Cadillacs for Two

In Minneapolis, Sylvester H. Cargill had a labor problem in his mail-promotion company. The A.F.L. Teamsters' catch-all local for "miscellaneous drivers, helpers and inside workers" told Cargill that his plant, employing some 100 women, would be struck unless he came to terms with the union. What happened then, said Congressman George Bender last week, after his subcommittee investigated the Teamsters' activities in Minneapolis, was "shocking."

Businessman Cargill went to Tony J. Schullo, secretary-treasurer of the local, for advice on how to avert the strike. Schullo suggested that Cargill could have all his employees join the union simply by handing over $500 in initiation fees. Cargill did, but soon ran into more trouble. Almost all his employees, mainly housewives, refused to pay dues or have anything to do with the union. Schullo had a solution for that, too. Dues-paying by members would be held "in abeyance" if Cargill would pay Schullo $150 a month instead. Cargill testified that he did not "volunteer to pay the $150." He was "ordered to pay it."

Cargill told of an unusual method of paying Schullo. They would meet in an auto, said Cargill, and "I would lay $150 or $300, depending on whether I owed him one month or two, in the seat and say, 'Nice to have seen you,' and go away." Cargill paid out $2,100 in this way. Called before the committee for questioning about this, Schullo ducked behind the Fifth Amendment; he refused to testify because he might incriminate himself.

Schullo also had dealings with Donald Gabbert, owner of three appliance stores. During the 1950 Christmas rush, Gabbert was surprised to find pickets in front of his stores. Gabbert saw Schullo and paid $306 as initiation fees for his 18 employees. In an hour or two, the pickets were gone. But the employees were never told that they were in a union.

Congressman Clare Hoffman asked Schullo what he had said when Gabbert talked to him. Replied Schullo: "There was an unfair banner up there. The employees were unfair to our organization."

Asked Hoffman: "What employees were unfair to your organization?" Replied Schullo: "Anyone that doesn't belong to our organization."

Old Cadillacs for New. The subcommittee also heard how Teamster officials financed the Cadillacs they bought. Jack Sabes, a produce-company official, testified that in 1949 he lent $3,000 to Gene Williams, a local Teamster officer, and $3,000 to Sidney Brennan, an international vice president, to buy new Cadillacs while waiting for buyers for their old Cadillacs. Sabes could not remember whether the loan was made while the Teamsters were striking against his company or whether they had just ended a strike. The unsecured loans carried no interest. But Sabes said he got his money back when the two union leaders sold their old (less than a year) Cadillacs. The following year, he said, he lent Williams $2,500 more to buy another Cadillac. Williams took refuge behind the Fifth

Amendment when questioned about these deals and about $119,620 in loans he had received, some from the union pension fund, to open a bar.

Teamster Boss Dave Beck, who thinks the committee "is trying to make headlines for political purposes," sent two of his top lieutenants to Minneapolis to investigate. Said he: "No one is going to stampede me ... I can only move so fast . . . [But] if I find out they've been grafting, I'll crucify them."

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