Mr. DANNEVIK. That arrangement happened just prior to my resignation in February of 1958. I did draft, I believe, the first leaseoption-to-buy lease that was used. However, I understand that since then certain modifications and changes were made in it.

Mr. KENNEDY. And changes in the terms?

Mr. DANNEVIK. Correct.

Mr. KENNEDY. Did you understand that there was some dissatisfaction among the drivers in connection with that?

Mr. DANNEVIK. I had heard complaints from the drivers; yes.

Mr. KENNEDY. In order to keep your employment and keep your seniority, the drivers at that time would have to make these purchases, would they not, as a practical matter, or were you there during that?

Mr. DANNEVIK. No; as I understand it, there wouldn't be any other vehicles used other than those that were operating under this leaseoption-to-buy arrangement.

Mr. KENNEDY. So that, therefore, the drivers that were working for the company would have to make these purchases?

Mr. DANNEVIK. If they expected to drive; yes.

Mr. KENNEDY. At about that period of time, these drivers were transferred up to local 299, is that correct, their membership?

Mr. DANNEVIK. That occurred, I believe, subsequent to my association with the company in February.

Mr. KENNEDY. Even though they would be living, for instance, in Kansas City or other sections of this country, through this arrangement they were all made members of local 299 of the Teamsters?

Mr. DANNEVIK. As I say, I wasn't involved in that, but I believe that it was treated as a redomicile of the operators from wherever they were operating previously to Detroit.

Mr. KENNEDY. Mr. Dannevik, could you tell the committee why, as you understand, that was done?

Mr. DANNEVIK. I believe it was done for the purpose of only dealing then with one local union, whereas, you would have a multiple number of local unions it would be necessary to deal with.

Mr. KENNEDY. Would that also be because of the fact that there were expected to be complaints in connection with some of the arrangements that had been made and, therefore, it was necessary, or felt advisable, to have it all handled through Mr. Hoffa's local?

Mr. DANNEVIK. Well, all of the grievances or any other question raised about the arrangement would then be processed through local 299 at the local union level, and I assume that if there was any further proceedings before joint grievance committees composed of union and employers, that it would be handled from local 299.

Mr. KENNEDY. Of course, this created a considerable problem for the drivers, did it not, who had to live or who did live in Kansas City if they wanted to process a grievance? They had no local representative. They would have to go all the way to Detroit to do it? Mr. DANNEVIK. That is correct.

Mr. KENNEDY. Have you ever heard of anything like that being done in the trucking business?

Mr. DANNEVIK. No. However, it was a common occurrence for companies to decide that they should redomicile operators from one station to another, depending upon the business at the time. How

ever, confining the domicile to one station, to my knowledge, had never been done before.

Mr. KENNEDY. And, of course, these drivers did not move, actually. These people still remained in their locations and yet were made members of a local maybe 1,000 miles away.

Mr. DANNEVIK. Under this arrangement that would be true; yes, sir. Mr. KENNEDY. Would you indicate from your connections and knowledge of Mr. Riss, and having worked for the company, that he and Mr. Hoffa were close personal friends during this period of time.

Mr. DANNEVIK. I don't know how close it was. They were friends, and, I believe, had a very high regard for each other.

Mr. KENNEDY. They should.

That is all, Mr. Chairman.

The CHAIRMAN. Is there anything further?

Have you anything, Senator?

Senator ERVIN. No, Mr. Chairman.

The CHAIRMAN. Thank you very much.
Call the next witness.

Mr. KENNEDY. Thank you very much, Mr. Dannevik.
Mr. Branum and Mr. Anderson.

The CHAIRMAN. Do you and each of you solemnly swear 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. BRANUM. I do.

Mr. ANDERSON. I do.

TESTIMONY OF ROY BRANUM AND ARDITH L. ANDERSON

The CHAIRMAN. The witness on my left, will you give your name, your place of residence, and your business or occupation please, sir. Mr. BRANUM. I am Roy Branum, Long Jack, Mo. I am now on sick leave from Riss & Co.

The CHAIRMAN. I beg your pardon?

Mr. BRANUM. I am now on sick leave from Riss & Co.
The CHAIRMAN. You are an employee of that company?
Mr. BRANUM. Yes, sir.

The CHAIRMAN. How long have you been an employee?
Mr. BRANUM. On and off for about 15 years.

The CHAIRMAN. How long have you been on sick leave?

Mr. BRANUM. Since the 26th day of January.

The CHAIRMAN. You, on my right, will you state your name and your place of residence and your business?

Mr. ANDERSON. Ardith L. Anderson. I live at 3028 South 46th Terrace, Kansas City, Kans.

The CHAIRMAN. By whom are you employed?

Mr. ANDERSON. Southwest Freight Lines. I am a truckdriver.

The CHAIRMAN. Southwest Freight Lines. How long have you

been in its employ?

Mr. ANDERSON. About 4 months.

The CHAIRMAN. What was your previous employment?

Mr. ANDERSON. By Riss & Co.

The CHAIRMAN. Riss & Co.? For the same company that the other witness worked for?

Mr. ANDERSON. Yes.

The CHAIRMAN. How long did you work for Riss?

Mr. ANDERSON. Since March of 1955.

The CHAIRMAN. Some 3 or 4 years?

Mr. ANDERSON. Yes.

The CHAIRMAN. Do you gentlemen waive counsel? Do you want a lawyer to represent you?

Mr. BRANUM. No, sir.

Mr. ANDERSON. No, sir.

The CHAIRMAN. You both waive counsel.

Proceed, Mr. Kennedy.

Mr. KENNEDY. Mr. Anderson, you were domiciled in several different cities by the Riss Co., Kansas City, St. Louis, and Indianapolis, and then in 1957 back to Kansas City; is that right?

Mr. ANDERSON. That is right.

Mr. KENNEDY. In each instance, you transferred your union membership to the local where you were actually living?

Mr. ANDERSON. Yes.

Mr. KENNEDY. In Indianapolis in 1956, the drivers were informed by Riss & Co. that starting on October 1, 1956, they would start paying a flat cent and a half in lieu of the fringe benefits?

Mr. ANDERSON. That is right.

Mr. KENNEDY. Was it ever put to the membership as to whether they approved of that?

Mr. ANDERSON. No. No one ever asked us if we approved of it or not; it was just done.

Mr. KENNEDY. You were just notified that it had been agreed to? Mr. ANDERSON. Yes.

Mr. KENNEDY. You never were given the proposition and have a right to vote on it?

Mr. ANDERSON. No.

Mr. KENNEDY. Were most of the membership against it?

Mr. ANDERSON. Well, they didn't like it because we would rather they just pay according to the contract that we had.

Mr. KENNEDY. Did you know if anything was ever put in writing in connection with this agreement about the cent and a half? Mr. ANDERSON. I have never seen anything.

Mr. KENNEDY. In early 1958 while you were domiciled in Kansas City and a member of local 41, were you informed that Riss was changing its policy from company-owned tractors to owner-operated

tractors?

Mr. ANDERSON. Yes.

Mr. KENNEDY. And that you would be given an opportunity to purchase the tractor?

Mr. ANDERSON. Yes.

Mr. KENNEDY. And that you would be given an opportunity to purchase the tractor?

Mr. ANDERSON. Yes.

Mr. KENNEDY. Now the tractor that you purchased from the comany had a rebuilt motor and recapped tires; is that right?

Mr. ANDERSON. That is right.

Mr. KENNEDY. And had been originally purchased by Riss & Co back in 1954?

Mr. ANDERSON. Yes.

Mr. KENNEDY. Could we identify the agreement?

Did you have any choice about purchasing the tractor?

Mr. ANDERSON. Well, you could either purchase it or figure on finding another job.

The CHAIRMAN. I hand you here what purports to be a photostatic copy of what is entitled "Lease With Option To Purchase Agreement," dated the 10th day of March 1958, purported to be executed between Transport Manufacturing & Equipment Co. and Ardith L. Anderson. I wish you would examine it and state if you will identify it as a photostatic copy of the original contract.

(The document was handed to the witness.)

Mr. ANDERSON. Yes; that is the one.

The CHAIRMAN. It may be made exhibit No. 77.

(Document referred to was marked "Exhibit No. 77" for reference and may be found in the files of the select committee.)

The CHAIRMAN. Is that the contract that you signed?

Mr. ANDERSON. Yes.

The CHAIRMAN. I understood you to say you felt you had to either enter into such a contract and purchase the truck or tractor as you term it or look for another job. Is that true?

Mr. ANDERSON. Yes; that is true.

The CHAIRMAN. All right, Mr. Kennedy.

Mr. KENNEDY. Is the same thing true as far as you are concerned, Mr. Branum?

Mr. BRANUM. Yes.

The CHAIRMAN. Did you enter into a similar contract?

Mr. BRANUM. Yes.

The CHAIRMAN. I hand you here what purports to be a photostatic copy of your contract for the lease and option to purchase of a tractor. Will you please examine it and state if that is a photostatic copy of the contract which you entered into.

(The document was handed to the witness.)

Mr. BRANUM. Yes, sir; that is mine.

The CHAIRMAN. It may be made exhibit No. 77-A and then they will be attached.

(Document referred to was marked "Exhibit No. 77-A" for reference and may be found in the files of the select committee.)

Mr. KENNEDY. Mr. Anderson and Mr. Branum, the contract provides that you pay $1,000 down, 5 cents a mile to the company for 275,000 miles, plus $100 in cash, and then you would have possession of the tractor?

Mr. ANDERSON. Yes.

Mr. KENNEDY. Or the piece of equipment. And that is a total of $14,850 for both of you; is that correct?

Mr. ANDERSON. Yes.

Mr. BRANUM. Yes.

Mr. KENNEDY. Did you feel that this was a fair arrangement in view of the fact that the company had paid only $12,500 for these tractors some 4 years prior to that, that you are paying $14,850 for them?

Mr. ANDERSON. I didn't feet it was a good deal at all, but my sole purpose in buying the tractor, in trying to buy the tractor, was to keep the job and keep working and hold seniority with the company.

As it turned out, I didn't have any seniority anyway. That was my idea of going ahead with it.

Mr. KENNEDY. What about you, Mr. Branum?

Mr. BRANUM. Likewise, I figured I would hold my seniority.

Mr. KENNEDY. You mean if you did not make this purchase you would have to find a job someplace else and go all the way to the bottom of the heap?

Mr. BRANUM. Some guys with 20 years with the company are not with the company any more, that didn't purchase a tractor.

Mr. KENNEDY. Did the union try to intervene and help you?
Mr. BRANUM. In a sort of way.

Mr. KENNEDY. How did they do that?

Mr. BRANUM. They helped rig up this last contract we had which is different.

Mr. KENNEDY. Did they try to help you in connection with the purchases you had to make?

Mr. BRANUM. The only help in the union was our steward, Mr. Jones.

Mr. KENNEDY. Did they intervene with the company to point out the unfairness at all?

Mr. BRANUM. A little.

Mr. KENNEDY. Did it help you at all? Were you able to get the terms of the contract changed?

Mr. BRANUM. It did from the standpoint of 300,000 miles to 275,000 miles.

Mr. KENNEDY. In the last analysis, you had to sign this contract which amounted to the payment of some $14,800 ?

Mr. BRANUM. That is correct.

Mr. KENNEDY. Is that correct, Mr. Anderson?
Mr. ANDERSON. Yes.

Mr. KENNEDY. In addition to taking out the 5 cents a mile for the purchase of the piece of equipment, they also took out another cent a mile for repairs to be held in an escrow account for repairs, for tires, or whatever other equipment you might have?

Mr. ANDERSON. Yes.

Mr. KENNEDY. Did you have any experience with that?

Mr. ANDERSON. Yes; I had quite a lot of experience with that.

In January of this year I went in to try to get-I had about $400 in the escrow account and I needed four new tires. I went in to get the money to buy four tires and they refused to let me have it.

The CHAIRMAN. It was your money; they withheld a cent a mile. Is that correct?

Mr. ANDERSON. That is right.

The CHAIRMAN. That was to meet these expenses of repairs and new tires?

Mr. ANDERSON. Yes.

The CHAIRMAN. When you went to get money with which to purchase new tires, you were denied the money?

Mr. ANDERSON. That is right.

The CHAIRMAN. Were you given any part of the money?

Mr. ANDERSON. No. They offered to loan me the money and deduct payment out of my weekly checks.

The CHAIRMAN. Loan you your own money?