SflCTZEN MZDFORD (OREGOK) MAIL TRIBUNE
Wednesday. Mirch 13. I9S7
ooks of Teamsters Union 'Falsified EVIundt Charges in Rackets Investigation
Washington fU.R) A Senate
labor racket! investigator
charged today the Teamster
Union ' falsified" its books.
Sen. Karl E. Mundt (R-S.D),
a member of the Rackets Com
mittee, pounced on an entry in
the books of Teamsters Joint
Council 37 which listed payment
of a $241.30 hotel bill for
Thomas E. Maloney, Portland.
The check was listed under ex
pense allowances of union offi
cers and delegates.
Mundt said the books had "ob
viously been falsified." Either
the books had been "deliberately
falsified," he said, or the union
was "paying Maloney for his
activities in Portland, which I
believe to be racketeering activi
ties." The committee has heard tes
timony that Maloney was one of
two Seattle racketeers sent to
Portland by union officials to
take over vice and gambling.
Records Destroyed
Mundt voiced his charge dur
ing testimony by R. R. (Reg)
Mikesell, gecretary-treasur of
Teamsters Joint Council 37.
Mikesell testified that certain
financial records subpoenaed by
the committee have "gradually
been destroyed" because a union
vault was "terribly crowded for
space." He said all records avail
able have been supplied to the
committee. He agreed under
questioning that those records
are. for the most part, contained
in one red-trimmed account
bonk.
Mikesell, who said he lives in
Vancouver, Wash., identified
himself as secretary-treasurer of
Teamsters Local 501 there. He
said he holds the same position
in Joint Council 37. centered in
Portland. That city has been the
focus of the committee's current
Investigation.
Mikesell said Maloney, a fat
Seattle gambler and friend of
West Coast teamster boss Frank
W. Brewster, was neither a un
ion officer nor a delegate.
The records he said that were
destroyed would cover the pe
riod when Maloney and another
Seattle gambler, Joseph P. Mc
Laughlin, were in Portland.
Questioning or Mikesell by
counsel Robert F. Kennedy dis
closed that the committee had
subpoenaed financial records
dating back to Jan. 1, 1954.
Mikesell said certain of those
records have been destroyed.
but he said he thinks records
covering the 1937 to 1954 pe
riod are still intact.
Chairman John L. McClellan
(D-Ark.) commented that Mike
sell, when he became pressed for
vault space, started '"destroying
from the new' rather than the
old records.
""That's a little strange to me,"
the chairman said.
Meanwhile, in Seattle, Team
sters President Dave Beck said
he was ready to appear prompt
ly before the Rackets Commit
tee, which is interested in his
$160,000 home and in hi
sonal finances.
The union chief hinted, how
ever, that he might take refuge
in the Fifth Amendment, if his
lawyer so advised.
McClellan read off a list of
records which the committee
had requested. They covered
bank statements, checkbooks,
canceled checks, journals, ex
penditure vouchers, and other
records detailing expenditures
to various individuals that have
figured in the committee's Port
land hearings.
per-1 The names listed included
Brewster, president of the West
ern Conference of Teamsters;
the late John J. Sweeney, for
mer conference secretary; Clyde
ZJL .... ,n ,
ft ys vP-
NO COMMENT Dave Beck's son, Dave Jr. (left), keeps a tight grip on his father's
coat as he leads the Teamster Union boss toward a waiting auto at airport in Seattle.
Returning from a tour of Europe, Beck refused to answer questions on whether he
will co-operate with the Senate Rackets Committee which would like to have his per
sonal records and first-hand information about Teamster affairs.
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Portland 'Dead
Investigators Told
Washington (U.R) Senate in
vestigators had the assurances of
an expert today that Portland
"is dead as far as vice is con
"A n y rounder, prostitute,
pimp, gambler, informed citizen
or any of the policemen not po
litically involved" would agree,
according to Lt. W. W. Nelson of
the Portland police vice squad.
"The high prices paid here to
'call girls' for prostitution,. $100
to $500 a night ... is witness to
the scarcity of prostitution,"
Nelson said in a report on the
city's current vice situation.
Mayor Terry D. Schrunk of
fered the report Tuesday to the
special Senate committee study
ing rackets in labor and indus
try. He said he thinks the situa
tion in Portland is pretty much
like that in Washington, D. C.
While he did not say how
much he knows about vice in the
nation's capital, Schrunk testi
fied solemnly that "I received a
call in my Washington hotel . . .
soliciting."
C. Crosby, Oregon teamsters or
ganizer; Multnomah County Dis
trict Attorney William E. Lang
ley, Portland Mayor Terry D.
Schrunk, and others including
Maloney and McLaughlin.
As McClellan went through
the list of subpoenaed docu
ments, Mikesell said bank state
ments for the period had been
destroyed as had canceled
checks. He commented that the
records could be obtained "from
the bank."
Finally McClellan had Mike
sell identify as "our book of en
tries" a wide, black account
book trimmed in red. McClellan
then asked if the book was noi
the only "record, instrument ofi
document'' which Mikesell had
supplied.
The union official said that
was correct, except that cer
tain audits were also made avail
able and the committee was
given access to the old records.
Portland Rackets Probe
Gives Idea for Movie
Hollywood U.R The cur
rent United States Senate inves
tigation into labor racketeering
has suggested a new film to Al
lied Artists, which will start
production soon on "Portland
Expose." Barry Sullivan will
star in the picture.
Oregon Chain Saw Corp.
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San Francisco U.R The Ore
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the remaining land of Kellogg
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