Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-05-11
Probe to Air Demands
By Beck After Big Loan
SIS Million
Advanced
To Fruehuuf
BY L. EDGAR PRINA

Senate Investigators said to-
day they have scheduled hear
|ings next week on alleged de
|mands" by Dave Beck on a big
business friend the Teamster
president once lent SIS million
in union funds.
According to Robert F. Ken
|nedy, counsel for a Senate
Rackets Investigating Commit
tee. Roy Fruehauf, president Of
the Fruehauf Trailer Co. Of De.
|troit. and Beck will be questioned
on what Mr.. Kennedy asserted
were "Beck's demands on the
company in the wake of the
loan"
Beck lent the SIS million to
Mr.. Fruehauf when the trailer
manufacturer faced loss of con.
troll of his company unless he
could produce more capital. The
committee has been told that
the loans were repaid.
Hint at More Demands
Mr.. Kennedy indicated he
would question Mr.. Fruehauf and
Beck on allegations that later
on, when Beck needed money,
Mr.. Freuhauf persuaded a truck.
ing firm to lend the teamster
chief 5000, 900. The counsel
limited at other demands" by
Beck.
Mr.. Freuhauf, who is being rep.
resented by Attorney Clark Cliff
ford. former White House legal
adviser to President Truman,
will take the stand Monday
afternoon. The exact time Of
Beck's next appearance has not
been set.
Meanwhile, the Senate investi-
gators were trying to unravel
the confused yarn spun yesterday
by q business associate of Beck
who told them he and Beck
had made thousands Of dollars
on money invested by the Team
sters Union.
The discussion Of financial
deals got so involved at one
point In yesterdays nearing
that Chairman Mcclellan Of the
select Senate committee looking
into labor and management afI
fairs directed the witness. Don
Hedlund:
go on and tell US now how
you got 1t all tangled up. I can't
even understand it when you're
unraveling it.
Mr.. Hedlund testified earlier
that he and Beck had made Q
profit Of $11,500 on mortgages
sold to a memorial fund Beck
had set up for the benefit of the
widow Of the Teamster chiefs
closest and best friend" Beck
was trustee Of the fund. He and
Mr.. Hedlund, according to the
witness, bought certain mort
cages at a discount with money
lent by the union and then sold
them to the memorial fund at
face value.
Confusion Spreads
Later. when another Beck.
Hedlund deal was being Ques-
toned, the witness tried to ex-
plain how he was working for
both the buyer and seller Of
mortgages purchased for the
Transfers Union and why the
various commissions went into
different companies in which
both he and Beck had an in.
terest.
But the more he was ques-
toned. the more confused the
matter became. Finally Senator
Mcclellan turned to Kennedy
and said:
II guess the record is as clear
as Wen ever get it. Shall We
60 on?"
Mr.. Hedlund, q calm, youthful
looking man who tossed figures
around with speed and skill; OBJ
served with q wry smile that,
apparently I'm not making my
self very clear"
Mr.. Kennedy, with some resig-
nation. followed with: II don't
like to say that I give up. but
I don't understand it."
Charges Violation Of Trust
In questioning Mr.. Hedlund on
the $4,000 fund set up by Beck
as q memorial to Raymond Le-
heney, q one-time Teamster Of
See LABOR, Page AZ