Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-29

oNO OWN 80 AAtN4 AAdb4OAlNl
president of the Transfers
Chairman Mcclellan read q
statement which indicated that
Hoffa and his henchmen had
this sure-1lre method Of opera.
ton:
Yesterdays committee "in-
dictment" was a summary of
the testimony and evidence put
into the record during last
weeks hearings. The charges
linked Hoffa to underworld fig-
ures, pointed out his efforts
to obtain pardon for q life
termer and to open up a Mich
igan county to the gamblers,
and listed a series Of alleged
misuses of Teamster funds.
They would dip into various
Teamster treasures and invest
huge sums Of money. If the
investment paid on, the profits
went to them. If there was q
loss, the union treasures, built
by dues Of the rank and file
members. would suffer.
The new blast, which came
less than two days before the
International Transfers con-
vention opens In Miami. follows
q list Of 20 charges of conflicts
Of interest and questionable ac-
Invites" Of Hoffa released last
August %. The committee had
questioned the Teamster leader
for a week before that date.
Among the principal new
charges read by Senator Nc
Clellan was that Hoda has
constantly defended and given
aid and comfort to Teamster
Union officials who were selling
out the interests of Teamster
members by setting themselves
up in highly improper business
activities and by entering into
eollusive agreements with en-
ployers."
Shefferman Under Scrutiny
No date for a resumption Of
the racket hearings was set,
but Chairman Mcclellan indi-
Gated that a new series might
open october % with an in
quiry into the activities Of Ma.
than Shefferman. a labor
management consultant and
associate Of Beck.
At its afternoon session, the
committee received testimony
from one of its investigators,
James F. Mundie. that Hofis
made use Of funds Of Team
sters Local 299 Of Detroit to
acquire $126. 300 worth Of Frue-
hauf Trailer Co. bonds last
year.
Mr.. Mundie said he doesn't
know who has the bonds now
whether 1t Is Hofia, the Local
or someone else-but that they
are worth only $69, 1000 at the
latest market quotation.
Another Of the Hoffa business
ventures was the subject of
most Of yesterdays hearing.
1t involved q Florida real es-
tate scheme, called the Sun
Valley project. in which Hofia
was a silent partner" and in
which Johnny Dio, q New York
mobster invested.
Chief Committee Counsel
Robert F. Kennedy said the
project, located in central Flor
ida. offered Hoffa and two as
soeiates. Henry Lower. Detroit
real estate operator. and Owen
Brennan. a Teamster ofllcial,
an opportunity TO make "a ire
mendous killing" with the
risks being taken by the union
and the buyers Of the lots.
George Fitzgerald, former
Democratic National Commit
teeman from Michigan and the
Transfers chief attorney in
Detroit. acknowledged that he
warned Hoifa at the outset
that 1.-THE law would condemn
using union funds in the Sun
Valley deal. But he said later
that Lower, who was the front
man" and operator Of the prof.
ect. changed the mechanics OF
the operation TO make 1t legal
and practical.
Joseph Kritch. who sold Sur
Valley lots for several month.
before he quit in disgust, said
that Tpan1gtar rank Ala