MEASURES RELATING TO ORGANIZED CRIME TUESDAY, MARCH 18, 1969, U.S. SENATE, SUBCOMMITTEE ON CRIMINAL LAWS AND PROCEDURES Washington, D.C. The subcommittee met, pursuant to call, at 10:05 a.m., in room 2228, New Senate Office Building, Senator John L. McClellan (chairman of the subcommittee) presiding. Present: Senators McClellan, Ervin, Hart, Hruska, and Thurmond. Also present: G. Robert Blakey, chief counsel; Russell M. Coombs, Thomas M. Gunn, Emon A. Mahony, James C. Wood, Jr., assistant counsels; and Mrs. Mabel A. Downey, clerk. Senator MCCLELLAN. The committee will come to order. In varying degrees, most of our larger metropolitan areas are beset with the problem of organized crime. This racketeering alliance is dedicated to its own selfish perpetuation by whatever means necessary. Its methods are sophisticated, its methods organization is highly structured, its muscle is strong, and its operation annually drains billions of dollars from our economy. On the floor of the Senate, I recently discussed the origin and development of organized crime in the United States, the Federal effort against it, and outlined suggested legislative remedies. Without objection I will have that speech placed in the appendix of this hearing record, so that it will be available for reference. (See p. 493.) The reason for organized crime's success is readily seen by a brief review of its principal activities and the profit it derives from them. Not only are a majority of Americans touched by its activities, but millions yearly become its direct victims. Syndicated gambling and its estimated net take of $7 billion annually provides the greatest source of revenue for the group. Narcotics and loan sharking, both with an estimated annual return of $350 million, are the next major illegal activities of organized crime. The impact of organized crime's activities in this area on our overall crime problems, too, is demonstrated by estimates that the percentage of street theft in our large cities caused by addiction. runs as high as 50 percent. (1) Organized crime's most recent venture is the infiltration of legitimate business and unions. Control of business concerns has been acquired by the sub rosa investment of profits acquired from illegal ventures, accepting business interests in payment of gambling or loan shark debts, but most often by using various forms of extortion. Swollen union treasuries and enormous welfare and pension funds have also provided a tempting target for the syndicate and have thus made every blue-collar worker the unknowing and innocent victim of organized crime. Writing in 1967, the President's Crime Commission said: All available data indicate that organized crime flourishes only where it has corrupted local officials. ** In different places at different times, organized crime has corrupted police officials, prosecutors, legislators, judges, regulatory agency officials, mayors, councilmen and other public officials, whose legitimate exercise of duties would block organized crime and whose illegal exercise of duties help it. This is perhaps organized crime's greatest threat, for no society can long remain free and prosperous if its government is corrupt. The Federal effort against organized crime in the past has not always operated at peak efficiency. Without objection, I will have placed in the record immediately following my remarks graphs and charts demonstrating the rise and fall of the Federal efforts since 1960, the date at which meaningful statistics began to be kept. (See p. 119.) For too long now the problem has been too often discussed-not attacked. The failure of our past Federal effort, measured against its possibilities, is apparent. A new, concerted, and concentrated Federal effort is needed if we are to effectively combat and reduce organized crime. The Congress has a clear responsibility in this area. And we must meet that obligation by trying to provide feasible and effective legislative remedies. Our challenge is unique. Our crime conditions have never been quite so grave in respect to the ravaging rate of crime, particularly organized criminal activity. I have always been of the opinion that having strong laws on the books in and of itself is not a great deterrent to the commission of crime. Vigorous and energetic enforcement of the laws, however, does have a marked effect on the behavior of individuals. It is, therefore, of equal importance in our diligent study of sound legislative proposals that we impress upon law enforcement officials the need for vigorous enforcement of existing laws, and I think I can add that some of our courts need to be likewise impressed with the importance of law enforcement. These hearings will cover a number of proposals. The first will be S. 30 which I introduced along with my distinguished colleagues, Sen ators Hruska and Ervin. The purpose of the Organized Crime Control Act of 1969 is to correct certain defects in our evidence-gathering process. As I have said before, the nature and extent of crime today transcend the crime we knew yesterday, and yesterday's criminal laws and procedures are not fully adequate to the challenge that organized crime poses today. S. 30 is a comprehensive revision and strengthening of the evidencegathering process in organized crime investigations. It contains the followng provisions: Title I revamps the grand jury system and authorizes, subject to careful safeguards, the issuance of grand jury reports; Title II authorizes the granting of immunity to obtain testimony over objections of self-incrimination; Title III provides for civil contempt proceeding to deal with recalcitrant witnesses; Title IV eliminates outmoded evidentiary restrictions in prosecutions of those who give false testimony in grand jury or court proceeding; Title V makes possible, subject to constitutional protections, depositions from witnesses in danger of reprisal; Title VI extends to such witnesses physical facilities in which they may be protected; Title VII strengthens the evidentiary rules surrounding the admissibility of vicarious admissions in conspiracy cases; and Title VIII provides for the imposition of increased punishment (up to 30 years) for convicted "habitual" criminals, "professional" criminals, and "organized crime" leaders. Other measures that will be considered are S. 974, S. 975 and S. 976, introduced by Senator Tydings. S. 974 would create the position of Assistant Attorney General for Organized Crime and provides for his supervision over other activities relating to organized crime cases. S. 975 is a general immunity statute to compel witnesses to testify in certain cases. S. 976 is a bill to provide increased sentences to certain dangerous persons who are being sentenced for a felony committed as part of a continuing criminal activity in concert with one or more persons. I know that Senator Tydings agrees with me that these bills are offered as the starting point to create a truly efficient and effective antiorganized crime program. We hope that those testifying will help improve and strengthen, as well as give constructive criticism to, our proposals. We want all interests to be heard. We welcome suggestions. So it is with an open mind that we shall receive the testimony that will follow in these hearings. Without objection, I will have placed in the record at this point the text of S. 30, S. 974, S. 975, and S. 976. S. 30 JANUARY 15, 1969 [Mr. McCLELLAN (for himself, Mr. ERVIN, and Mr. HRUSKA)] A BILL Relating to the control of organized crime in the United States. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act shall be known as the "Organized Crime Con4 trol Act of 1969". 5 CONGRESSIONAL FINDINGS AND STATEMENT OF POLICY 6 The Congress finds (1) that organized crime in the 7 United States is a highly sophisticated, diversified, and ubiq8 uitous illegal business which annually drains billions of 9 dollars from America's economy and operates by an insidious 10 reign of terror; (2) that organized crime derives its power 11 through money obtained from such illegal activities as gam 1 bling, loan sharking, narcotics, and other forms of vice; and 2 that this money and power, in turn, is being increasingly 3 used to infiltrate legitimate businesses and labor unions; (3) 4 that the danger of organized crime activities in the United 5 States threatens the internal security, peace, and general 6 welfare of the Nation and its citizens; and (4) that organized 7 crime continues to grow despite efforts to deal with it, be cause of defects in the evidence-gathering process that make 9 it difficult to develop legally admissible evidence so that 10 criminal and other sanctions might be brought to bear on 11 the unlawful activities of organized crime. 12 It is, therefore, the declared policy of the Congress to 13 seek the eradication of organized crime in the United States 14 by the enactment of remedial legislation and by the author15 ization and appropriation of funds where necessary to carry 16 out such legislation. The Congress, therefore, believes that 17 the various legal tools which are available to the Government 18 in the evidence gathering process must be strengthened and 19 vitalized. 20 21 TITLE I-GRAND JURY SEC. 101. Section 3321, title 18, United States Code, is 22 amended by adding at the end thereof the following new sen23 tence: "Members of a grand jury shall be selected in accord24 ance with the provisions of chapter 121.". 25 SEC. 102. (a) Section 3322, title 18, United States 26 Code, is amended to read as follows: |