Newsday from New York, New York • 12

Corruption Trial Opens UA District Court on charges of racketeering conspiracy and violation of tax laws Conviction could result in 26 imprisonment and forfeiture of his union titles Codefendant Anastasio 50 a cousin of wife is vice president of Local 1814 He is accused of receiving more than $50000 in illegal payoffs The jury of eight women and four men is to be 1 the trial which is expected rose to power and rose to gain respect in the political world and in the waterfront industry for which he did so much" LaRossa said FBI agents followed the Scottos op their honeymoon in 1957 LaRossa said and postal authorities seized their maiL Thirty-two locations were bugged by the government including places in Norfolk Miami ana Gulfport "in hopes of overhearing Anthony Scotto in a criminal act" he said LaRossa said he intends to discredit the testi- -many of the two key witnesses waterfront businessmen Walter OHeam and William Montella by showing that they were thieves who became prosecution witnesses to save themselves OHeam has pleaded guilty to charges of having agreed to pay Scotto $60000 a year for four yean in order to reduce a rise in the number of phony accident claims on the Brooklyn waterfront Fiske said that the claims were "fraudulent phony claims that were conjured up by crooked lawyers and crooked doctors to whom the longshoremen were Soon after the payoffs to Scotto began Fiske said the claims on one pier dropped from $14 million a year to $300000 The prosecutor previewed for the jury one taped conversation: "You will hear Scotto divide up $25000 rash in 30 he said The series of Waterfront Combined News Services New Hie prosecutor in the racketeering trial of Anthony Scotto the head of the Brooklyn dockworkera onion told a federal jury yesterday that he would outline a "story of corruption and greed" and detail how Scotto received more than $300000 in illegal payoffs from waterfront companies U5 Attorney Robert Flake maintained that ScOttO and AfitJumy Awtmrin will be convicted "by their own in tape recordings of conversations they had with waterfront businessmen Tim conversations it is charged con-cem illegal labor payments But tne defense described Scotto a grandson who has helped raise campaign funds for President Carter and Gov Hugh Carey as a "responsible sincere and democratic labor leader" no racketeer" defense attorney James liflRim said describing the defendant as a man who devoted a lifetime to fighting the decay of the New York piers Til prove we are dealing with a 22-year-old vendetta that began in 1955 when Scotto became enraged to many Marion he said Mrs Scotto is the daughter of the late Anthony Anastasio who in 1955 was the boss of the Brooklyn dockworkers Anastasio was the brother of Albert Anastasia the reputed boss of Murder Inn who was shot to death in a Manhattan hotel bather shop in 1957 Scotto 45 is a vice president and general organizer for the ILA and president of its largest unit the 5000-member Loral 1814 in Brooklyn He is being tried before Judge Charles EL Stewart Jr in Fiske told the jury in his opening statement that the case against Scotto is "a story of corruption a story of greed a story of a powerful labor leader who demanded and received over $300000 in rash in illegal payoffs from companies doing business on the waterfront" He contended that Scotto had received the payoffs in the past four yean in addition to his annual salaiy of $140000 from the International Longshoremens Association The evidence from own voice on the tapes Fiske said is "extraordinarily incriminating" The recordings some of them made in office at 17 Battery PL in lower Manhattan represent "overwhelming evidence" he said I Rosas countered in his opening remarks that the Charges against Scotto did not involve payoffs but legal contributions made to various political campaigns by industry and labor through Scotto He said that Scotto had become politically active early in his labor career in order to obtain the funds and support he felt were necessary to reverse the downtrend in business on the Brooklyn docks This man picked himself up by the bootstraps and payoffs began in August 1975 when two men met in a Brooklyn restaurant and one gave the other a white envelope containing $15000 Fiske said "The man who received that white envelope with the $15000 cash was that Anthony Scotto" Fiske said pointing to the defendant Ch 21 Committee Votes to Gust Chief headquarters at Nassaus Community College in Garden City "I think he has a chance for the job Otherwise thqy would offer it to him right now" "I think I should be the only candidate for the job I think it should be automatic" Bell said In the charges that led to the reorganization Bell asserted in June that Oliver Crom head of Dale Carnegie and board president at the time developed a fund-raising campaign for Channel 21 that also helped promote Carnegie programs He also said that Levine (from's executive assistant at Carnegie and a former Republican assemblyman had ordered programing intended to advance himself politically An investigation by trustees cleared Cram and Levine but the state later recommended that the board issue a code of conduct for its trustees Bjr Peter Goodman The executive committee of board of trustees of WLIW-TV Long public television station recommended yesterday that General Manager Charles job be abolished as part of a station reorganization Bell provoked the reorganization by charging that several trustees were interfering in station operations for personal and political gain The committee recommended creating a new job president and general manager and voted 5-1 to recommend that contract not be renewed when it expires Dec 1 Trustee Noel Palmer said "I think Bob Bell should have every eh for applying and being for the position But Trustee Fred Scott who opposed board President Stuart Levine in elections in June and voted against letting contract lapse said after the meeting at the Burning Up the Road One fireman pries open the hood while another sprays a chemical foam on Eva Marie Kramer's automobile that caught fire in a westtxxmd lane of the Grand Central Parkway near the Queens Boulevard exit about 1:15 PM yesterday Official Tells of Labor Shakedown trowe the project Be ider George Boylan there already Engineering Inc it tractors in New in his territory the not "appreciate Crowe leader George Boylan Engineering he it in nis territory the the there tractors not area to TJX McCormick Inc of the Bronx He said $20000 to pay off Boylan was added into one of the McCormick subcontracts Before 1970 McCormick was a small company that cleaned boilen according to other testimony at the trial Tne indictment charges that McCormick began making heavy payoffs to Boylan in 1971 eventually giving him $505000 nll said that on three occasions he delivered $1000 payments to Boylan He said he son in his enrnimny who knew i the payoffs ana he hid them by pad- only per-lew about payofib By Kenneth After union told Combustion was not welcome firm went ahead and built a boiler for Consolidated Edison Havens-wood a move that cost Combustion Engineering $1 million because of low worker productivity a company official testified yesterday Combustion Engineering vice president John Randsll testifying at Boy labor-racketeering trial said: "The productivity by boilermakers on the Big Allis job was the worst in the United Randall aaid ftnmfunatjpii Bnginiar ing sold the 1000-megawatt boiler to Con Ed in 1963 Hie said his firm had done no mqjor construction work in the New York area until then Randall that when he contacted Boilermakers Local 5 to get makers for anew "I confronted our management with this predicament with the problem of not being able to do business in New Randall said Combustion Engineering a Connecticut firm attempted to subcontract the prqject to the four firms named by Boykin the business manager Randall said but their prices were so high that Combustion decided to do the work itself "We lost a million Randall testified After 1970 at the suggestion of Boylan and an unidentifed international vice president of the Boil-makers Union Randall said he boil- work in the New York'- McCarthy who is testifying under immunity from prosecution told the jury that in the late 1960s and early 1970s Boylan sometimes gave him cash saying he "got some money from the contractomrMcCarthy said the largest sum he received from Boylan was $500 and at the most $1000 over the course of a year In other testimony James McDavid president of Union Boiler Co of Nitro Va a firm that grossed $121 million last year said Rogers told him that Union Boiler would have to pay an additional 10 per cent of the labor portion of any contract to get boilermakers in the New York area McDavid said the 0 'money was paid in 1971 by sending checks for $2380 to RJL Reader As- sociates of Whitestone and arranging for the delivery of another $16000 in directly to ding his expense account "On one or more thn defendant he hand his with his subordinates A1 Rogers Local 5 assistant business manager he said "While Rogers has' not been called to testify Local president Gerald 1.