ÆäÀÌÁö À̹ÌÁö
PDF
ePub

Mr. KENNEDY. Do you have a home in Chicago also?

(The witness conferred with her counsel.)

Mrs. LARNER. Yes. We have an apartment.

Mr. KENNEDY. Where do you have your apartment in Chicago?
Mrs. LARNER. 3430 Lake Shore Drive.

Mr. BROWN. Five miles north of the Merchandise Mart.

Mr. KENNEDY. Do you have any homes or residences any other place?

Mrs. LARNER. No.

Mr. KENNEDY. You do not. Just in Chicago and Miami, is that right?

Mrs. LARNER. Yes.

Mr. KENNEDY. Mr. Chairman, we are interested in this Local 134 of the IBEW, and the association which Mr. "Red" Waterfall has a financial arrangement in. We asked this witness to come up here in order to try to throw some light on it, but it does not seem that we are getting very far.

The CHAIRMAN. Let me ask you a question: Did you have any of the records that the subpena calls for in your possession or in your custody or control, either in Florida, Chicago, or anywhere else at the time the subpena was served upon you?

Mrs. LARNER. No, sir.

The CHAIRMAN. You are stating that under oath?

Mrs. LARNER. Under oath.

The CHAIRMAN. You had no such records in your custody or control at any place at the time the subpena was served on you?

Mrs. LARNER. Absolutely.

Mr. KENNEDY. She should remain under subpena, Mr. Chairman. The CHAIRMAN. You will remain under this subpena, under recognizance to reappear before this committee at any time upon reasonable notice as to the time and place that the committee may desire to hear further testimony from you.

Is that acceptance to counsel ?

Mr. BROWN. Yes. I wish you would provide my transportation with it.

The CHAIRMAN. I am sorry. We do not pay lawyer fees here. With that understanding, the witness is excused for the present. The committee will stand in recess until 10 o'clock in the morning. (Whereupon at 4: 40 p.m. the committee recessed, to reconvene at 10 a.m. Thursday, February 27, 1958. The following members of the committee were present at the recess: Senators McClellan, Goldwater, Ives and Ervin.)

INVESTIGATION OF IMPROPER ACTIVITIES IN THE

LABOR OR MANAGEMENT FIELD

THURSDAY, FEBRUARY 19, 1959

U.S. SENATE,

SELECT COMMITTEE ON IMPROPER ACTIVITIES
IN THE LABOR OR MANAGEMENT FIELD,

Washington, D.C.

The select committee met at 10:30 a.m., pursuant to Senate Resolution 44, agreed to February 2, 1959, in the caucus room, Senate Office Building, Senator John L. McClellan (chairman of the select committee) presiding.

Present: Senator John L. McClellan, Democrat, Arkansas; Senator Sam J. Ervin, Jr., Democrat, North Carolina; Senator Homer E. Capehart, Republican, Indiana.

Present: Robert F. Kennedy, chief counsel; John P. Constandy, assistant counsel; Arthur G. Kaplan, assistant counsel; Walter R. May, investigator; Sherman Willse, investigator; Walter De Vaughan, investigator; Ruth Y. Watt, chief clerk.

The CHAIRMAN. The committee will be in order.

(Members of the select committee present at the convening of the session were Senators McClellan, Ervin, and Capehart.)

The CHAIRMAN. Call your next witness.

Mr. KENNEDY. Mr. Chairman, we now start a new phase, moving into Chicago, Ill., and the surrounding area of Chicago. The first two witnesses are Mr. Max Brier and Mr. Don Moloney.

The CHAIRMAN. Will you be sworn?

Do you and each of you solemnly swear that 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. BRIER. I do.

Mr. MOLONEY. I do.

TESTIMONY OF DONALD J. MOLONEY AND MAX BRIER

The CHAIRMAN. Starting on my left, the witness on my left, will you give your name, your place of residence, and your business or occupation, please.

Mr. BRIER. My name is Max Brier. Home address is 6527 North California Avenue, Chicago, Ill. I am sales manager for the Donan Distributing Co.

The CHAIRMAN. Thank you very much.
Mr. Moloney, will you give your name.

Mr. MOLONEY. My name is Don Moloney, and I live at 412 Pine Manor, in Wilmette, Ill., and I am the owner of Donan Distributing Co.

The CHAIRMAN. Thank you very much.

You gentlemen waive counsel, do you?

Mr. MOLONEY. Yes, sir.

The CHAIRMAN. All right. Proceed.

Mr. KENNEDY. Mr. Moloney is president and coowner of the Donan Distributing Co.

Mr. MOLONEY. That is correct.

Mr. KENNEDY. And Mr. Brier is the sales manager; is that right? Mr. BRIER. Yes, sir.

Mr. KENNEDY. Mr. Moloney, you have been in the coin business, and your father was in the coin business; is that right?

Mr. MOLONEY. That is right.

Mr. KENNEDY. He owned the Valley Manufacturing Co?

Mr. MOLONEY. Yes, sir.

Mr. KENNEDY. Which manufactured gaming machines; is that right?

Mr. MOLONEY. That is correct.

Mr. KENNEDY. As a matter of fact, Mr. Chairman, it was a Valley machine that was here the first day of the hearing that we used to demonstrate the pinball operation.

You and your brother started the Donan Distributing Co. in 1952? Mr. MOLONEY. That is right.

Mr. KENNEDY. And distributed Valley and other amusement machines throughout north Illinois?

Mr. MOLONEY. That is correct.

Mr. KENNEDY. And also operated up until last week, a route of some 120 game machines and some 80 jukeboxes in Chicago; is that right?

Mr. MOLONEY. That is right.

The CHAIRMAN. Why do you say "up to last week"?

Mr. MOLONEY. We just disposed of the juke box route.

Mr. KENNEDY. You got rid of your 80 juke boxes?
Mr. MOLONEY. Some 50 jukeboxes.

Mr. KENNEDY. Now, in 1958 you purchased the jukebox route from the Clover Music Co.; is that right?

Mr. MOLONEY. That is right.

Mr. KENNEDY. Clover was a member of the Recorded Music Service Association, Inc., known as RMSA; is that right?

Mr. MOLONEY. That is right.

Mr. KENNEDY. That was composed of almost every jukebox operator in Chicago, and the Chicago area?

Mr. MOLONEY. Yes, sir.

Mr. KENNEDY. And you continued the membership in that association?

Mr. MOLONEY. That is right.

Mr. KENNEDY. That membership requires you to list your locations; is that right?

Mr. MOLONEY. That is right.

Mr. KENNEDY. And in that way there will be no jumping between the various members; is that right?

Mr. MOLONEY. We assumed that was correct.

Mr. KENNEDY. Now, what if a jukebox operator in the Chicago area wants to change his jukebox, and he thinks he is getting bad servicing or he wants a better jukebox?

Mr. MOLONEY. You mean the location owner?

Mr. KENNEDY. The tavern owner, for instance.

Mr. MOLONEY. Well, the location owner can just tell him to take his jukebox out of the location, but his chances of getting another jukebox from another operator are very slim for at least a waiting period.

Mr. KENNEDY. How long is the waiting period?

Mr. MOLONEY. It can be anywhere between 120 days and 6 months. Mr. KENNEDY. So if a jukebox operator in that area wants to get rid of his jukebox, he can't get a new jukebox in his tavern or his place of business for at least 120 days, and it can go up to 6 months? Mr. MOLONEY. That is right.

Mr. KENNEDY. Before anybody else will put a new jukebox in

there?

Mr. MOLONEY. That is right.

Mr. KENNEDY. That is an agreement between all of the operators in Chicago and around the Chicago area?

Mr. MOLONEY. I wouldn't say that it was an agreement among the operators. It is just the way it has been done.

Mr. KENNEDY. Now, you pay to this association some 25 cents per machine per month, is that right, or about that?

Mr. MOLONEY. That is about right.

Mr. KENNEDY. About 25 cents?

Mr. MOLONEY. Yes, sir.

Mr. KENNEDY. And this association has a master contract with Local 134 of the International Brotherhood of Electrical Workers? Mr. MOLONEY. We assume so, yes.

Mr. KENNEDY. When you purchased the Clover route, were you visited by Fred Thomas Smith?

Mr. MOLONEY. Yes.

Mr. KENNEDY. He is also known as Jukebox Smitty?

Mr. MOLONEY. Yes, sir.

Mr. KENNEDY. He is a business representative of local 134?

Mr. MOLONEY. That is correct.

Mr. KENNEDY. Will you relate to the committee your conversation with him?

Mr. MOLONEY. Mr. Smith wanted to know why we purchased the jukebox route and wanted us also to know the setup with the RMS. The CHAIRMAN. What is that?

Mr. MOLONEY. The Recorded Music Service, and with the union. He advised us that it would be to our advantage to join Recorded Music Service to get their monthly issue of jukebox news and also to protect our locations from being approached by other jukebox op

erators.

The CHAIRMAN. Where did this conversation take place?

Mr. MOLONEY. This all took place in my office.

The CHAIRMAN. How long after you had bought the route before he visited you?

Mr. MOLONEY. I would say it was probably about a month and a half after we bought the route. He told us that he would waive the first 3 months that we owned the route, which was January, February, and March, and he would waive any dues.

The CHAIRMAN. Waive dues to what?

Mr. MOLONEY. For the association dues, which they assess per machine.

The CHAIRMAN. I thought this man represented a labor union. Mr. MOLONEY. He didn't say he represented a labor union, and he represented Recorded Music Service, and Commercial Phonograph Survey.

Mr. KENNEDY. Just to get it straight, there are three units that are involved here. It is Local 134 of the International Brotherhood of Electrical Workers of which Juke Box Smitty is the business representative, and he is the one that operates in the coin machine and the jukebox field; is that not correct?

Mr. MOLONEY. That is right.

Mr. KENNEDY. In and around the Chicago area?

Mr. MOLONEY. Yes, sir.

Mr. KENNEDY. In the counties up to Wisconsin and in the whole area there?

Mr. MOLONEY. Yes, sir.

Mr. KENNEDY. Then, there is also this association that you spoke of, the Recorded Music Service Association.

Mr. MOLONEY. That is right.

Mr. KENNEDY. That is an employer association.

Mr. MOLONEY. Yes, sir.

Mr. KENNEDY. Then there is a third group, Mr. Chairman, which is called the Commercial Phonograph Survey Co. That is the Commercial Phonograph Survey Co., and that is a company that is run by Mr. Mike Dale.

We are going to have an index, Mr. Chairman, to maybe help clarify it, and we have it here. Could we have that placed in the record? It was prepared by Mr. Kaplan, or under his direction.

TESTIMONY OF ARTHUR G. KAPLAN-Resumed

The CHAIRMAN. Mr. Kaplan, you have been previously sworn? Mr. KAPLAN. Yes, sir.

The CHAIRMAN. You may testify regarding this list.

I hand you here a mimeographed sheet of names and operators of businesses and so forth, and I wish you would examine it and state what it is and if you prepared it and what it represents.

Mr. KAPLAN. This is a list that is entitled, "Names of Interest in the Chicago Hearings," and it is an identification of most of the persons and of the various entities, unions and associations and so forth, that we anticipate will be mentioned, so that they may be readily identified during the course of the testimony.

The CHAIRMAN. Have you checked the list for accuracy?

Mr. KAPLAN. Yes, sir.

The CHAIRMAN. It was made up under your supervision?

Mr. KAPLAN. Yes, it was, Senator.

The CHAIRMAN. It will be made exhibit No. 47 for reference only.

« ÀÌÀü°è¼Ó »