Medford mail tribune. (Medford, Or.) 1909-1989, March 20, 1957, Image 5

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    Brewster Claims Insurance Broker
Paid Him for Care Given Race Horses
Washington (UP) "West
Coast teamsters chief Frank W.
Brewster testified today he re
ceived about S5.000 a year from
his union's insurance broker.
But he swore it was not a
commission. He said he .got the
money for taking care of race
horses jointly owned by him and
the broker.
Brewster told the Senate
Rackets Committee he received
stock valued at about $5,000 a
year in- 1951-53 from George
Newell, his partner in the Breel
Stables. He said Newell receives
S300.000 a year in brokerage
fees for handling health and
welfare insurance for the team
sters. Brewster, chairman of the
Western Conference of Team
sters, said his payments from
Newell had nothing to do with
the fact that Newell gets the
union's insurance business.
Knight Contribution
Brewster had testified earlier
that the Teamsters Union con
tributed money to the 1954 cam
paign of California Gov. Good
win J. Knight and later got the
man of its choice appointed San
Francisco port examiner.
Some time after it gets through
with Brewster, the committee
plans to question Teamsters
President Dave Beck about his
personal finances. It gave Beck
until noon (PST) today to de
cide whether to turn over his
financial records or chance hav
ing them subpoenaed.
Beck's heir apparent in the
giant union. Teamsters Vice
President James R. Hoffa, is
facing trial at a date not yet set
on a federal indictment accusing
him of bribing a rackets investi
gator to get secret committee
documents.
The indictment, returned Tues
day, said Hoffa told the investi
gator that "it looks like Beck's
goose Is cooked if that is what
they have on Beck."
Cared for Horses
Brewster, a suave, graying
man of 59 who wears S180 tailor
made suits, testified that on
about half the mornings of 1953
1954 he arose at 4:30 a.m. to tend
Breel Stable's steeds.
"I was interested in seeing
that the horses were properly
cared for," he said.
For this, he said, Newell
agreed to pay him about S5.000
a year. He said he was paid in
stock of the "Affiliated Fund,
Inc.," at the rate of 1,000 shares
a year. He said the stock varied
in value from S5.17 to $5.36 a
share.
Exemption Deadline
Hear for Veterans
Salem UR Disabled war
veterans and war widows were
reminded today .that they have
only until April 1 to apply for
property tax exemptions as pro
vided under state law.
Utility Companies
Protest Tax Increase
Salem U.R; A bill which
would increase, corooration ex
cise tax rates for utilities from 4
I to 8 per cent was protested here
iiast night by representatives of
Oregon's largest utility' com
panies. They said a reappraisal pro
gram had not gone far enough to
uistify doubling corporation ex
cise tax rates at this session.
A program started in the 1955
session looked eventually to a
full 8 per cent rate being paid
The State Department of Vet by utilities, with an offset of up
erans rtiiairs saia trie exemp
tion applies to veterans 40 per
cent or more disabled and to un
remarried widows of war vet
erans. The exemption amounts " to
$7,500 of the true cash value of
the property. Application Is
made to the county assessor.
to 50 per cent for personal prop
erty tax paid, the same as other
Oregon corporations. The Legis
lature of 1955 sought to combine
a gradually applied corporation
excise tax on utilities with
county ratio adjustments stem
ming from the state's property
reappraisal program.
Committee counsel Robert F.
Kennedy said Newell in his 1951
income tax return deducted the
payment to Brewster from in
surance commissions rather than
from operations of the stable.
Brewster said Newell later
changed this.
Brewster said he still owes
Newell between 540,000 and
542,000 for Newell's share of
their Breel Stables. He said they
each put up 512,500 to buy a
string of race horses about 1950,
but Newell later added more
money to the partnership than
he did.
Memory It Faulty
Brewster Insisted he could not
remember how much money he
put into Breel Stables, or lyw
much he got out of it
"Mr. Brewster, you astound
me with your lack of knowledge,
occupying the position you do,"
said Chairman John L. McClel
lan (D-Ark.).
Brewster spent much of the
morning session explaining op
eration of the union's health and
welfare fund and its pension
fund.
He said employers contribute
$10.40 a month to the health and
welfare fund for each union
member. This is turned over to
the Occidental Insurance Co., for
which Newell is an agent, and
Illinois Valley Plans
Holiday Celebrations
Cave Junction Plans for two
holiday celebrations were made
here recently by members of
local organizations.
Veterans will sponsor a July
4 parade and all-day program.
Members of the American Le
gion, the Veterans of Foreign
Wars and the World War I Bar
racks have asked groups from all
over southern Oregon to partic
ipate. The Illinois Valley Labor Day
Jubilee is planned fliis year as a
joint venture by all local organ
izations. Woodsmen and timber
shows will be featured in the
three-day event.
the company guarantees the
umpn will get back 86 cents of
eaxh dollar. Two cents is a brok
ege fee and 12 cents goes to
the insurance company for costs
and profit.
Kennedy said the brokerage
fee amounts to some $500,000 a
year. Brewster said a quarter of
that goes to City of Hope hos
pital, leaving Newell's share at
about $300,000.
Believes He Wrote Letter
Brewster was questioned to
day about Charles Tait, who was
appointed to the San Francisco
port directorship by Knight.
Brewster said he believes he
"wrote a letter" to Knight on
Tait s behalf. He said he also
"may" have talked personally
to the Republican governor about
appointing Tait.
A few moments earlier Brew
ster had stated that he had "no
discussions whatsoever" with
Gov. Knight about appointments.
Tait had figured in Tuesday's
testimony as the recipient of a
pair of binoculars bought by
Brewster with ' a holiday gift
certificate purchased by the
Western Conference of Team
sters at a Seattle men's shop.
Today, Brewster asked per
mission to correct that - testi
mony. He said he bought the
binoculars for Tait, as he had
testified, but, on thinking it over,
was not sure Tait had ever rer
ceived them.
Kennedy commented that the
staff has contacted Tait who
stated that he did, indeed, re
ceive the binoculars but thought
they were a "personal" gift from
Brewster.
Speaks of Favors
The union official replied that
he is sure he told Tait they were
a gift from the union. Tait, Brew
ster said, was "very close" to
the Western Conference which
had done some favors for him.
Under questioning, Brewster
said the Western Conference
contributed $2,000 to Tait's 1954
campaign for the post of port
commissioner in Seattle. He said
Tait was elected but failed to
serve when no appropriation was
approved to finance the, post.
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5
Wednesday, March 20. 1957
MEDFORD (OREGON) MAIL TRIBUNE FTO
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