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Mr. ADLERMAN. I am referring to the one other than the telephone answering service.

Mr. KELLY. I refuse to answer on the ground that my answer may tend to incriminate me.

Mr. ADLERMAN. You do have an arrangement with Mr. McMahon under which you pay him $600 a week to have an automatic answering service for the customers of your sheets and they advertise your sheets at that time; is that right?

Mr. KELLY. I refuse to answer on the ground that my answer may tend to incriminate me.

Mr. ADLERMAN. Other than that, do you have any arrangements with anyone in Chicago to give race results, either quick results or the results of the U.P.I., quicker than they can get them from the telephone service that you have with Mr. McMahon?

Mr. KELLY. I refuse to answer on the ground that my answer may tend to incriminate me.

Mr. ADLERMAN. Do you know Mr. Ralph Emery?

Mr. KELLY. I refuse to answer on the ground that my answer may tend to incriminate me.

Mr. ADLERMAN. Do you know Mr. Joe Poretto?

Mr. KELLY. I refuse to answer on the ground that my answer may tend to incriminate me.

Mr. ADLERMAN. Do you know Joe Costello?

Mr. KELLY. I refuse to answer on the ground that my answer may tend to incriminate me.

Mr. ADLERMAN. Do you have any arrangements with any of those gentlemen, or with Carlos Marcello, about giving news service to Nola Printing Co. or Nola News of New Orleans !

Mr. KELLY. I refuse to answer on the ground that my answer may tend to incriminate me.

Mr. ADLERMAN. Do you know what Emery's real name is?

Mr. KELLY. I refuse to answer on the grounds that my answer may tend to incriminate me.

Mr. ADLERMAN. Is he the son of the notorious Vincenzo Ammirato?

Mr. KELLY. I refuse to answer on the ground that my answer may tend to incriminate me.

Mr. ADLERMAN. Did you ever have any arrangements with Ammirato?

Mr. KELLY. I refuse to answer on the ground that my answer may tend to incriminate me.

Mr. ADLERMAN. Mr. Gallagher, Mr. McMahon has been subpenaed. You are aware of that?

Mr. GALLAGHER. Yes, sir.
Mr. ADLERMAN. Do you represent him?
Mr. GALLAGHER. Yes, sir.

Mr. ADLERMAN. Did you submit to me an affidavit from a physician to the effect that he was too ill to appear?

Mr. GALLAGHER. Yes, sir.

Mr. ADLERMAN. And did you submit to me an affidavit stating what arrangement he had with the Illinois Sports Service and the way he operates? Mr. GALLAGHER. Yes, sir. Mr. ADLERMAN. I offer the affidavit in evidence.

The CHAIRMAN. Is this one of the witnesses that was subpenaed that could not come because of illness?

Mr. ADLERMAN. That is right, and this is the doctor's affidavit.

The CHAIRMAN. This is an affidavit, the State of Illinois, county of Cook, affidavit of Raymond J. McMahon:

I, Raymond J. McMahon, reside at 8346 South Marshfield Avenue, Chicago, Ill., having first been duly sworn, do on oath depose and say:

My wife, Berneice McMahon and I own Telephone News System, Inc., located at 81 West Van Buren Street, Chicago, Ill. I operate Telephone News System, Inc., with one part-time employee.

I have been engaged in this business since April 23, 1956. Prior to September 1955 I was in the meat business for 26 years. I suffered a coronary attack in September of 1955 and was completely inactive until April of 1956. My illness necessitated a complete change of employment, one much less arduous, physically, at which time I purchased Telephone News System, Inc., from Robert W. Ward. I have no criminal record.

Do you know Mr. Ward, Mr. Kelly? Robert W. Ward?

Mr. KELLY. I refuse to answer on the grounds I might tend to incriminate me.

The CHAIRMAN. Very well. Telephone News System, Inc., has a United Press printer from which it obtains scratches and race results. After such results are received, by use of an 8-A automatic answering device, owned and rented by Illinois Bell Telephone Co., these results are recorded and can be obtained by anyone, simply by telephoning the recorded number, which is Webster 9–1900.

Telephone News System, Inc., has 60 incoming lines into this recording machine, which the Illinois Bell Telephone Co. service, together with the recording machine, for a charge of $672.18 per month. This service is rendered pursuant to an oral contract. There are no telephone lines reserved for any per

There is only one outgoing telephone which is a coin-operated telephone, the number of which is Webster 9–8010. No racing results are given over this latter telephone at any time.

Telephone News System, Inc., receives its sole income from Illinois Sports News, 906 South Wabash Avenue, Chicago, Ill., and for which payment is presently $600 per week.

Is that Mr. Kelly's group?
Mr. ADLERMAN. That is correct.
The CHAIRMAN. Is that right, Mr. Kelly ?

Mr. KELLY. I refuse to answer on the grounds that my answer may tend to incriminate me.

The CHAIRMAN. (reading):
Telephone News System, Inc., advertises the Green Sheet * *
Is that the same thing we have been talking about here today?
Mr. ADLERMAN. One of the publications.

The CHAIRMAN. I thought maybe Mr. Kelly would want to be helpful.

Mr. KELLY. I refuse to answer on the grounds that my answer may tend to incriminate me.

The CHAIRMAN. (reading): * * * owned by Illinois Sports News on a 24-hour basis. This business arrangement was negotiated by me with Thomas Kelly, Sr. * *

Are you senior or junior?

Mr. KELLY. I refuse to answer on the ground that my answer may tend to

(The witness conferred with his counsel.)

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Senator Jackson. He already answered that when he gave his name.

The CHAIRMAN. I don't know. I don't know which should be ashamed of the other, if he puts it on that basis.

Do you want to straighten it out? With Thomas Kelly, Sr., and Thomas Kelly, Jr., two of the owners of Illinois Sports News, and continues pursuant to an oral agreement.

I guess that agreement is still in effect. Is that what he means?

Mr. KELLY. I refuse to answer on the grounds that my answer may tend to incriminate me.

The CHAIRMAN (reading): Since Telephone News System, Inc., does not have a meter, I cannot state, accurately, just how many telephone calls are made for racing results. I have been advised orally, however, by Illinois Bell Telephone Co. employees that said number approximates 40,000 to 50,000 calls during a 24-hour day. Our news is available on a 24-hour basis.

I have prepared this aftidavit with the knowledge that it may be incorporated into the record of the hearing presently scheduled to commence on August 22, 1961, in Washington, D.C., before the McClellan committee.

It is signed “Raymond J. McMahon.”
It will be printed in full in the record at this point.
(The affidavits referred to are as follows:)

AFFIDAVIT OF RAYMOND J. MCMAHON
STATE OF ILLINOIS
County of Cook, ss :

I, Raymond J. McMahon, reside at 8346 South Marshfield Avenue, Chicago 20, nl., having first been duly sworn, do on oath depose and say:

(1) My wife, Berneice McMahon, and I own Telephone News System, Inc., located at 81 West Van Buren Street, Chicago, Ill. I operate Telephone News System, Inc., with one part-time employee.

(2) I have been engaged in this business since April 23, 1956. Prior to September 1955 I was in the meat business for 26 years. I suffered a coronary attack in September of 1955 and was completely inactive until April of 1956. My illness necessitated a complete change of employment, one much less arduous, physically, at which time I purchased Telephone News System, Inc., from Robert W. Ward. I have no criminal record.

(3) Telephone News System, Inc., has a United Press printer from which it obtains scratches and race results. After such results are received, by use of an 8-A automatic answering device, owned and rented by Illinois Bell Telephone Co., these results are recorded and can be obtained by anyone, simply by telephoning the recorded number, which is Webster 9–1900.

(4) Telephone News System, Inc., has 60 incoming lines into this recording machine, which the Illinois Bell Telephone Co. service, together with the recording machine, for a charge of $672.18 per month. This service is rendered pursuant to an oral contract. There are no telephone lines reserved for any person. There is only one outgoing telephone, which is a coin-operated telephone, the number of which is Webster 9–8010. No racing results are given over this latter telephone at any time.

(5) Telephone News System, Inc., receives its sole income from Illinois Sports News, 906 South Wabash Avenue, Chicago, Ill., and for which payment is presently $600 per week. Telephone News System, Inc., advertises the Green Sheet, a racing publication, owned by Illinois Sports News, on a 24-hour basis. This business arrangement was negotiated by me, with Thomas Kelly, Sr., and Thomas Kelly, Jr., two of the owners of Illinois Sports News, and continues pursuant to an oral agreement.

(6) Since Telephone News System, Inc., does not have a meter, I cannot state, accurately, just how many telephone calls are made for racing results. I have been advised, orally, however, by Illinois Bell Telephone Co. employees that said number approximates 40,000 to 50,000 calls during a 24-hour day. Our news is available on a 24-hour basis.

(7) I have prepared this affidavit with the knowledge that it may be incorporated into the record of the hearing, presently scheduled to commence on August 22, 1961, in Washington, D.C., before the McClellan committee.

RAYMOND J. MCMAHON, Telephone News System, Inc. Subscribed and sworn to before me this 7th day of August 1961.

EDWARD J. FINNEGAN, Notary.

AFFIDAVIT RE RAYMOND J. MCMAHON
STATE OF ILLINOIS,
County of Cook, 88:

I hereby state that I do not believe that Mr. McMahon's tentative oppointment to appear before the Senate investigating committee would be good judgment and could be very injurious to his present physical condition.

Mr. McMahon is active daily, but should not be under stress or strain of any kind. Records are on file at the Little Company of Mary Hospital, here in Chicago, and can be examined, if need be, verifying Mr. McMahon's confinement as a cardiac for 9 consecutive weeks, beginning in September of 1955 and further confinement after his ospital release, to his home, until April of 1956.

He suffered a recurrence again in August of 1959 and was then confined again for a period of 30 days—due to pressure and overactivity, which I have stressed must be limited to remain well.

Mr. McMahon, of course, is on daily medication to guard against further heart failure and is examined regularly.

JOHN H. KEEHAN, M.D.,

Chicago, Ill. Subscribed to and sworn to before me this 1st day of August 1961.

EDWARD J. FINNEGAN, Notary. The CHAIRMAN. Do you wish to comment on that in any way as to whether you are connected, disconnected, or otherwise with it?

Mr. KELLY. I refuse to answer to the ground that my answer may tend to incriminate me.

(At this point Senator Curtis entered the hearing room.) The CHAIRMAN. Is there anything further on that?

Mr. ADLERMAN. I think it is worth commenting, Mr. Chairman, that we have had talk about how many bookmakers there are and the amount of betting off the track. I think this is an illustration of the amount of betting that goes on off the track, displaying the interest that the people have in betting by making telephone calls.

The CHAIRMAN. Would you say, Mr. Kelly, that those making the calls, 40,000 to 50,000 a day, were bettors, trying to get race result information ?

Mr. KELLY. I refuse to answer on the ground that my answer may tend to incriminate me.

The CHAIRMAN. You have a pretty good idea of the volume of business done. Would you say 40,000 to 50,000 a day betting on races in your vicinity and covered by your service is about a proper number, a good estimate, an educated guess, or something?

Mr. KELLY. I refuse to answer on the ground that my answer may tend to incriminate me.

The CHAIRMAN. All right, Mr. Counsel.

Mr. ADLERMAN. I would suggest at this time that Mr. Kelly stand by and I would like to call another witness.

(At this point Senator Curtis withdrew from the hearing room.) The CHAIRMAN. Are there any questions at this point ?

You will be recalled, Mr. Kelly, but for the moment you may stand aside. I hope you will stay and stay in hearing distance of the next witness. You might wish to make a little comment afterward.

Mr. KELLY. Thank you, sir.
The CHAIRMAN. Call the next witness.
Mr. ADLERMAN. Mr. Harry Gorman.

The CHAIRMAN. I believe you were sworn yesterday in executive session, but you will be sworn again.

Do you solemnly swear that the evidence you shall give before this Senate subcommittee shall be the truth, the whole truth, and nothing but the truth, so help you God?

Mr. GORMAN. I do.

TESTIMONY OF HARRY F. GORMAN

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

Mr. GORMAN. Harry F. Gorman, 5715 North Meridian, Indianapolis, Ind.

The CHAIRMAN. What is your present business, Mr. Gorman?
Mr. GORMAN. I am retired, Senator.
The CHAIRMAN. You are not now employed ?
Mr. GORMAN. Involuntary retirement.
The CHAIRMAN. You are not now employed ?
Mr. GORMAN. No, sir.
The CHAIRMAN. When did you retire?
Mr. GORMAN. February 6, 1961.
The CHAIRMAN. This year?
Mr. GORMAN. Correct.
The CHAIRMAN. Mr. Counsel, do you want to proceed?

Mr. ADLERMAN. Mr. Gorman, had you run a horse race wire service until February 1961

Mr. GORMAN. I was in the business of transmitting horse information.

Mr. ADLERMAN. And that is the results of the races and running accounts of the races?

Mr. GORMAN. That is true.
Mr. ADLERMAN. Can you hear me all right?
Mr. GORMAN. Yes, sir.
Mr. ADLERMAN. What name did

you run under ?
Mr. GORMAN. Capital City Publishing Co.
Mr. ADLERMAN. Did

you

other names ? Mr. GORMAN. Do you mean to get my telephones? Mr. ADLERMAN. That is right.

Mr. GORMAN. In order to secure my telephones, I had to use fictitious names. I used two sets of names, the Automatic Equipment Co. and the Mason Decorating Co.

Mr. ADLERMAN. And how many telephones did you have?
Mr. GORMAN. Sixteen.
Mr. ADLERMAN. Sixteen telephones?
Mr. GORMAN. Right.
The CHAIRMAN. Do you mean at one time, in operation at one time?
Mr. GORMAN. That is true, Senator.

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