....I 0 - ·; I • Ii~ /I . f/ OF SUBPENAS-PORT OF <t;~j ~TURN ~- NEW YORK AUTHORITY INQUIRY j I I, ,, L n INQUIRY ~; A BEFORE --""'~ SUBCOMMITTEE NO. 5 OF THE COMMITTEE ON THE JUDICIARY·· \I t HOUSE OF REPRESENTATIVES · EIGHTY-SIXTH CONGRESS SEOOND SESSION JUNE 29, 1960 Serial No. 20 Printed for the use of the Committee on the Judiciary - ! '-. • i· • "'"" Ii PR l'Ji'!'t•~ ~ . Qr.;i. .. i·-::::·qT .. V.· nr:- @ Rr,;:CEIVr.r: AUG9 -1960 I'll . '14 .• f ~'t. :. ' . Iii V:Slii:l {I £.i1J,: ". : , '.: r·11 1 .:_, Arcl1jv l§ _"1 H·1 f,!f t J, y' Hk.. ,JI -'·· I· I UNITED STATES GOVERNMENT PRINTING OFFICE .'68340 WASHINGTON : 1960 •" 'y l '' COMMITTEE ON THE JUDICIARY EMANUEL CELLER, New York, Chairman CONTENTS FRANCIS E. WALTER, Pennsylvania WILLIAM M. McCULLOCH, Ohio THOMAS J. LANE, Mas!3achusetts WILLIAM E. MILLER, New York MICHAEL A. FEIGHAN, Ohio RICHARD H. POFF, Virginia ( Testimony of: Page FRANK CHELF, Kentucky WILLIAM C. CRAMER, Florida Carty, Joseph G., secretary to the board of commissioners, the Port EDWIN E. WILLIS, Lonisiana ARCH A. MOORE, JR., West Virginia of New York Authority; accompanied by Sidney Goldstein, general PETER W. RODINO, JR., New Jersey . Ji. ALLEN SMITH, California counsel, and Daniel B. Goldberg, assistant general counseL _ __ _ _ _ _ 25, 43 E. L. FORRESTER, Georgia. GEORGE MEADER, Michigan Colt, S. Sloan, chairman, board of commissioners, the Port of New BYRON G. ROGERS; Colorado JOHN E. HENDERSON, Ohio \ York Authority; accompanied by David Schenker, Esq., New York, HAROLD D. DONOHUE; Massachusetts JOHN V. LINDSAY, New York I N.Y., Sidney Goldstein, general counsel, and Daniel B. Goldberg, JACK B. BROOKS, Texas WILLIAM T. CAHILL, New Jersey assistant general counsel______________________________________ 21, 37 WILLIAM M. TUCK, Virgtllta JOHN H. RAY, New York Furman, D. C., attorney general of the State of New Jersey________ 59 ROBERT T. ASHMORE, South Carolina Goldstein, Sidney, general counsel, the Port of New York Authority___ 61 JOHN DOWDY, Texas Lefkowitz, Louis J., attorney general of the State of New York______ 56 LESTER HOLTZMAN, New York Tobin, Austin J.; accompanied by Sidney Goldstein, general counsel, BASIL L. WHITENER, North Carolina and Daniel B. Goldberg, assistant general counseL ______________ 31, 45 ROLAND V. LIBONATI, Illinois Additional information: J. CARLTON LOSER, Tennessee ' House Resolution 27 ______ ---------___________________________ _ 13 HERMAN TOLL, Pennsylvania Heuse· Resolution 530 _____ ----________________________________ _ 14 ROBER'!' W. KASTENMEIER, Wisconsin Celler, Hon. Emanuel, chairman, Committee on the Judiciary: GEORGE A. KASEM, California Letter, March 11, 1960, to Austin J. Tobin ___________________ _ 14 BESS E. DICK, Staff Director Letter, March 24, 1960, to Austin J. Tobin, with enclosure ____ _ 14 WILLIAM R. FOLEY,' General Counsel Letter, June 8, 1960, to Austin J. Tobin _____________________ _ 15 w ALTER M. BESTER MAN, Legirlative Assistant Letter, June 13, 1960, to Austin J. Tobin ____________________ _ 20 WILLIAM p. SHATTUCK, Legislative Assistant Letter, June 17, 1960, to Joseph G. Carty ____ _ 27 CHARLES J. ZINN, Law Revision Counsel Letter, June 17, 1960, to S. Sloan Colt_ _____ ------ 22 CYRIL F. BRICKJ'IELD, Counsel Letter, June 17, 1960, to Austin J. Tobin ____________________ _ 32 MURRAY DRABKIN, Counsel Congressional resolutions approving the compact entered into between WILLIAM H. CRABTREE, Associate Counsel- the State of New York and the State of New Jersey for the creation and establishment of the Port of New York Authority____________ 5, 10 Meyner, Gov. Robert B., copy of letter, June 25, 1960, to James C. Kellogg III ______________________________________________ - __ 40 SUBCOMMITTEE N 0. 5 Rockefeller, Gov. Nelson, copy of leti.er, June 25, 1960, to S. Sloan EMANUEL CELLER, New York, Chairman Colt------------------------------------------------------- 39 Subcommittee No. 5: PETER W. RODINO, JR., New Jersey WILLIAM M. McCULLOCH, Ohio Brief in Support of Investigation of Port of New York Authority_ 68 BYRON G. ROGERS, Colorado WILLIAM E. MILLER, New York Memorandum to files from C. F. Brickfield __________________ _ 66 LESTER HOLTZMAN, New York GEORGE MEADER, Michigan Memorandum to files from Julian H. Singman _______________ _ 64 HAROLD D. DONOHUE, Massaehusetts Subpenas served upon: HERMAN TOLL, Pennsylvania Carty, Joseph G ________________ _ 26 HERRERT N. 'MALETZ; Chief Counsel Colt, S. Sloan _______________________________ - _- - _ - - ___ - _ - - 21 JULIAN H. BINGMAN, Associate Chief Counsel -------- - ----------------- -- 31 ~ Tobin, Austin J_ ______________ RICHARD c. PEET' Associate Counsel Tobin, Austin J., letter, June 10, 1960, to Hon. Emanuel Celler _____ _ 16 t~· Tl m ,f,•,· ... :: ; ; J.~;;, ;· RETURN OF SUBPENAS, PORT OF NE.W YORK AUTHORITY INQUIRY WEDNESDAY, TCT.NE 29, 1960 f HousE OF REPRESENTATIVES, SUBCOMMITTEE No. 5 OF THE COMMITTEE ON THE JUDICIARY, Washington, D.O. ' . The subcommitte~ ~et, J>l,ll'SU8.nt to call, at 10 :10 a_.m., in roon;i ~46, \ Old House Office Buildmg, Hon. Emanuel Celler (chall'lllan) presiding. , Present: Representatives Celler, Rodino, Rogers, Holtzman, Dono- hue, Toll, McCulloch, Miller, Meader, Ray, Cahill, and Lindsay. Also present: Herbert N. Maletz, chief counsel; Julian H. Singman, associate chief counsel; Cyril F. Brickfield, counsel; Murray Drabkin, counsel: William H. Crabtree, associate counsel; Richard C. Peet, associate counsel. · The CHAIRMAN. The committee will come to order. The Chair desires to make an opening statement, but before that I will note the presence of a quorum and the presence here of the gentle­ man from New Jersey, Mr. Rodino, the gentl~man from Colorado, Mr. Rogers, the gentleman from Pennsylvania, Mr. Toll, the gentle­ man from Ohio, Mr. McCulloch, the gentleman from New York, Mr. > Miller. There is a quorum present. The Chair, as I indicated a moment ago, will make an opening statement. The subcommittee is meeting today in order to receive the return of subpenas duces tecum served on Mr. S. Sloan Colt, chairman of the board of commissioners, Mr. Joseph G. Carty, secretary to the board of commissioners, and Mr. Austin J. Tobin, executive director, of the Port of New York Authority, requiring them to appear before the subcommittee this morning and to bring with them certain specified records and documents of the port authority. The Chair notes the presence of Mr. Colt, Mr. Carty, and Mr. Tobin. At the outset, the Chair wishes to review the events which have made necessary the service of these subpenas. The Chair wishes to interrupt the statement by noting the presence of the distinguished gentleman from New York, Mr. Holtzman. The Port of New York Authority is an interstate, regional develop­ ment authority established under bistate compacts between the States of New York and New Jersey approved by Congress in 1921 and 1922, for ~he purpose of dealin~ with ~~e. pla.nnin~ and <l;evelop­ ment of termmal and transportation facilities and rmprovmg the commerce of the port district. It was the declared expectation of Congress that the effectuation of these compacts would-_ · better promote and· facilitate commerce between the Sta.tea -and between ·the States and .foreign nations and provide · better and . cheaper transportation: of property a?d aid in providing better postal, ~tary, and other services of vailue to the Nation. : , . .· 1 ~ ~_ ____________ ......... i 2 PORT OF NEW YORK AUTHORITY INQUIRY PORT OF NEW YORK AUTHORITY INQUIRY 3 The Ohair wishes to interrupt to note again that the gentleman Two days later, by letter dated June 10, the executive director of from Massachusetts, Mr. Donohue, is present. the authority raised a number of objections to the request for inspec­ The Ohair wishes also to note the presence of the gentleman from tion of documents in the port authority's files. New York, Mr. Ray, the gentleman from New Jersey, Mr. Cahill, L:W,ish to state parenthetically these objections mark an apparent who are not members of the subcommittee, but we are very happy change in policy. At hearings before this subcommittee in 1952, the to have them with us. They are, however, members of the full same official of the authority testified: committee. As a public agency the port authority has always taken the position that its The operations of the authority exercise a farflung influence on books and records are public information. On April 22, 1952, I wrote the chair­ interstate commerce. They yield tax-exempt revenues in excess of man of this committee as follows: "The commissioners of the port authority have also asked me to assure you $100 million anmiidly from tunnels, bridges, terminals, airports, and of their desire to place at the disposal of your committee"- shops, valued at more than $900 million. r The port authority's operations affect the economic lives of millions meaning the Judiciary Oommittee- "whatever records, information, data, or other material which may be helpful of Americans living outside as well as inside the port development . to your staff in preparation for the hearings on this resolution. The port authority area and the States of New York and New Jersey. They intimately l ·is a public agency and our records are completely available for perusal by the affect the operation of Federal agencies responsible, among other \members of your committee or your staff" (Tr. 346). things, for the national defense, navigable waterways, and air, rail, 1 In the same letter of June 10, 1960, the executive director never­ and highway traffic. In short, they profoundly affect Federal theless expressed the hope that when the subcommittee counsel called interests of many and various kinds. at the offices of the authority and met with its general counsel, those Nevertheless, although there were 2 days of hearings before the present would reach agreement as to the materials to be furnished in subcommittee in 1952 on a resolution that would have withdrawn aid of the subcommittee's inquiry. congressional consent from the compacts and the authority, neither On June 15, counsel for the subcommittee met with the executive the Judiciary Committee, to which is assigned responsibility for ~ director and the general counsel of the authority at its office.