Signal for Rebellion

Teamster Boss Dave Beck is proud to point out that he once was a Seattle laundry driver. By last week. as Beck made his third appearance before the Senate committee investigating labor racketeering. so much of his dirty laundry had been washed in public that the Teamsters were ready to wring him out of office. Because there is no clear-cut constitutional procedure for impeaching him now, the reformers looked toward September when the International Teamsters open a convention and hold an election in Miami Beach, Fla. First to volunteer to take a crack at Beck was an old pal, Fourth Vice President John T. ("Sandy") O'Brien of Chicago, who announced for the presidency. Knowing Teamsters doubted that

O'Brien stood a chance, but his defiance was a signal that the race is on.

Meanwhile, Committee Chairman John McClellan scrubbed away at Teamsters' employees, past and present, and an assortment of businessmen with a common compulsion, i.e., an urge to do Beck favors. Among them:

Roy Fruehauf, wealthy truck-trailer manufacturer, who was offered a $1,500,0001oan from Teamster funds by Beck when a proxy battle threatened his company. Fruehauf showed appreciation by arranging a complicated $200,000 personal loan for Beck when the Teamster boss was being investigated by Internal Revenue agents. But Fruehauf drew the line at making a company loan because "I didn't think it was good business."

Alfons Landa, Washington attorney, who is a Fruehauf stockholder and director. So grateful was Landa to Beck for saving the firm and his investment that he volunteered to split his profits from a stock purchase made possible by Beck's $1,500,000 loan. Informed that Beck had refused. Arizona's Senator Barry Goldwater chuckled: "This is the first time in all of these hearings that I have heard of Mr. Beck turning down anything."

George Newell, Seattle insurance broker, who twice consulted able Committee Accountant Carmine Bellino. Said Newell sheepishly: "You have more of my figures than I have." One figure Newell remembered: in four years he made profits of some $1,000,000, and 90% of it came from commissions on Teamster insurance. Massachusetts' Senator John Kennedy heatedly pointed out that Newell's commissions were 20 times higher than recommended fees. Newell retorted that he gave exceptional service, but couldn't think of a convincing example.

Donald McDonald, Teamster bookkeeper, who admitted he had not known that Beck had borrowed huge sums from the union until mysterious repayments arrived in walloping big lumps--including $100,000 within the previous two weeks. Asked Goldwater: "Is he making much progress in paying [his loans] back?" Said McDonald: "Three hundred and seventy thousand dollars worth. That is quite a bit of progress."

Norman Gessert, until recently a Teamster employee, who was picked up in Ellensburg, Wash, by a U.S. marshal after he had dodged the committee's subpoena servers for two months. Gessert, a cousin of Beck's wife Dorothy, took the Fifth Amendment 71 times in 21 minutes, refused to answer even when McClellan asked if he knew his counsel. Said McClellan: "I just wanted to see how ridiculous and how frivolous these things can get when people find themselves in a situation such as you are."

Beck himself was bothered by a sunburned nose when he made his appearance before the committee. He itched, twitched, rubbed and rambled on garrulously about the propriety of secondary boycotts and Teamster growth during his administration. But there was no rambling when .Chairman McClellan sighted across the committee table and asked: "Are you in favor of union officers being honest in the administration of union funds?"

Beck's attorney, Edward Bennett Williams, protested that the question had "no relevancy whatever to any legislative purpose." McClellan bristled. "I think it does," said he. "In spite of his efforts not to be helpful, I think that your client has been very helpful to the Congress, and [the investigation] has shown them definite areas where they should legislate and must legislate if the honest working people of this country are to be protected from such rascality as has been going on in this union."

McClellan bore in again on Beck. "Are you in favor of rendering accurate accounting of the funds that you are trustee of to the members of [your] union?"

Beck: Yes. One hundred percent.

McClellan: Will you start now by giving an accounting of the $370,000 that you have paid back so far, and tell us how it came into your possession?'

Beck: I decline to answer that under the Fifth Amendment.

Lawyer Williams protested that McClellan was "asking this witness to come in here and lay before the committee his defense in a case in which he is . . . going to be on trial very shortly." Retorted Lawyer McClellan: "Let me say to you that I do not need a lecture on the law." Replied Williams: "I have been trying to the best of my lights to protect this man's rights, and he does have some rights here."

"He does," snapped McClellan with a frown, "and a million and a half union members in this country have some rights that this committee has been trying to protect."

This file is automatically generated by a robot program, so reader's discretion is required.