BSEIU Investigation Committee Files

In the latter part of 1939, New York City District Attorney Thomas 3. Dewey undertook an investigation of the Building Service Employees International Union. The investigation allegedly arose after the D.A.'s office had received several complaints of extortion from landlords and building operators. The results of this investigation began to bear fruit in March of 1940 with the indictment of L. & I. Schwarz, officials of Local 32 J, BSEIU, for conspiracy of extort money. This indictment was soon changed to simple extortion, a felony.

Soon thereafter, George Scalise, president of the BSEIU, was indicted under similar charges. As the Scalise Case became more prominent, other officials became implicated. Before the investigation was completed, the following union officials were either indicted or dismissed from union activity for irregularities: Peter Byrne, James Seamon and I. Eisenberg, officials of Local 32A, were expelled from the union; James Bambrick, president of Local 323, was convicted of embezzeling $10,000 from the union treasury; Frank Gold, Scalise aid in 32B was convicted of extortion, as were Hymen Palatnik, M. Saverino, S. Abrams and S. Abramson. Among the alleged union irregularities were; failure to issue financial reports, failure to hold regular meetings, rigged election procedure, running of meetings in an autocratic fashion, and failure to process the complaints and grievances of the membership.

As a result of the notoriety that was brought upon the union by the Grand Jury investigation, president-elect William McFetridge ordered an additional investigation into the affairs of all local unions within the city of New York and the immediate vicinity. The committee which was established to conduct these investigations consisted of: Thomas Murtha, president of the New York City Central Trades and Labor Council, Arthur S. Meyer, chairman of the New York State Board of Mediation, Hugh S. Robertson, executive manager of Rockefeller Center, Andrew Jackson, secretary to the Investigating Committee and David Cahill.