INVESTIGATIONS OF IMPROPER ACTIVITIES IN THE

LABOR OR MANAGEMENT FIELD

WEDNESDAY, JULY 1, 1959

U.S. SENATE,

SELECT COMMITTEE ON IMPROPER ACTIVITIES
IN THE LABOR OR MANAGEMENT FIELD,

Washington, D.C. The select committee met at 10:15 a. m., pursuant to Senate Resolution 44, agreed to February 2, 1959, in the caucus room, Senate Office Building, Senator John L. McClellan (chairman of the select committee) presiding.

Present: Senator John L. McClellan, Democrat, of Arkansas; Senator Sam J. Ervin, Jr., Democrat, of North Carolina; Senator Frank Church, Democrat, of Idaho; Senator Barry Goldwater, Republican, of Arizona; Senator Carl T. Curtis, Republican, of Nebraska.

Also present: Robert F. Kennedy, chief counsel; Paul J. Tierney, assistant counsel; Arthur G. Kaplan, assistant counsel; George M. Kopecky, assistant counsel; George H. Martin, assistant counsel; Sherman S. Willse, investigator; Ruth Y. Watt, chief clerk. The CHAIRMAN. The committee will be in order.

(Members of the select committee present at the convening of the session were Senators McClellan, Church, and Goldwater.)

The CHAIRMAN. I am advised by the chief counsel that certain testimony will be developed today in connection with two very important figures in the Teamsters Union, particularly local 805, and I have a statement here that I will have inserted in the record at this point. It is just a brief statement of the Chair.

Among other things, it points out that in spite of previous revelations with respect to one Abe Gordon, who is now a vice president of local 805 and is also administrator of that local's welfare and pension fund, and also a Milton Holt, who is secretary-treasurer of that local, in spite of their criminal connections and criminal records and the exposures heretofore made, they still remain in office, which further emphasizes in my mind that there is no intention on the part of Mr. Hoffa to clean up the union and to get rid of these elements that are a disgrace to decent unionism in this country.

The statement will be entered in the record, and the press may have a copy if it likes.

(The statement of the Chair follows:)

OPENING REMARKS OF SENATOR MCCLELLAN

The record before the committee for 21⁄2 years emphasized the reluctance on the part of James R. Hoffa to clean up the Teamsters Union by removing from office certain officials who have been adjudged guilty of criminal offenses, or those known for their long association with top racketeers and hoodlums.

The hearings today will involve another such case in point. The union concerned is local 805 of the International Brotherhood of Teamsters in New York. The vice president of local 805 is one Abe Gordon. Abe Gordon is also administrator of the local's welfare and pension funds. The manner in which he administers those funds will be developed in the testimony today.

The committee is not, of course, fully aware of the scope of Mr. Gordon's advisory talents. We do know, however, that during the appearance of Mr. Hoffa before the committee last August, Mr. Gordon remained for 3 days in the Teamsters headquarters across the street. Mr. Hoffa so testified.

Both before and since Mr. Hoffa's ascendancy to the presidency of the Teamsters' international, we find Mr. Gordon at Mr. Hoffa's side. He was with him, for instance, during both of Mr. Hoffa's trials in New York. He has been with him at conferences in Florida. When Hoffa was trying to get the "paper local" delegates seated in joint council 16 in New York to insure the election of Hoffa's friend John O'Rourke as president of the council, in the forefront of this activity, as we expect to show in the testimony, were Abe Gordon and his long-time friend and associate, the notorious Johnny Dio.

The committee expects to develop testimony which will show that the case of Abe Gordon is one of curious transformation from trucking company operator to union leader; that his rise to eminence in the Hoffa hierarchy has occurred despite his known association with leading New York racketeers and hoodlums, including many in the most despicable of all criminal categories-the traffickers in narcotics.

We expect to offer evidence that his business associates were men with criminal records; that his employees preponderantly were men with criminal records, and that the roster of local 805's officers includes men with criminal records. One of them, a trustee of the union, was before the committee last week. His record included a conviction for murder and convictions for violations of the narcotics laws.

The secretary-treasurer of local 805, Milton Holt, has a criminal record. He took the fifth amendment in a previous appearance before the committee.

When Mr. Hoffa was before the committee last August he admitted that he had made no effort to remove either Gordon or Holt. In Holt's case, Hoffa said no action had been taken because the case against him was still pending. Holt had been indicted for perjury in the same case in which Johnny Dio and John McNamara were convicted of extortion. Holt has since pleaded guilty, has been fined and has been given a suspended jail sentence but still has not been removed from office.

The committee expects to develop additional evidence for the information and guidance of Mr. Hoffa-and for any other interested parties in the cases of both Abe Gordon and Milton Holt.

The CHAIRMAN. Let us proceed.

Mr. KENNEDY. Mr. Paul Tierney, Mr. Chairman.
The CHAIRMAN. Have you been sworn?

Mr. TIERNEY. Yes.

TESTIMONY OF PAUL J. TIERNEY-Resumed

Mr. KENNEDY. Mr. Tierney's testimony will be short. I just want to get the background of Mr. Abe Gordon as far as the welfare and pension funds are concerned. Later on we will go into it in more detail.

Was Mr. Gordon the head of the pension fund in 1953?

Mr. TIERNEY. He was. Mr. Abe Gordon was administrator of the local 805 welfare fund.

The CHAIRMAN. You say he was?

Mr. TIERNEY. And he is, sir.

The CHAIRMAN. He was then and he is now ?

Mr. TIERNEY. Yes, sir.

The CHAIRMAN. I wanted to get that clear.

Mr. KENNEDY. We expect to have a witness who will go into more detail in analyzing these activities in the welfare fund; is that correct? Mr. TIERNEY. That is correct.

(At this point Senator Goldwater withdrew from the hearing room.) Mr. KENNEDY. There is just one matter.

Do we find that the welfare fund made a purchase of a plot of land and a camp back in 1953?

Mr. TIERNEY. Yes, sir. On October 29, 1953, local 805 welfare fund entered into a contract to purchase and did purchase some 490 acres near Wurtsboro, N.Y., which was eventually used for a summer camp for the local.

The CHAIRMAN. That was purchased with welfare funds?

Mr. TIERNEY. It was purchased by the welfare fund, with welfare fund money.

The CHAIRMAN. From whom was it purchased?

Mr. TIERNEY. From one Edward Robbins, who was a cousin of Abe Gordon, the administrator of the local.

Mr. KENNEDY. How much money was paid for the plot of land?

Mr. TIERNEY. A total of $85,000 was paid for the land. There was a down payment of $70,000.

The CHAIRMAN. How much was that?

Mr. TIERNEY. A down payment of $70,000, and they assumed a $15,000 mortgage.

Mr. KENNEDY. So a total of $85,000 was paid?

Mr. TIERNEY. Yes, sir.

The CHAIRMAN. Where were these lands located?

Mr. TIERNEY. They were located at Wurtsboro, N.Y., or near the town of Wurtsboro, N.Y.

The CHAIRMAN. How far is that from somewhere?

Mr. TIERNEY. Wurtsboro, I judge, is about 90 miles from New York City, Senator, north of New York City, in the Catskill Mountains. Mr. KENNEDY. I would like to call Mr. Joseph Lloyd, Mr. Chairman. The CHAIRMAN. Will you come around, please?

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. LLOYD. I do.

TESTIMONY OF JOSEPH P. LLOYD

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

Mr. LLOYD. Joseph P. Lloyd, Bloomingburg, N.Y. My business is chairman of the board of assessors of the town of Mamakating. The CHAIRMAN. How long have you held that position?

Mr. LLOYD. Thirteen or fourteen years.

The CHAIRMAN. The last 13 or 14 years?

Mr. LLOYD. Yes, sir.

The CHAIRMAN. Do you waive counsel?
Mr. LLOYD. I do.

Mr. KENNEDY. You are chairman of the board of assessors of the

town of Mamakating?

Mr. LLOYD. That is right.

Mr. KENNEDY. And, as chairman of the board of assessors, you are responsible for assessing property; is that right?

Mr. LLOYD. That is right.

Mr. KENNEDY. And Wurtsboro, N.Y., is within the jurisdiction of your board?

Mr. LLOYD. It is.

Mr. KENNEDY. Now, were you a member of the board of assessors at the time local 805, or its welfare fund, purchased some 490 acres? Mr. LLOYD. I was.

Mr. KENNEDY. For a resort, from Mr. Edward Robbins; is that right?

Mr. LLOYD. That is right.

The CHAIRMAN. How close is that to the town, this tract of land? Mr. LLOYD. I am sorry, Senator.

The CHAIRMAN. How close is this tract of land to the town of Wurtsboro?

Mr. LLOYD. Approximately 2 miles.

The CHAIRMAN. How large a town is Wurtsboro?

Mr. LLOYD. Wurtsboro is a very small town; I really don't know exactly, but I should say 1,000 population. That is a guess, Senator. The CHAIRMAN. It is a kind of a village.

Mr. LLOYD. Yes; it is a village.

Mr. KENNEDY. You have been responsible for the assessment of the property, this piece of property?

Mr. LLOYD. I have.

Mr. KENNEDY. And you held that position during the period of time in which this purchase was made, by the welfare fund?

Mr. LLOYD. I have.

Mr. KENNEDY. Now, what was the value of the property at the time that local 805 made a purchase of it for $85,000? What was your value, or what did you value the land at that time for?

Mr. LLOYD. Do you mean, sir, the assessment value?

Mr. KENNEDY. No. What you would consider the value of the

erty.

The CHAIRMAN. What did you assess it for at the time?

prop

Mr. LLOYD. It was assessed for some $10,000, and its retail value was certainly not over $20,000 or $25,000.

The CHAIRMAN. What is your yardstick there for assessment? What do you undertake to use?

Mr. LLOYD. The New York State considers our figure of equalization to be 34 percent.

The CHAIRMAN. In other words, you undertake to assess it at 34 percent of its actual value?

Mr. LLOYD. Yes.

The CHAIRMAN. And you had assessed this for $10,000?

Mr. LLOYD. Approximately. Was it $10,000 or $10,500?

Mr. KENNEDY. It was $10,500.

The CHAIRMAN. That was its assessed value?

Mr. LLOYD. Yes, sir.

The CHAIRMAN. That is what year?

Mr. KENNEDY. That was in 1952.

Now I might point out, that was for 640 acres, and the purchase here by local 805 welfare fund was only for 490 acres.

The CHAIRMAN. This $10,500 was for 640 acres; is that correct?

Mr. LLOYD. Yes, sir.

The CHAIRMAN. Was it at that time all in the same tract?

Mr. LLOYD. One parcel; yes.

The CHAIRMAN. In one parcel?

Mr. LLOYD. Yes, sir.

The CHAIRMAN. And subsequently after this assessment for $10,500, this welfare fund or this union bought 490 of the 640 acres?

Mr. LLOYD. That is right.

The CHAIRMAN. In other words, 150 acres that were included in the $10,500 assessment were not sold?

Mr. LLOYD. That is right.

The CHAIRMAN. Are you familiar with the land, and would you compare the 150 acres per-acre value about the same as the 490 acres, per-acre value?

Mr. LLOYD. Yes; with the exception there were no improvements on that part of it.

The CHAIRMAN. But there were some improvements on the 490 acres?

Mr. LLOYD. That is right.

The CHAIRMAN. So that the 490 by reason of the improvements was a little more valuable?

Mr. LLOYD. That is right.

The CHAIRMAN. But you would say that the $10,500 that you had assessed it at, at that time, according to your best judgment, and based on your acquaintance in the community and in the exercise of your official duties, that $10,500 was a fair assessment value under the laws of the State of New York and according to your duties and your experience in your official capacity?

Mr. LLOYD. That is right.

The CHAIRMAN. And the actual market value of it at that time, the 490 acres, in your opinion, would not exceed $20,000?

Mr. LLOYD. I said $20,000 to $25,000.

The CHAIRMAN. All right, say $25,000, and let us give it the

maximum.

That is, $25,000 would be the maximum retail price of it, assuming someone wanted to purchase and the owner wanted to sell?

Mr. LLOYD. In my opinion it would be very hard to find a buyer at that price, but that is the top.

The CHAIRMAN. That would be the top.

Mr. KENNEDY. Actually it was assessed for the year 1952, 1953, and 1954, at $10,500?

Mr. LLOYD. I believe that is right.

Mr. KENNEDY. After this purchase was made, were you approached, or was a representative of the Board approached, to try to up the assessment when there was some question raised as to local 805 paying too much money for this piece of property?

Mr. LLOYD. I was.

Mr. KENNEDY. Would you tell us what happened?

Mr. LLOYD. A gentleman named Ed Benson, who, I believe, was working for 805, came to me and said that "they"-who, I presume, were officials of the local-would like to have a higher assessment, and it would look better on the books.