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‘ C.i2 (Rev. ]Z-) 4-6 4} BUSINESS LEADERS USED MAFIA FIRM. Gambino Has Third Kae in Labor Relations Concern | | By CHARLES GRUTZNER ; new investigation of the Pete of Carlo (Don Carlos) Gambino, head of a major Mafia group here, has found that some industrial and busi- hess companies are clients of a labor relations firm of which Gambino owns 8 third. The other partners in 5.G.S. Associates, Inc., which operates out of a smafi office at 141! East 44th Stéeef are Henry H. and bookmaker, Schiller, about whom Little is’ . known, Among the clients and for- mer clients are Wellington As sociates, owners of the Chrysler Building and the largest ac- quirers of real estate in the metropolitan area in recent years; William J. Levitt, mosi of whose massive building op- erations have been with non- union labor; Flower and Fifth Avenue Hospitals, Howard Clothes, Bond Clothes, and the Concord Hotel at Lake Kia- mesha, N. ¥. . Other clients here and in New Jersey, Pennsylvania and other parts of the East have brought 8.G.S. billings to an estimated $500,000 a year. The current investigation of &.G.8. Associates by the Fed- era! Bureau of Investigation is an outgrowth of two continu- ing inquiries by United States Attorney Robert M. Morgen- thau. Two Federal grand juries are questioning witnesses abou the five local Mafia, oy i No. ies here. A tre We TQ APR 26 1965" Saltzstein, a convicted burglar | and George: "tt: tree tomy * jis delving, tnto maeeiall - [ment racketeering. .| Several §.G.8. clients, who! } [confirmed that they had been uestioned by F.B.1L agents re- cently, said they had been un- aware that the G. in the firm name stood for Gambino, They said they had ended their con-: tracts, or were about to do £0, after learning of the Mafia con- nection, Most of those interviewed 'sald they had dealt with Saltz-' 'stein. Some.described his role’ ‘as “adviser on labor policy,”) amd said he had negotiated with | unions when strikes occurred or were imminent. ;, Mr, Morgenthau, asked about the new inquiry, said only that: ihe was “continuing to explore’ jall phases of Mafia activity and fof labor racketeering man- agement or unions.” He de- clined to comment on the spe- cities of the S.G.S. investiga- OL, There have been at least five investigations of 8.G.8. by Fed- eral, state and local agencies in recent years, none of which resulted in criminal charges against the corporation or its. principals. Investigations were conduct- by District Attorney Frank . Hogan, the F-B.L, the Senste rackets investigating commit- tee headed by John L. McClel- tan, Democrat of Arkansas; by former United States Attorney Paul W,. Williams, and by the New York-New Jersey Water- front Commission, Gambino. Expected to Quit The renewed Federal interest, including an investigation by; the Internal Revenue Service, ce, SN I eral Sp wag ee Try ailment, which has brought him a succession of delays in deportation pi 41 Born in Palermo, Sicily, in 1902, Gambino entered the Uni- & ltedSikaies illegally as a stow- i away in 1921. The Gdverntfrertt FRITS REE TESTS meses gym te + A a nee le ne el obr D Casper oe _ Callahan —__.__ cele Tavel Trotter Tele Room es _* * Gq The Washindégm Post and Times Herald The Washington Dally News The Eventna.'Star New York:Merald Tribune New York Journal-American New York Daily News New York Post — Ft a The New York Times Of The Baltimore Sun The Worker The New Leader The Wall Street Journal The National Observer People’s World Date Uf - Ap APRIL SRS 16 | Je-2e NOT RECORDED #6 APR 26 1955 & ene ee sete