Evening star., 1943-10-15
Suit
|mpounds Funds
Of Labor Unio1
Hod Carriers Locd
Accuses Officers of
Running Racket

Charges that Local IA of the Build
ing Laborers and Hod Carriers Union
was being operated by its local and
international officers as "a dues COL
lecting racket for their own private
profit" were made today before Dis
trlct Court Justice F. Dickinson
Let's, who signed restraining order
tying up union funds said to total
more than $4,000
Civil suit for an injunction order
to restrain the defendants from
continuing their illegal conspiracy"
was brought by 40 members of the
union who claim to represent a ma
Jority of the locals 5000 members.
Named in the suit were Joseph v.
Moreschi, president. and Herbert
Rivers, vice president, of the inter-
national union along with officers of
the local.
Kelly Among Defendants.
Among the defendants named is
Larry Kelly, former treasurer of the
building committee of Local No. "A
ana former president of the Labor
ers District Council, for whom a
bench warrant was issued two days
ago in District Court to assure his
appearance as a witness before a
grand jury. The grand jury is in
Vestlgatlng possible misuse of union
funds and possible liquor floor tax
law violations.
Iodays civil suit, in addition to
seeking an injunction, also seeks to
compel the defendants, named in
the complaint, to hold an election
OF officers and to render financial
accounting of the funds of the local
and OF the Laborers District Council,
with which the local is affiliated
Among the other defendants named
are George Morgan, financial sec
retary-treaSurer of local No. "a and
Joseph Speed, business representa-
tive.
The suit makes charges as to
alleged misuse of funds. The plain
ms declared the purpose of this
action is to help break the control
OF tnls Nationwide racket over our
union and to restore the union to
the membership, so that it can
junction as genuine trade union
which Will take its full place in the
war effort side by side with so MANY
other bona fide labor organizations"
Conspiracy Is Charged.
The complaint charges that Mr..
Moreschl and Mr.. Rivers entered
INTO conspiracy with Mr.. Kelly.
Mr.. Morgan and other local officers
to retain them in power. AS a re-
suit, 1t claims, vast sums of the
locals funds were taken from the
treasury. The complaint claims
that more than $4,000 was taken
from the treasury to purchase liquor
Tor the El Patio Club, night club
IN the 700 block Of Thirteenth street
NV, which the suit claims is owned
and operated by Mr.. Kelly.
The suit claims further that an.
proximately SIS, 200 was taken from
the local unions treasury to pay for
house purchased by Mr.. Kelly in
BerWyn, Md, and for construction
work on it.
The suit also claims that the de-
fendants spent more than slOO 900
to purchase land and building for
the local union, and that a sub.
stantlal part of the money was re-
tanned by them "as secret and illicit
profits on deals.
1t is also alleged that SIS. 900 was
collected as a special assessment for
civilian defense fund, and that
this was taken and not accounted
Tor. Funds of the union. it is
charged. were used by Mr.. Kelly and
ms associates to invest in land and
IN private commercial ventures, in
cIudlng construction of barracks and
cafes at Cedar Point. Md. the pro-
ceeds OF which the suit claims were
not accounted for.
Liquor Seizure Cited.
The suit points to the seizure of
liquor last January at the night
club, which led to the grand Jury
investigation of possible misuse of
union funds and possible LIQUOR floor
tax violations. The suit charges that
complaints were made to President
Moreschi of the International Union
and that the complaints were ie-
nored by him.
An affidavit in support of the suit,
hled by the plaintiffs, charges that
between March l, 1943, and Septem-
Der 27, l943. Mr. Moreschi and the
international Union were in full
control of the local and that the To-
calls treasury was wasted and dissi-
pated." AS a result, the affidavit
claims, the general fund was re-
duced from $4,000 to $4,000 and
the building fund, it was claimed.
from $4,000 to Sl,7Oo.