(The chart referred to follows:)

Comparison of Central States and local 249 over-the-road freight agreements

The CHAIRMAN. Now you may discuss it and we will know what you are discussing as we read the record.

Mr. FAGAN. Thank you.

Under the arrangements of single-axle, referring to a single-axle trailer, the rate in the Central States is 8.7 cents per mile. Every mile traveled in the Central States under their contract by a driver pulling a single-axle trailer, he is reimbursed to the extent of 8.7 cents. In local 249 it is 12.85 cents. You can see the difference there.

It goes right down. The tandem axle, four axles, is 8.95 cents in the Central States and 13.2 cents in local 249. Tandem axle, five axles, 9.07 cents in the Central States and 13.2 in local 249.

On the double bottoms, and this is a combination of two trailers pulled by a tractor, the Central States rate is 10.1 and ours is 16.35

cents.

That gives you the different analyses of what a man is paid and the differences that exist between the Central States and local union 249. The CHAIRMAN. That is cents per mile?

Mr. FAGAN. Cents per mile; that is right.

The CHAIRMAN. The driver, when he drives 1 mile in the Central States, has earned the amount indicated here?

Mr. FAGAN. That is right.

The CHAIRMAN. And if he is in local 249, under the contract there, he earns the amount stated under the 249 column?

Mr. FAGAN. That is right, Mr. Chairman. That is exactly how it is added up. And the number of miles traveled at the end of the run is what the compensation is that the man receives. So you can understand very readily that traveling out of local 249's jurisdiction into the Central States, our drivers are paid more than what they are who are operating in a reverse manner. from the Central States domicile.

Now, just a few of the fringe items that are different. Under paid holidays, they have six paid holidays at 8 hours. We have seven paid holidays at 10 hours. The lodging for the Central States is $2.50; for local 249, it is $4.

The CHAIRMAN. Do you mean that is expense allowed?

Mr. FAGAN. Expense allowed.

The CHAIRMAN. That is in addition to their earnings by mile or day?

Mr. FAGAN. That is right, sir.

The CHAIRMAN. In other words, in the Central States they get $2.50 a day subsistence and in your jurisdiction, your people get $4? Mr. FAGAN. That is right, when they are required to lay over on the other end, that is the compensation they receive in addition to their regular trip rate.

Bereavement leave, in case of death in the immediate family, none in the Central States and 4 days in 249.

Health and Welfare is $10.83 a month in Central States and $10.75 a month in local 249.

Pensions are $3 a week in the Central States for each man, and in local 249 it is $4 a week.

As you go down the changes are in the 1960 agreement, and they are comparable to the present rates, both increases being granted on a uniform basis.

This gives you some idea. We have tried to break it down to give you a fair analysis of the differences in the agreement.

The CHAIRMAN. In other words, in your 1960 contract, in each jurisdiction in the Central States and also in your local, you have just kind of a percentagewise increase, was it?

Mr. FAGAN. That is right, sir.

The CHAIRMAN. So you have just extended that down here?
Mr. FAGAN. That is right.

The CHAIRMAN. But the ratio of difference, the differentials between what your benefits are in local 249 as compared to Central States contract, are comparably the same, percentagewise, as they were before you entered into the 1960 contract?

Mr. FAGAN. That is exactly right, Mr. Chairman.

And beyond that point, I would like to say that we have other statistical documents here to prove that not only in the field of the over-the-road trucking but also in the study of meatpacking contracts, that our local union has the highest rate and conditions of anyone throughout the country.

We also have the highest rated agreements with the big four packers-Swift, Armour, Cudahy, and Wilson. The same thing applies in our grocery chainstore industry, with A. & P., Kroger's, and the national chains, that our rates and conditions there are the highest anywhere in the United States.

Mr. KENNEDY. I might point out that local 299 has contracts with these same companies which Mr. Fagan has mentioned.

The CHAIRMAN. Do you mean you have contracts with the same companies as in Central States in some instances?

Mr. FAGAN. Yes, that is correct, with the big four packers and also with Kroger's and A. & P. that operate in those territories. Mr. KENNEDY. Your contracts are higher?

Mr. FAGAN. Our contracts are the highest, that is right. We have statistical proof of that to submit to the committee. Mr. KENNEDY. I might point out again in this instance, Mr. Chairman, that Mr. Hoffa, when he testified before the committee, stated that the contracts of his local were the highest of any local contracts in the United States.

I have one other matter that I want to take up with you.

There was some difficulty about the Eazor Trucking Co. in Pittsburgh; is that correct?

Mr. FAGAN. That is correct.

Mr. KENNEDY. Eazor purchased two trucking companies in Pittsburgh with the understanding, as I understand, with one of the business agents, that they would be able to successfully compete with their opposition?

Mr. FAGAN. That is correct.

Mr. KENNEDY. The companies operating out of Pittsburgh had been laying over in Napoleon; is that right?

Mr. FAGAN. That is right.

Mr. KENNEDY. And they wanted an opportunity to lay over in Napoleon also?

Mr. FAGAN. That is exactly right.

Mr. KENNEDY. Without paying lay-over time?

Mr. FAGAN. That is right.

Mr. KENNEDY. Could you summarize what happened?
Mr. FAGAN. Yes; I could summarize.

Mr. KENNEDY. I don't want to go into too much detail.

Mr. FAGAN. I could summarize it for you as briefly as I possibly

can.

Eazor Express purchased the operating rights from Carl Helm, owner of Associated Freight Forwarding, operating between Pittsburgh and Chicago, and L. & H., operating between Pittsburgh and New York. At the time of the purchase it was the understanding, as far as Eazor Express was concerned, that they would have the right to be able to domicile their men at Napoleon and Harrisburg, the central points, rather than their actual points of domicile in the 249 area. There was a meeting called at which time the men agreed to an arrangement whereby an additional hour was paid and the lodging was paid at the domiciles both at Harrisburg and Napoleon.

Then after that was in effect for some time, the men disagreed with this arrangement. As a result, it was taken up through the grievance machinery.

At the time that it was to go to the third step, which is a threemembers from managements and three from the union, to make a decision under local union's 249 contract, at that time all parties concerned were ordered into Chicago, and Hoffa made the decision at that particular time that, as far as the domicile would be concerned, it would be in Napoleon, Ohio, and that the men would lose the 1 hour additional that was negotiated and agreed to by the men and the company, and also their right to receive lodging at that point because then their domicile point would actually become Napoleon, Ohio. Mr. KENNEDY. What in substance happened was that the men were dissatisfied with the dollar they were receiving?

Mr. FAGAN. That is right.

Mr. KENNEDY. It went to the grievance procedure, it got to the third stage, and instead of following through the grievance procedure, Mr. Hoffa took control over it in the Central Conference of Teamsters. He ruled in favor of the company, and the drivers not only didn't get more than the dollar but they even lost the dollar?

Mr. FAGAN. That is exactly right.

Mr. KENNEDY. Did he have any right to take over and make that decision?

Mr. FAGAN. The only right he had was the right that we were under trusteeship at the time. Actually he would have no right other than that.

Mr. KENNEDY. Under the contract it should have gone through the grievance procedure?

Mr. FAGAN. That is right.

Mr. KENNEDY. The only point of that, Mr. Chairman, is that Mr. Hoffa took control and made the decision adverse to the union membership. It should have gone through the union procedure but he did. not allow it to do so.

The CHAIRMAN. We have a signal for a rollcall vote in the Senate. We will have to suspend until members of the committee can go over and vote and return.

Mr. KENNEDY. We appreciate very much the testimony of Mr. Fagan. He has been very helpful.

The CHAIRMAN. The committee will have a brief recess.

(A brief recess was taken. Members of the select committee present at the taking of the recess were Senators McClellan and Ervin.) The CHAIRMAN. The committee will be in order.

(Members of the select committee present after the taking of the recess were Senators McClellan and Ervin.)

The CHAIRMAN. The Chair will make this brief announcement: Former Senator Bender has requested to be heard this afternoon, and that request will be granted, in view of his name having been mentioned in some testimony that was heard this morning.

But so that we may have before us a transcript of what may have been said, I have asked the official reporter to arrange to have it. present.

In the meantime, we will proceed with another witness, and as soon as we can we will hear Mr. Bender.

Mr. KENNEDY. I would like to call Mr. Gotfredson and Mr. Dennis. The CHAIRMAN. Do you and each of 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. GOTFREDSON. I do.

Mr. DENNIS. I do.

TESTIMONY OF ROBERT B. GOTFREDSON AND R. I. DENNIS, ACCOMPANIED BY COUNSEL, THOMAS M. CHAWKE

The CHAIRMAN. If you have counsel, will you arrange for counsel to have the chair right in between you.

Beginning on my left, will the witness give his name, his place of residence, and his business or occupation, please.

Mr. DENNIS. My name is R. I. Dennis. I reside at Detroit, Mich., and I am employed in the capacity of vice president of the TransAmerican Freight Lines.

The CHAIRMAN. And the one on my right.

Mr. GOTFREDSON. My name is Robert B. Gotfredson, president of Trans-American Freight Lines, Inc., Detroit, Mich.

The CHAIRMAN. Gentleman, you have the same counsel representing you, do you?

Mr. GOTFREDSON. We do.

The CHAIRMAN. Will counsel identify himself for the record? Mr. CHAWKE. Thomas M. Chawke. I am an attorney at law, with offices at 1724 Ford Building, in the city of Detroit.

The CHAIRMAN. Thank you very much.

Mr. Kennedy, you may proceed.

Mr. KENNEDY. Mr. Sheridan, if that is permissible, will conduct the interrogation.

The CHAIRMAN. All right, Mr. Sheridan, you may proceed with the questions.

Mr. SHERIDAN. Mr. Gotfredson, in 1955 you participated in the Central States contract negotiations in Chicago and reached a separate understanding concerning your company, which was different from the regular Central States agreement; is that correct?

M. GOTFREDSON. I reached a separate understanding with the negotiating committee for the union, subject to ratification by our employees.

Mr. SHERIDAN. Now, this agreement consisted of two proposals covering, one, the subject of the method of payment of your drivers in that they would be paid a cent and a half per mile extra in lieu of four fringe benefits; is that correct?

Mr. GOTFREDSON. That is correct.

Mr. SHERIDAN. The second proposal which was accepted was to the effect that a separate grievance procedure would be followed by your company other than the grievance procedure contained in the contract; is that correct?

Mr. GOTFREDSON. That is correct.

The CHAIRMAN. I present to you a photostatic copy of a document which appears to have been signed by you and others, and it appears to have been signed also by Mr. Hoffa. I don't see the date of it but I will ask you to examine it and state if you identify it.

(The document was handed to the witness.)

The CHAIRMAN. Do you identify the document?

Mr. GOTFREDSON. Yes, sir.

The CHAIRMAN. What is it?

Mr. GOTFREDSON. It is a proposal transmitted on behalf of TransAmerican Freight Lines.

The CHAIRMAN. Submitted to whom?

Mr. GOTFREDSON. To the Central States Drivers Council in Chicago. The CHAIRMAN. Is it signed?

Mr. GOTFREDSON. It is.

The CHAIRMAN. By whom?

Mr. GOTFREDSON. By Mr. Hoffa, Mr. Healy, and myself.

The CHAIRMAN. What is the date of it?

was in 1955.