Medford mail tribune., May 21, 1957, Image 10

TEH MEDFORD (OREGON) MAIL TRIBUNE
Tutsday. Mar 21. 1957
Beck's Multiple Troubles Apparently Stemmed Only From Love of Money
Liquor, Gambling
Or Other Vices
No! in Testimony
Washington (W The mul
t i p 1 e troubles of Teamster
Union President Dave Beck
teem to stem from just one
thing: his love of money.
There has been no public tes
timony before the Senate Rack
ets Committee that the 62-year-old
president of the nation's big
gest union drank, gambled or
chased blondes.
But there are volumes of tes
timony that on his rise from
laundry driver to millionaire,
he made free and easy use of
union funds and the vast power
of his union office to enrich
himself and his clan.
Dismissed by Commiliee
The Rackets Committee dis
missed Beck from the witness
chair last week after charging
that he looted union treasuries
of more than $322,000.
Committee counsel Robert F.
Kennedy said Beck only started
repaying the money when in
come tax investigators got on his
, trail in 1954. Beck testified last
week he has now repaid S370.-
000 to the union, but insists it
was all a loan which would
exempt it from income tax and
interest-free, at that.
Kennedy also charged and
backed it up with testimony
that Beck used the power of his
union office to raise much of the
money which he gave back to
the union, and that some of the
prepaid money itself came from
the union.
Part of 52 Ways
. This was only part of 52 ways
in which the committee
charged that Beck misused his
power.
Beck's career falls in two per
iods: before' mid-1953, he was
chairman of the 11-state Western
Conference of Teamsters. It was
in this era that he allegedly
dipped with a heavy hand into
the treasury of the Western Con
ference and of the Joint Coun
cil 28 Building Association, a
Teamster subsidiary in Seattle
which operates a union head
quarters building.
Then he moved up to presi
dent of the international union,
and two events followed in a
few months; he came under in
come tax - investigation,- and
signed an agreement . with his
successor, Frank W. Brewster, to
repay the Western Conference
$200,000 as a starter and to de
termine how much else he
owed.
Main Charges
The committee and its wit
nesses, setting out this story, in
cluded these main ' charges
against Beck:
The pertinent union records
had been destroyed, but book
keeper Donald McDonald testi
fied that through 1953, they
listed no loans to Beck. Neither
did union financial statements
filed with the Labor Depart
ment. Beck's own applications
for loans from banks and insur
ance companies in this period
did not mention that he owed
money to the union.
Kennedy charged that Beck
used teamster funds to pay a
contractor who built Beck's pa
latial Seattle home. The com
mittee counsel said that later,
when Beck was repaying his
union, he raised $163,215 by
selling the same house back to
the Teamsters, who had paid
for much of it in the first place.
Beck still lives there, "rent-free.
Paid Personal Bills
Nathan Shefferman, a labor
expert with more than 300 busi
ness clients, testified, he used
Teamster funds to' pay $85,000
in personal bills of Beck and
Dave Beck Jr.
Raymond Fields, a former
American Legion official, said
that Shefferman, acting as
Beck's agent, tried to set up a
dummy company to make a $71,
500 profit on the Legion's sale
of a Washington headquarters
site to the union. Kennedy said
when the plan flopped, the union
gave Shefferman a 512,000 bon
us for beating the price down.
Donol Hedlund, president of
National Mortgates, Inc., of Se
attle, testified that a relative of
Beck bought one-third interest
in the firm with Beck's money.
Beck then used the company to
invest S9 million worth of Team
ster funds in mortgages.
Hedlund said he, Beck and un
ion lawyer Simond Wampold
formed a brokerage company
which took fees on the mortgage
deals. Kennedy called this a
kickback to Beck.
Bought Mortgages
Hedlund said he and Beck
split a $11,500 profit by using
union money to buy- mortgages
at a discount and sell them at
par to a memorial fund for the
widow of Beck's best friend.
Beck was trustee of the memori
al fund, which had been raised
by teamsters.
Hedlund said he and Beck
bought land and sold it at a fat
profit to a contractor who devel
oped it with union loans.
A. M. Burke of Occidental
Life Insurance Co. said his firm
loaned Beck S3 13.000 at a low
rate because the firm got $25,-
Teamsters in San Francisco
Call on EDave Beck To Resign
San Francisco (IP) Top Team
sters Union officials here have
called for the immediate resig
nation of Teamsters President
Dave Beck, whose actions, they
charged "have made us the
laughing stock of the country."
The demand Monday came
close on the heels of the AFL
CIO Executive Council's expul
sion of Beck for misusing union
funds "for his own personal gain
and profit."
Jack Goldberger, president of
the San Francisco Labor Coun
cil and a vice president of the
California AFL, said he will
place a motion before the Bay
Area Joint Council of Teamsters
when it meets June 4 calling
for Beck's resignation.
Almost , the entire Executive
Board of Local 85 declared Beck
had "violated the trust placed
in him by every teamster in the
country" and demanded the un
ion president resign "forthwith."
"Mr. Beck's intolerable ac
tions," they charged, "have made
us the laughing stock of the
country. We do not intend to
sit idly by and allow any indi
vidual or group to jeopardize
7x
DAVE BECK
Vast Use of Money
our position with management,
labor or the general public. Un
less he denies and disproves the
charges, we must remove Mr.
Beck." -
Regional Forester lo
Attend Meeting Here
J. Herbert Stone,' regional for
ester of the state forest service,
Portland, will attend a dinner
meeting of the Southern Oregon
Conservation and Tree Farm as
sociation at 8 pan. Friday, May
24, at the Medford hotel.
' A social hour will be held at
7:30 p.m.
The meeting will honor Jack
Wood, supervisor of Rogue River
National forest, who has been
promoted to a position with the
division of cooperative fire con
trol, Washington, D.C. Carroll
Brown, who will replace Wood
as supervisor, also will attend
the meeting.
Curt Nesheim, district warden
of the state forestry department,
will speak on new rules and
regulations' which have become
law during the recent session of
the state legislature.
Oregon Bar To Assist Thornton in
Finding Portland Vice Prosecutors
Portland (W Attorney
General Robert Y. Thornton met
today with Alan F. Davis, presi
dent of the Oregon State Bar, to
seek a list of Oregon attorneys
willing to act as special prosecu
tors in the Portland vice trials.
The state bar had informed
Thornton it would accede to his
request for a list of possible pro
secutors even though such a list
was against bar policy.
In a letter to Thornton made
public Monday, the bar said "It
is not likely that outstanding
individuals would be willing to
undertake the responsibilities of
the task without corresponding
ly broad authority and the right
of independence of action."
Status Not Clear
Status of two assistant attor
ney generals who had directed
grand jury investigations lead
ing to a mass of vice indictments
was not clear today. Arthur Kap
lan left to take a position with
the Senate Select Committee
studying labor rackets despite
Thornton's insistence it was
Kaplan's duty to see the indict
ments through to completion
and prosecution. Ralph Wyckoff
who worked with Kaplan and
the grand jury said he had not
been informed by Thornton
about terms for acting as pros
ecutor in the vice trials. He
said the attorney general had
not made any commitments
about fees for the work.
Referring to Kaplan and Wy
ckoff, Thornton said "we will
carry on, we will be able to car
ry on without them." .
. Kaplan's abandonment of the
vice trails had been accompa
nied by a strongly worded attack
on Thornton's handling of the
vice probe.
Gov. Robert D. Holmes, mean
while, agreed with Thornton
that Kaplan should have finish-
000,000 a year in premiums
from the Teamsters Union.
Burke said Beck bought prop
erty adjoining the Los Angeles
Teamsters headquarters and sold
it to the union at a $5,000 profit.
Kennedy said the union paid
for Beck's personal insurance
including a robbery policy.
B. M. Seymour of Associated
Transport Co., the nation's big
gest truck line, testified that he
loaned Beck $200,000, Beck's
first repayment to trie union,
through Freuhauf Trailer Co.,
the nation's biggest maker of
truck trailers.
Beer Distributorship
Roy Fruehauf, head of the
trailer firm, testified he arrang
ed. Beck's personal loan after
Beck had loaned him $1,500,000
of union funds in a proxy fight.
He said he also showered per
sonal favors on Beck use of
a car and chauffeur in Europe,
use of an airplane and trucks.
Irving J. Levine, head of a
Seattle beer distributing firm,
said Beck got Budweiser beer
rights for Alaska and a big area
of the Northwest and installed
Dave Beck Jr. as head of Le
vine's firm after some nicely
timed labor trouble.
John L. Wilson, an official of
Anheuser-Busch, Inc., the Bud
weiser brewery, testified that
he got inside information about
his competitors from Beck and
called on him to settle troubles
with other unions.
Stewart Krieger testified that
Beck paid him with union funds
to work full-time as. an account
ant for Dave Jr.'s beer firm.
Committee investigator Car
mine S. Bellino testified Beck
hired two Seattle newspaper
men with union funds to write
the story of his life. It was never
published. Beck repaid their sal
aries to the union this month.
ed his job in Oregon before join-
ing the Congressional Jrobe. But
the Governor added it was
Thornton's responsibility to run
the trials as he saw fit.
One of the trials, that of Ma
yor Terry Schrunk of Portland,
was scheduled to open Wednes
day but Thornton requested a
delay until June 13. He said
that was the earliest date a pros
ecutor would be available.
PROSPECT
Final PTA Meeting Slated
By GENEIL SPRUILL
Prospect The finanl PTA
meeting of the year will be held
May 28 at p.m. in the high
school science room. There will
be installation of new officers.
Mrs. Clarence Hedgepeth will
give a short report on the state
convention. Refreshments will
be served. .
Mrs. Anne Hillman, San Fran
cisco, has been visiting at the
home of her sister, Mrs. Bob
Darrohn.
Harold Grant of Eureka,
Calif., has been visiting at the
home of his parents, Mr. and
Mrs. R. Grant.
Mrs. William Wheeler re
ceived word that her mother is
seriously ill in Germany.
Mr. and Mrs. Deloy Gillespie
and son were' visitors in Grants
Pass at the home of Mr. and
Mrs. Bill Dowless on Mothers
Day. '
Mr. and Mrs. Ralph Buchan
nen moved during the week.
They are making their home at
Eureka, Calif.
Bridge club 2 met Thursday,
May 9, at the home of Mrs. Ev
erett Shafer. Those attending
were Mr. Paul Doe, Mrs. Joe
Tinney, Mrs. Vic Chapman, Mrs.
Ralph Goode, Mrs. Bob Lund,
Mrs. Clarence Hedgepeth, and
Mrs. Dar Bevens. High prize was
won by Mrs: Chapman and con
solation prize by Mrs. Goode.
Allen Winterowd, Portland,
was week end guest of Mr. and
Mrs. Archie McKillop.
Linda Downing, daughter of
Mr. and Mrs. Weldon Downing,
will leave during the week for
Portland, where she will enter
the Shrine hospital' for surgery.
The Prospect Lions auxiliary
will sponsor a Ground Observer
post in Prospect. The post will
be located behind the Prospect
shopping center. Mrs. Glen
Young will be the chief observ
er, and Mrs. Joe Josephson, su
pervisor. ' - -
The building has been given
to the group, but will have to
be moved from its present loca
tion, and the Air Force will fur
nish the telephone. Bruce Mat
thiesen is maintaining a post at
the Ross mill at Cascade Gorge.
The senior class baccalaure
ate services will be held in the
chapel in the Pines Sunday, May
26, at 8 p.m. The Rev. Dorian
Woods, pastor of Cascade Gorge
Christian church, will speak.
Commencement exercises will
be held Wednesday evening,
May 29, at 8 p.m. in the high
school gymnasium. State Rep
resentative Robert Duncan of
Medford will speak. "
May 15 students from the
physics and biology classes spent
the day at Crescent City. The re
maining high school students
spent the afternoon at the Twin
Plunges at Ashland. '
Prospect Lion auxiliary held
elections of officers at Beckies
cafe at Union Creek.. Those
elected are Mrs. John Gartman,
president; Mrs. Dar Bevens, vice
president; Mrs. Mel - Rochester,
secretary; and Mrs. Ed Towne,
tail-twister.
Prospect Lions elected new of
ficers recently. They are Bob
Lund, president; Kay Finch, sec
retary; Dar Bevens, first vice
president; Vic Chapman, sec
ond vice president; Roy Vaughn,
third vice president; and Jack
Hollenbeak, tail-twister, and W.
W. Dinkens, Lion tamer. New
directors are Ralph Goode and
Ed Towne. Lowell Ash and
Ralph were elected as delegates
to the International convention
in San Francisco in June.
Kenneth Vannice has been in
vited by seniors of Halsey High
school to speak at commence
ment exercises June 6. Vannice
is the Superintendent at Pros
pect High school.
Mrs. Addie Jacobs of Rogue
River is visiting in Prospect at
the home of son, John, and his
family.
WCTU met Tuesday, May 14,
at the home of Mrs. G. Sharp.
Three ladies from Medford were
visitors. The ladies worked on
juilt tops. After the meeting the
birthdays of Mrs. George Ring
and Mrs. Maude Arant were observed.
Miss Alice Peterson of Jack
sonville spent the week end vis
iting in Prospect at the home of
her father.
Mrs. Joel Walls and baby of
Los Anegels have been visiting
at the home of her parents, Mr.
and Mrs. Nick Freed. Mrs. Freed
returned recently from Olym
pia, Wash.
Plans for the seventh annual
hillbilly jamboree are in the
making. Lewis Clevenberg and
Ralph Goods are cochairmen.
The date has been set for July
27 and 28. No candidates 'for
Jamboree Queen have been
chosen as yet. -
Mr. and Mrs. Elmer Goodman
and Mr. and Mrs. Bob Nelson
are parents of new sons.
Divers Find Body
Of Oregon Marine
Tokyo HP) Divers from the
U. S. S. Current have recovered
the body of Marine 2nd Lt.
Henry D. Mullins, pilot of a sky
raider plane who was killed
May 13, in a crash, the Navy
Marine information office an
nounced today.
The body was recovered Sat
urday following extensive diving
and salvage operations from a
depth of 200 feet in the waters
near the scene of the crash, the
announcement said.
Lt. Mullins, 22, was the son of
Mr. and Mrs. Henry D. Mulilns,
Corvallis, Ore.
Men Old at 50 or 60!
Recharge Body's Batteries
-Feel Younger Fast!
Thousands who feel weak, worn-out at 40, 50,
60 blame fading vigor on premature ageing,
when real cause is just lack of invigorating iron
and therapeutic dose Vitamin Bi, needed to re
charge body's batteries. Thousands are amazed
at way potent, new and improved Ostrex Tonic
Tablets pep up blood, cells, organs, nerves. In
just one day Ostrex supplies iron equivalent to
16 dozen raw oysters, 4 lbs. of liver or 16 lbs.
ot beer, a-dav get-acqaamted ft
little-only 69. At ail druggists.
Leg-Smashing by
Convicts Blamed
On Publicity
Buford, Ga. (IP) State offi
cials today said "publicity," and
not abuse, caused a new incident
of self-inflicted leg-smashing by
inmates of Georgia's "rock quar
ry" prison for incorrigibles.
Six men tried, three success
fully, to break their leg bones
Monday by hitting them with 16
pound sledgehammers at the
scene of two incidents last sum
mer in which 41 men succeeded
in 'breaking their legs. .
"There were no complaints
about cruel treatment," state De
partment of Corrections Director
Jack Forrester said after inves
tigating the new incident. Other
investigators made the same re
port. Ariicle Said Asinine ,
Forrester said he believed the
self-mutilation wos inspired by
a magazine article which he said
gave a sensationalized account of
the previous leg-smashing. He
said the article was "asinine."
The men gathered at a spot
un watched momentarily by pris
on guards at the end of the 30
minute mid-morning rest period
Monday for Operation Sledge
hammer. They had been carting
quarried rock to the crusher.
It was not immediately deter
mined whether any man pound
ed his own legs, as several did
last summer.
The men were taken to a pri
vate physician at nearby Law
renceville for examination and
first aid treatment before being
returned to the prison and con
fined to the infirmary.
Contributions Made to
County Museum Fund
Cave Junction Two arrow
shaft factories at Kerby have
made a sizable contribution to
ward the Josephine county mu
seum fund, Arthur Cribb an
nounced this week.-
Owners Mr. and Mrs. Claude
Reinoehl and Bob and Jack No
lan have given the newly form
ed museum association reject
Port Orford cedar arrow shafts
to be sold in local stores for
use as plant stakes and garden
trellises. All proceeds will go to
the museum treasury.
4-H Officials Plan
To Attend OSC Meeting
Francis Krouse, Applegate 4-H
club leader, and Glenn Klein,
county 4-H agent, will leave for
Corvallis Wednesday morning to
attend a special committee meet
ing.
Krouse and Klein were ap
pointed last January to a 12-
member state advisory commit
tee for older 4-H club members.
This is the first official meeting
of the group. The session will be
held at Oregon State college.
GETS SOUVENIR -R. E. Heysell of Medford (right) is shown re
ceiving a clock board souvenir from V. E. Fish, Chevrolet general
sales manager, to mark his participation in the 1957 spring meet
ing of the Chevrolet Dealer Advertising council in Detroit. Hey
sell, of Courtesy Chevrolet, was one of 23 dealers selected from
across the nation to attend the two-day session.
Elkins Receives 20-Month Sentence
Portland (IP) Racketeer
James B. Elkins, whose disclo
sures touched off Portland's vice
probe more than a year ago, to
day received a 20 months sen
tence and was fined $2000 for
his conviction on a federal wire
tap charge.
Elkins' employee, Raymond
Clark, received a six month sen
tence and a $500 fine.
However, Federal Judge Wil
liam East stayed execution of
the sentences for the time being.
The pair was convicted earlier
this month after a lengthy trial.
They faced possible sentences of
seven years in prison and fines
of $70,000.
Elkins was a star witness be
fore the Senate Rackets Com
mittee " during the Portland
phase of its hearings. He is ex
pected to be a witness at up
coming trials resulting from
grand jury investigations here,
NICE CALCULATING
Auburn, Me. (IP) The Au
burn school department closed
its fiscal year with a balance
of three cents.
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