Mr. NATHAN SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. The CHAIRMAN. Will you answer this question, Mr. Shefferman, for our information: I had some serious doubts about the accuracy of the testimony of the witness, Mr. Katz. There were two checks presented to him which he identified, photostatic copies of checks, one dated April 4, 1953, in the amount of $500, the other dated the same date, April 4, 1953, in the amount of $2,300. He claimed that these checks were given him, and that the only service he performed for them was to go out to this plant on one morning and one afternoon and take a look to see if he could identify any Communists there at that plant that were from the west coast. It certainly sounded to me like it was a most generous reward or compensation for such apparently slight service. The record remains that way, unless you are willing to correct it. I can't conceive of you as a businessman paying out that much money for that purpose, and for no more service than was rendered, because he said he found no Communists. Would you care to explain that and give us some information as to what this money was really paid to him for, and what service he rendered? Mr. NATHAN SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. The CHAIRMAN. Those checks, as I recall, have already been made exhibits. Mr. KENNEDY. Yes. Going on from that company to the Morton Frozen Foods, do you know Mr. George Faunce of the Continental Baking Co.? Mr. NATHAN SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. Did you arrange for Mr. Faunce to have Mr. James Cross send the bakery workers union into the plant in Webster City. Iowa? Mr. NATHAN SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. Do you know Mr. James Cross of the bakery union? Mr. NATHAN SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. I understand that the contract involved there was written in your office, according to testimony before the committee. Is that correct? Mr. NATHAN SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. Mr. Shelton Shefferman, could I ask you about Sears Roebuck Co., what information you have about the Sears Roebuck drive up in Boston? Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. Did you know that a vote "no" committee was being established there? Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. And payments were being made to the Sears Roebuck Employees Council, which, according to Sears Roebuck, was the bargaining unit for the Sears Roebuck store? Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. And that the arrangements had been made to bring the teamsters union in there also? Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. And that one of those who were interested in bringing the teamsters union in had their car purposely wrecked so that it would reflect on the Retail Clerks Union? Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. I understand that through Mr. Nathan Shefferman, Mr. John Lind, who had been active for the retail clerks, received a job with the Laundry Workers Union. Is that right, Mr. Shefferman? Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. And that he then proceeded to work for the teamsters union in this drive amongst the Sears Roebuck employees? Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. Would you tell us anything about the activities of Mr. Louis Jackson in the New York area? (The witness conferred with his counsel.) Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. Or Mr. George Kamenow in the Detroit, Mich., area? Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. We also had some slightly different testimony regarding the purchase of the land for the Teamsters Building over here, Mr. Shefferman, since you last appeared. The information that was testified to before the committee was that the American Legion was first asking $15 a square foot, and you made a suggestion that it be increased to $18 a square foot, and then the money could be split between you and Shelton Shefferman and Mr. Beck and certain othersif there is a correction in the testimony Mr. Shefferman can make itand these individuals refused to go along with this, and that ultimately the building or the land was sold to the teamsters for $15 a square foot rather than $18 a square foot, and then you approached the representatives of the American Legion and asked them to tell the teamsters that you were responsible for getting it down from $18 a square foot to $15 a square foot, so that you would get a commission, and that you thereby saved the teamsters $75,000, and, in fact, you did get a commission of $12,000. Can you tell us or give us any explanation of your activities in that case, Mr. Shefferman? Mr. CLINTON. Mr. Chairman, that transaction is directly involved in the west coast indictment, sir. The CHAIRMAN. The Chair can appreciate that it may be involved in that and, of course, you will recall that there is testimony that Mr. Beck actually received some of this money, and that could be in volved in a conspiracy with Mr. Beck. Therefore, the Chair will rule you do not have to answer that question at this time. Mr. KENNEDY. The problem, of course, Mr. Chairman, is that Mr. Shefferman has testified when he appeared here before that he gave $8,000 to Mr. Beck shortly after this, within a month of the time that he received this $12,000, and he stated at that time that he gave it to him just as a friend. According to what we developed before our committee, there was some different reason for giving it. I didn't know whether he wanted to clarify it at this time. The CHAIRMAN. If the witness does not want to answer the question, in view of the indictment that might involve some of these funds as a part of Mr. Beck's income, the Chair will not insist on the witness answering. On that one, you may state that you prefer not to answer it, if you desire. (The witness conferred with his counsel). Mr. KENNEDY. I might ask Mr. Shelton Shefferman one other question: In connection with the Mengel Co. in Laurel, Miss., according to the information we have, some $800 was spent by you and others to hire nonunion truckers to go through the picket line over a period of a week or 10 days. Is that right? Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. We understand also that you visited the Mennen Co. during 1953, is that right? Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. What were you doing there at that time, in that company? Mr. SHELTON SHEFFERMAN. I respectfully decline to answer on the grounds that my answer might tend to incriminate me. Mr. KENNEDY. Mr. Chairman, there is another matter that I would like to put into the record through Mr. Bellino, and then ask Mr. Shefferman a couple of questions on it. The CHAIRMAN. Mr. Bellino has been sworn. stand, Mr. Bellino. You may take the TESTIMONY OF CARMINE S. BELLINO-Resumed The CHAIRMAN. All right, Mr. Counsel. Mr. KENNEDY. Have you made an examination of the records of Mr. Shefferman to determine the total amount of purchases made by Mr. Shefferman, senior, and junior, for certain individuals at cutrate prices, wholesale prices? Mr. BELLINO. Yes, sir. An examination has been made by myself and others on the staff. Mr. KENNEDY. Under your direction? Mr. BELLINO. Under my direction, yes, sir. Mr. KENNEDY. Can you tell the committee what the total amount is for purchases that were made by Mr. Nathan and Shelton Shefferman for individuals? Mr. BELLINO. The total purchases for the period from 1948 through 1956 aggregated approximately $478,451.79, There were approxi mately 421 various individuals who purchased merchandise through Nathan Shefferman. Of this number, approximately 95 have been identified as union officials, including union attorneys. Mr. KENNEDY. What would be approximately the discount rate that Mr. Shefferman was able to receive? Mr. BELLINO. We understand that he was given in some cases 40 percent and in other cases less. We computed that if he had given a discount of 40 percent from the actual retail cost, of the $478,451.79, it would have been $779,419.65. The CHAIRMAN. Let's see. You don't mean that the 40 percent was on each item, do you? Mr. BELLINO. On that basis. Using a 20 percent figure, the total retail cost would have been $598,064.74. In other words, using the lesser figure, there is a saving of at least $119,612.95. Mr. KENNEDY. Split between these some 421 individuals? Mr. BELLINO. Yes, sir. Mr. KENNEDY. The greatest amount of number and volume of purchases were made by Mr. Dave Beck and his family; is that right? Mr. BELLINO. That is correct. Mr. KENNEDY. And we have already been into that matter. Mr. BELLINO. Yes, sir. Mr. KENNEDY. We have selected, have we not, the purchases that were made for individuals? Mr. BELLINO. Yes, sir. Mr. KENNEDY. And we have contacted a number of those individuals to determine whether they in fact paid for these purchases or whether Mr. Shefferman paid for them? Is that right? Mr. BELLINO. Yes, sir. Mr. KENNEDY. Would you tell the committee-on those on which we could not get a complete explanation, would you tell the committee who was the next highest after Mr. Dave Beck's family? Mr. BELLINO. One of the next highest was John F. English, secretary-treasurer of the international teamsters. The records shows that for the period from 1948 through 1955, he purchased a total of $19,611.59. Mr. KENNEDY. Have we spoken to Mr. English to try to obtain his canceled checks for the purchases of these items? Mr. BELLINO. Yes, sir. Mr. English has produced canceled checks that he has available and they aggregate $14,221.75. On the balance of $5,389.84 we have as yet no evidence for their actual payment. However, Mr. English maintains, and he is willing to furnish an affidavit to that effect, that he has paid for all merchandise which he has obtained from Mr. Shefferman. The CHAIRMAN. Were any of those payments made out of union funds, those from Mr. English? Mr. BELLINO. No, sir. One of the other large ones was Thomas Flynn Senator MUNDT. Before we drop Mr. English, is he going to continue looking for other canceled checks and receipts for cash payments? Mr. BELLINO. Yes, sir. He is endeavoring to get the information through his bank. Senator MUNDT. He contends he paid for everything? Mr. BELLINO. Yes, sir. The CHAIRMAN. I thought in all fairness to Mr. English the record should be made clear if it was not paid by union funds. I think in 89330 0-57-pt. 16-22 the case of Mr. Beck some large part if not all of the $95,000 was paid in union funds. Mr. BELLINO. That is right. The CHAIRMAN. I didn't want to leave the record with any implica tion against Mr. English. Senator MUNDT. Did you find out from Mr. English how it happended that he had this extensive business relationship with Mr. Shefferman? Mr. BELLINO. How it happened? Senator MUNDT. Yes. What was his explanation? Do we have his version in the record? Mr. BELLINO. As I understand it, it was a means where they could buy merchandise at a discount, and every one was willing to take advantage of Mr. Shefferman's generosity. Senator MUNDT. Was Mr. Shefferman doing any favors for Mr. English, or was it just a friendly relationship? Mr. BELLINO. Mr. English has indicated that he has done no favors for him, or either way. Senator MUNDT. Either way. Mr. KENNEDY. When did you first contact Mr. English regarding this matter? Mr. BELLINO. The first time we mentioned it to him was several months ago, but we did not contact him again until, I believe, last week. Mr. KENNEDY. And at that time he stated that he was turning over all his canceled checks that he had in connection with this matter: is that right? Mr. BELLINO. Yes, sir. Mr. KENNEDY. And he has turned over all that he has as of this time? Mr. BELLINO. That is correct. Mr. KENNEDY. Now would you go on? Mr. BELLINO. Another one is Mr. Thomas Flynn. From 1948I might say Mr. Flynn is head of the Eastern Conference of Teamsters. From 1948 through July 1955, with two additional purchases in subsequent years, the total purchases amounted to $22,046.69. He paid up to December 31, 1956, $18,593.35, and there was still owing at the end of December 31, 1956, $3,453.34. From the time that this committee commenced its labor investigation until the present time, that is, in 1957, Mr. Flynn has paid $3,058.44, leaving a balance still due Shefferman of $394.90. Mr. Flynn likewise claims-well, in this case he states the figures are in accordance with his understanding, that the balance of approximately $400 is owed to Shefferman by one of his sons. He indicated his son intends to pay the balance. The CHAIRMAN. None of that was paid out of union funds? correct. Mr. KENNEDY. As I understand it, there was a charge account arranged for Mr. Flynn at the Sears, Roebuck store in Indianapolis! Mr. BELLINO. Yes, sir. I believe each month the bills that were incurred by Mr. Flynn at the Indianapolis store of Sears, Roebuck would be sent to Shefferman for payment, and then Shefferman in turn would bill Mr. Flynn. |