Mr. KENNEDY. And subsequently you had to raise it again to $20? Mr. GOLDMAN. Shortly after that it was raised to $20. He stated that they needed additional money, he was being assessed for building funds of $5,000, and at one of his meetings they voted to assess themselves an additional $5 per month. Mr. KENNEDY. This was a building fund to help build the Teamster Building? Mr. GOLDMAN. That is right. Mr. KENNEDY. So you helped by raising the dues of your operators to the union to help build the Teamster Union Building; is that right? Mr. GOLDMAN. That is right. The CHAIRMAN. Which one, the one here in Washington? Mr. GOLDMAN. No; this is the one in Detroit. The CHAIRMAN. They have another one in Detroit? Mr. GOLDMAN. That is right. Mr. KENNEDY. Why did he say originally for the first $5 raise that the dues had to be raised? Mr. GOLDMAN. Well, he thought that he needed a larger staff of men to work for him, and he couldn't do service for us on the same basis that Mr. Jimmy James was working. Mr. KENNEDY. Which means protecting your locations; is that right? Mr. GOLDMAN. That is right. Mr. KENNEDY. It was understood when Mr. Bufalino came in that he was going to perform the same services that Jimmy James had performed? Mr. GOLDMAN. Identical services. Mr. KENNEDY. And he was going to perform them, he was told at the meeting of Mr. Hoffa, for the entire industry, and you found, shortly afterward, that it was just for one segment of the industry? Mr. GOLDMAN. Well, it was common knowledge that he was working for the family. Mr. KENNEDY. However, you were reasonably pleased right at the beginning. Did you write a letter to Mr. Bullock, managing director of the Southern California Automatic Music Operators Association, in August of 1947? Mr. GOLDMAN. There was an inquiry of Mr. Bullock. Mr. KENNEDY. It was an inquiry from him and you answered that? Mr. GOLDMAN. We answered the letter. The CHAIRMAN. I hand you what purport to be photostatic copies of the letter. Please examine them and state if you identify them, the letter from Mr. Bullock to the Michigan Automatic Phonograph Owners Association. You were president of that, were you? Mr. GOLDMAN. Yes; at that time. The CHAIRMAN. And a reply, apparently from you to Mr. Bullock. Examine these photostatic copies and state if you identify them. (The documents were handed to the witness.) Mr. GOLDMAN. This letter was addressed to Mr. Joseph Brilliant. Of course, an election had taken place after that, so I was the president at the time and I did answer this letter. This is my answer. The CHAIRMAN. The letters you identify may be made exhibits 79-A and 79-B in the order of their dates. (Letters referred to were marked "Exhibits 79-A and 79-B" for reference and will be found in the appendix on pp. 17693, 17694.) Mr. KENNEDY. May I just refer to the answer, Mr. Chairman? The inquiry to you was to find out how they could set up in California a similar kind of arrangement between the union and the association so that they would prevent location jumping; is that right? Mr. GOLDMAN. That is right. Mr. KENNEDY. And you answered on August 6, 1947: We are pleased to enclose a copy of this association's agreement with the Teamsters Union of the American Federation of Labor. I believe the agreement in itself is self-explanatory. Historically, the AFL offers the best affiliation, as we have had considerable experience in Detroit with both the CIO and the AFL. At the present time the union is operating about 98 percent efficiency in holding locations for members. Should you desire further information, we would be happy to supply same upon your request, and then he goes on. But the whole idea was that the union's only purpose was to hold locations for you? Mr. GOLDMAN. That is right. Mr. KENNEDY. At this juncture, when you wrote this letter, you had affiliated with local 985 and Mr. Bufalino was associated with the union? Mr. GOLDMAN. I believe he was at that time. Mr. KENNEDY. In fact, at the time you made the announcement on May 30, 1947, it had been indicated to you that Mr. Bufalino was going to be associated with the union? Mr. GOLDMAN. What date was that? Mr. KENNEDY. That would be at the time you made the announcement on May 30, 1947. You stated to the papers that the association would recognize local 985 of the Teamsters. At the time you originally agreed to recognize local 985 of the Teamsters, had Mr. Bufalino been with them? Mr. GOLDMAN. No. Mr. KENNEDY. He had not? Mr. GOLDMAN. He had not. Mr. KENNEDY. Do you know the date that he came with the union? Mr. GOLDMAN. I don't know the exact date. Mr. KENNEDY. I believe, however, it was at the time that you wrote this letter? Mr. GOLDMAN. It was about that time; yes. Mr. KENNEDY. Local 985 maintained a location list on all the members and used it as a whip to keep the members in line? Mr. GOLDMAN. That location list was not given out by us. They maintained their own list. Mr. KENNEDY. They requested the location list from you? Mr. GOLDMAN. They requested the list. Mr. KENNEDY. You refused to furnish it? Mr. GOLDMAN. I did. Mr. KENNEDY. Why did you refuse to furnish it? Mr. GOLDMAN. I didn't feel it was any of their business where our equipment was located at, and as long as we had members in our group that did not want their list given over to them, I maintained that. Mr. KENNEDY. Why did you think they wanted your location list? Mr. GOLDMAN. They felt that by having the location list, they could use it as a whip to keep us in line if we at any time fell behind in dues or out of their favor. Mr. KENNEDY. And did you fear that if you made the list available, he would make that list, in turn, available to the Meli group? Mr. GOLDMAN. I didn't know what he would use the list for, but it was against the wishes of our membership to give the list up. Mr. KENNEDY. Have they been able to take locations and nibble away at locations that you have had? Mr. GOLDMAN. They have at times; yes. Mr. KENNEDY. What? Mr. GOLDMAN. They have at times; yes. Mr. KENNEDY. You are still in the business? Mr. GOLDMAN. Yes, I am. Mr. KENNEDY. You are still with the union? Mr. KENNEDY. Do you pay dues? Mr. GOLDMAN. Yes, sir. Mr. KENNEDY. What can the union do for you? Mr. GOLDMAN. We don't ask them to do anything for us. Mr. KENNEDY. You, as an employer, what can the union do for you? Mr. GOLDMAN. Take my dues and keep me informed as to when their meeting dates are. That is all they can do for us. Mr. KENNEDY. But they don't raise your income during a period of a year? Mr. GOLDMAN. They can't raise it. Mr. KENNEDY. They can't help you? Mr. GOLDMAN. They can't help me any way. The CHAIRMAN. Why do you pay dues to them? Mr. GOLDMAN. It is the line of least resistance, Senator. The CHAIRMAN. A little louder. Mr. GOLDMAN. It is the line of least resistance. The CHAIRMAN. The line of least resistance? Mr. GOLDMAN. That is right. The CHAIRMAN. Are you afraid of them? Mr. GOLDMAN. Yes, I am. The CHAIRMAN. And you know you better pay dues or else you probably won't continue long in business? Mr. GOLDMAN. That is right. The CHAIRMAN. It is that kind of economic power and threat they have over you that compels you to pay money for nothing? Mr. GOLDMAN. That is right. The CHAIRMAN. Except to get relief from fear and intimidation? Mr. GOLDMAN. That is right. Senator CURTIS. What could they do? Mr. GOLDMAN. What could they do? Mr. GOLDMAN. Well, they have the power of pickets if we do not pay dues. The locations, when you go into a location, the man says, "Well, I am sorry; you are not a union member. I want a union member in my place. Please remove your box." Senator CURTIS. What happens if they put pickets around you? Would it cut off your business then? Mr. GOLDMAN. Well, they cut off the supply to the location. Mr. GOLDMAN. That is right. Senator CURTIS. So it is a sort of picket that results in a boycott? Mr. GOLDMAN. That is right. Senator CURTIS. Is there any chance of any violence in some instances? Mr. GOLDMAN. There hasn't been any. Senator CURTIS. I mean if someone refused to join? Mr. GOLDMAN. I don't know of any violence. Senator CURTIS. That is all. Mr. KENNEDY. Actually, you pay for your brother, too, don't you? Mr. GOLDMAN. My brother-in-law; yes, sir, I do. Mr. KENNEDY. Your brother-in-law? Mr. GOLDMAN. He works for me; yes, sir. Mr. KENNEDY. That is $20 per month per man? Mr. GOLDMAN. $20 per month per man. Mr. KENNEDY. It is almost a form of extortion, is it not? Mr. KENNEDY. A head tax, in order to operate in Detroit. Mr. KENNEDY. That is paid to Local 985, Mr. Bufalino's union? Mr. KENNEDY. That is all, Mr. Chairman. The CHAIRMAN. The committee will stand in recess until 2:30. (Members of the select committee present at time of recess: Senators McClellan and Curtis.) (Whereupon, at 12:20 p.m. the select committee recessed, to reconvene at 2:30 p.m. the same day.) AFTERNOON SESSION (The select committee reconvened at 3:20 p.m., Senator John L. McClellan (chairman of the select committee) presiding.) The CHAIRMAN. The committee will come to order. (Members of the select committee present at time of reconvening: Senators McClellan and Mundt.) The CHAIRMAN. Call the next witness. Mr. KENNEDY. Mr. Chairman, we have just a short witness, or an individual to turn over some records. I would like to call Mr. Jason, from the Woodner Hotel. The CHAIRMAN. 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. JASON. I do. TESTIMONY OF EDWARD JASON The CHAIRMAN. State your name, your place of residence, and your business or occupation. Mr. JASON. My name is Edward Jason. I live at 3636 16th Street, NW., and I am the general manager of the Woodner. The CHAIRMAN. Mr. Jason, was a subpena served on you, a committee subpena, to produce certain records of the hotel? 36751-59-pt. 48 -18 Mr. JASON. Yes, sir. The CHAIRMAN. I hand you here the original subpena and ask you if a copy of that was delivered to you. (The document was handed to the witness.) Mr. JASON. Yes, sir. The CHAIRMAN. It shows to have been served on the 3d day of this month. Is that correct? Mr. JASON. Yes, sir. The CHAIRMAN. That subpena may be made exhibit 80. (Subpena referred to was marked exhibit 80 for reference and may be found in the files of the select committee.) The CHAIRMAN. Mr. Jason, this subpena calls for certain records. Are you prepared to comply with the subpena? Mr. JASON. Yes, sir. The CHAIRMAN. You have the original records? The CHAIRMAN. The original? Mr. JASON. No, sir. Photostats of the original. The CHAIRMAN. This calls for the original. Are the records in your custody at the hotel? Mr. JASON. Yes, sir. The CHAIRMAN. The originals are in your custody? Mr. JASON. Yes. The CHAIRMAN. Then you may deliver, then, if you have photostatic copies, the photostatic copies now, but I shall want the originals delivered so that comparisons can be made. Mr. JASON. Yes, sir. The CHAIRMAN. You will deliver the originals? Can you deliver them this afternoon? Mr. JASON. I don't know sir. It would require, perhaps, some digging in our files. The CHAIRMAN. You have already done the digging to get the photostatic copies. I assume very little digging will be needed now. Mr. JASON. I do not know, sir, whether they have been returned to the files in order or not. The CHAIRMAN. Contact the counsel of the committee immediately, as soon as you ascertain, and let us know. In this particular instance, it is necessary that we have the originals at least for a period to give us an opportunity to make certain checks with regard to them. All right, sir, with that understanding, you may be excused. Let us know immediately this afternoon, as quickly as you can ascertain this. Mr. JASON. I will do it. The CHAIRMAN. I understand that the photostatic copies if accepted in lieu of originals would comply fully with the subpena? Mr. JASON. Yes, sir; to the best of my knowledge. The CHAIRMAN. The same order will prevail as to the originals. Call the next witness. Mr. KENNEDY. Mr. Jimmy James. The CHAIRMAN. Mr. James, come forward. 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. JAMES. I do. |