions for that night. The CHAIRMAN. The copy of those minutes may be made exhibit No. 39 for reference.

(Minutes referred to were marked "Exhibit No. 39" for reference and may be found in the files of the select committee.)

Mr. CONSTANDY. I would first like to point out that included in the items that were turned over to the committee by Mr. DeGrandis is this slip of paper which bears the mark “Paid by the Novik Press, Inc.," in New York. It is a receipt for the purchase of a ring binder for $1.50 and 100 sheets of paper at 50 cents, for a total of $2. The date of the minutes is December 5, 1957. So the minute book was purchased some 5 to 6 months after the meeting was held.

Mr. KENNEDY. What date does it show that the book was purchased?

Mr. CONSTANDY. May 15, 1958.
Mr. KENNEDY. And what date is the minutes in the book?
Mr. CONSTANDY. December 5, 1957.

The CHAIRMAN. That slip, a copy of it, may be made exhibit No. 39A.

(Document referred to was marked "Exhibit No. 39A” for reference and may be found in the files of the select committee.)

Mr. CONSTANDY. The first item of business was that Brother Sidney Slater made a motion, seconded by Brother McGinley, to assess each unit 65 cents. The motion was carried unanimously.

Mr. Slater is the man about whom there has been testimony concerning the repair of Albert Gallo's automobile. He is the one who took it to the service station. That is in connection with United Coin, which is the operators' association.

Mr. KENNEDY. He works for the association!

Mr. CONSTANDY. That is correct. He made the motion at the union meeting to assess each unit 65 cents.

The CHAIRMAN. What do you mean by each unit? Is that each coin machine ?

Mr. CONSTANDY. Yes. It would be each jukebox or game machine which is on location.

The CHAIRMAN. To assess it 65 cents for what period of time?

Mr. CONSTANDY. Well, it only read this. The practice in the trade is per month, and I think that that is borne out later on by the contracts that were entered into by local 266.

The CHAIRMAN. Sixty-five cents a month?
Mr. CONSTANDY. Per machine, yes.

Mr. KENNEDY. That is to finance the union, Mr. Chairman, which, as we have stated, is made up of less than 100 members.

Mr. CONSTANDY. The second item was discussion on salaries and employees, to be paid to the president and secretary-treasurer. It was followed by a motion made by Brother Thomas McGinley that the president and secretary-treasury be paid at the rate of $150 per week for the year 1958, this to be increased $100 per week for the year 1959, any further increases to be brough before the membership.

It then reads that the salary for both the secretary and treasurer would be $150 a week for 1958 and $250 a week for 1959.

The CHAIRMAN. Are you paying yourself that increase in salary in 1959 ?

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

Mr. CONSTANDY. The next item empowers the president and secretary-treasurer to sign checks up to the amount of $10,000.

The following item is to allow an expense amount of $100 per week to the president and secretary-treasurer.

The next provision is that a car be provided for the president and secretary-treasury, each car not to exceed $5,000 in cost.

Each of these items were passed, incidentally, unanimously.

The CHAIRMAN. These are the only minutes of the meeting held there?

Mr. CONSTANDY. They are the only minutes that were delivered to the committee. I don't know of any other minutes.

The CHAIRMAN. You sought to obtain all of them?
Mr. CONSTANDY. We did.
The CHAIRMAN. Were you told this was all of the minutes ?

Mr. CONSTANDY. They were delivered to us as the minutes. I was not personally present.

The CHAIRMAN. That book was bought when ?

Mr. CONSTANDY. The book was bought in May, May 15, 1958, and pertain to the minutes of the meeting of December 5, 1957.

The CHAIRMAN. And it contains no minutes since ?
Mr. CONSTANDY. No, it does not.

There was a motion made and carried that the union initiate a meeting with the United Coin Association for the purpose of entering a contract.

I would again like to call your attention to the date. The date of this meeting purports to be December 5, 1957, while the certificate of incorporation filed by United Coin was filed on January 20, better than 1 month and 15 days later.

The CHAIRMAN. There wasn't any such association in existence at the time?

Mr. CONSTANDY. There was no legal association in existence at this time, at the time the minutes purport to represent.

There was a motion that dues be $5 per month per member, and an initiation fee of $25, until the organizational drive was concluded, and then increased to a sum to be fixed at a later date.

The chairman then announced that the time for special business had come, and the election of officers for a term of 5 years, starting January 1, 1958. It then goes on to list the officers of the organization.

Thé CHAIRMAN. Who was elected president?

Mr. CONSTANDY. President was Joseph DeGrandis; vice president was Joseph Iovine.

The CHAIRMAN. DeGrandis-is that the witness we have before us today?

Mr. CONSTANDY. That is correct.
The CHAIRMAN. He was elected president?
Mr. CONSTANDY. That is right.

The CHAIRMAN. Do you agree with that, that that is correct, that you were elected president, and that you are now the president!

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

The CHAIRMAN. You are not ashamed of the fact, are you?

Mr. DEGRANDIS. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

The CHAIRMAN. Proceed, Mr. Constandy.

Mr. CONSTANDY. The balance of the minutes contain only two pertinent provisions. One of them is that the officers would be empowered to obtain loans in order to conduct their planned membership drive; and the second is, “As conditions at present are in a state of flux, the membership agreed to leave it at the discretion of the president to set the date for the next meeting within a period of 4 months.”

The minutes are signed by Zundel, who had been elected secretarytreasurer.

The CHAIRMAN. Well, there have been more than 4 months elapse since then. Does it appear that any meeting has ever been called!

Mr. CONSTANDY. There is no indication that there was.

The CHAIRMAN. At least there are no minutes in the minute book showing that a meeting was held.

Mr. CONSTANDY. There are not.

There is one other item. In the checkbook stub of the account of local No. 266, which, incidentally, is carried at 107 Constant Avenue, which is the home of Mr. DeGrandis, located in Staten Island, while the union office is in Manhattan, on 42d Street, the account has an entry between checks Nos. 10 and 11. The stub bears the date for stub No. 10, of January 22, 1958, and beneath that balance, which is

yes, sir.

$6.69, there is a deposit shown of $1,000, and penciled in red next to it is the notation "New operation."

Mr. KENNEDY. Have you some information on the AAMONY contract that was signed?

Well, before I ask you about that, what do the records of the international show as to the membership of this local?

Mr. CONSTANDY. Based only on the per capita tax that was paid by the local, the records of the international show that in November 1957 the local paid per capita tax on 51 members. However, the per capita tax payment was not made until January 9, 1957.

Mr. KENNEDY. Do you have the per capita tax later on in 1958?

Mr. CONSTANDY. Yes. I will just give this one for January 1958. It again

shows per capita tax being paid on 50 members. The CHAIRMAN. January of 1958 they paid a tax on 50 members ? Mr. CONSTANDY. That is correct. The CHAIRMAN. That is local 266 ? Mr. CONSTANDY. Local 266. The CHAIRMAN. Have you got it for this year? Mr. CONSTANDY. Yes, I have.

From October 1958, it is 125 members; November 1958, 135 members; and December of 1958, 140 members. That is the most recent that is available.

The CHAIRMAN. So it has 140 members?
Mr. CONSTANDY. As is indicated by the per capita tax payments,

The CHAIRMAN. That is all they are reporting to the international union.

Mr. KENNEDY. According to the local's own records, what does it show as the membership?

Mr. CONSTANDY. As of June 30, 1958, from the accounting by Mr. Corfini of local 266 records, they had a membership of 53 members as of that date, June 30, 1958.

Mr. KENNEDY. The fact that they paid per capital tax on those members does not necessarily mean they have that great a membership.

The CHAIRMAN. Well, that is the most they would have. I assume that the international would try to see that they paid the tax on the correct membership.

Senator CAPEHART. Are those employers or employees?
The CHAIRMAN. Both.
That represents both employers and employees ?

Mr. CONSTANDY. Yes, that represents employees. However, included among them are self-employed operators that are both employers and their own employees.

Mr. KENNEDY. It represents both, then, employees and employers! Mr. CONSTANDY. Yes.

Mr: KENNEDY. I want to ask about who signed the AAMONY contract.

Mr. CONSTANDY. We have a contract entered into the 28th day of January 1958. That is the one that was referred to earlier. It is between the United Coin Machine Operators of New York, Inc., and the Automatic Coin Vending Machine Employees, Local 266. This contract was signed by Eugene Jacobs, as president of United Coin, and by Joseph DeGrandis, president of 266.

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