Evening star., 1959-11-22

reported to his two colleagues
that Mr.. Donohue had told Mr.
Hotta he would resign from the
panel. The phone conversation
between Mr.. Donohue and Mr.
lO'Donoghue followed. It was
Mr.. ODonoghue'S understand
ing that Mr.. Donohue said he
would resign.
Maher Declines Comment
Mr.. Maher, who was nomi-
mated by the Teamsters to the
board Of monitors, yesterday
refused to discuss the Donohue
case.
Mr.. Donohue said the oues-
ton about a conflict of inter-
ests arose because he is a d.
rector of the Miami National
Bank. He recalled that Lou
Poller, a friend of his, recently
bought control of the bank
with a loan from a Teamster
pension fund.
This transaction caused a
furry Of reports that the
Teamsters had bought a bank
but Mr.. Donohue said this was
not so. He said the loan was
good business. A good rate of
interest is paid on the loan, he
said, and it is secured by a
pledge of bank stock.
Mr.. Donohue said the loan
amounted to between 50 mil
lion to So million.
No official Of the Teamsters
owns stock in the bank or con-
trolls it, Mr.. Donohue said,
adding that he knows of no
link between Mr.. Hoffa and
Mr.. Poller.
Poller an Old Friend
Mr.. Donohue said he be-
came a director Of the bank
because Mr.. Poller is an old
friend. He said he owns $50
shares of the banks stock,
worth perhaps $4,000 to $4,000,
because bank directors are re-
quired to own stock.
He said his only interest in
the bank is his duty to help
see that it is run properly.
The Miami National Bank
should not be confused with
the Florida National Bank at
Orlando. The monitors are
pressing personal charges
against Mr.. Hoffa involving de-
posit Of $500, 900 of funds from
Teamster Local 299. Detroit, in
the Orlando bank.
There is a great difference,
Mr.. Donohue said, between in.
vesting the dues Of union mem
bers and investing money from
pension funds. For one thing,
he said, pension funds are
jointly administered by man.
agement and labor. Secondly,
he added, pension funds are
supposed to put their money
to work through investment.
Action Blocked
Mr.. Donohue said he has
done nothing as chairman of
the hearing panel because liti-
cation has blocked action. Local
lot obtained an Injunction in
q Pennsylvania State Court
against international officers
Of the Teamsters to prevent
hearings by the panel.
Mr.. Hoffa agreed to try to
have the Injunction set aside.
The State court in Philadelphia
Is expected to hold a hearing
on the Injunction this week.
II the Injunction is set aside,
the hearing panel can 60 to
work.
Mr.. Donohue said he does not
think he should resign until
the litigation is concluded, be-
cause he is a party to the in
junction proceedings. There
would be no one to enjoin,"
he said, adding, I'm not hurt.
ing anyone" by staying on the
inactive panel.
Funds Misuse Charged
The board of monitors, ap-
pointed to- police the Team
sters, has charged Secretary
Treasurer Ray Cohen and other
Local lot officials with mis-
using union funds and other
offenses. Mr.. Cohen Is under
indictment on charges stem
ming from investigation by the
monitors and the Senate Rack
lets Committee.
The monitors want Mr..
Cohen removed from office and
seek to have Local LOT put In
trusteeship until its affairs are
Strengthened out. Mr.. Cohen
Is an international trustee of
the TeamsteFs and q key sup
porter Of Mr.. Hoffa.
Mr.. Donohue has another
link with the Teamsters-mem.
bership on the "Anti-racketeer.
ing Committee" appointed by
Mr.. Hoffa last year. The COM
mittee Is headed by George H.
Bender, former Republican
Senator from Ohio. The mon
itors have charged Mr.. Hoffa
established the Bender COM
mittee as a diversionary trick.
Mr.. Donohue said he has not
been active as a member of
the Bender committee and has
received no pay, so there Is no
reason for him to resign, RE
sign from what?" he asked.