The CHAIRMAN. I wonder if the employees of that hotel belong to a union.

Mr. TIERNEY. They do. They belong to the Hotel & Restaurant Workers Union.

Mr. KENNEDY. We are going to go into that, Mr. Chairman, because we have a number of witnesses on that.

The CHAIRMAN. They have a substandard contract?

Mr. KENNEDY. We will go into the whole thing.

The CHAIRMAN. I thought it would lead to something.
All right. Call the next witness.

Mr. KENNEDY. The next witness, Mr. Chairman, at the request of Mr. Anslinger of the Bureau of Narcotics, asked that he not have his picture taken.

The CHAIRMAN. The cameras, photographers, will please desist. 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. WURMS. I do.

TESTIMONY OF IVAN WURMS

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

Mr. WURMS. Ivan Wurms. I am employed by the Federal Bureau of Narcotics, U.S. Treasury Department, 90 Church Street, New York. The CHAIRMAN. All right proceed.

Mr. KENNEDY. This is another instance where we have received the cooperation and help of Mr. Anslinger and the Bureau of Narcotics. The CHAIRMAN. As I recall, Mr. Anslinger has been most helpful to this committee from its very inception, and we have received very excellent cooperation from his office.

Mr. KENNEDY. That is correct.

You were a Federal narcotics agent attached to the New York office, and you were working in an undercover capacity in 1956; is that right?

Mr. WURMS. That is correct, sir.

Mr. KENNEDY. At that time, were you working on a man by the name of Bernard Blaustein?

Mr. WURMS. I was, sir.

Mr. KENNEDY. Who also was known as Bernard Barton?

Mr. WURMS. That is correct.

Mr. KENNEDY. And also known as Lou Bernie?

Mr. WURMS. Yes, sir.

Mr. KENNEDY. Did you establish a close intimate relationship with Mr. Blaustein from whom you made some purchases of narcotics, and Mr. Milton Holt of local 805?

Mr. WURMS. I did purchase narcotics from Blaustein.

Mr. KENNEDY. Did you establish a close relationship between Blaustein and Mr. Milton Holt of local 805?

Mr. WURMS. Yes, sir.

Mr. KENNEDY. Now, the Federal Narcotics Bureau became aware of Blaustein's activities in December of 1955 and January of 1956; is that correct?

Mr. WURMS. Mr. Blaustein was first mentioned in our files back in 1948 and in December of 1955 the opportunity presented itself whereby we could actively work on him. We received information from two separate sources which indicated that Blaustein was selling from 2 to 3 kilograms of cocaine every 10 days to 2 weeks. He was doing business with a number of Italians on the Lower East Side, and he was doing business with Negro dealers from Harlem, and he was closely associated with Isadore Shadalasky of Tampa, Fla. An associate of Shad is a person by the name of Salvatore Granello, who is affiliated with a union located at 1780 Broadway, too.

Mr. KENNEDY. Who is?

Mr. WURMS. Salvatore Granello.

Mr. KENNEDY. That is the location of local 805 of the International Brotherhood of Teamsters?

Mr. WURMS. Yes, sir.

Mr. KENNEDY. What union was Granello associated with at that time?

Mr. WURMS. That was local 130, and his position was vice president of the Amalgamated Local 130, Amalgamated Novelty Union Local 130, CIO, located in room 1201, back in 1956, 1780 Broadway.

Mr. KENNEDY. That just gives some of his associates. Did you also find him associated with Mr. Milton Holt at that time?

Mr. WURMS. That came about after the first transaction I had with Mr. Blaustein.

Mr. KENNEDY. Would you relate what happened in connection with that?

Mr. WURMS. Do you want the time Mr. Holt entered into the picture?

Mr. KENNEDY. Well, first you established that Milton Holt and Blaustein went to Florida together in late 1955.

Mr. WURMS. On subsequent investigation it disclosed that.
Mr. KENNEDY. Well, just follow it through chronologically.

Mr. WURMS. That was back in November 26, 1955. Blaustein, who registered under the name of Lou Bernie at the Fontainebleau Hotel, was with Milton Harvey, who we have identified as Milton Holt.

Mr. KENNEDY. Milton Holt registered at the hotel with Blaustein, and Holt used the name of Milton Harvey, and Blaustein used the name of Lou Bernie; is that correct?

Mr. WURMS. That is correct.

Mr. KENNEDY. That was on November 26, 1955?

Mr. WURMS. Yes, sir.

During the time another guest who stayed with Blaustein and Holt was a Joseph Meglino, who gave his residence as 35 Ridge Street, New York City.

Also in the party was Harry Shevitz, Irving Brown, Marvin Hodes, and on December 23, 1955, a William Rosen, and a Mac Chase, registered at the hotel.

On December 28, Bernie Barton and Milton Harvey-who was Milton Holt-joined William Rosen and Mac Chase.

Mr. KENNEDY. Some of these other individuals are of less importance to us, but he was there on November 26, 1955, and the two of them were there together, registered under aliases, and they were joined by certain other individuals at that time?

Mr. WURMs. That is correct.

Mr. KENNEDY. Then the next visit was on December 28, 1955; is that right?

Mr. WURMS. That is correct.

Mr. KENNEDY. At that time they joined two other individuals and again Holt registered under the name of Harvey; is that right? Mr. WURMS. That is correct.

Mr. KENNEDY. Then on January 6 and again on February 2, 1956, they registered at the hotel again; is that right?

Mr. WURMS. That is correct, sir.

Mr. KENNEDY. Now, about this time did you have your initial meeting with Mr. Blaustein?

Mr. WURMS. Yes, sir.

Mr. KENNEDY. Would you relate what happened in connection with that!

Mr. WURMS. That was on February 4, 1956, and I met Bernard Blaustein, alias Lou Bernie, one and the same, at the Stage Delicatessen, 832 Seventh Avenue, New York City. I had a conversation with Blaustein, and he indicated that he could supply me with large quantities of cocaine.

I finally effected a purchase of 402 grains of cocaine, for which I paid Blaustein $800, official U.S. Government advance funds. Arrangements were made with him for an additional purchase.

Mr. KENNEDY. That was transferred to him in the men's room at the Stage Restaurant?

Mr. WURMs. That is correct.

Mr. KENNEDY. At 832 Seventh Avenue; is that right?

Mr. WURMS. That is correct.

Senator CURTIS. Was he a union official at this time or a union employee; do you know?

Mr. WURMS. At that particular time, Senator, we had no knowledge of him being gainfully employed, and we had no idea who he was associated with, or with any unions at that time. It came out later. Senator CURTIS. What did you learn later?

Mr. WURMS. Later we learned that he purchased a car and obtained a chattel mortgage from the National City Bank, and on the application for the chattel mortgage he listed his occupation with local 805, receiving a salary of $10,000 per year, and his superior was Milton Holt.

Senator CURTIS. That is 805 of the Teamsters Union?

Mr. WURMS. That is correct, sir. And I believe it stated that he was employed there for a period of 10 years.

Mr. KENNEDY. Does the application further show in connection with this automobile that it was a Cadillac?

Mr. WURMS. 1956 Cadillac; yes, sir.

Mr. KENNEDY. And the purchase was made around January 20, 1956?

Mr. WURMS. Yes, sir.

Mr. KENNEDY. And did it show that there was a telephone call made to the local union to verify as to whether he was an employee? Mr. WURMS. Yes, sir; and an official of the bank did call the union with a notation that a Mr. Holt was contacted.

Mr. KENNEDY. What was Mr. Holt's reply as to whether Mr. Blaustein was actually employed at the union or not?

Mr. WURMS. He gave an affirmative reply.

Mr. KENNEDY. And so the car was sold; is that right?

Mr. WURMS. Yes, sir.

Mr. KENNEDY. I believe we have the document.

The CHAIRMAN. This is along about February 1956, this car transaction you are talking about?

Mr. WURMS. That is the chattel mortgage you have there, sir? The CHAIRMAN. This is an application for motorcar loan and agreement. This is what I have here.

Mr. WURMS. Yes, sir.

The CHAIRMAN. Are you familiar with it? Could you identify it? Mr. WURMS. If I could see it, I could identify it.

The CHAIRMAN. I will present to you a photostatic copy of a document. I ask you to examine it and state if you identify it.

(The document was handed to the witness.)

Mr. WURMS. Yes, sir; this is the application made out by Bernard Blaustein and the notation made by the National City Bank that Mr. Holt was contacted. He was listed as secretary and treasurer. The CHAIRMAN. Mr. Holt was secretary and treasurer?

Mr. WURMS. That is the notation.

The CHAIRMAN. And, according to that, he certified that Blaustein was employed by the union?

Mr. WURMS. Yes, sir; for a period of 10 years.

The CHAIRMAN. And had been for a period of 10 years?

Mr. WURMS. That is correct.

The CHAIRMAN. Did it show what his salary was? Does this application show Blaustein's salary?

Mr. WURMS. $10,000 per year.

The CHAIRMAN. So obviously, he and Holt, according to the records at least, were associated together as representatives of that union?

Mr. WURMS. Yes, sir. I might add that Blaustein listed his position as labor relations business agent.

The CHAIRMAN. Labor relations business agent?

Mr. WURMS. Yes, sir.

The CHAIRMAN. All right. That may be made exhibit No. 39. (Document referred to was marked "Exhibit No. 39" for reference and may be found in the files of the select committee.)

Senator CURTIS. Mr. Chairman

The CHAIRMAN. Senator Curtis?

Senator CURTIS. Was Holt directly connected with the narcotics traffic, too?

Mr. WURMS. We could never make a case against Mr. Holt. Senator CURTIS. But it did appear that he had a knowledge of Blaustein's activities?

Mr. WURMS. It was our impression that he knew of Blaustein's

activities.

Senator CURTIS. That is all, Mr. Chairman.

The CHAIRMAN. Proceed.

Mr. KENNEDY. You made that first purchase from Blaustein for some $800?

Mr. WURMS. That is correct, sir.

Mr. KENNEDY. And then there was a second meeting with BlauMr. WURMS. Yes, sir; on February 8.

stein shortly afterward?

Mr. KENNEDY. That, again, was at the Stage Delicatessen?

Mr. WURMS. Yes, sir.

Mr. KENNEDY. And that meeting was watched by other narcotics agents?

Mr. WURMS. Yes, sir. It was under the surveillance of other agents. Mr. KENNEDY. After meeting there, you and Blaustein took a walk down the street?

Mr. WURMS. Well, I would like to just interject one thing here. While I had a conversation at the Stage Delicatessen with Blaustein, he did say that he had to receive a phone call, and he subsequently did receive a phone call and shortly thereafter we left the Stage Delicatessen. He said he did contact his man.

Mr. KENNEDY. Was the second meeting again for you to make a purchase?

Mr. WURMS. That is correct, sir.

Mr. KENNEDY. Did you make the purchase in the restaurant?
Mr. WURMS. No, sir; not at that time.

Mr. KENNEDY. It was determined that you would meet later on that evening?

Mr. WURMS. Later that evening; yes, sir.

Mr. KENNEDY. So you came out of the restaurant and what happened then?

Mr. WURMS. We walked south on 7th Avenue to 52d Street east on 52d, and stood opposite the Hickory House and had a conversation. Mr. KENNEDY. And what occurred at that time?

Mr. WURMS. Blaustein was telling me that he expected a large shipment of cocaine which would be wrapped in fishskin in a few days. He began to question me about my identity. Then he asked me if I wanted a connection to check on people in various cities, such as Chicago, Baltimore, or Washington, and he could find out if these people were all right, if you could deal with them, or if I wanted to check up on somebody.

I asked him who he knew in Washington. He mentioned a guy that just got out of jail, “and I am leery of him; he is big." I asked his name and he said his name was Bob Williams, that he was a big man, that he did a lot of business with him. He was big in "H", which is the terminology for heroin, and coke.

He asked me if I knew him and I told him I did hear of him. Bob Williams has been known to Washington area for quite a number of years. He is now in Sing Sing, Ossining, N.Y., serving a term of 212 to 5 years, for an offense which was aiding and abetting a bail jumper in New York City, and there is a detainer lodged against him for a Federal narcotics violation.

Mr. KENNEDY. While the conversation was going on, did you notice that you were being scrutinized by three individuals?

Mr. WURMS. I noticed, there were three individuals standing by the Hickory House, but I did not pay too much attention to them. Mr. KENNEDY. Were these individuals or two of these individuals later identified?

Mr. WURMS. Yes, sir; they were.