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Mr. KENNEDY. And you never had any contact or discussions about it after that?

Mr. WOLPERT. I was out of the account, and I didn't wish

Mr. KENNEDY. You never had any conversations or discussions after that?

Mr. WOLPERT. I do not recall any.

Mr. KENNEDY. You would remember if you had, would you not? Mr. WOLPERT. I believe that I would.

Mr. KENNEDY. Did you have any conversations or discussions after that date on this matter?

Mr. WOLPERT. No, sir; I do not recall any.

Mr. KENNEDY. This was what date?

Mr. WOLPERT. I don't remember.

Mr. KENNEDY. 1955, I believe it was.

Mr. WOLPERT. Probably.

Mr. KENNEDY. Could I caall another witness, a short witness?

Mr. Goldfarb.

The CHAIRMAN. Do you solemnly swear that the evidence you shall give before this Senate select committee will be the truth, the whole truth, and nothing but the truth, so help you God?

Mr. GOLDFARB. I do.

TESTIMONY OF HARRY B. GOLDFARB

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

Mr. GOLDFARB. My name is Harry B. Goldfarb. I live at 1429 Milwood Lane, Merritt, N. Y., and I am a certified public accountant in the State of New York.

Mr. KENNEDY. How long have you been a certified public accountant?

Mr. GOLDFARB. Since 1952, I believe, Mr. Kennedy.

Mr. KENNEDY. Were you approached during 1955 to perform some work on the General Sanitation Co. ?

Mr. GOLDFARB. Yes; I was.

Mr. KENNEDY. Would you tell us what happened?

Mr. GOLDFARB. In what respect?

Mr. KENNEDY. First, by whom you were approached and what occurred after that.

Mr. GOLDFARB. I was called by a friend of mine, Dave Wolpert. Mr. KENNEDY. No relation to this Mr. Wolpert; is that right?

Mr. GOLDFARB. Not that I know of. He asked me would I be willing to handle an account on a sort of a fee basis, or share a fee basis, and he in turn told me to call Mel Wolpert, which I did.

Mr. KENNEDY. Did you get in touch with Mel Wolpert?

Mr. GOLDFARB. Yes.

Mr. KENNEDY. What conversations did you have with him?
The CHAIRMAN. Is that the other witness on the stand?

Mr. GOLDFARB. Yes, sir.

Mr. KENNEDY. What conversations did you have with him?

Mr. GOLDFARB. He simply gave me a rundown on the situation, and he told me that he felt that he couldn't handle this particular account because it wouldn't be ethical, since he had some connection with the

union which I didn't understand, and he asked me if I could handle it, and I said I would, and I did.

Mr. KENNEDY. Did he give you this sheet?

(Document handed witness.)

Mr. GOLDFARB. Yes; he did.

The CHAIRMAN. Let the record show that is exhibit No. 40. Exhibit 40 has been presented to the witness. Proceed.

Mr. KENNEDY. So he did give you that sheet of paper, did he not? Mr. GOLDFARB. Yes; he did.

Mr. KENNEDY. So he did have that activity after he drew up this memorandum or these worksheets; he did have that activity in connection with General Sanitation. Did you agree, then, to take this assignment?

Mr. GOLDFARB. Yes; I did.

Mr. KENNEDY. You took the account?

Mr. GOLDFARB. Yes.

Mr. KENNEDY. Did you work on the books and records?

Mr. GOLDFARB. Yes; I did.

Mr. KENNEDY. Did Mr. Wolpert make any statement to you about the fee that was to be paid?

Mr. GOLDFARB. No; he didn't.

Mr. KENNEDY. Was any statement made at a later time?
Mr. GOLDFARB. About the fee?

Mr. KENNEDY. Yes.

Mr. GOLDFARB. I determined the fee.

Mr. KENNEDY. What did you decide to charge?

Mr. GOLDFARB. $60 a month.

Mr. KENNEDY. Did you keep all of the money?

Mr. GOLDFARB. No; I didn't.

Mr. KENNEDY. What arrangements were made about that?

Mr. GOLDFARB. I paid Mr. Wolpert one-third.

Mr. KENNEDY. You gave Mr. Wolpert one-third of the fee?

Mr. GOLDFARB. Yes.

Mr. KENNEDY. $20?

Mr. GOLDFARB. $20.

Mr. KENNEDY. Over what period of time was that?

Mr. GOLDFARB. It would have been over a period of time that I handled the account. However, I don't believe I gave him $20 from the very first time, because we hadn't made any definite arrangements as to the distribution of the fee.

Mr. KENNEDY. How did you make a determination as to how much Mr. Wolpert was to receive?

Mr. GOLDFARB. Well, there was no formal method of making a determination. I simply asked him if it would be all right if I gave him one-third and I kept two-thirds.

Mr. KENNEDY. He understood this connection with General Sanitation?

Mr. GOLDFARB. Well, that I couldn't testify to, except of course judging by the exhibit

Mr. KENNEDY. I mean, he had given you this account, had he not? Mr. GOLDFARB. Well, he gave me the account. I don't know whether Mr. Wolpert knew that this was General Sanitation.

Mr. KENNEDY. Did he ever introduce you or talk to Mr. Squillante in your presence?

Mr. GOLDFARB. To which Mr. Squillante?

Mr. KENNEDY. Either Mr. Squillante. Vincent Squillante.
Mr. GOLDFARB. Vincent Squillante, yes.

Mr. KENNEDY. How did you meet Mr. Vincent Squillante?

Mr. GOLDFARB. He brought me up to the Madison Avenue address. I think that is the cartmen's association, and I met Mr. Squillante there.

Mr. KENNEDY. So Mr. Wolpert brought you to Mr. Squillante's office, is that right?

Mr. GOLDFARB. Yes, he did.

Mr. KENNEDY. And the purpose of bringing you there was to make arrangements on this account?

Mr. GOLDFARB. Apparently it was to get the O. K.

Mr. KENNEDY. Did Mr. Squillante give the O. K. at that time?

Mr. GOLDFARB. When you say, "did he give the O. K.?" there was no formal action there, either. As a matter of fact, as I remember the conversation, Mel Wolpert said "This is the fellow who is going to handle that account."

That is about all there was to it.

Mr. KENNEDY. Who did you make the arrangements with in connection with receiving the pay?

Mr. GOLDFARB. Mr. Donno.

Mr. KENNEDY. And those arrangements were O. K.'d; is that right? Mr. GOLDFARB. That is right.

Mr. KENNEDY. Then you had a further conversation with Mr. Wolpert about giving him the third?

Mr. GOLDFARB. That was quite a bit later.

Mr. KENNEDY. When was that?

Mr. GOLDFARB. I would say 2 or 3 months later.

Mr. KENNEDY. Did you write out checks to Mr. Wolpert?

Mr. GOLDFARB. Yes, I did.

Mr. KENNEDY. Are these the checks?

The CHAIRMAN. Let me have them.

I hand you here 4 checks, original checks, 3 of them in the amount of $20 each, 1 in the amount of $40.

I ask you to examine these checks and state if you identify them, and state for what purpose they were issued.

(Documents handed to witness.)

The CHAIRMAN. Have you identified the checks?

Mr. GOLDFARB. Yes, sir.

Mr. KENNEDY. Those are checks that you made to Mr. Mel Wolpert? Mr. GOLDFARB. Yes.

Mr. KENNEDY. As a third of the fee; is that right?

Mr. GOLDFARB. That is right.

Mr. KENNEDY. Did you have any discussions with him after this regarding this account?

Mr. GOLDFARB. Not regarding this account, no.

Mr. KENNEDY. Regarding the reports? Did you send him any reports?

Mr. GOLDFARB. I sent him reports from the very beginning.

Mr. KENNEDY. You sent him reports?

Mr. GOLDFARB. I sent him a copy. Either it would have been a penciled copy of my report, or a typewritten copy of the report. Mr. KENNEDY. How often did you send him a copy of the report?

Mr. GOLDFARB. I believe every month during the time that I did the accounting.

Mr. KENNEDY. Were you ever told to send a copy of the report to Jimmie Squillante?

Mr. GOLDFARB. I believe there was one time, yes.

Mr. KENNEDY. Who told you that?

Mr. GOLDFARB. Mel Wolpert.

Mr. KENNEDY. Mr. Wolpert told you at least on one occasion to send a copy of the report directly to Jimmie Squillante? Is that right?

Mr. GOLDFARB. Yes. I believe it was his home address.

Mr. KENNEDY. I believe that is all.

The CHAIRMAN. The checks will be made exhibit 41-A, B, C, and D. (The documents referred to were marked "Exhibits 41-A," "41-B,” "41-C," and "41-D" respectively, for reference and will be found in the Appendix on pp. 7049-7052.)

Mr. KENNEDY. While you kept the books and records, were there any payments made to the union on a checkoff system that you remember?

Mr. GOLDFARB. I wouldn't know about that.

Mr. KENNEDY. You do not know?

Mr. GOLDFARB, No.

Mr. KENNEDY. Would your reports show it if there had been any checkoffs made for the employees?

Mr. GOLDFARB. Not the reports, no, sir.

Mr. KENNEDY. Did you ever see any checkoffs?

Mr. GOLDFARB. I wouldn't recognize them. I would, perhaps, if it were noted as such. I mean, if there were checkoffs coming off the rolls, then as such it would have been indicated in the books.

Mr. KENNEDY. Did you see any payments to any welfare fund? Mr. GOLDFARB. Not that I recall.

Mr. KENNEDY. You do not?

Mr. GOLDFARB. I do not.

Mr. KENNEDY. Well, did you see any payments to the union of any kind?

Mr. GOLDFARB. Not that I recall.

The CHAIRMAN. Mr. Wolpert, according to your testimony, it would have been somewhat misleading, if the last witness has given us the facts. Are his statements correct?

Mr. WOLPERT. Yes, sir.

The CHAIRMAN. Is there anything further?

TESTIMONY OF BERNARD ADELSTEIN, ACCOMPANIED BY COUNSEL, DAVID SHIVITZ-Resumed

Mr. KENNEDY. I would like to ask Mr. Adelstein regarding General Sanitation, and the so-called Miracle Mile incident. Did General Sanitation make any payments to the union for their employees? Mr. ADELSTEIN. I can't recollect.

Mr. KENNEDY. We asked you to check it. Have you checked it in your books and records?

Mr. ADELSTEIN. You asked me for the contract.

Mr. SHIVITZ. Mr. Kennedy, at the request of Mr. Adlerman yesterday, I caused a telephone call to be made to the New York office to

determine whether any moneys had been paid from General Sanitation to the union or its pension or welfare funds. So far as they could determine on the telephone yesterday, no such payments were made. Mr. KENNEDY. Thank you. As I understand it, the books and records and all the contracts of local 813 were subpenaed by the district attorney in New York; is that right?

Mr. ADELSTEIN. Yes.

Mr. KENNEDY. Did you get a receipt from them on the contracts that you had turned over?

Mr. ADELSTEIN. Mr. Kennedy, I don't think they subpenaed us for the contracts. They asked for all the books and records.

Mr. KENNEDY. Did they also get the contracts?

Mr. ADELSTEIN. They got the contracts.

Mr. KENNEDY. Do you have the receipt?

Mr. SHIVITZ. In the interest of time, could I make a statement covering this point, with the chairman's permission?

Mr. KENNEDY. Yes.

Mr. SHIVITZ. May I?

Mr. KENNEDY. Will it expedite?

Mr. SHIVITZ. I believe so. I will give you all the facts with respect to the contracts as I have been able to ascertain, if you wish me to. Mr. KENNEDY. The attorney general, the district attorney, was to receive all the contracts that you had in your possession, was he? Mr. ADELSTEIN. What we could find at that time.

Mr. KENNEDY. And he gave you a receipt for those contracts?
Mr. ADELSTEIN. I believe he did.

Mr. KENNEDY. And on that list of contracts that he received from you there is no notation of General Sanitation, is there?

Mr. ADELSTEIN. I wouldn't know unless I looked at it.

(The witness conferred with his counsel.)

Mr. ADELSTEIN. Mr. Shivitz, my attorney, said he looked at it, and there isn't.

Mr. KENNEDY. Or Corsair Carting is also not listed; is that right? Mr. ADELSTEIN. We have a contract, or had

(The witness conferred with his counsel.)

Mr. ADELSTEIN. It isn't on that list, I am told.

Mr. KENNEDY. These were both firms in which Mr. Squillante or his relatives were interested; is that right?

Mr. ADELSTEIN. I wouldn't know if any of the relatives of Squillante were interested in Corsair Carting.

Mr. KENNEDY. You did not?

Mr. ADELSTEIN. I wouldn't know.

Mr. KENNEDY. The district attorney at that time was making an investigation of Mr. Vincent Squillante; is that right? That is why he wanted these books and records? It was not an investigation of 813. Mr. ADELSTEIN. It was a John Doe subpena.

Mr. KENNEDY. But did you understand he was investigating Mr. ADELSTEIN. I didn't know why he wanted our books and records. Mr. KENNEDY. But, anyway, you did not turn over the contracts of General Sanitation or Corsair; is that right?

Mr. ADELSTEIN. We found them in our office at a later date, with other contracts.

Mr. KENNEDY. When did you find them?

Mr. ADELSTEIN. With other contracts.

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