witnesses--to take an oath. The witness should also be aware that making a false statement to Congress while under oath may be prosecuted under law. In light of this, will the witnesses please rise and raise your right hands.

[Witnesses sworn.]

Chairman Hoekstra. Let the record reflect that each of the witnesses has answered in the affirmative. Please be seated.

Mr. Theodus.

TESTIMONY OF SAM THEODUS, FORMER VICE PRESIDENT,
INTERNATIONAL BROTHERHOOD OF TEAMSTERS

Mr. Theodus. My name is Sam Theodus. I have been a member of truck drivers' union local 407 in Cleveland, Ohio, for a period in excess of 45 years. My history in the Teamsters has brought me here today to summarize, after many years of efforts, on behalf of reforming the union.

I ran against Jackie Presser for the office of international president during the 1986 convention. Later I joined the Ron Carey slate at his request as a candidate for international vice president at large in the 1991 election for international officers. Our promises of reform, including fiscal responsibility, were then swept away by the Carey administration through high-handed tactics and abuses of power. This forced my separation from the Carey regime for many reasons, a number of which are set forth below.

Our pledge to the membership during the 1991 campaign was thereafter violated in every way, reducing the once the most powerful of earth to an organization of the verge of bankruptcy and totally divided in it's efforts.

I believe that it is fair to state that my efforts on behalf of reforming the Teamsters date back to the 1970's and I have long been an advocate of the right of the rank and file members to directly elect all of their officials at all levels of the union structure.

At the outset of this testimony I want to make it clear that despite the events of the past six years, I continue to believe in this great union. However, I must admit that I fear for the future of this union and am totally disillusioned, disappointed, disgusted, and dismayed with the events of the past six years that have brought this union to the brink of destruction. Today our union is virtually bankrupt and totally divided.

A fairly stated history of this union for the past six years and any complete and objective investigation will show clearly that the sad state of affairs presently existing can be traced to one basic problem--the instruments of reform were unfortunately placed in the hands of the wrong people. It is often said in our business that hindsight is 20-20. However, the record of this matter will show that these concerns and objections, the actions of the Carey administration, were voiced widely within the union itself and

publicly as the events transpired.

It was in 1986 that I believe I first gained a reputation throughout the Teamsters nationally, as a supporter of reform when I ran against the incumbent Jackie Presser, a fellow Clevelander, for the office of international president. I sincerely hope that my efforts in 1986 gave some impetus to the reform movement within the Teamsters, which would grow dramatically in the years to follow.

Along with the other supposedly reform minded Teamsters, I was swept into office in 1991, as international vice president at large on Ron Carey's reform slate. I'd worked very hard for Ron Carey during that campaign and honestly believe that our election was the dawning of a new a day for the Teamsters and that better times lay ahead.

I had high hopes that with the help of the court under Judge Edelstein, the IRB under Judge Lacy, and because of the members' right to elect their officials, we would be able to clean out those individuals that were tied to organized crime and restore the Teamster's union members pride. However, after eight years of government supervision, we find that what looked like a solution to the many problems of troubled Teamsters passed, turn out to be a vehicle that brought about a new era of corruption and greed, allowing the Carey administration to conduct a reign of terror by malicious prosecution of it's detractors while they themselves engaged in various acts of corruption.

When the Carey administration took office in February of 1992, it promised to be fiscally responsible and to conduct an open administration about the union's actions and policies. We were to discover sadly that virtually the exact opposite occurred. When morning merges from the rubble of this administration, we find the union virtually broke and divided. It is extremely difficult to comprehend how we got to this point from the hope and promise of 1991.

In order to even begin to understand this, one must recognize what the personality of the Carey administration became. It became an administration that was singularly and compulsively obsessed with the perpetuation of it's own power. Internal union politics played a part in virtually every decision made by the majority of the general executive board. It became an administration that abused all the powers of the general president and the general executive board in the areas of union disciplinary procedures, the implementation of trusteeships, the merging of local unions, and the manipulation of joint council jurisdictions, to punish it's enemies and reward it's supporters in virtually every opportunity that was presented.

Abuses of power ran rampant under the guise of reform. The administration engaged in systematic character assassination using the IBT communications department and malicious prosecution of it's opponents within the union, using the IBT legal department. If one became a Carey supporter, they were anointed with a title of new reform Teamsters, regardless of their past history. Opponents of the administration, regardless of their past history, were vilified as old guard Teamsters, which equated in the public relations barrage of the international for being corrupt or soft on corruption. The frequent cynical use of mob references became an essential part of the Carey rhetoric.

It became an administration totally devoted to the centralization of power at the international in Washington to the sacrifice of local union autonomy and consequently to

the rights of local union members. It became an administration that was subverted by the arrogance of power and became an administration that truly believed it was above the rules. At it's core, this administration was rotted by hypocrisy.

Having said all of this, I cannot help but be reminded and yet puzzled by how all of these transgressions occurred on the watch of the Justice Department and the Consent Decree appointees. Consider the fact that the FBI and Justice Department were aware of many of signals of possible corruption by Ron Carey before he took office in 1992. Why did they ignore the smoke surrounding Carey until a fire broke out after the 1996 election. Were they so busy helping and supporting Carey's every move, including the unbridled spending of approximately $700 million of members' dues money and his continued malicious of his enemies that they missed the real problem?

It would lead one to conclude that the government has yet to prove it is equipped to run or guide a labor union. The first indication of serious trouble came with the persistence of the International in refusing to call a special convention of the elected delegates to deal with the union's deteriorating financial condition, while the International at the same time was recklessly spending money. I understand currently the union's reserve have dropped to $700,000.

Commencing in July of 1992, the General Secretary-Treasurer of the union in a series of letters expressed his growing concern with regard to the deterioration of the union's finances and soon thereafter the situation started being referred to as critical. During 1992 and 1993 Carey openly recognized that the problem would have to be addressed by a special convention of the International. During this period, 1993 and 1994, International Vice President, Giacumbo, and I called for a special convention on numerous occasions to address the financial condition of the International. These requests were met by vicious and, at times, profane responses from the majority members of the general executive board. It may seem incredible that in the face of the deteriorating financial condition of the International, the supposed reformers would not be in favor of holding a special convention to permit the delegates elected by the membership to address the problem.

This entire notion of keeping vital business away from the directly elected delegates was totally obnoxious to concept of reform and democracy within the union. Certainly the entire notion of elected convention delegates was one of the centerpieces of the reform movement.

After the referendum vote count on the dues increase had commenced and it became apparent that Carey's dues increase proposal was going down, Carey recommended abolishing the four United States area conferences, thus eliminating the offices held by the four conference chairman, who had opposed his dues initiative. This action by Carey and his supporters on the general executive board was so obviously political and retaliatory so as to defy explanation.

Even though problems had been festering, this issue forced my open and public split from the Carey appointed general executive board. In all the action against the conferences and their elimination was a complete fiasco for the union. It was not at all productive, but only served to split and divide the union. I spoke openly against the abolishment of the area conferences within the International and publicly. In a meeting in Chicago I described Carey's actions as "a power grab to take complete control" of the

IBT. I further stated that "we are witnessing the destruction of the Teamster's union as we know it." In a statement to the Cleveland Plain Dealer Newspaper, I said, "this move does nothing to bring Teamsters together, just further divides us”. We spent 10 or 11 days on this issue like it was the most important thing that had to be done, and in the meantime the international union is going broke and the financial crisis hasn't been resolved.

Total abolition was an absolutely vindictive act designed to eliminate his most vocal and effective critics. The political dealings and manipulations of the Carey administration were manifested in virtually every aspect of the union structure.

One action that hit close to home was Carey's splitting of Joint Council 41. A leadership of Joint Council 41 had widely been known as being anti-Carey. Members of local unions who had lost in a Joint Council 41 election of officers held in December 1994, petitioned the International for the establishment of a new separate Joint Council of their own that was to be, in effect, pieced out of joint council 41. It's creation represented political gerrymandering of the worst kind while providing Carey with a base of power in Ohio.

In terms of union democracy, the International convention chaired by General President Carey in Philadelphia, Pennsylvania, July 1996, was an absolute atrocity. Even a casual half interested observer of the convention would have recognized the highhanded tactics of Carey in chairing of the convention, his quick gavel, forcing the seating of his hand picked appointed delegates and then his subsequent filibustering of his own convention. However, we cannot overlook and certainly cannot over emphasize the truly unconscionable and reprehensible action of the chair during that convention. It involved a calculated and orchestrated effort to deny the rights again of the elected delegates to address union problems and issues. As a result, the convention was never allowed the opportunity to address the financial crisis, the lack of a strike fund, or any of the other important issues of concern for the membership.

As I mentioned earlier, the election of delegates by the membership for the purpose of conducting convention business was, and will continue to be, an important element of the entire reform process. How Carey could have gotten away with this under the very noses of the Justice Department and the appointed Consent Decree officials continues to bewilder me to this day. I cannot and will not believe that intelligent and supposedly well intentioned people could have been so totally duped by a mere smokescreen of reform.

Due to the totally discriminatory and retaliatory application of internal union discipline by the Carey regime, I resigned from the IBT ethical practices committee, effective March of 1996. I set forth in a letter March 14th, my letter of resignation from the ethical practices committee, specific reasons, and case results for my decision.

Two staunch Carey supporters and members of the international executive board, Tom Gilmartin and Diana Kilmury, had been found by decisions of the IBT elections officer and by the elections appeals master to have committed acts of improper surveillance, coercion, and intimidation of other members and opposition candidates. Particularly offensive was the fact that Vice President Gilmartin held the position of chairman of the ethical practices committee. Although similar actions of surveillance, coercion, and intimidation had led to the suspension of other Teamster officers and

members, the actions of Gilmartin and Kilmury went virtually unpunished.

By this time, for the reasons briefly set forth above and for many, many other reasons, based on totality of the conduct of the Carey administration, I'd become totally and absolutely distanced from Carey group. I believe my feelings in this regard were amply set forth in my March 14th letter of resignation from the ethical practice committee. I stated, "Ron, in the beginning I had faith and trust in you and a reform movement. I had hoped that the reform we'd campaign so hard for would certainly include justice and fairness for all Teamsters, regardless of political affiliation. However, unfortunately just the opposite has happened. Ron, I have not fought for reform in the Teamster's union for over 30 years to now subvert or prostitute the principals I believe in. My ideals, my morals, and my reputation will not allow me to look the other way, as you and others in your administration have."

I have for some time been an open critic of the actions of the Teamsters Independent Review Board. I believe the IRB to have exercised preferential and disparate treatment to critics and opponents of Carey were targeted for investigation and punishment. The mission of the Consent Decree was designed to attack organized crime, not to undermine internal union democracy or to provide any union administration with the power to pursue malicious prosecution of it's enemies and become immune to any of it's own wrongdoing.

I sincerely believe that my outspoken criticism of the IRB had made me a target. In a letter dated December 11, 1996, I was advised by Charles Carberry, Chief Investigator for the Independent Review Board, that a sworn in-person examination would be taken of me December 23, 1996, pursuant to the authority set forth in the Consent Decree.

The sole purpose of the examination on the basis of questions that were asked, was to probe deeply into my association with Gene Giacumbo, a former International vice president and an extremely outspoken critic of the Carey administration and the IRB. Although Mr. Giacumbo had been previously suspended, I knew of no decision or finding that held Mr. Giacumbo to be a member of any organized crime family or any decision that barred Mr. Giacumbo for associating with Teamster members. More importantly, I could not think of any conceivable reason why I shouldn't be able to associate with Gene, a person whom I respected and whom I had befriended from our services together on the general executive board. Gene had a long and respected history of reform within the union.

I have to admit to you that I sit here today with a great deal of discomfort and concern. To me, the government should never run a union. Government intervention in the affairs of the union does not ever, in the long run, work to the benefit of the membership in my opinion. Further, as a lifelong democrat and also a person who is devoted a better part of his life to this union, I must confess that I am uneasy about appearing in front of a Congressional committee, chaired by a Republican no less, and give testimony that may cause this committee to delve even more deeply into the affairs of my union. However, from what I have seen, I wish to come forward and state my endorsement of these hearings.

Too much has gone on in the past six years and too many truly terrible things have happened to this union and it's outspoken leaders, for any of us to now stand silent.