<P> Hoffa's attempt to challenge Beck caused a major national scandal which led to two Congressional investigations, several indictments for fraud and other crimes against Beck and Hoffa, strict new federal legislation and regulations regarding labor unions, and even helped launch the political career of Robert F. Kennedy . Believing he needed additional votes to unseat Beck, in October 1956 mobster Johnny Dio met with Hoffa in New York City and the two men conspired to create as many as 15 paper locals to boost Hoffa's delegate totals . When the paper locals applied for charters from the international union, Hoffa's political foes were outraged . A major battle broke out within the Teamsters over whether to charter the locals, and the media attention led to inquiries by the U.S. Department of Justice and the Permanent Subcommittee on Investigations of the U.S. Senate Committee on Government Operations . Beck and other Teamster leaders challenged the authority of the U.S. Senate to investigate the union, which caused the Senate to establish the Select Committee on Improper Activities in Labor and Management--a new committee with broad subpeona and investigative powers . Senator John L. McClellan, chair of the select committee, hired Robert F. Kennedy as the subcommittee's chief counsel and investigator . </P> <P> The Select Committee (also known as the McClellan Committee, after its chairman), exposed widespread corruption in the Teamsters union . Dave Beck fled the country for a month to avoid its subpoenas before returning . Four of the paper locals were dissolved to avoid committee scrutiny, several Teamster staffers were charged with contempt of Congress, and union records were lost or destroyed (allegedly on purpose), and wiretaps were played in public before a national television audience in which Dio and Hoffa discussed the creation of even more paper locals . Evidence was unearthed of a mob - sponsored plot in which Oregon Teamsters unions would seize control of the state legislature, state police, and state attorney general's office through bribery, extortion and blackmail . Initially, members of the union did not believe the charges, and support for Beck was strong, but after three months of continuous allegations of wrongdoing many rank - and - file Teamsters withdrew their support and openly called for Beck to resign . Beck initially refused to address the allegations, but broke his silence and denounced the committee's inquiry on March 6 . But even as the committee conducted its investigation, the Teamsters chartered even more paper locals . In mid-March 1957, Jimmy Hoffa was arrested for allegedly trying to bribe a Senate aide . Hoffa denied the charges, but the arrest triggered additional investigations and more arrests and indictments over the following weeks . A week later, Beck admitted to receiving an interest - free $300,000 loan from the Teamsters which he had never repaid, and Senate investigators claimed that loans to Beck and other union officials (and their businesses) had cost the union more than $700,000 . Beck appeared before the select committee for the first time on March 25, 1957, and invoked his Fifth Amendment right against self - incrimination 117 times . The McClellan Committee turned its focus to Hoffa and other Teamsters officials, and presented testimony and evidence alleging widespread corruption in Hoffa - controlled Teamster units . </P> <P> Several historic legal developments came out of the select committee's investigation . The scandals uncovered by the McClellan committee, which affected not only the Teamsters but several other unions, led directly to the passage of the Labor - Management Reporting and Disclosure Act (also known as the Landrum - Griffin Act) in 1959 . The right of union officials to exercise their Fifth Amendment rights was upheld and a significant refinement of constitutional law made when the U.S. Supreme Court reaffirmed the right of union officials to not divulge the location of union records in Curcio v. United States, 354 U.S. 118 (1957). </P> <P> Rank - and - file anger over the McClellan Committee's revelations eventually led Beck to retire from the Teamsters and allowed Jimmy Hoffa to take over . Immediately after his testimony in late March 1957, Beck won approval from the union's executive board to establish a $1 million fund to defend himself and the union from the committee's allegations . But member outrage at the expenditure was significant, and permission to establish the fund rescinded . Member anger continued to grow throughout the spring, and Beck's majority support on the executive board vanished . Beck was called before the McClellan Committee again in early May 1957, and additional interest - free loans and other potentially illegal and unethical financial transactions exposed . Based on these revelations, Beck was indicted for tax evasion on May 2, 1957 . </P>

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