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

LIE statement was mace TO
House Labor and Education sub
committee after an employer
trustee for two Of the fund.-
heard for the first time that
union official got a commits
sion" of $4,000 for doing wha1
one Representative said .wasn't
worth a dollar and half"
Yesterdays subcommittee hear.
ing centered around the activi'
ties of Arthur A. Peisner, who
handles welfare funds for sever
building trades unions here
Earlier, he had testified he paie
fees Of $4,000 to two high unior
officials here to help him gel
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 a three
year period from Mr.. Peisner fol
waiting"
Explains waiting"
He said he would wait until
some union man from outside
washington asked him If h
knew of any one who handled
the administrative end Of unior
welfare funds.
Then, he said, his duties be-
came twofold-first, he Yoult
mention Mr.. Peisner's name, anc
second, he would tell Mr.. Peisnel
that there might be some bust
ness at such and such a place"
After that, he said, it would be
up to Mr.. Peisner to 60 get the
business by bid or any other way
he could.
MIR. Moreschi said he received
$500 in 1851 for such services
1852 in 1852, 1882 in 1858
and $2,912 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
craftsmanship, but for your in
duence?" Chairman Mcconnell
asked.
mo, sir, I never used influence
on any o,is," 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, ] 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 q
half" Mr.. Wier commented
did you ever make $4,000 any
easier?"
mo, sir"
did you ever work less fol
$15,o00?"
mo. sir"
isn't it q fact that 1t wa
your name that sold this bust
ness?"
mo. SIR" ..
Leo Nazdin, president of tn,
Washington District Laborers
Council, who got the remainde.
Of the fee from Mr.. Peisner
testified earlier that he WORKED
diligently on Mr.. Peisner's be-
half. expending time, effort ant
money in attempts to get bust
ness outside Washington.
Appoints trustees.
Mr.. Nazdin, who lives at 923|
Harvey road. Silver Spring, Md
said he was O labor trustee TO.
Ave of the unions affiliated witt
the District Council. AS presi
dent, he said, he appoints TIL
trustees.
He~said he talked to official
all over the country on MI
Peisner's behalf, after Mr.. Peis
ner had asked him to do tn
work late In 1851. He said tn
II per cent fee for his help wa
agreed upon after negotiation
and that he approached MI
Moreschi to help him.
He denied that he breaches
the subject to Mr.. Moreschi will
the idea Of using the latter
contacts In the internationa
union.
08Bz& Oh CMOlCGs
Mr.. Nazdin testified Mr.. Peis
ner was chosen to handle tn
welfare funds on the basis O
sealed bids and that he was tn.
lowest bidder.
Committee investigators point
ed out that while Mr.. PeiSner'
bid, on q per capita estimat,
basis, was lower than two othel
bids submitted, he actually wa
paid more than the fiat fees bic
by the other two men. Mr.. Naz
din said other factors, such o.
interchange Of members amoni
the unions, was responsible TO
the higher fee.
The days last witness. E. Z
Prick. an auditor for the Charlie
w. Tompkins CONSTRUCTION Co.
said he had listened with som
surprise to the testimony Of MI
Nazdin and Mr.. Moreschi an,
added:
II think that before anothe
year, we should request bids, ant
also consider the possibility o
putting an administrator on tn
payroll and have the trust fun'
administer the fund itsel
through a paid employee"
He said the trustees will re
examine the entire administra
tive setup, with Q view to max
ing changes.