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. The 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 secretary

treasurer.

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

$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, yes, sir.

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.

I call your attention to the fact that the contract contains within the center fold, the second contract which provides for the payment to the union by the employer of the charge for the labels for each of the machines on location by the employer.

In the case of this contract signed with United Coin, that portion of the contract has not been signed.

The CHAIRMAN. This contract may be made exhibit 40, for reference only.

(Document referred to was marked "Exhibit No. 40" for reference and may be found in the files of the select committee.)

Mr. CONSTANDY. The significance is that the contract entered into the 15th day of May 1958, between the Associated Amusement Machine Operators of New York and local 266, which is signed by Mr. DeGrandis as president of local 266, and by Sanford Warner, as president of the Associated Amusement Machine Operators of New York who, incidentally, is a member of the union himself-and while a member of the union he is still president of the operators' association and entered into a contract-the center fold portion of this contract, which again makes provision for payment to the union by the employer of the lable charge, which is $7.80 per year per machine on location, we find that the contract in this case has been signed and ratified by both parties to the original collective bargaining agreement. That wasn't the case with United Coin.

The CHAIRMAN. This last contract the witness testified to may be made exhibit No. 41 for reference.

(Document referred to was marked "Exhibit No. 41" for reference and may be found in the files of the select committee.)

Mr. KENNEDY. Mr. Chairman, I might point out that this contract shows the fiction of the label fees supposedly being paid by the employee, because even in the contract, this contract, it shows that the employer is making these payments to the union which, of course, per se, under the Taft-Hartley Act, would be illegal. Yet it is written into the contract.

Can you tell us anything about the pickets being sent out to the Caruso Restaurant, Mr. DeGrandis?

TESTIMONY OF JOSEPH DeGRANDIS, ACCOMPANIED BY COUNSEL, HARRY CLIFFORD ALLDER-Resumed

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

Mr. KENNEDY. This was an effort on behalf of Mr. Jacob to make Caruso's Restaurant keep his box in there so that they would not switch and bring in their own box?

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

Mr. KENNEDY. This is an employer-operated and dominated and controlled union, is it not, Mr. DeGrandis?

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

Mr. KENNEDY. Behind your efforts and the efforts of the employers which control the union, it is ultimately in the background of the

underworld characters of New York City to attempt to gain this control, is that right?

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

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

The CHAIRMAN. All right. You may stand aside.

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

(Whereupon, at 4:12 p.m. the select committee recessed, to reconvene at 10:30a.m., Wednesday, February 18, 1959.)