Mr. KENNEDY. Would you tell the committee why he came out to visit you? Mr. COHEN. I respectfully decline to answer on the grounds that it may tend to incriminate me. Mr. KENNEDY. Mr. Cohen, it was testified, I believe, in the Kefauver hearings, that you borrowed some $5,800 from Tony Milano of Cleveland. Did you ever repay him the money? Mr. COHEN. I respectfully decline to answer on the grounds that it may tend to incriminate me. Mr. KENNEDY. Do you know either John or Thomas Scalise, of Ohio? Mr. COHEN. I respectfully decline to answer on the grounds that it may tend to incriminate me. Mr. KENNEDY. I believe that is all. The CHAIRMAN. Are there any further questions? Mr. KENNEDY. I do have a couple of other things, Mr. Chairman. We also understand you are an associate of Frank Ericson, Frank Costello, Joe Adonis, and Tony Accardo. Is that right? Mr. COHEN. I respectfully decline to answer on the grounds it may tend to incriminate me. Mr. KENNEDY. And you also have made visits around the country. You tried to move in even down in Nashville, Tenn., did you not, several years ago? Mr. COHEN. I respectfully decline to answer on the grounds that it may tend to incriminate me. The CHAIRMAN. All right, you may stand aside. The committee will stand in recess until 10:30 tomorrow morning. The meeting tomorrow morning will be in room 1202. That is in the new building. (Members of the select committee present at time of recess: Senators McClellan, Mundt, and Capehart. (Whereupon, at 3:48 p.m. the select committee recessed, to reconvene in room 1202, Senate Office Building, at 10:30 a.m. Wednesday, March 25, 1959.) INVESTIGATION OF IMPROPER ACTIVITIES IN THE LABOR OR MANAGEMENT FIELD WEDNESDAY, MARCH 25, 1959 U.S. SENATE, SELECT COMMITTEE ON IMPROPER ACTIVITIES Washington, D.C. The select committee met at 10:30 a.m., pursuant to Senate Resolution 44, agreed to February 2, 1959, in room 1202, Senate Office Building, Senator John L. McClellan (chairman of the select committee) presiding. Members of the select committee present: John L. McClellan, Democrat, Arkansas; Karl E. Mundt, Republican, South Dakota; John F. Kennedy, Democrat, Massachusetts; Frank Church, Democrat, Idaho; Homer E. Capehart, Republican, Indiana; Carl T. Curtis, Republican, Nebraska; also present: Robert F. Kennedy, chief counsel; Walter R. May, assistant counsel; John P. Constandy, assistant counsel; Arthur G. Kaplan, assistant counsel; Sherman S. Willse, investigator; Ruth Young Watt, chief clerk. The CHAIRMAN. The committee will come to order. (Members of the select committee present at time of convening: Senators McClellan and Capehart.) The CHAIRMAN. Call the next witness. Mr. KENNEDY. Mr. Chairman, we are starting this morning on the Miami phase of the coin machine business. The first witness is Mr. Leonard Baitler. The CHAIRMAN. Mr. Baitler, come forward, please. Be sworn. You do solemnly swear 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. BAITLER. I do. TESTIMONY OF LEONARD BAITLER The CHAIRMAN. Mr. Baitler, state your name, your place of residence, and your business or occupation, please, sir. Mr. BAITLER. My name is Leonard Baitler. I reside at 1361 Northwest 133d Street, Miami, Fla. I am a coin machine mechanic. The CHAIRMAN. Do you waive counsel? Mr. BAITLER. Yes, sir. The CHAIRMAN. Thank you. Proceed, Mr. Kennedy. Mr. KENNEDY. You spell your name B-a-i-t-l-e-r; is that correct? Mr. BAITLER. That is correct. Mr. KENNEDY. You are what-37 years old? Mr. BAITLER. That is correct. Mr. KENNEDY. Unmarried, and you were in the Army Air Corps between 1942 and 1946? Mr. BAITLER. Yes, sir. Mr. KENNEDY. That was when you started residing in the Miami area; is that right? Mr. BAITLER. I first came to Miami just prior to my enlistment in the Air Force in January 1942, but I returned there after the war. Mr. KENNEDY. You have been in the coin machine business for approximately 20 years, starting at the age of about 16; is that right? Mr. BAITLER. That is correct. Mr. KENNEDY. You are now a coin machine mechanic? Mr. BAITLER. Yes, sir. Mr. KENNEDY. From 1956, for approximately 2 years, you were in Japan as a salesman for the Bible and for other holy educational books; is that right? Mr. BAITLER. Yes, sir. Mr. KENNEDY. You went back into the coin machine business in 1946, is that right, after you got out of the Air Corps? Mr. BAITLER. Yes, sir. Mr. KENNEDY. What were you doing? What kind of work were you doing then? Mr. BAITLER. I was employed as a mechanic on jukeboxes, coinoperated phonographs, and amusement machines, vending machines. Mr. KENNEDY. Did you have any dealings then with a Mr. Harvey Campbell? Mr. BAITLER. This was at a later date, Mr. Kennedy. This would have been in 1949, I believe. The CHAIRMAN. We have a mimeographed list of people whose names will be referred to today. I will make this exhibit 68 for reference. The fact that a name appears on this list does not mean, necessarily, that derogatory testimony will be given against them, but it is to help identify the people who may be referred to in testimony. (List referred to was marked "Exhibit 68" for reference and may be found in the files of the select committee.) Mr. KENNEDY. Would you tell us briefly what your connections with Mr. Harvey Campbell were, who formed the Miami Beach Amusement Association? Mr. BAITLER. I will try to recall as well as possible my dealings with Mr. Campbell. Mr. KENNEDY. Just briefly. Mr. BAITLER. Yes. In 1949, I believe it was, my employer on Miami Beach sold out to a company headed by Mr. Campbell. This company was known as the Capital Vending Co. Immediately following that, I went into the coin machine business myself. I developed a route of phonographs and amusement games. This route comprised mainly locations that had been purchased by Mr. Campbell from my former employer. Subsequently I sold my route to Mr. Campbell and the Capital Vending Co. Mr. KENNEDY. Mr. Campbell at that time indicated that his partner or the one that was backing him was Mr. Joe Massei; is that right? Mr. BAITLER. He did make that statement, but I never had any dealings with Mr. Massei. Mr. KENNEDY. Directly, but Mr. Campbell indicated that the one behind him was Joe Massei; is that right? Mr. BAITLER. He did say that. Mr. KENNEDY. Mr. Massei has the reputation of being a very prominent figure in the underworld, at least in the past; is that correct? Mr. BAITLER. I would say so. Mr. KENNEDY. At that time there had been a considerable amount of interest in the Miami area in obtaining locations for coin machines because there was legislation pending in the State legislature dealing with legalizing certain kinds of gambling equipment; is that right? Mr. BAITLER. Yes. Mr. KENNEDY. So that the locations where you had coin machines became unusually attractive, because it was possible then for these companies to place in this gambling equipment; is that right? Mr. BAITLER. In the event that legislation was passed, the locations would become valuable. Mr. KENNEDY. So there was a considerable amount of interest by certain notorious figures in attempting to gain these locations during this period of time? Mr. BAITLER. Yes. Mr. KENNEDY. That legislation was subsequently defeated? It was not passed? Mr. BAITLER. That is correct. Mr. KENNEDY. In 1949 Mr. Campbell also went into business with Mr. Joe Mangone? Mr. BAITLER. I am not sure of the chronology of that, Mr. Kennedy. Mr. KENNEDY. This is just background for some of these individuals whose names arise later. Mr. BAITLER. Yes, it was somewhere around that time; perhaps 1950. Mr. KENNEDY. What kind of business did they go into together? Mr. BAITLER. This, as I recollect, was not an operating business, but a distributing business; that is, involving the sale of coin-operated machines. Mr. KENNEDY. And about this time also the association that had been formed by Mr. Campbell in order to control the industry, the Miami Beach Amusement Association, began to fade out itself; did it not? Mr. BAITLER. Well, you must understand, Mr. Kennedy, I was never a member of this organization. Mr. KENNEDY. But the organization-you were aware of the fact of the organization? Mr. BAITLER. The organization existed; yes. Mr. KENNEDY. And then faded out during the early 1950's or late 1940's; is that right? Mr. BAITLER. I would say so. Mr. KENNEDY. About 1950 you went to work for a man by the name of Sam Taran? 36751-59-pt. 48 -9 |