Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-12-02
Revised Setup
Being Soughto1
Welfare
House Probers Told
Of Payment of
$4,000 to Official
By jack Jonas

The statement was made to q
House Labor and Education SUBJ
committee after an employer
trustee for two of the funds
heard for the first time that a
union official got a commits
sion" of $4,000 for doing what
one Representative said wasn't
worth a dollar and a half"
Yesterdays subcommittee hear
ing centered around the activi-
ties of Arthur A. Peisner, who
handles welfare funds for seven
building trades unions here.
Earlier, he had testified he paid
fees of $35, 900 to two high union
officials here to help him get
similar business in other cities.
Faust Moreschi, an interna-
tional representative for the In
ternational Hold Carriers, Build
ers and Common Laborers'
Union (AFL, testified yesterday
he got a $4,000 fee over three
year period from Mr.. Peisner for
waiting"
Explains "Waiting."
He said he would wait until
some union man from outside
WASHINGTON asked him If he
knew of any one who handled
the administrative end of union
welfare funds.
Then. he said, his duties be-
came twofold-first, he would
mention Mr.. Peisner's name, and
second, he would tell Mr.. Peisner
that "there might be some bust.
ness at such and such a place."
After that. he said, 1t would be
up to Mr.. Peisner to go get the
business by bid or any other way
he could.
Mr.. Moreschi said he received
$500 in 1851 for such services.
1892 in 1852, 1892 in 1858.
and 1922 up to the time the
agreement was ended in June Of
this year.
wouldn't it be correct to say
that you were paid, not for your
salesmanship, but for your in
huence?" Chairman Mcconnell
asked.
mo, sir, I never used influence
on any one" Mr.. Moreschi re.
Piled.
Questioned by Wier.
"Why would he (Peisner) pay
you $4,000 to go out and get the
business HIMSELF" asked Repre-
sentative Wier, Democrat. Of
Minnesota.
well, I don't think he knew
where it was possible to secure
such business" Mr.. Moreschi
said.
II don't think I've heard any,
thing you've done so far that's
worth more than a dollar and a
half" Mr.. Wier commented.
Did you ever make $4,000 any
easier?"
mo, sir"
did you ever work less for
SIS, oO0?"
mo, sir"
isn't it a fact that it was
your name that sold this busi-
ness?"
mo, sir"
! Leo Nazdin, president of the
Washington District Laborers'
Council. who got the remainder
of the fee from Mr.. Peisner,
testified earlier that he worked
diligently on Mr.. Peisner's be-
half. expanding time, effort and
money in attempts to get busi-
ness outside Washington.
Appoints Trustees.
Mr.. Nazdin, who lives at $3.50
Harvey road, Silver Spring, Md,
said he was a labor trustee for
five OF the unions affiliated with
the District Council. AS presi-
dent, he said, he appoints the
trustees.
He said he talked to officials
all over the country on MIR.
Peisner's behalf, after Mr.. Peis-
ner had asked him to do the
work late in 1851. He said the
II per cent fee for his help was
agreed upon after negotiation
and that he approached Mr..
Moreschi to help him.
He denied that he preached
the subject to Mr.. Moreschi with
the idea of using the latter's
contacts in the international
union.
Basis of Choice.
Mr.. Nazdin testified Mr.. Peis-
ner was chosen to handle the
welfare funds on the basis Of
sealed bids and that he was the
lowest bidder.
J Committee investigators point
ed out that while Mr.. Peisner's
bid, on a per capita estimate
basis, was lower than two other
bids submitted, he actually was
paid more than the fiat fees bid
by the other two men,. Mr.. Naz-
din said other factors, such as
interchange of members among
the unions. was responsible for
the higher fee.
The days last witness, e. D.
Frick. an auditor for the Charles
w. Tompkins Construction Co..
said he had listened with some
surprise to the testimony of Mr..
Nazdin and MIR. Moreschi and
added:
II think that before another
year. we should request bids. and
also consider the possibility Of
/ putting an administrator on the
payroll and have the trust fund
administer the fund itself
/ through a paid empioye."
/ He said the trustees viii re.
examine the entire administra.
tive setup, with a view to maxi
ing changes.