Mr. James, in going into your background a little bit, in 1940, according to the Detroit directory, it shows that you and your wife, Jean, operated a billiard parlor on East Warren Street, is that right, at 15302 East Warren? Mr. JAMES. I respectfully decline to answer the question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. Then in 1941, the Detroit directory lists Eugene James as a business agent of the Laundry Workers International Union Local 129; is that right? Mr. JAMES. I respectfully decline to answer the question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. So was that your first entry into the labor union movement, with local 129? Mr. JAMES. I respectfully decline to answer the question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. Then you were brought into the union by Mr. William Presser, is that right? That is, into this independent union for the coin machines, in 1944-45? Mr. JAMES. I respectfully decline to answer the question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. That was local 23814; is that right? Mr. JAMES. I respectfully decline to answer the question on the grounds that the answer might tend to incriminate me. Mr. KENNEDY. And about that time, after you were brought into the union, you received certain funds from the operators, and you were also given an interest in the Marston Distributing Co. You received 20 percent, did you not, in the Marston Distributing Co., which had the AMI distributorship in Detroit? Is that right? Mr. JAMES. I respectfully decline to answer the question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. And also the Marquette Distributing Co., which was run by Mr. De Schryver, you received 31 percent of that company. Mr. JAMES. I respectfully decline to answer the question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. Then Mr. Nardi's wife-Mr. Nardi being a union official down in Cleveland with Mr. Presser, at that time with the IBEW, and later with the Teamsters, and he presently holds that position with the Teamsters-his wife received 6 percent and Mr. Presser's wife received 6 percent; is that right? Mr. JAMES. I respectfully decline to answer that question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. And they received those interests because of the fact that they set this up for you to run the union together with the association? Mr. JAMES. I respectfully decline to answer that question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. We have had testimony that subsequently you were having difficulty from the Bufalino group and the so-called Italian gangsters in Detroit, and that you made arrangements in order to combat that so that the rival union would not be set up to put Mr. Hoffa's and Mr. Brennan's wives on your payrolls in their maiden names; is that right? Mr. JAMES. I respectfully decline to answer that question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. They each were put on the payroll for $100 a week and did no work? Mr. JAMES. I respectfully decline to answer that question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. That was so that the Teamsters wouldn't set up a rival union and help this so-called Italian gangster group? Mr. JAMES. I respectfully decline to answer that question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. And subsequently your charter was withdrawn after the Murphy grand jury made an investigation, and Mr. Hoffa then gave a charter to you with the understanding that you would bring in Mr. William Bufalino? Mr. JAMES. I respectfully decline to answer that question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. Mr. Bufalino was brought in and made, subsequently, the business manager, and you left, for all practical purposes, the end of 1947, is that right, although you remained on the payroll of this union until November of 1950? Mr. JAMES. I respectfully decline to answer that question on the grounds that the answer may tend to incriminate me. Mr. KENNEDY. Would you tell the committee why they kept you on the payroll for such a long period of time? Is that a method of paying you off? Mr. JAMES. I respectfully decline to answer that question on the grounds that the answer might tend to incriminate me. Mr. KENNEDY. Mr. Chairman, in connection with the awarding of that charter, could we have these letters introduced? Mr. Kaplan secured them. The CHAIRMAN. Mr. Kaplan, you have been previously sworn? Mr. KAPLAN. Yes. TESTIMONY OF ARTHUR G. KAPLAN-Resumed Mr. KENNEDY. Identify them briefly. Mr. KAPLAN. These are letters relating to the issuance of the charter to local 985, in the very beginning of June 1947. They were obtained by subpena from the Teamsters International headquarters. Mr. KENNEDY. The documents, Mr. Chairman, to which Mr. Kaplan has referred, show, for instance, on the June letter which is undated, shows: Please send to James Langley, secretary-treasurer of Local 985, International Brotherhood of Teamsters, Chauffeurs, Warehousemen, and Helpers, at Trumbull Avenue, Detroit, Mich., the following supplies: And then it lists them. Have we identified who he was? Mr. KAPLAN. Mr. James Langley is Mr. Hoffa's brother-in-law. The CHAIRMAN. That is the first document. That may be made. exhibit No. 81. Document referred to was marked "Exhibit No. 81" for reference and may be found in the files of the select committee.) Mr. KENNEDY. It shows the close relationship Mr. Hoffa had, with this letter. Then we have a letter dated June 3, 1947, written to Mr. James Hoffa, from Mr. John English, which acknowledges receipt of $5 for "revised charter, seal and stamp, for local 985," stating that the charter was "picked up by you this date and the seal and stamp will be forwarded," again showing Mr. Hoffa's involvement. The CHAIRMAN. That may be made exhibit 81–A. (Document referred to was marked "Exhibit No. 81-A" for reference and may be found in the files of the select committee.) Mr. KENNEDY. Then, Mr. Chairman, on June 3, 1947, the same date, a notice was sent to Mr. John English from a man by the name of Norman C. Murrin, in which he states: Attached find check in the amount of $5 to cover the cost of charter name change for local 985 and Also insert Eugene James as charter member in place of Alvin Ogelvie. The CHAIRMAN. That may be exhibit 81-B. (Document referred to was marked "Exhibit No. 81-B" for reference and may be found in the files of the select committee.) Mr. KENNEDY. So that brings Mr. James into the picture. Here is the application for certificate of affiliation with the Teamsters, which lists Eugene James as No. 1 on the list of applicants and it states: Charter received by J. Hoffa, 6-3-47, and then it says: Picked up. The CHAIRMAN. That may be made Exhibit 81-C. (Document referred to was marked "Exhibit 81-C" for reference and may be found in the files of the select committee.) TESTIMONY OF EUGENE C. JAMES-Resumed Mr. KENNEDY. Can you tell us anything about that, Mr. James? Mr. JAMES. I respectfully decline to answer the question on the grounds it may tend to incriminate me. Mr. KENNEDY. In the court proceedings when you were having this dispute in 1946, you stated to the Murphy grand jury that the people behind Bufalino were Scarface Joe Bommarito, Angelo Meli, and Pete Licavoli. Can you tell us what information you had on that? Mr. JAMES. I respectfully decline to answer the question on the grounds it may tend to incriminate me. Mr. KENNEDY. Then you stated, on page 963 of the Murphy grandjury transcript, that there were some unionmen working for Bilvin's predecessor, and when Bilvin took over these men were fired, and that you tried to talk to anybody in authority. I made phone calls and they would refer me to Joe Doakes, and I could never get hold of the right man, and I put a picket line on the place May 23 to June 7, 1946, and I got hold of the right man and you say the right man was Angelo Meli. Were Bommarito, Licavoli, and Meli, behind the operation of Bilvin, as you testified? Mr. JAMES. I respectfully decline to answer the question on the grounds the answer might tend to incriminate me. Mr. KENNEDY. Can you tell us in view of that why you then brought Bufalino into the union with you when you received the charter from Mr. Hoffa in local 985? Mr. JAMES. I respectfully decline to answer the question on the grounds the answer might tend to incriminate me. Mr. KENNEDY. Was that a condition to obtaining the charter, Mr. James? Mr. JAMES. I respectfully decline to answer the question on the grounds the answer may tend to incriminate me. The CHAIRMAN. Did Hoffa know of your reputation and Bufalino's reputation at the time he granted the charter? Mr. JAMES. I respectfully decline to answer the question on the grounds the answer may tend to incriminate me. Mr. KENNEDY. According to the testimony we have had, you were financed by the operators, and in addition they were so pleased with you in one year they gave you a Cadillac; is that right? Mr. JAMES. I respectfully decline to answer the question on the grounds the answer may tend to incriminate me. Mr. KENNEDY. Mr. Chairman, we have already gone into, at a previous hearing, about Mr. James' operation down in Miami, Fla., with Mr. Newbold, so I will not go into that. Those are the questions I want to ask him today. The CHAIRMAN. Are there any further questions? Mr. KENNEDY. That is all. Mr. Chairman, we made a telephone call to the Statler Hotel. Mr. Gorman was in his hotel room. Are you surprised to hear that, Mr. James? Mr. JAMES. No, sir; I am not surprised. Mr. KENNEDY. I thought you said you knew he was busy with some attorney. Mr. JAMES. I knew he had some business to transact this afternoon; yes, sir. Mr. KENNEDY. We asked him to come over and he is coming over. recalled. Mr. KENNEDY. Mr. Hopkins, Mr. Chairman. You may be You 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. HOPKINS. I do. TESTIMONY OF CARL F. HOPKINS The CHAIRMAN. State your name, your place of residence, and your business or occupation, please, sir. Mr. HOPKINS. Carl F. Hopkins, 14635 Monica Street, Detroit, Mich., owner of Hopkins Vending. The CHAIRMAN. You waive counsel; do you? Mr. HOPKINS. Yes, sir. The CHAIRMAN. All right, Mr. Kennedy. Mr. KENNEDY. You are the sole owner of the Hopkins Vending, located at 14635 Monica? Mr. HOPKINS. It is another address now. Mr. KENNEDY. What is the address? Mr. HOPKINS. 11169 Grand River, Detroit 4, Mich. Mr. KENNEDY. You started this business in about May 1951 ? Mr. HOPKINS. Yes, sir. Mr. KENNEDY. And your business consists of placing on location coin-operated vending machines? Mr. HOPKINS. Yes, sir. Mr. KENNEDY. Forty percent of your machines vend candy, some 40 percent vend cigarettes, and about 20 percent remaining vend soft drinks; is that right? Mr. HOPKINS. Soft drinks and coffee. Mr. KENNEDY. What? Mr. HOPKINS. And coffee. Mr. KENNEDY. You have approximately 600 machines? Mr. HOPKINS. Yes, sir. Mr. KENNEDY. On about 175 or 200 locations? Mr. HOPKINS. Thereabout. Mr. KENNEDY. Throughout the Greater Detroit area; is that right? Mr. HOPKINS. Yes, sir. Mr. KENNEDY. You own, service, and maintain these vending machines? Mr. HOPKINS. Yes, sir. Mr. KENNEDY. Have you been a member of local 985? That is, of the Teamsters. Mr. HOPKINS. Yes, sir. Mr. KENNEDY. When did you join? Mr. HOPKINS. In 19-late in 1951. Mr. KENNEDY. Were you self-employed at that time? Mr. HOPKINS. Yes, sir. Mr. KENNEDY. Why did you join? Mr. HOPKINS. Well, it was the best thing to do to stay in business. Mr. KENNEDY. What do you mean by that? Mr. HOPKINS. Well, they come out and asked me to join, and you had to join the union or they made it a little bit rough on you to operate your machines. Certain places wanted machines with union labels and the union made sure that they wanted me in. Mr. KENNEDY. But the union could do nothing for you. You were self-employed. Mr. HOPKINS. I was self-employed. They couldn't do anything to me. Mr. KENNEDY. Did they indicate that they would picket you unless you joined? Mr. HOPKINS. Well, one of my locations was. Mr. KENNEDY. One of your locations was picketed? Mr. HOPKINS. Yes. The CHAIRMAN. What effect did that have on your business? Mr. HOPKINS. Well, I would have lost the machine in this particular location unless I had a union label. label was to join the union. The only way to secure a union |