Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-07-26

nlgn unIaLnOmaDle IN raising
money to pay the $4,000 back
to the union in August. 1852.
This occurred, it was brought
out. after George Meany, then
secretary treasurer Of the
American Federation Of Labor
and now AFL-CIO president,
questioned a financial state
ment on union expenditures
brought to him by Valente and
Klenert with a plea for a loan
for organizing work.
After that, according to the
story unfolded before the CON-
mittee. Valente and Klenert
embarked on a personal money
raising undertaking. I'VE bor-
rowed a lot of money at the
time" Valente said.
Borrowings Set at $111,15O
Committee Counsel Kennedy
totted it up to $111.15O. includ-
ing loans secured by two textile
firms with which the union had
contracts. and money the two
labor officials said they OBJ
tanned from members of their
families.
Mr.. Kennedy wanted to know
why they personally had Dor
rowed SO much when they owed
the union only $4,000. The
two officials explained Sepa-
rately that they had "overbor:
rowed" to handle any emergen-
cies personally or in the union.
During the same period, it
was brought out, the union it.
self had prepared itself for a
rainy day by borrowing $780,
900 from the National Bank Of
Washington through the good
Offices of John L. Lewis and his |
United Mine Workers, who put |
up security for the loan, &C
cording to committee inves-
tigators.
Borrowings Listed
Valente's personal borrow
ings, it was brought out, in
cluded $1,000 from Leslie
Shomo of the National Pub
fishing Company which did the
unions printing; $1,000 from
Maurice Hilleary, Alexandria
(Va) restaurateur: $500 from
the Philadelphia National Bank
guaranteed by the Keasby &
Mattison Co.. an Amber (Pa)
textile firm, and half of $33, 300
on a joint loan with Klenert.
In addition. Klenert said, he
had $4,000 in cash which, the
testimony indicated, was first
in his own and then his wife's |
possession.
AS for Klenert, he said he
borrowed $4,000 from Paul
Young. a Washington restau-
rant man: $4,000 from Mr.. Hill
leary: $4,000 from his mother,
and $4,000 from the Manu-
turerS' Trust Co. of New York
on a note secured by Philip Left
of the National Spinning Mills
with which the union had a
labor contract. In addition,
Klenert said his wife turned
over to him $4,000 which he
testified he was told she had
saved out of his earnings for
some emergency.
Puzzled Over $33,3OO
Committee members ex-
pressed puzzlement about the
money raising. especially since
Valente testified he needed only
$4,000 to swing the house deal
in the beginning. What puzzled
the Senators most was the $685.
300 loan by Valente and Klein
ert jointly.
According to Mr.. Kennedy,
they borrowed the money for
six months and paid 10 per
cent interest. According to the
testimony. Martin j. Quigley,
president of the Mutual Title
Co. which handled the purchase
of the houses. and John Fisher
and Louis Yudelevit, who ident-
flied themselves as real estate
brokers at 319 Southern Build
ing. figured in arranging the
loan from Solomon Rosenblatt,
identified as being in the cloth
ing business.
The testimony developed that
Valente and Klenert signed a
$4,000 note secured by second
trusts on their homes and chat
tel mortgages on their automo-
biles. They received $33,30O i