74. Report from Dr. Fabian L. Rouke re statement made 75. Letter dated January 19, 1950, addressed to August Scholle, president, Michigan CIO Council, from Richard Gosser, vice president, International UAW- 76. Articles of incorporation of Bilvin Distributing Co.... 77. List of principals of interest, Detroit-St. Louis narcotic 78. Letter dated June 4, 1950, addressed to "Dear Toto," 79A. Letter dated August 5, 1947, addressed to Michigan Automatic Phonograph Owners Association, Detroit, Mich., from E. Jay Bullock, managing director, Southern California Automatic Music Operators Asso- ciation. 79B. Letter dated August 6, 1947, addressed to Mr. E. Jay 80. Subpoena No. L-6954, served on Mr. Ed Jason, Woodner Hotel, to produce certain records.. 81. Official order blank of International Brotherhood of Teamsters for James Langley, Secretary-Treasurer local No. 985, one charter and seal and stamp.. 81A. Letter dated June 3, 1957, addressed to James R. Hoffa 81B. Memorandum to John F. English, general secretary- treasurer, from Norman C. Murrin.. 81C. Application for certificate of affiliation with the Inter- national Brotherhood of Teamsters, listing names of 82. Report dated March 14, 1959, listing number of days worked and amount of deductions_ 83. Memorandum of a meeting made by William Genematas, 83A. Contract between Marathon Linen Service, Inc., and 84. Memorandum dated August 19, 1954, written by William A. Genematas, re Kinsel Drug and Michigan Linen 85A. Memorandum dated September 3, 1954, addressed to Joseph Maiullo, re Kinsel Drug Co., from William N. Genematas, Marathon Linen Service... 85B. Letter dated September 7, 1954, addvesed to James R. 85D. Letter dated September 22, 1954, addressed to James R. Hoffa, re Marathon Linen Service, Inc., Kinsel Drug Co., from Joseph A. Maiullo_-_- 86. Letter dated December 28, 1954 addressed to Mr. James R. Hoffa from N. W. Genematas, president, Mara- 87. Letter with attachments, dated April 7, 1959, addressed 87A. Telegram dated April 9, 1959, addressed to U.S. Senate *May be found in the files of the select committee. 87B. Letter dated April 10, 1959, addressed to Senator John 89. Testimony of William E. Bufalino before the Murphy 91. Employer's Quarterly Federal Tax Returns of local 92. Ledger sheets from Michigan Hospital Service-Michigan 93. Dues deduction report dated March 11, 1959, report to be 95. Minutes of membership meeting of Teamsters Local 985, 96. Minutes of board meeting of Teamsters Local 985, dated Introduced 17608 Appears on page (*) September 26, 1955. Proceedings of March 23, 1959. March 24, 1959. March 25, 1959. 17676 (*) 17215 17257 17335 April 7, 1959. April 8, 1959. April 9, 1959. 17405 17451 17513 April 10, 1959. 17515 April 14, 1959. 17595 April 15, 1959__ 17643 *May be found in the files of the select committee. INVESTIGATION OF IMPROPER ACTIVITIES IN THE LABOR OR MANAGEMENT FIELD MONDAY, MARCH 23, 1959 U.S. SENATE, SELECT COMMITTEE ON IMPROPER ACTIVITIES IN THE LABOR AND MANAGEMENT FIELD, Washington, D.C. The select committee met at 2:20 p.m., pursuant to Senate Resolution 44, agreed to February 2, 1959, in the caucus room of the Senate Office Building, Senator John L. McClellan (chairman of the select committee) presiding. Present: Senator John L. McClellan, Democrat, Arkansas; Senator Frank Church, Democrat, Idaho; Senator Carl T. Curtis, Republican, Nebraska. Also present: Robert F. Kennedy, chief counsel; Walter R. May, assistant counsel; John P. Constandy, assistant counsel; Pierre E. Ğ. Salinger, 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 and Curtis.) The CHAIRMAN. The Chair will make a brief opening statement since we are beginning a new phase, or rather chapter, in this coinmachine investigation that we have been conducting. The committee looks today to a study of the coin-operated machine industry in the New Orleans area, and particularly with reference to operations in Jefferson Parish, Louisiana, which has long been notorious for the continuing operation of gambling despite the illegality of these enterprises. In previous hearings on the coin-operated machine business the committee has developed testimony on varying patterns of labor and management control of this industry. We have found areas where the coin-machine industry was dominated solely by the labor unions. We have found areas where labor unions, in collusion with management associations, controlled the business. We have found areas where racketeers control the industry by association with labor unions or management or both. The Louisiana picture presents still another type of control of this industry. Certain key racket figures have achieved a degree of domination over the coin-operated machine business where they are able, singlehandedly, to enforce their control over locations through threats, coercion, and in some cases through alliances with corrupt public officials, as we expect the evidence to show. Two attempts have been made to organize the coin-operated machine business in New Orleans, one by the International Brotherhood of Electrical Workers, and another by the International Brotherhood of Teamsters. Interviews with union officials involved in these drives have indicated that, while in most areas of the country the employers have found it necessary to do business with labor unions in order to effect the type of control needed in this industry, in the New Orleans area these employers have actively fought unionization. The reason for this, according to these union officials, is the long-entrenched pattern of control over the industry already established by the companies in the business. The committee does not intend, nor does it wish, to convey the impression that all coin-operated companies in the Jefferson Parish area are controlled by racketeers. I may say, parenthetically, neither does the committee intend to convey that impression with respect to coinoperated machines throughout the country. They are certainly not all controlled by syndicates or by racketeers, but in some of these instances, certainly where we are investigating, we find that they are. The racketeers who are active in jukeboxes, and pinball and gambling machines in the Jefferson Parish area, however, seem to be as powerful as any in this country, and their influence over this industry, as well as over certain other legitimate enterprises in the community, is of tremendous magnitude, as we expect the evidence will show. All right, Mr. Kennedy, call the first witness. Mr. KENNEDY. Mr. Chairman, the first witness will be Mr. Aaron Kohn. But prior to the time that he begins his testimony, we have worked up an index of individuals whose names will come up during the course of the hearings, which I present to you and which might be helpful if it is placed in the record. It gives a description of some of the people that will be named during the course of the afternoon and tomorrow. The CHAIRMAN. This is just for information. This may be inserted just for information. It will not be accepted as evidence but only for information, and as names are given in the course of the testimony, by reference to this it may help to identify who the persons are who are being referred to in the sworn testimony. (The list referred to follows:) INDIVIDUALS OF INTEREST-NEW ORLEANS AREA Allen, Edward M., also known as "Red": Former member of St. Louis "Cuckoo Clan"; gambler. (New Orleans.) Arnoult, James: Chief civil deputy, Jefferson Parish. Badalamatri, Louis: Brother-in-law of Carlos Marcello; public official. Bagneris, Louis E., "Buster": Key figure in lottery and handbook gambling, St. Bernard Parish, La. Beverly Country Club, Jefferson Parish, former Costello-Lansky-Kastel gambling casino. Civello, Joseph, Dallas, Tex.: Participant in Apalachin, N.Y., mobster meeting. Coci, Malcolm "Red": Chief criminal deputy, Jefferson Parish. Coci, William S.: Sheriff of Jefferson Parish, La. Cohen, Dan, New Orleans: Former owner of cigarette, music, and pinball machine companies. Costello, Frank, New York: Nationally notorious racketeer. Corinne Club, St. Bernard Parish, La.: Operated by Will Guillot. Culotta, James J., Jefferson Parish, La. : Business associate of Carlos Marcello; member of planning and zoning commission, Jefferson Parish. Dargis, Aloysius A., Jr., Jefferson Parish: Jukebox operator. Dixie Coin Machine Co., New Orleans: Formerly area distributor for Mills slot machines, of which Marcello is a partner. Fredo, Anthony, also known as Tony Logan, Jefferson Parish: Officer in Beverly Club. Geigerman, William B., also known as "Bonny": Related to Frank Costello; boxing promoter. Gillen, Pat: Bar owner, Jefferson Parish, La. Guillot, Willard F., St. Bernard Parish: Guillot Amusement Company. Huey Distributing Co., Jefferson Parish: Run by Vincent Marcello, with Carlos as part owner. Huffine, Albert C., Jefferson Parish: Associate in coin-machine operations with Marcello. Jefferson Music Co., Gretna, La. Owned by Vincent and Carlos Marcello; jukes, pinballs, slots. Marcello, Anthony, Metairie, La. : Brother of Carlos. Marcello, Carlos, Metairie, La.: Notorious rackets boss in Louisiana, who has been fighting deportation since 1952. Marcello, Joseph, Metairie, La. : Brother of Carlos. Marcello, Pasquale J., Harvey, La. : Brother of Carlos. Marcello, Peter, Jefferson Parish: Brother of Carlos. Marcello, Salvadore, also known as Sam, Jefferson Parish: Brother of Carlos. Marcello, Vincent, Jefferson Parish: Brother of Carlos. Muller, Henry, New Orleans: Muller Restaurant Supply Company, associate of Carlos Marcello. Nastasi Distributing Co., New Orleans. New Southport Club: Former gambling casino in Jefferson Parish. Nola Printing Co., Jefferson Parish: Headquarters for Louisiana wire service. Occhipinti, Roy, and Frank, Jefferson Parish. Pecora, Nofio J., New Orleans: Narcotics ex-convict. Pecoraro, Joe, Jefferson Parish: Major gambling figure. Perez, Horace (deceased), Jefferson Parish. Poretto, Joseph A., Jefferson Parish: Manager of wire service for Marcello mob. Richardson, Walter: Bar owner, Jefferson Parish, La. Southern Coin Machine Exchange, Jefferson Parish. Spataro, Joe, also known as "Spow-Wow," Shreveport, La. Town & Country Motel, Bossier City, La. Vac-Key Amusement Co., Jefferson Parish. Vuci, Frank L., Port Allen and Baton Rouge, La. Mr. KENNEDY. All of the names of individuals there are not going to be named in a derogatory fashion, but it gives a little bit of background and gives the name of some of those people whose names will arise during the course of the hearing. The CHAIRMAN. All right. Mr. KENNEDY. Mr. Aaron Kohn. The CHAIRMAN. Will you be sworn, please? 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. KоHN. I do. TESTIMONY OF AARON M. KOHN The CHAIRMAN. Mr. Kohn, state your name, your place of residence, and your business, occupation, or employment, please. Mr. KOHN. Aaron M. Kohn, of New Orleans, La., managing director of the Metropolitan Crime Commission of New Orleans, Inc. The CHAIRMAN. Is that commission created by law? |