price differential which was attractive to the company and Mr. Coleman said they were not going to allow this. Following Mr. Coleman's visit, I talked to the Marathon Linen Co. and was told that the price cut would in no way be reflected in the drivers' earnings at Marathon.

Mr. Coleman paid a second visit to me, this time in the company of Alex Nichamin, who is one of the owners of Progressive Linen. At this meeting, Mr. Coleman was adamant that we give the business back to Progressive. His statements to me were more than a request.

Following this visit, I received a telephone call from Mr. Joseph Maiullo, who is the attorney for the Marathon-Bryant Linen Co. I told Mr. Maiullo about Mr. Coleman's request that we give the service back to Progressive and he told me that he could straighten the whole problem out. He called me back later and told me that he had talked to Mr. James Hoffa of the Teamsters Union and that the whole matter had been straightened out.

Following this, however, I received another visit from Mr. Coleman, who insisted that we return to Progressive. Mr. Coleman said that Marathon was not in the linen association and the association did not want its members losing business to nonmembers.

Following this visit, I discussed the entire matter with my attorney, Mr. Glen R. Miller, who advised me that in the interests of continuing good relations with the Teamsters Union, we should give the business back to Progressive. Accordingly, we canceled the Marathon contract at all but the original drugstore which was in the building owned by Mr. Nick Genematas.

I believe all the above statements to be the truth to the best of my knowledge.

WILLIAM D. DOWNEY. DOROTHY KEMNITZ,

Notary Public in and for Wayne County, Michigan.

My commission expires August 19, 1961.

The CHAIRMAN. What was the intimation or threat that apparently caused them to give it back?

Mr. SALINGER. I have some other documents here which bear directly on that, Senator. If I can go through these in chronoligcal order, I think it might give us a good picture on the situation.

The CHAIRMAN. All right. I didn't know what other documents you had, but there is a connection?

Mr. SALINGER. Yes, sir.

The CHAIRMAN. All right.

Mr. SALINGER. Mr. Downey's affidavit states that Mr. Maiullo had gotten in touch with Mr. Hoffa and the whole matter had been straightened out. As a matter of fact, on Friday, August 6, 1954, a meeting was held in Mr. Hoffa's office at the Teamsters Union at which, among others, were present Mr. Hoffa, Mr. Bert Brennan, Mr. William Genematas, the son of the president, and Mr. Joe Maiulio, hist attorney.

This is a memorandum of the meeting which was made by Mr. William Genematas right following the meeting, and was found in the files of the Marathon Linen Co. pursuant to a subpena we served upon them.

Mr. Hoffa told Mr. Maiullo that his only interest was to see that his men did not suffer any pay cut.

That is the principal substance of this memorandum.

The CHAIRMAN. That memorandum may be made exhibit No. 83. (Memorandum referred to was marked "Exhibit No. 83" for reference and will be found in the appendix on p. 17695.)

Mr. SALINGER. If we can make the contract part of that also, sir,. the 2-year contract signed between Marathon and the Kinsel Drug chain

The CHAIRMAN. You have already testified about that?

Mr. SALINGER. Yes, sir.

The CHAIRMAN. It will be made exhibit No. 83-A and the memorandum exhibit No. 82.

(Contract referred to was marked "Exhibit No. 83-A" for reference and may be found in the files of the select committee.)

Mr. SALINGER. A further memorandum found in the files of the same company, dated August 19, 1954, reflects two conversations, one between Mr. William Genematas and Mr. Downey, who made the affidavit, and the other between Mr. George, who was the manager of the Marathon Linen Co., Mr. Genematas, and Mr. Morris Coleman. In the first instance, Mr. Downey told Mr. Genematas that the reason they had enlisted Mr. Coleman in this matter was because

he had acted like a gentleman whenever Kinsel's had negotiated with him for drivers and warehousemen contracts. In fact, Mr. Coleman had gone out of his way to help Kinsel's in a difficult negotiation with a very radical agent of another local. Mr. Downey said he would like to return this favor if possible.

Further on in this memorandum it reflects the fact that Mr. George and Mr. Genematas went to visit Mr. Coleman, who told them that he had talked to no one about this but Mr. Monroe Lake, of the Michigan Linen Supply Board of Trade. Mr. Lake had been identified as the executive secretary of the association.

The CHAIRMAN. That may be made Exhibit No. 84.

(Memorandum referred to was marked "Exhibit No. 84" for reference and may be found in the files of the select committee.)

Mr. SALINGER. Of the following two memorandums, one is a letter from Mr. Genematas to Mr. Maiullo, and the second is a letter from Mr. Mauillo to Mr. Hoffa, reflecting the fact that the Marathon Linen Co., in order to meet Mr. Hoffa's objections about the price cut, negotiated a new contract with the Kinsel Drug chain which called for the exact same price that Progressive had paid.

In other words, there was going to be no pay cut, so that no one could say that the drivers were going to get less money, because they were going to charge them exactly the same as the previous supplier had charged.

As the letter to Mr. Hoffa points out, Mr. Maiullo writes:

I believe that the matter is now satisfactorily taken care of, and inasmuch as no member of any local in the joint council will suffer a reduction in wages because of the reduction in price, the union no longer has any interest in this matter and it will become a matter of exchange of business.

However, the record shows that the union continues to have an interest in it through Mr. Coleman, because on September 17, 1954, the Marathon Linen Service Co received a notice of cancellation from the Kinsel Drug chain.

The CHAIRMAN. Let's get those into the record. Do you have two letters?

Mr. SALINGER. Yes, sir.

The CHAIRMAN. The two letters may be made exhibits 85-A and 85-B, and the cancellation letter exhibit No. 85-C.

(Documents referred to were marked "Exhibits 85-A, 85-B, and 85-C" for reference and will be found in the Appendix on pp. 17696– 17698.)

Mr. SALINGER. Right after the cancellation, Mr. Maiullo again wrote a letter to Mr. Hoffa in which he stated the following, which I

think is significant in the question you asked a minute ago, Senator:

On September 21, 1954, my son Joe had a conference with Mr. Glen R. Miller, attorney for Kinsel's, with regard to the matter. Miller stated that Kinsel was reluctant to take the action it did, but was forced to, to avoid future union trouble. Miller further stated that Kinsel's relationship with Coleman had always been harmonious in the past and to insure future harmony he advised Kinsel's Mr. Bill Downey to accede to Coleman's demand that Kinsel again do business with Progressive Linen Co.

The CHAIRMAN. That letter may be made exhibit No. 85-D. (Letter referred to was marked "Exhibit No. 85-D" for reference and will be found in the appendix on p. 17699.)

The CHAIRMAN. Do I understand that Mr. Coleman had an interest in this Progressive Linen Co. ?

Mr. SALINGER. We have no indication that he had any interest in it. The implications of this correspondence and of the affidavit of Mr. Downey is that Mr. Coleman actively assisted the Progressive Linen Co., in getting the account of the Kinsel Drug Stores back from the Marathon Linen Co. and the further implication that he did so because the Marathon Linen Co. was outside of the association and the Progressive Linen Co. was inside the association.

It is important to bear in mind that both the Progressive Linen Co. and the Marathon Linen Co. both have Teamster Union contracts, so it was not a question of preferring one company over another because one was union and the other nonunion. They were both union firms. When Mr. Downey says in his affidavit that Mr. Coleman made more than a request, a letter from Mr. Genematas to Mr. Hoffa on October 12, 1954, quotes Mr. Downey as saying that Mr. Coleman came to him after the meeting in Mr. Hoffa's office, after which everything was supposed to have been settled, and said, "I don't care what has happened. I want you to go back to Progressive, and now, not

next week."

The CHAIRMAN. Who said that?

Mr. SALINGER. That is what Mr. Downey quoted Mr. Coleman as saying.

Mr. KENNEDY. The point of this is that this was after the meeting in Hoffa's office where they made a complaint to Hoffa that Coleman was doing this, was trying to cost them business, and Hoffa said he would straighten it out.

you

Shortly afterward, Coleman came back and said, "I don't care what think has been agreed to. You return the contract to Progressive." Mr. SALINGER. Yes. In fact, the understanding of what Mr. Hoffa said to them was that his main objection was that if it was a pricecutting matter, he didn't want the price war. But they had met that objection through the renegotiation of the new contract.

So far as they were concerned, they met Mr. Hoffa's objections. After that, Mr. Coleman still went back to Kinsel's Drug Stores and told them he wanted them to change back to the Progressive Linen Co. Following that, Marathon attempted for 4 months to get in touch with Mr. Hoffa to get it straightened out.

Finally, on September 28, 1954, Mr. Nick Genematas wrote a letter to Hoffa which stated in part:

For the last 4 months my sons Bill and George and Anthony Maiullo have been trying to see you. They have written and received no answer. I am writing and sending it to your home as I want you to be sure you will receive it.

Your office has been a party in helping to destroy the free enterprise of America. A year ago, Kinsel Drug Stores, upon finding a Progressive Linen driver stealing, attempted to change suppliers. The suppliers he called refused to serve him. When he found Marathon would and could serve him, he changed over.

After

he had signed the contract, he was forced to break it and return to his original supplier.

Your office was the cause of the contract being broken. The general opinion is that 30 pieces of silver have been used. No doubt you have been very busy with the international union and have not kept up with the happenings in Detroit.

That is signed by Mr. Genematas, president of the Kinsel Drug Co. The CHAIRMAN. That will be exhibit No. 86.

(Letter referred to was marked "Exhibit No. 86" for reference and may be found in the files of the select committee.)

Senator CURTIS. Was there a reply to that letter?

Mr. SALINGER. There was no reply in the files, and I understand there was no reply to it. The fact of the matter is that the Kinsel Drug Stores today are doing business with the Progressive Linen Co. Mr. KENNEDY. So it shows clearly that the union was used to interfere to obtain the business for the Progressive Co. ?

Mr. SALINGER. That is correct.

Mr. KENNEDY. And Mr. Coleman was the instigator?
Mr. SALINGER. That is correct.

Mr. KENNEDY. And the record also shows that despite the fact that this was all brought to the attention of Mr. Hoffa, no disciplinary action as far as the removal of Mr. Coleman was taken?

Mr. SALINGER. No. As a matter of fact, Mr. Hoffa was quoted in one of his letters as telling Mr. Coleman not to have anything to do with it, and despite that, Mr. Coleman continued to do this.

Mr. KENNEDY. And it was all brought to Mr. Hoffa's attention but nothing happened?

Mr. SALINGER. There are at least four or five letters to Mr. Hoffa, and we know of the meeting with Mr. Hoffa.

Mr. KENNEDY. Can you tell us about it, Mr. Coleman?

TESTIMONY OF MORRIS COLEMAN, ACCOMPANIED BY COUNSEL, H. CLIFFORD ALLDER-Resumed

Mr. COLEMAN. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

Mr. KENNEDY. You have your cigarette machines at the Progressive Linen Co., do you not?

Mr. COLEMAN. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

Mr. KENNEDY. You also have your machine at the Commercial Carriers Co.?

Mr. COLEMAN. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

Mr. KENNEDY. And that was the company that set Mr. Hoffa and Mr. Brennan up in the trucking business, was it not?

Mr. COLEMAN. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

Mr. KENNEDY. According to the records, Mr. Kaplan, did we find that Mr. Coleman received some money from local 876 of the Retail Clerks?

TESTIMONY OF ARTHUR G. KAPLAN-Resumed

Mr. KAPLAN. Yes, sir, in the year 1956.

Mr. KENNEDY. Now how much money did he receive?

Mr. KAPLAN. $1,250.

Mr. KENNEDY. He received a total of $1,250?

Mr. KAPLAN. Yes, sir.

Mr. KENNEDY. That was at the same time you were working for the Teamsters Union. Would you tell us what you did with the $1,250?

Mr. COLEMAN. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

The CHAIRMAN. Was it a bribe of some kind?

Mr. COLEMAN. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

Mr. KENNEDY. Would you tell us how you have been able to run the trucking company, get business for the Progressive Linen Co., run the Bruce Coffee Vending Co., run and help your wife operate the Bruce Vending Co., which runs these cigarette machines, help her by soliciting and obtaining locations, working on the books of account, and repairing machines, receiving money from the Retail Clerks, and also being a full-time business agent of the Teamsters? Would you tell us how you could do all those things?

Mr. ČOLEMAN. I respectfully decline to answer because I honestly believe my answer might tend to incriminate me.

Mr. KENNEDY. That is all, Mr. Chairman.

The CHAIRMAN. Are there any questions?

Mr. Coleman, you will remain under your present subpena, subject to being recalled at such time as the committee may desire to hear you further, upon reasonable notice being given to you or your attorney. Do you accept such recognizance?

Mr. COLEMAN. Yes, I do.

Mr. KENNEDY. Mr. Larry Welsh, Mr. Chairman.

The CHAIRMAN. Do you 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. WELSH. I do.

TESTIMONY OF LAWRENCE WELSH, ACCOMPANIED BY COUNSEL, H. CLIFFORD ALLDER

The CHAIRMAN. State your name, your place of residence, and your business or occupation.

Mr. WELSH. My name is Lawrence Welsh. I reside at 15851 Evergreen, Detroit, Mich.

The CHAIRMAN. Have you any sort of business or occupation? Mr. WELSH. I respectfully decline to answer the question and exercise my privilege under the fifth amendment to the U.S. Constitution not to be a witness against myself.

The CHAIRMAN. Do you have counsel?

Mr. WELSH. I do.

The CHAIRMAN. Counsel, identify yourself.

Mr. ALLDER. H. Clifford Allder, Washington, D.C.