Evening star., 1948-04-23
Accountant 1estifies
On $4,000 Shortage
In 7 Unions Funds

A certified public accountant In
the labor conspiracy case in Dis
trict Court today testified he found
$21, 900 unaccounted for in an in
spection of financial records of two
Washington locals Of the Inter-
national Hod Carriers and Common
Laborers Union (AFG.
The prosecutor, Special Assistant
to the Attorney General Leo A.
Rover, called the $4,000 "a short
age" in the funds of Locals 764 and
765. Six men linked with the union
are on trial charged with conspir-
acy. through which the Government
claims, the union treasury was
looted of 100000.
The accountant. Clyde B. Stovall,
at the direction of MIR. Rover, iden-
titled check stubs. checks. bank
statements and other financial rec
ords OF the Washington area locals
from 1910 to 1943.
Mr.. Stovall said his detailed in
spection of union records, turned
over to him by the Government.
showed some check stubs and checks
of the District council of the union
here are missing.
He said he found no cash re-
ceipts or cash disbursement books
of the council.
Found One Financial Report.
Mr.. Stovall testified he found only
one financial report, consisting of
a single page, from the District
council, and said he does not recall
any quarterly reports. The Gov
ernment contends union rules were
violated in failing to keep proper
financial records.
Mr.. Stovall identified an account
relating to barracks erected at Cedar
Point, Md, near the Patuxent Naval
Air Station. The Government says
these were illegally built with union
funds. Mr.. Rover explained to the
jury this account showed the flnan-
fcial relationship between the coun-
Gil here and Local 1872 In Southern
Maryland.
Defense Counsel Austin F. Can
field, on behalf of the six defend
ants, stipulated with the Govern
ment that check stub books of the
council are genuine. Mr.. Garfield
observed that this would save time.
Larry Kelly, missing defendant
bought $4,036 worth of liquor in
October, 1912, with union funds, and
had it delivered to local union head
quarters, 523 New Jersey avenue
NV, according to testimony yes
terday.
Witness Tells Of Deal.
A Government witness, Philip
Shapiro, proprietor of the Capitol
Towers Pharmacy, Second street and
Massachusetts, avenue NE, testified
Kelly arranged the liquor sale with
him. Mr.. Shapiro said Kelly didn't
care how long it took to deliver it,
so long as he got it."
The liquor store man explained
that, under his license, he was per-
mitted to deliver only two cases al
time. So he made rs trips to the
union hall to complete the delivery
he testified. There were 100 cases
Of gin and so of whisky involved
he said. Kelly said he wanted il
for labor parties, the witness said.
Mr.. Shapiro said the liquor was
delivered to the Office of Local "A
and stored in the basement. Kelly
had paid for it in advance with
union funds. he declared.
Under cross-examination by De.
fense Counsel Garfield, Mr.. Shapiro
conceded the liquor deal was not
discussed with any of the de-
PENDANTS now on trial. The whole
transaction took place with Kelly
the witness said. The defense main.
tains Kelly is dead, but the Govern.
ment has obtained a separate tria
for him, conceding only that he il
now unavailable"