CONTENTS Moreschi, Faust, director, International Hod Carriers and Building 533 511 Memo re teamsters' union__. 385 Meeker, G. F., supervisor, Minnesota Mutual Life Insurance Co____ 357 367 V INVESTIGATION OF WELFARE AND PENSION FUNDS (Washington, D. C., and Atlantic City, N. J., Areas) MONDAY, NOVEMBER 29, 1954 HOUSE OF REPRESENTATIVES, SPECIAL SUBCOMMITTEE ON INVESTIGATION OF WELFARE AND PENSION FUNDS, Washington, D. C. The special subcommittee met at 11:05 a. m., pursuant to notice, in the House Office Building, Hon. Samuel K. McConnell, Jr. (chairman of the subcommittee) presiding. Present: Representatives McConnell, Bosch, Rhodes, Lucas, Wier, and Miller. Present also: John O. Graham, staff director; Edward A. McCabe, general counsel; L. M. Weltmer, assistant general counsel; Russell C. Derrickson, chief investigator; Carmine S. Bellino, special consultant; and Raymond C. Cole, Jr., special investigator. Chairman McCONNELL. The hearing will please come to order. Will you stand up please and raise your right hand? Do you solemnly swear to tell the truth, the whole truth, and nothing but the truth so help you God? Mr. LIEVER. Yes, sir. Chairman McCONNELL. Mr. Derrickson, will you proceed. TESTIMONY OF EARL LIEVER Mr. DERRICKSON. Mr. Liever, will you state your name and address? Mr. LIEVER. Earl Liever, L-i-e-v-e-r, president of the firm of Earl Liever, Inc., 4856 El Camino Real, Los Altos, Calif., and 625 Washington Street, Reading, Pa. Mr. DERRICKSON. You are here in answer to a subpena? Mr. LIEVER. Yes, sir. Mr. DERRICKSON. Mr. Liever, will you tell the committee generally what your background is? We understand you are in the insurance business. Will you give us a brief statement as to your training and experience? Mr. LIEVER. I am a graduate of the University of Pennsylvania, Wharton School, class of '26. Mr. DERRICKSON. Did you graduate in 1926? Mr. LIEVER. Yes, in 1926." I am proud to be a Pennsylvanian, with the chairman, too. Chairman MCCONNELL. I was graduated in 1923. Will all of you keep your voices up so the audience can hear the questions and answers? I notice them straining back there, and I want them to hear everything. Mr. LIEVER. I made the insurance business my career, and I consider the insurance business a professional business and I consider myself a professional insurance man. Mr. DERRICKSON. You have been an insurance broker? Mr. LIEVER. Since 1926, sir. I haven't been in any other business; that is it, period. Mr. DERRICKSON. Were you employed at one time by Penn Mutual or have you been a broker all of the time? Mr. LIEVER. What is that? Mr. DERRICKSON. Were you ever employed by an insurance company as an agent? Mr. LIEVER. Well, I am a broker and an agent. Mr. DERRICKSON. In a supervisory capacity? Mr. LIEVER. I helped to organize a casualty company in Pennsylvania, which I was a minority stockholder in, called the Penn Mutual Indemnity Co., and in conjunction with my own office, I think the first 7 or 8 months or maybe a year I worked to set up the agency plant in Pennsylvania. They only operated in Pennsylvania. That is all. That is the only time I can say I was an employee of a firm. Mr. DERRICKSON. Now, in your capacity or career as an insurance broker, approximately when did you start to work in the field of union group insurance plans? Mr. LIEVER. Well, I will say all group insurance plans, I think I started somewhere around 1948. Mr. DERRICKSON. Around 1948? Mr. LIEVER. Yes, sir. Mr. DERRICKSON. Was one of the first cases you wrote in Atlantic City covering the hotel and restaurant employees union, local 508, and bartenders' local 591? Mr. LIEVER. That is one of the cases. Mr. DERRICKSON. Was it the first, or had you written others prior to that? Mr. LIEVER. Oh, yes; I had written-I think that I wrote a case for a firm, and it was what you call a group case for the American Safety Cable Co. And I had written a small teamster case at that time, starting off. Mr. DERRICKSON. And you started to work on this Atlantic City case in 1948? Mr. LIEVER. I don't have my file, but I imagine around that time; yes, sir. That is the reason I wanted to have my files here. Mr. DERRICKSON. Will you describe for the committee, how you found that case, and how you became the broker in that particular case? Mr. LIEVER. You asked me that question in California, and I have been trying to rack my brain on that. My recollection is that I attended a State AFL meeting in Pittsburgh, the Pennsylvania State AFL, and in the course of a conversation there someone told me of a case. I was trying to see where cases were, and sort of popping up, and someone told me there, I think, of a case in Atlantic City, and I think about 5 or 6 or 7 weeks afterward I had occasion to go down to Atlantic City, because around where I live we go down weekends there. That is how I found out. |