Decatur Daily Democrat, Volume 55, Number 120, Decatur, Adams County, 21 May 1957 — Page 2

PAGE TWO

Beck's Troubles Stem From Love Os Money

WASHINGTON (UP) — T lie multiple troubles of Teamster Union President Dave Beck seem to stem from just one thing: his love of money. There has been no public testimony before the Senate Rackets Committee that the 82-year-old president of the nation's biggest union drank, gambled or chased blondes. But there are volumes of testimony that on his fise 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. The committee dismissed Beck from the witness cnalr 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 income tax investigators got on his trail in 1954. Beck testified last week

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he has now repaid $370,000 to the union, but insists it was all a loan ! — which would exempt it from ' income tax —and interest-free, at that ■ > Citea 52 Ways I Kennedy also charged — and t backed it up with testimony — that I Beck used the power of his union office to raise much of the money - which be gave back to the union, ’ and that some of the repaid money 1 itself came from the union. lj This was only part of 52 ways > in which the committee charged that Beck misused his power. : Beck’s, career falls in two peri- : ods: Before mid - 1953, he was i chairman of the 11-state Western Conference of Teamsters. It was in thia era that he allegedly dipped 1 with a heavy hand into the treas- ! ury of the Western Conference and I of a Teamster subsidiary in : Seattle.

Then he moved up to president of the international union, aad two rats followed ih a tat months: came under Income tax investigation. and signed an agreement with his successor, Frank W. Brewster, to repay the Western Conference $200,000 as a starter and to determine how much else he owed. Lists Main Charges The committee and its witnesses, setting out this story, included these main charges against Beck: —The pertinent union records had been.destroyed, but bookkeeper Donald McDonald testified that through 1953, they listed no loans to Beck. Neither did union financial statements fifed with the Labor Department. —Kennedy charged that Beck used Teamster fupds to pay a contractor who built Beck's palatial Seattle home. The committee counsel said that later, when Beck was repaying his union, he raised $183,215 by selling the same house back to the Teamsters, who had paid for much of it in the first place. Beck still lives there, rentfree. —Nathan Shefferman, a labor expert with more than 300 business 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 $12,000 bonus for beating the price down. Tells of ABeged Kickbacks'* —Donci Hedlund, president of National Mortgages Inc., Seattle, testified that a relative of Beck bought one-third interest in the firm With Beck's money. Beck then used the company to invest nine million dollars worth of Teamster funds in mortgages. —Hedlund said he, Beck and union lawyer Simond Wampold fomed a brokerage company which took fees cm the mortgage deals. Kennedy called this a kickback to Beck. —Hedlund said he and Beck j split a $11,500 profit by using union .money to buy mortgages at a dis-

THU DECATUR DAILY DEMOCRAT, DECATUR, INDIANA

count and sell them at par to d memorial fund for thg widow at Beck's best friend. —Hedlund said he and Beck bought land and sold it at a fat profit to a contractor who developed it with union loans. -A.M. Burke of Occidental Lift Insurance Co. said his firm loaned Beck $313,000 at a low rate because the firm got 25 million dollars a year in premiums from the Teamsters Union. —Burke said Beck bought property 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. Exchange of Loans —B.M. Seymour of Associated Transport Co. testified that he loaned Beck s2oo,ooo—Beck's first repayment to the union—through Fruehauf Trailer Co. —Roy Fruehauf. head of the trailer firm, testified he arranged Beck’s personal loan after Beck had loaned him $1,500,000 of union fuhds in a proxy fight. He said he also showered personal favors on Beck—use of a car and chauffeur in Europe, use of an airplane and trucks. —lrving 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. aa head of Levine’s firm after some nicely timed labor trouble. —John L. Wilson, an official of Anheuser-Busch Inc., the Budweiser 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 accountant for Dave Jr.'s beer firm. —Committee investigator Carmine S. Bellino testified Beck hired two Seattle newspapermen with union funds to write the story of his life. It was never published. Beck repaid their salaries to the union this month. > F" i. Arkansas is one of the nation’s most important sources of cinnabar, the ore from which quicksilver is made.

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AFL-CIO Plans New Rules To Guard Unions Plan New Rules To Safeguard Against Misuse Os Funds WASHINGTON (V) — AFL-CIO leaders today appeared ready to lay down new rules to safeguard union funds against the abuses charged up against Teamster President Dave Beck. The leaaers also considered mles to “guarantee democratic procedures” in unions to protect them against corrupt officers. The AFL-ClO’s 25-member Executive Council turned to the rules and other anti-corruption projects after tossing out Beck as an AFL-CIO vice president Monday. A top item on the council’s expected agenda was whether to Suspend three small international unions accused — like the giant Teamsters Union —of domination by corrupt influences. The three unions—the Laundry Workers, Distillery Workers and Allied Industrial Workers — were involved in alleged welfare fund abuses uncovered by a Senate committee in 1954-55. The three unions with their total 170,000worker membership were warned last February to throw out officers involved in the abuses or face ouster from the AFL-CIO. The council's action against Beck was just one of a series of developments that made life look grim for the chubby labor boss: —The AFL-CIO action was expected to give a push to reported efforts by Teamster leaders to shove Beck out of the Teamster presidency. —Chairman John L. McClellan of the Senate Rackets Committee said he believes Beck "has committed many criminal offenses.” McClellan's committee still has Beck under subpena. —Superior Judge Lloyd W.Shorett told a grand jury at Seattle, Wash., that it is up to it to ascertain whether Beck "borrowed or stole" more than $300,000 in union fiwds. —Beck is scheduled to appear before a federal grand jury June 4 at Tacoma, Wash., on a charge of income tax evasion. Benny Hooper Taken From Oxygen Tenl Boy Rescued From Well Doing Fine MANORVILLE, N. Y. (UP) — Seven - year -old Benny Hooper gasped a lung full of fresh air today, stretched and said “Yah, that feels good.” It was hjs first freedom from an oxygen tent since his rescue Friday from the 21-foot deep wellhole in which he had been trapped nearly 24 hours. • “I feel good,” Benny said and smiled for photographers who crowded around his hospital bed. The sandy-haired, blue-eyed boy laughed and imitated Popeye and Donald Duck for his audience. He said he was not anxious to go home. "There are no photographers there," he said as presents were piled next to him on his bed. Benny was nearly well from a slight lung inflammation he contracted from his entrapment in the damp well. Dr. J. H. Kris said he probably will be able to leave the hospital by the weekend. “He’s doing well and feeling well,” Kris said. Benny's temperature, which had reached 102 degrees Saturday, the day after his rescue, was back to normal by Monday. Flat The * Welcome Wagofl Hostes* JVill Knock on Your Doo< with Gift* A Grootings from Friendly Buiinetq Neighbor* and Youg Civic and Social Welfare Leadera file Weatfbn' ts I The Birth of a Baby Sixteenth Birthdays EngagementAnnbuneementl Change of residence Arrivals of Newcomers W Phone 3-3196 or 3-3479

Variance Is Granted Decatur Industries . Noah Steury, representing Decatur Industries, was granted a variance at Monday night's meeting of the board of zoning appeals. Purpose of the variance is jo enlarge the size of the building and also to provide off-street parking for employes. The Steury building is located at 211 South Eighth street. D. Burdette Custer of Custer and Smith represented Steury. > Dulles' Free Press I :S » ' Statement Assailed , California Solon Blasts Statement 1 BOSTON (UP) — Rep. John E. Moss (D-Calif.) said Monday night " freedom of the press would be--5 come just “a pious phrase” if the 1 views of Secretary of State John 5 Foster Dulles prevailed. * Moss, chairman of a House Government Information subcommit- - tee, attacked as "appalling” Dul- ’ les’ recent statement that “the 1 constitutional 'freedom of the t press* relates to publication, and 1 not to the gathering of news.” “Under such a principle,- no r matter how laudatory the motives, 1 freedom of the press would be > nothing more than a pious phrase 1 on a yellowed document in the Na- ; tional Archives,” Moss said. > Dulles made the statement in . defending the State Department’s i refusal to grant passports to Amer- . ican newsmen to visit China. Moss . criticized it in a speech to the New England Associated Press t Newk Executives Assn. f Moss said Dulles went further "in his crazy-quilt policy” when he suggested at a news conference that American news agencies hire J foreigners to cover Chinese news. 1 “Such a suggestion shows a com- ’ plete lack of understanding of freer dom of the press,” Moss said. “The arbitrary refusal of pass--1 ports for American newsmen to ! travel in Red China is bad enough. * But the thought that Americans are thereby to be forced by their : own governinent to view news through the eyes of foreign na- - tiemate is inconceivable in 20th . century America. “Surely Mr. Dulles doesn't sug- ’ gest that American news agencies i hire Chinese Communists as their reporters!” • Moss said news agencies hire > foreigners to supplement their > American staffs overseas, under supervision of Americans. But he said there is no substitute for “on-the-spot coverage by an American reporter.” “When Americans abdicate their right to see for themselves, we have lost a major battle in the struggle to defend our hard-won freedoms,” Moss said. “These freedoms must not be chipped away by Mr. Dulles or anyone else for the sake of expediency." * » ’ y /'fiJUL'l ! Morry Maids Joan Fleming conducted the last I meeting of the Monmouth Merry Maids club at the Monmouth school. Donnie Brown and Bill ; Jones led the pledges before the ' 35 members, one visitor, and two leaders present. In answer to roll call, members named ’ the place they would like to go "for a completion party.” "Filling a Pie” was the first 5 demonstration given, by Barbara Roe. Marion Caston and Connie 1 Fast presented the second one, on ’ “Grooming and Posture.” Spe--5 cial entertainment featured Joyce ; Busick and Jeannette Fuelling. : Members are reminded to bring their record books’ at the next ? meeting, June 6, at the Monmouth School, It will convene at 1:30 1 and end at 3:30 p.m. : —*■& > Union Pals Union Pals 4-H Club met at the Immanuel Lutheran School for its last meeting. Jane Wass conducted the meeting, and Kathy Thieme led the pledges. Naming the movies they like best, the 28 members present answered roll call. Ann Lehrman presented the minutes of the last meeting, and Jean Wass gave a health and safety report. A demonstration was given by Pasty Krueckeberg. Katherine Bischoff, and Donna Allison, on making potato salad. Added to the Union Pal’s club calendar was a potluck dinner honoring the mothers, to be held June 11. Next meeting of the club will be held Tuesday, May 28, at the Immanuel Lutheran School at 8 p.m. St. Mary's Kekionga Pleasant Mills School was the scope of the St. Mary’s Kekionga club meeting last Thursday. The business meeting was conducted by Kay Bollenbacker: Judy Myers and Bonnie Hart led the pledges, and roll call was answered by the 28 members with their favorite foods. Health and safety was the topic of Susie McCullough's report, and the demonstration for the meeting telling pointers oh freezing fruits and vegetables, was given by Nancy Bailey and Linda King. Recreation and sihging were led by Cathy Shoaf and Linda Riley, and Nancy Cook and Bonnie Hart, respectively. Next on the club's schedule is a meeting May 23 at the Pleasant Mills School, from 7 to 9.

County Boy Scouts And Cubs In Circus Over 5,000 Scouts in Circus Saturday A number of Adams county Boy Scouts took part in the 50th Scout anniversary celebration held at the coliseum in Fort Wayne, Saturday afternoon and evening. Taking part in the event from this county were members of the Northwest P.T.A. Cub Scout pack 3063; 8.P.0. Elks Air Squadron, Explorer Scouts; troop 63, Boy Scouts, American Legion post 43, all from Decatur, and troop 69, Boy Scouts, of the Geneva Lions club. The Northwest Cubs entertained with a clown band in the third event of the program, which was divided into 12 separate events. Sixteen members of the local Legion troop demonstrated first aid in bandages, tourniquets, and artificial respiration, as well as several types of carries for injured persons. This showing took part in the seventh event, listed in the pro- ’ gram booklet as “Be. prepared— Scout first aid skills.” Members of the Geneva Lions , club troop appeared in costume during the number 11 event, called , physical fitness, and presented several Indian dances and acts. More than 5,000 Scouts from this area participated in this first Boy i Scout circus, which was sponsored by the Anthony Wayne council, Boy Scouts of America. Besides first aid. members of the Legion troop have been taking swimming courses at the Y.M.C.A. in Fort Wayne for the past several

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TUESDAY, MAY 21. 1957

weeks. Fourteen of the Scouts are taking lessons under Ralph Clark, and two are taking life saving courses under William Lamb, 'in order to complete work leading toward the rank of Eagle Scout. ■ Y Ted Schrock Winner Os Sorority Award Ted Schrock, son of Mr. and Mrs. Noah Schrock, was recently notified that he was the winner of the annual Tri Kappa scholarship assist, of 8100. Schrock, who * will graduate from Decatur high school Thursday evening, plans to take pre-med at Indiana University, where he will begin schooling next September. Schrock was one of 11 students from both the Decatur high school and the Catholic high school, who were given tests recently, on which to base the award, and he was the one with the highest score. Man Gives Self Up In Fatal Slugging MISHAWAKA. Ind — (ffl — Jack Grace, R.R. 4, Elkhart, gave himself up to authorities here Monday in connection with the fatal sluggin of Ira C. Edmonson, 52, Mishawaka. Sunday. Grace told authorities he and Edmonson hit one another Saturday night and he left the older many lying on the sidewalk. Grace said he did not know Edmonson was injured. DON’T TAKE A CHANCE TAKE PLENAMINS Smith Drug Co.