Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-08-13
RACKETS
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NASNEI y
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abruptly terminated in the
midst Of a hearing in Detroit.
Representatives Hoffman and
Smith said 1t was dropped be-
cause of political pressure.
Mr.. Smith, chairman of the
House subcommittee at the
time, was quoted as saying then
that 1.-The pressure came from
way UP there and / just can't
talk about 1t any more specif1-
cally." Mr.. Hoffman said pow
erful men in Washington passed
the word down to go easy, or
get out"
Mr.. Hoffman recalled today
that the inquiry ended after
Mr.. Smith was called from a
hearing under way in Detroit
for a telephone call. He came
back, Mr.. Hoffman recalled, and
announced ut was OF" and
pointed toward the ceiling as he
remarked the pressure came
from way up there"
3 Checks Produced
The Senate investigators pro-
duced three checks Of $500
each made out to Transfers
Local 795 in Wichita, signed
by Hoffa and Harold Gibbons,
Midwest Teamster leader, and
bearing Mr.. Ratner's indorse-
ment.
Mr.. Rather testified that he
Endorsed the checks so that
Sam Smith, Wichita Teamster
leader, could cash them. At the
time, the witness said, a taxi
strike was under way in Wich-
ita.
Committee Chairman McClel-
Ian asked Mr.. Rather If he re-
ceived the money.
mo. sir, not one penny OF
It," Mr.. Rather replied.
What became Of the
money!" Senator Mcclellan
asked.
II haven't the slightest idea
of what the money was used
for" Mr.. Rather replied. ex-
planning that Sam Smith re-
ceived the money and that he
never had the cash in his hand
Peculiar, Says Mcclellan
Senator Mcclellan said 1t
was "a little bit peculiar" that
q local union, If established in
the town, would have to gel
someone to indorse a check be-
fore it could be cashed. Mr.
Rather said that he knew the
hesitancy of banks in cashine
checks for substantial amounts
and at the time he was at
torney for the Transfers.
The witness testified that he
also handled arrangements
when the Transfers undertook
to set up a rival cab company
in Wichita. However. the
strike was settled and, it was
brought out, the union PAID
the cab owners $4,000 as part
of a settlement contract.
The $4,000 was placed in
escrow in a bank pending the
outcome Of a union election In
which q union shop was one
of the principal considerations
The money ultimately wen
to the cab company. Senator
Curtis. Republican Of Nebraska
suggested that the Teamsteri
paid the $4,000 in return fol
q union Snop.
Other Considerations
Mr.. Rather said there wer,
other considerations and de
Tended the contract as lega
under the laws Of Kansas ant
as in the public interest becauSl
of violence that had market
the cab strike.
Mr.. Kennedy said two mem
bers of Mr.. Ratner's law firm
questioned the ethics Of sucl
an arrangement. Mr.. Ratne
said he did not recall this.
The correspondence file in
cluded expense statements, in
Guiding numerous claims by MI
Rather for reimbursement TO
phone calls to Mr.. Smith an
luncheons for the Congressman
A memo in the files. whic
Mr.. Rather said he knew moth
ing about. said arrangement
had been made for Gus Zata'
a Teamster official, to visit
prisoner in a Federal peniten
tiary without having to tai
through a wire mesh" tn
memo continued that the Gov
ernor had arranged for tn
guard to wander of" so tn
conversation would not b
overheard.
Also in the file were letter
from Mr.. Rather to Harold