Evening star., 1959-12-18
Monitor Hints
New Evidence
Against Hoffa
By LEE Nj. COIN
Star Stan Writer


Martin F. ODonoghue, chair
man Of the Teamsters Union
board Of monitors, today said
he has much stronger evil
dence" than the Senate Rackets
Committee that James R. Hoffa
is guilty of corruption.
He told the United States
Court of Appeals, however, that
he needs the aid of a law firm
to press his case against the
Teamster president. Mr..
ODonoghue is seeking to oust
Mr.. Hoffa from Office and expel
him from the union.
The court heard oral argu-
ments and reserved its decision
on the unions appeal from q
ruling by United States Dis
trict Judge F. Dickinson Let's
authorizing the monitors to
hire the Washington law firm
Of Kirkland, Ellis, Hodson,
Chaffetz and Masters.
In arguing for authority to
hire the law firm, Mr.. O'Dono-
ghue referred to allegations
that Mr.. Hoffa deposited $400,-
600 of funds from Local 299,
Detroit, in the Florida National
Bank, Orlando, to serve as
collateral for loans to the Sun
Valley real estate development.
Mr.. Hoffa at one time held an
option to buy stock in Sun
Valley.
Challenges Testimony
. Mr.. O'Donoghue challenged
Mr.. Hoffa's sworn testimony
that $4,000 was paid to Local
299 to compensate for loss of
interest on the money deposited
in the Florida bank. I'VE are
at least apprehensive Of that
statement" Mr.. O'Donoghue
told the court.
Mr.. Hoffa has denied the de-
posit of Local 299 funds was
collateral for the loans to Sun
Valley.
Mr.. O'Donoghue also told
the court there has been dirty
business" in TeamSter Local
245, Springfield, Mo-, which is
under truSteeship to Harold j.
Gibbons, executive assistant to
Mr. Hoffa. He said he has cvi-
dence that records Of the local
were destroyed.
Both these cases, Mr.. O'Don-
oghue argued, illustrate the
need of the monitors for a law
firm to take dispositions and
to handle litigation. If they
are allowed to hire the lawyers,
he said. they will be able to
speed up completion of their
work and restore the Transfers
to full autonomy.
Offers to Limit Activities
Mr.. ODonoghue complained
that his cleanup campaign has
been retarded by the barrage
Of law suits brought by Mr..
Hoffa and his allies. The mon
itors' own staff cannot cope
with all this litigation. he said,
adding:
The Teamsters have an un-
limited number of lawyers.
Every time I go up there Ito
TeamSter headquarters) I meet
a bar association"
Mr.. O'Donoghue promised to
do his best to hold down costs
of the membership. He offered
to limit the activities of the
law firm to eliminate Mr..
Hoffa's fears of an inquisition.
Raymond w. Bergan, asso-
ciate general counsel for the
TeamSters, argued that Judge
Let's had no right to author
ize the monitors to hire law
yers.
High Costs Cited
The decree establishing the
membership, Mr.. Bergan told ;
the court, provides only for
clerical and technical" as
sistance for the monitors. not
professional help. He said it
is erroneous to classify a law
firm as technical help.
Furthermore, he contended
the monitors do not need a
law firm to perform their proper
functions. He said the moni-
tors want the law firm to con-
duct broad Investigations be-
yond the proper scope of their
activities.
The monitors have no busi-
ness engaging in litigation,
Mr.. Bergan said.
He also contended retention
of a law firm would prolongl
membership and would entail
unnecessary expenses. He said
the membership has cost the
union $534.000 since its estab-
lishment in January, 1858, in
cluding $324,000 directly for
expenses of the monitors.
Judge Let's established the
three-man board of monitors to
police the Teamsters under a
compromise settlement of a law
suit by rebel union members
who tried to keep Mr.. Hoffa
from taking Office. Mr.. Hoffa is
serving as provisional president. ;