Evening star., 1952-12-24
Section Of Taft Act
| Nav Be Used in Dock
Action in New York

Action in New York
The Justice Department will
rely largely on a Taft-Hartley Act
provision in any prosecutions
resulting from FBI investigation
of the New York water front,
it was learned here today.
80. Attorney General McGranery
yesterday ordered the FBI to move
IN on the investigation.
The possible use of a Taft
Hartley Act section in the water
front cases repeatedly was called
to the attention of Mr.. McGrancry
by officials of the National Labor
Relations Board.
Witnesses before the New York
State Crime Commission, now
in recess, have described the
waterfront as the locale of wide
spread bribery. extortion. shake
downs and strong arm tactics.
Section 302 of the law makes it
unlawful for an employer to give
money or anything else of valve
to representative Of a labor
union, except in such procedures
as dues check-offs and welfare
fund payments. The same sec
ton also makes 1t unlawful for
la union representative to re-
ceive such gifts.
$4,000 Fine and jail Possible.
The prescribed penalty is a
$4,000 fine or up to year in jail,
or both.
Justice Department officials, in
cluding the Attorney General
have not discussed publicly spe-
cific Federal statutes they might
use as a result Of the current in
vestigation.
1t was understood that some one
in NLRB suggested to the At
torney General that Section 302
of the Taft-Hartley Act probably
would contain a legal basis for
Federal prosecutions.
Mr.. McGranery, in announc-
ing that he was directing
the FBI to undertake a Federal
investigation Immediately, said:
"The Department of Justice,
which has been watching the
New York water front situa-
ton for months, now has sufficient
evidence of Federal law violations
to warrant a full-scale investiga-
tion."
Dewey Declines Comment.
Gov. Dewey of New York de-
clined comment, but the chief
investigator for the State Crime
Commission, Joseph Kaitz, said
the group would offer to the FBI
ANY and all assistance and in
formation"
Gov. Dewey's long time close
associate. Herbert Brownell, is
slated to replace Mr.. McGranery
as Attorney General when the
Eisenhower administration takes
over January 20.
Gov. Dewey, who instigated the
State Crime Commission, has
called the situation it spotlighted
on the water front "a stencil in
the nostrils of the community"
The commission has no power to
punish 'wrongdoers, but it can seek
remedial legislation in Albany.
Its aim in the waterfront probe
has been to seek background on
dock rackets which are bleeding
an estimated $3.50 million annually
from New York City's ST billion
year shipping industry.
| Political Figures Involved.
The commission has heard
sworn testimony that the AFL In
ternational Longshoremen's Asso-
citation is infested with mobsters
practicing graft and terrorism
and that shipping and stevedorine
firms tolerate gangsters in the lila
because they keep the dock work
ers in line.
It has also heard TESTIMONY
linking dock gangsters with po.
litical figures.
Mayors John v. Kenny of Jersey
City and Fred N. De Sapio ot
Hoboken were accused of associa.
tions with dock racketeers-s
charge both denied. And former
Mayor William O'Dwyer of New
York was described as having KEEP
some waterfront scandals under
cover while he was district at.
torney.
Mr.. O'Dwyer has said in effect
that he did all he could while HI
was district attorney to prevent
crime on the water front.
United States Attorney Myles j
Lane said in New York he favor.
the FBI probe ordered by Mr.. Nc.
Granery, his superior.
i Il agree with the Attorney Gen.
teral and approve his action 10(
per cent" Mr.. Lane said. There
is a plenitude of evidence Of lille.
gal acts on the water front tt
warrant investigation and indict.
mentS."
IC0ntrihutions I'm ri