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Mr. KENNEDY. So did you get out of the union then?
Mr. MORRIS. Yes. I stopped paying dues.
Mr. KENNEDY. Both union and the association ?
Mr. MORRIS. Yes.
Mr. KENNEDY. Because they didn't help you?
Mr. MORRIS. That is right.

Mr. KENNEDY. Why did they say they couldn't do anything for you?

Mr. MORRIS. Why? I don't know.

Mr. Kennedy. Was it some particular operator that jumped your location ?

Mr. MORRIS. I believe that was the main reason.
Mr. KENNEDY. Did he have some connections that made it possible !
Mr. MORRIS. It is possible.
Mr. KENNEDY. What?
Mr. Morris. It is possible that he had some connections.
Mr. KENNEDY. Did you understand that?
Mr. MORRIS. No, I didn't.
Mr. KENNEDY. Did you understand why they couldn't help you?
Mr. MORRIS. No.
The CHAIRMAN. Well, they were supposed to, were they not?
Mr. Morris. Yes, they were supposed to.
The CHAIRMAN. Didn't you try to find out why they wouldn't?

Mr. Morris. I tried to find out why, but I couldn't find out why. I felt I am a small operator, I had no money, and that is why I felt they didn't want to do anything for me. Who the man was that jumped me must have been a bigger man than me, and I was just a small wheel and couldn't do anything.

The CHAIRMAN. In other words, you didn't get the protection you paid for?

Mr. MORRIS. That is right.
The CHAIRMAN. Did they make an effort to protect you?
Mr. MORRIS. No.

The CHAIRMAN. In other words, you were just so small that somebody else was going to take it over and run it anyhow, and they would continue to get the money?

Mr. MORRIS. That is right.
The CHAIRMAN. You are the only one that lost in the transaction?
Mr. MORRIS. That is right.

Mr. KENNEDY. And subsequently you understood from conversations that Mr. Denver gave out a list of your locations to various other operators and suggested that they jump your locations!

Mr. MORRIS. That is right.
Mr. KENNEDY. That is after you got out of the association?
The CHAIRMAN. Who did that?

Mr. Morris. One of the operators went around soliciting my locations and I spoke to him and he said that he got my list from the association, from Mr. Denver, and the association.

The CHAIRMAN. That is the witness who just testified here a few moments ago?

Mr. DENVER. That is right.
Mr. KENNEDY. Then you lost, what, two or three locations?
Mr. Morris. That is right.

Mr. KENNEDY. Were you ever asked to belong to local 531 of the UIU?

Mr. MORRIS. No.

Mr. KENNEDY. That was the local that we just discussed, Mr. Chairman, which was run by Mr. Al Cohen.

Is that right?
Mr. MORRIS. That is right.

Mr. KENNEDY. During a dispute between the Music Operators of New York and 1690 on one side, against local 531, the union that was run by Mr. Cohen, were you called down as a witness!

Mr. MORRIS. Yes. Mr. KENNEDY. At that time you were doing work on behalf of Harold Kauffman; is that right?

Mr. MORRIS. That is right.

Mr. KENNEDY. And Harold Kauffman had this arrangement with Mr. Cohen ?

Mr. MORRIS. That is right. Mr. KENNEDY. And Mr. Kauffman was a partner, Mr. Chairman, of Miami Phil, who we discussed yesterday.

When you went down there as a witness, were you a member of local 531 ?

Mr. MORRIS. No.
Mr. KENNEDY. Did you meet Mr. Cohen ?
Mr. MORRIS. Yes, I met Mr. Cohen.

Mr. KENNEDY. Did he tell you to go in and testify that you were a member of 531 ?

Mr. MORRIS. Yes. He told me that he considered me a member.
Mr. KENNEDY. Did he show you a card?
Mr. MORRIS. He showed me a card.
Mr. KENNEDY. And had you signed that card ?
Mr. MORRIS. No.
Mr. KENNEDY. Did you go in and testify?
Mr. MORRIS. Yes.
Mr. KENNEDY. Did you testify you were a member of 531 ?
Mr. MORRIS. Yes.
Mr. KENNEDY. You testified that you were, although you were not?

Mr. MORRIS. Well, he told me that since he was the president of the union he considered me a member, and I testified as such.

Mr. KENNEDY. You never knew that you were a member up until that time?

Mr. MORRIS. That is right.
Mr. KENNEDY. And this was not your signature on the card ?
Mr. MORRIS. That is right.

Mr. KENNEDY. Mr. Cohen was the one that suggested, however, that you go in and testify in these court proceedings?

Mr. MORRIS. No, he said he considered me a member and I testified as such.

Mr. KENNEDY. Is that the reason you were down there, to testify! Mr. MORRIS. That is right. And I also had to testify on who owned which machines and who paid for which machines, et cetera.

Mr. KENNEDY. When local 19 was being set up, were you invited to a meeting in connection with that union ?

Mr. MORRIS. Yes.

Mr. KENNEDY. And you did not go; is that right?
Mr. MORRIS. That is right.

Mr. KENNEDY. Did you understand that there were some underworld figures connected with the union, local 19?

Mr. MORRIS. After I received the invitation, I checked into it and I decided from the different people I called up I found out that they possibly did have some underworld connections with that meeting.

Mr. KENNEDY. Were you scared to go?
Mr. MORRIS. Yes.
Mr. KENNEDY. Did you find ultimately at one of the meetings that

. at this meeting of this so-called local union that they had guns on the table?

Mr. MORRIS. That is one of the reports that I had received.

Mr. KENNEDY. Subsequently, in February 1958, you decided to form an association amongst yourselves?

Mr. MORRIs. Yes. We had a couple of meetings of all the freelance mechanics, mechanics doing work for other operators, and decided to form an association of freelance mechanics.

Mr. KENNEDY. At that time, after you formed this association, did Mr. Jacob come down to see you?

Mr. MORRIS. Yes. Mr. Jacob came down.
Mr. KENNEDY. One of the Jacob brothers?
Mr. MORRIS. Yes.

Mr. KENNEDY. Did he tell you at that time that you should join up

with local 266 of the Teamsters? Mr. Morris. Yes. He suggested that I join, myself, and bring our association, all the members, into 266.

Mr. KENNEDY. Did he say that local 266 was going to be the major power in the area?

Mr. MORRIS. Yes. He said 266 would be the major power and they would provide benefits for the members.

Mr. KENNEDY. How were they going to provide benefits for the members if you were all self-employed ?

Mr. MORRIS. Well, he couldn't give me a straight answer on that.

Mr. KENNEDY. Did he tell you that local 266 would be able to put pressure on locations, stop deliveries?

Mr. MORRIS. Yes.
Mr. KENNEDY. And picket locations very effectively?
Mr. MORRIS. Yes.
Mr. KENNEDY. And force people to make arrangements?

Mr. Morris. Yes. He said that they could picket, they could stop the beer deliveries, and force the operator and the location owner to toe the line.

Mr. KENNEDY. Did you understand that he was the one that had originally been behind local 19 and subsequently was the one that was behind local 266 ?

Mr. Morris. Well, I just surmised that he was with 19. I don't know if he was behind it, but I know that he was with it.

Mr. KENNEDY. Just as a general summary, the majority of the employees gained nothing from the union, or the employees themselves didn't get anything out of the union ?

Mr. MORRIS. That is right; 1960 isn't a wonderful union. In the 10 years they have been in existence they have not given the em

ployees practically anything. They never even let the employees see a copy of the collective bargaining agreement.

With this new trusteeship, they haven't done anything for the employees either. None of the employees of the business have received any benefits. They have one benefit they may have received. There is hospitalization which pays $10 a day while in the hospital, they may have received, and there is a death benefit.

Those are the only two benefits that some of the employees may have received.

Other than that, I doubt if there are other benefits that they know about. They don't even know about these benefits because they can't see the collective bargaining agreement.

Mr. KENNEDY. And a lot wouldn't know if they were in the union or not?

Mr. MORRIS. That is right. A lot of them don't know who carries the book in the company they work for and who is paying dues for what. Until recently, when the investigation started, they started to add the money to the employee's salary and then deduct it so it would legally look correct.

Mr. KENNEDY. But prior to the investigation, the owner or the employer himself was paying the dues and paying all the other things?

Mr. MORRIS. That is right. Mr. KENNEDY. So the employee knew nothing about the operations of the union ?

Mr. MORRIS. That is right.
Mr. KENNEDY. It was just for the benefit of the operators ?
Mr. MORRIS. That is right.
Mr. KENNEDY. That is all.
The CHAIRMAN. Have you any questions, Senator?
Senator CHURCH. I have no questions, Mr. Chairman.
The CHAIRMAN. All right. Thank you very much.
Call the next witness.
Mr. KENNEDY. Mr. McCann.
The CHAIRMAN. You do 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. McCann. I do.

TESTIMONY OF JAMES G. MCCANN

The CHAIRMAN. State your name, your place of business, and where you live, and your business or occupation, please.

Mr. McCANN. My name is James McCann. I live at 1710 St. Peters Avenue, Bronx, N.Y. I go under the business of McCann Amusement Company, Inc., 16 Mt. Vernon Avenue, Mount Vernon, N.Y.

The CHAIRMAN. You waive counsel, do you?
Mr. McCANN. Yes.

Mr. KENNEDY. Mr. Chairman, this witness' testimony is of some significance, again, in connection with the operations of the union.

You and your family owned the Club Tremont?
Mr. McCann. Club Tremont, Inc.

Mr. KENNEDY. That was in 1955?
Mr. McCann. That is right.
Mr. KENNEDY. That is a bar and grill ?
Mr. McCann. That is correct.

Mr. KENNEDY. In that bar and grill there was a game machine owned by an operator by the name of Harry Schildkraut?

Mr. McCann. That is right.

Mr. KENNEDY. You also had a jukebox owned by an operator by the name of Joe Hannon?

Mr. McCann. That is right.
Mr. KENNEDY. You had both the game machine and the jukebox!
Mr. McCann. Yes.

Mr. KENNEDY. First, talking about the game machine, you had no written contract in connection with the game machine; is that right? Mr. McCann. No written contract.

Mr. KENNEDY. Did you tell the man, the owner, of the game machine that you wanted him to remove the game because you wanted to purchase and install your own game!

Mr. McCann. Yes. I wanted to install my own game, so I asked him to remove his game, being we had no written contract, and he said that if I put my own game in, I would be picketed by 1690 union.

The CHAIRMAN. By what?
Mr. McCann. By 1690.
Mr. KENNEDY. Local 1690 ?
Mr. McCANN. That is correct.
Mr. KENNEDY. Why did he say that you would be picketed?
Mr. McCann. Well, he said it was his location.

Mr. KENNEDY. Are you sure it would be 1690 that would picket you for the game!

Mr. McCann. 1690. No, wait, 433, that is right.
Mr. KENNEDY. For the game?
Mr. McCann. Yes.
The CHAIRMAN. What?
Mr. McCann. Local 433. 1690 is the jukebox union.
Mr. KENNEDY. We will come to that.

He told you that if you tried to put your own machine in there you would be picketed?

Mr. McCann. That is what he said. Mr. KENNEDY. What did you do? Mr. McCann. I gave him $150 and he guaranteed I would have no picket.

Mr. KENNEDY. And he removed his machine!

Mr. McCann. He removed his machine. I, in turn, bought my own and operated my own machine in my own place.

The CHAIRMAN. Who did you pay that money to?
Mr. McCann. Harry Schildkraut of the Chipson Amusement Co.

Mr. KENNEDY. In order to get him to remove the machine from your own premises, you had to pay him $150 ?

Mr. McCann. That is right, under threat of the picket.

Mr. KENNEDY. What about the jukebox! Did you want to remove the jukebox?

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