Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-06-12
3Firnls Deny
MeanyCIain
0fCorruption
By the Associated Press

aside allegations by AFL-CIO
President George Meany that
the firms welfare plans provide |
examples Of corruption and
malfeasance."
One Of the three-General
Electric-took Q return whack at
Mr.. Meany. saying he has made
himself ridiculous in his unwar-
ranted charges as a result. pre-
sumably, Of his being misled" by
James B. Carey. president Of the |
international Union Of Electrical
Workers which has contracts
with G. z.
I'VE hope" @. E. said. "this
is not Just q carefully timed at
tempt to discredit reputable
companies in order to divert the
spotlight from the current un-
favorable disclosures on activ-
tiles Of some union officials be-
fore other Senate committees"
Mr.. Meany made his charges
yesterday in testimony before
Senate Labor subcommittee. He
asked that proposed legislation
requiring disclosure on welfare
funds be applied to management
operated funds as well as those
administered by unions.
Four Cases Listed
The labor leader then listed
four cases which he said demon
strated corruption and malfea-
sance" in management-handled
welfare funds.
In addition to General Elec-
trio, Meany listed Eastern
Massachusetts, Street Railway
c., which serves many Boston
area communities, the Reed
Glass Co., Inc. of Rochester,
N. Y, now in bankruptcy. and
an unnamed West Coast firm.
Here are the charges and the
replies:
General Electrician. Meany
said G-E awarded its health in
surance contract to Metropolitan
Life Insurance Co.. without COM
petitive bidding. and that two
G-E directors also are directors
Of Metropolitan.
G-E issued a statement in New
York saying Mr.. Meany should
have taken the precaution to
learn that the amount paid by
the employees is fixed by the
negotiated union agreement and
that General Electric pays the
entire balance, however high it
may run. ;"
The company added 1t has
handled its insurance through
Metropolitan since 1920 and re-
CARDS the present contract as
"the best available value"
Neither Of the two directors. G-E
continued, sis in any position to
profit in the slightest from the
business Metropolitan does with
General Electric"
Firm Denies Charges
A statement to that effect also
was issued by Metropolitan.
Eastern Massachusetts, Street
Railway Co. - Mr.. Meany said
the firm established the Eastern
Mutual Insurance Co. practically
for the sole purpose Of handling
what he called "meager" health !
accident benefits for about LOO /.
transit workers. He also said the
three top transit officers also
were the three top insurance /
company officers. Mr.. Meany
added that the three, plus a 1
claims manager. drew nearly
$4,000 in salaries from the in
surance subsidiary.
A company spokesman II
Charles w. Mulcahy. vice presi-
dent and general counsel-said
at Boston that the MeanyI
charges ARE wholly unjustified
and distorted" Mr.. MulcahyI
said the insurance company was
formed after an outside firm re-
fused to carry the policies except
at higher rates. And. he added,
the $4,000 in salaries was the
total paid II employees.
Mr.. Mulcahy said the claims
manager draws $500 a year.
Also at Boston. Charles Powers,
chief examiner Of the Massachu-
sets Insurance Division, men,
toned a recent tfiennial ir1spec-
ton Of the company's books re-
quired by law. He added: II
don't know what they're yelling
about in Washington. We found
nothing illegal"
Deny Taking Workers Funds
Reed Glass Co.-Mr. Meany
said Reed failed to give an in
surance company money with
held from employees wages or its
own company contributions. And
he said the firm failed to make
agreed payments on a pension
plan.
In Rochester, Jewell Hanson,
former general manager Of Reed.
said the pension plan was a con-
tract between Reed and the in
surer and that mo money was
taken from employees pay for
pension funds"
Reed Glass now is being ad-
ministered by a trustee. Howard
Woods. a lawyer, said "the trus-
tee is prepared to admit that
some funds were withheld"
But, he added, the company
did not interpret the az cents
per man-hoW 1t agreed to pay
the insurer as part Of its en-
ployes' pay. He said the en-
ployes considered that it was pay.