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I am concerned that the trustees, that Equitable has been selected, and they had questioned Crocker previously. I understand there is a question about Crocker's past performance in this area.

Now, you said, Mr. Secretary, on page 8, that a portion of the Labor Department investigation had focused on investment practices of management, management practices, and ended with execution of these contracts.

Now, does that mean that Labor will not monitor the implementation of these contracts?

Secretary MARSHALL. No; our monitoring did not end. Our investigation ended.

Mr. PICKLE. IS IRS monitoring?

Secretary MARSHALL. I don't know what IRS's role is, but I know we will continue to monitor them, and I have continuing authority. Mr. PICKLE. The trustees selected Equitable?

Secretary MARSHALL. Yes.

Mr. PICKLE. The trustees will still monitor Equitable's performance, and they can fire them?

Secretary MARSHALL. They cannot fire them without my concur

rence.

Mr. PICKLE. They cannot without your concurrence, but they can notify you?

Secretary MARSHALL. They cannot do it without my concurrence. Mr. PICKLE. Does the contract that you have, or the trustees have, with Equitable, is that much more binding and valid than the agreement you had in principle with Crocker? Your answer is definitely that the assets are protected?

Secretary MARSHALL. Yes, sir, I believe that to be the case, that they are protected now.

Mr. KELLY. The assets of the fund are protected under the prior resolution until September 1, the contracts are formal contracts which only have to be closed pending the documentation, evaluation, and inspection of the assets. That is to take place by September 1, and during that period, Equitable and Palmieri will be incurring considerable expense to undertake that documentation, inspection, and evaluation. So it is now into an active stage in which both the parties are incurring both responsibilities and liabilities.

Mr. PICKLE. Who in Labor will monitor these operations? Who in Labor will do the monitoring?

Secretary MARSHALL. This will be done by our-as long as Mr. Kelly is actively involved with me in this part of it, he is basically responsible for it, and ERISA is under the direction of Mr. Burkhardt.

Mr. PICKLE. I am glad to see Mr. Kelly here. I read the press Sunday, and it sounded like you had returned to New York and had announced the successful culmination of this investigation. I am glad to see you back here this morning.

Mr. KELLY. Under the arrangements that I had with the Labor Department and the Ford Foundation, I was under a formal leave of absence on a full-time basis for the first several months of the investigation. The agreement is that that is no longer required on a full-time

basis. I am available on an as-needed basis, which can be up to whatever is required, and

Mr. PICKLE. It says that the task force of which you were a part hadn't quite finished its job, that it wasn't over just yet. I am glad you are back with us.

Mr. KELLY. It is my pleasure, sir.

Mr. PICKLE. I want to ask several questions about my Internal Revenue Service building in Austin, Tex., and the representatives of the Internal Revenue Service are still here. So, if they would want to come up nearer the microphone to answer questions, I am sure that would be agreeable, but they may want to respond from the audience.

No. 1, the news articles in March of this year indicate that at the time the fund lawyers were considering foreclosure on the $15.5 million loan for the GSA building complex in Austin, they were also looking at two other loans to Mr. Allen Glick on which interest payments had been delinquent.

One was a $25 million loan for East Montgomery Mall in Oakland, Calif., and a $7 million loan for Beverley Summit, a Los Angeles land development project.

What has happened to these two? I guess, most specifically, has the fund foreclosed on any other property besides the GSA building in Austin, Tex., since the revocation of the tax-exempt status on May 25?

Mr. KELLY. Our arrangement with the Senate committee which we testified before yesterday was that we would testify on all kinds of patterns with respect to management of the fund's assets, but that we would have before Mr. Lippe handles this case, I think we should point out that we are going to stay away from individual cases which might eventually wind up in litigation.

We worked that out with the Senate, and I personally think, Mr. Secretary, it probably should apply in the House.

Mr. PICKLE. Then you have foreclosed on no other property? Mr. KELLY. I didn't comment. I just said we did not testify on individual cases that would wind up in litigation.

Mr. PICKLE. I am asking you if you have foreclosed on any other property?

Mr. LIPPE. Mr. Pickle, the Labor Department doesn't foreclose. I assume you are asking if the pension fund has foreclosed on any of the properties you referred to.

Mr. KELLY. The answer to that is yes.

Mr. PICKLE. They have foreclosed on other properties?

Mr. KELLY. Yes; there have been foreclosures on other properties. Mr. PICKLE. Would you furnish the committee the names of those? Mr. KELLY. Yes; we will furnish you a list of what we know about and will ask the fund to furnish you with a list, also.

[The information follows:]

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4. Canterbury Shopping Center, Mark- Trustees of Pension Fund v. Avenue ham, III.

5. Clardon House, Inc., Buffalo, N.Y....

Trustees of Pension Fund v. Clardon
House, Inc., county court, County of
Erie, N.Y., index No. E-42541.co
6. Club 300, Inc., Bergen County, N.J... Frank E. Fitzsimmons et al. v. Club 300,
Inc., et al., Superior Court of New
Jersey, Bergen County, docket No.
F-3249-76.

7. Council Plaza Redevelopment Corp... Trustees of Pension Fund v. Council

Plaza Redevelopment Corp.-non-
judicial foreclosure under power of
sale of deed of trust (trustee's sale).
8. Daytona Motel Corp. (hotel in Day- Thomas J. Duffey, et al. v. Herman M.

tona Beach, Fla.).

Weisser, et al., circuit court, Volusia County, Fla., 76-532-01-C, suit in ejectment.

Date of filing or acquisition

Local counsel

Suit to foreclose mortgage lien, filed Laurence Feingold Fuller & Feingold Dec. 17, 1976. 1674 Meridian Ave., Miami Beach, Fla.

June 7, 1977 (date of trustee's sale)

and June 16, 1977 (date of recording
of trustee's deed to pension fund).
July 15, 1977 (date of acquisition)..

Eugene J. Pitman DeLange, Hudspeth,
Pitman & Katz, 2454 Houston
Natural Gas Building, Houston, Tex.
..do.

Suit to foreclose mortgage lien, filed Martin V. Waters, Singer, Hutner, Dec. 17, 1976.

Suit to foreclose mortgage lien, filed Sept. 22, 1975. Title acquired Jan. 9, 1976.

Suit to foreclose mortgage lien, filed Marvin R. Baum, suite 1301, Statler June 27, 1977. Hilton Offices, Buffalo, N.Y.

Suit to foreclose mortgage lien, filed B. William Hochman, Lasser, Lasser,
Feb. 15, 1977.
Sarokin & Hochman, 17 Academy St.,
Newark, N.J.

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Donald J. Weyerich, LaTourette, Weye-
rich & Margulis, 11 South Meramec
Ave., St. Louis, Mo.

Richard H. Miller, Goshorn, Stahley,
Nabors, Miller & McClelland, 3910
South Washington St., Titusville,
Fla.

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Defendants have appealed to the Florida Supreme Court for a writ of prohibition. Although the appeal is now moot, the supreme court justices have failed to take action to dismiss the appeal, thereby preventing pension fund from proceedings with the ejectment case.

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13. Modern Inns (hotel property in Trustees of Pension Fund v. Modern
Forest View, Ill.).
Inns, et al., circuit court of Cook
County, III., case No. 75 CH 1443.

14. Mount Vernon Memorial Park, Sacra- Thomas J. Duffey, et al. v. Mt. Vernon
mento, Calif.

15. Phoenix East Corp.-Caravan Hotel
(also includes Bagdad Inn), Phoe-
nix, Ariz.

Memorial Park, et al., Superior
Court of State of California, County
of Sacramento, case No. 263242.
Trustees of Pension Fund v. Phoenix
East Corp., Superior Court of Mari-
copa County, Ariz., case No. C335358.

Date of filing or acquisition

Suit to foreclose mortgage lien, filed

Feb. 23, 1976. Long delay was occa-
sioned by difficulty in obtaining
minutes of foreclosure and contest
by defendants.

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Suit to foreclose mortgage lien, filed Clinton E. Foster, 1610 Beck Ave., Decree of foreclosure entered Aug. 19,
Nov. 18, 1976.

On Jan. 28, 1974, fund acquired title

by deeds from defendants McIntosh,
et al. Jacobson sued to set aside
deeds. Property is improved with
hotel and casino.

Suit against La Costa for misrepre

sentation and to restrain pension
fund from foreclosing the lien of its
20 mortgage. Fund holds a mortgage on
a few unimproved lots.
Suit to foreclose lien of mortgage, filed
Mar. 8, 1975. Title acquired by Fund
on Jan. 15, 1976.

Suit to foreclose lien of mortgage on
cemetery. Suit filed August 1976.

Panama City, Fla.

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Suit to foreclose lien of mortgage, filed Wilbert G. Anderson, O'Connor, Cava-
in 1st week of July 1976.
nagh, Anderson, Westover, Killings-
worth & Beshears, 3003 North Cen-hotel complex. The fee owner, who
tral Ave., Phoenix, Ariz.

had subordinated the fee to the pen-
sion fund mortgage, now contends
Fn the subordinate was unauthorized.
The title insurance company under
its mortgage title insurance policy is
defending this item of litigation. Case
is at issue and awaiting trial date.

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16. Pocono Downs, Inc.-Racetrack lo- In re Pocono Downs, Inc., debtor cated in Luzerne County, Pa.

ch. X, bankruptcy, U.S. District Court, Middle District, Pennsylvania, No. BK-74-437.

17. Regency Industrial Park, located in Trustees of Pension Fund v. Regency

Orange County, Fla.

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Industrial Park, et al., Circuit Court of Orange County, Fla., case No. CI-77-3268.

Trustees of Pension Fund v. Sixth

Avenue Associates, et al., U.S. District Court, Southern District of New York, civil action No. 77 CIV 1224.

Tower Contracting Co., Inc. v. Trustees
of Pension Fund, District Court of
Dallas County, Tex., case No. 77-
5674-A.

Trustees of Pension Fund v. Western
Mariana Corp., et al. San Diego
Superior Court, California, case No.
392-154.

21. Western Marina Corp.-Shelter Is- Re Western Marina Corp., debtorland Inn, San Diego, Calif.

22. Windward Hotel, St. Thomas, V.I.

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Suit to foreclose lien of mortgage, filed Robert P. Knapp, Jr., Windels & Marx, Mar. 14, 1977. 51 West 51st St., New York, N.Y.

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James A. Richards, Jr., Richards & Maynard, P.O. Box 832, 10 Dronnigens Gade, St. Thomas, V.I.

Bankruptcy restrains pension fund from
filling suit to foreclose lien of mort-
gage. Borrower has not proposed a
plan to the court but has made over-
tures to the fund.

Case has been settled pursuant to settle-
ment agreement of May 27, 1977.
Loan should be brought current by
Sept. 1, 1977.

This property had once before been

acquired by the fund through fore
closure, and sold, the fund taking
back a new mortgage, which is
subject of present foreclosure. All
parties have been served, and Jerry
Handler appointed receiver. Present
fee owner threatens to invoke ch.
XIX Bankruptcy Act.

Pension fund has filed a general
denial. Although trial is set for
Oct. 3, 1977, there are additional
defendants who have not filed
pleadings.

Western Mariana Corp. has filed for
arrangement under ch. XI, Bank-
ruptcy Act (see below) which has
stayed further foreclosure proceed-
ings.
Set for hearing Nov. 30, 1977.

Decree of foreclosure entered Sept. 7,
1976, pension fund acquired title at
Marshall's sale held Nov. 12, 1976.
Sale confirmed by court on Jan. 14,
1977. Upon expiration of 6-mo re-
demption period, Marshall's deed was
recorded July 29, 1977. The partial
guarantors paid the full amount due
under their guarantees, $482,468.73,
there being a deficiency decree on
the sale.

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