Evening star., 1952-12-04
New York Probe Told
Of Cash Paid Leaders
Of Docking Unions
BY the Associated Press

BY the Associated Press
NEW YORK, Dec. 4.-Steve-
doring firms have acknowledged
making big good will" payments
to union leaders, dock bosses and
steamship company officials to
keep labor peace and to obtain
business on New York's water
front.
Opening of public hearings
yesterday by the New York State
Crime Commission lifted the lid
on alleged crime and racketeering
in the city's $7-billion-a-year
shipping industry.
1t has been estimated the in
dustry's annual losses run to $3.50
million because of such things as
pilfering, smuggling and pay kick
backs by longshoremen to their
union bosses.
An opening days witness was
Ruth M. Kennedy, white haired
secretary treasurer of the steve
doring firm of Daniels & Kennedy,
Inc. Miss Kennedy testified that
gratuitieS are IAN established
practice in the business"
Tells of Paying Ryan.
The witness said her firm. in
five years. paid $500 to Joseph P.
Ryan, president of the AFL Inter-
national Longshoremen's Associa-
ton.
In 1948, Miss Kennedy testified,
checks were drawn to fictitious
persons and the money was turned
over to dock union officials.
I'm 1948," she said, I'VE had
some labor trouble and we thought
it would be easier for the people
getting the money to hide their
identity"
Miss Kennedy'S nephew, James
c. Kennedy, president of her firm,
also testified the payments were
"gratuities only"
He was asked: Were they to in
fluence union officials and to pre-
vent quickie strikes and other
troubleS?"
IF they prevented strikes, that
was all right" Mr.. Kennedy re-
piled.
You invested in good will?"
"Yes," Mr.. Kennedy said.
Other Officials Paid.
Mr.. Kennedy said his firm, for
years, gave Mr.. Ryan $500 each
spring and $1,000 each Christ
mas. Smaller payments went to
other LILA men. he said. and also
to representatives of the AFLi
Teamsters' Union and the AFL
Warehousing and Paper Handlers
Union.
From private testimony. the
commission quoted Capt. Douglas
Yates, a vice president of the
Jarka Corp, the city's largest
stevedoring firm, as saying the
company could not be sure OF
enough help to service ships with
out the aid of five certain lila
men.
The commission further quoted
Capt. Yates as saying: I'VE
wanted these people at our beck
and call"
Also on the public record went
the private testimony of Capt.
Philip G. O'Reilly, another Jarka
vice president.
Says Leaders Hurt Business.
Capt. O'Reilly was quoted as
stating:
II say that if you can stop the
loading racket in the Port of New
York, you have stopped all other
rackets in the Port of New York.
If you get rid of the loaders-it
would be a godsend. The amount
of business we have lost is out OF
this world because of the leaders.
Capt. OReilly said New York
is the only East Coast port where
public leaders move cargoes onto
or off the docks, with the long
shoremen doing the loading or
unloading of the ships.
An earlier witness was Frank
w. Nolan, head of Jarka, which
does an annual business of more
than $25 million.
Mr.. Nolan took the stand to
answer some questions, but the
bulk of his testimony came from
commission reading Of minutes on
his appearances at private
hearing.
S489,582 in "Petty Cash."
Mr.. Nolan was quizzed about
"petty cash" company disbursals
of $489. .582 from 1947 through last
June.
OF that amount, Mr.. Nolan said.
he handled about 100000 in
petty cash and paid out about
$4,000 in Christmas gift money.
A part of that fund, he said, went
for commissions to our customers
for services rendered and we didn't
think it necessary to identify the
recipients"
The commission quoted Mr.. No
lan'S testimony that he gave $100 |,
each Christmas to Mr.. Ryan, and /
$4,000 in Government bonds to
Walter Wells. president of the
Isthmian Steamship Co.
Mr.. Nolan conceded under ques-
tioning that Jarka official told
him he would have to hire Tony
Anastasio, or the men would not
work on a certain pier.
Mr.. Nolan said he knew "in a
general way" that Anastasio had
a police record. Tony Anastasio
Is a brother of Albert Anastasia,
reputed triggerman for the old
Brooklyn mob known as Murder,
Inc. The brothers spell their sur,
names differently.