Mr. Chairman, these hearings today really open a long-term investigation into the activities of organized crime to update the Nation as to recent trends that make criminal operations even more insidious today than in the past. Violence and the fear of violence are necessary ingredients for organized crime. The Jack Anderson column mentions that in recent weeks gangland murders, of the most violent kind, have occurred. As we study the breadth of influence that organized crime enjoys, as we learn of its infiltration of legitimate businesses, as we seek to unravel its complex financial scheming, we must not lose sight of the fact that the threat of death is still the bottom line on organized crime's balance sheet. I want to state unequivocally at the outset that, certainly today, there is no one criminal group synonymous with organized crime in America. Today organized crime might be looked upon as a more equal opportunity employer than it was in the past. New groups from Latin America and Asia have joined traditional organized crime groups in grabbing a share of a multibillion-dollar business in narcotics trafficking. Criminally oriented motorcycle gangs are being hired on a contract basis by the other criminal groups to intimidate legitimate businessmen. Former gangs of convicts who assaulted and murdered fellow inmates while in prison, particularly in California, now terrorize lawabiding citizens in the outside world with the same tactics they used behind prison walls. It is grossly unfair to single out any one ethnic group as responsible for organized crime. Too many people have suffered discrimination because they share an ethnic and cultural background with criminals whose only creed is personal profit and the use of violence to attain it. Quite rightly, these hard-working people who contribute so much to building America feel a sense of indignation and outrage when just one group is singled out. These hearings will demonstrate how many groups have now moved into this field. The proliferation of organized criminal groups has meant an increase in violence. New criminal groups and younger elements of the already entrenched mob no longer play by the old ground rules. At one time traditional organized crime elements sought to avoid endangering innocent bystanders. Representatives of the criminal justice system, although hated, were respected and left alone, except for occasional battlefield scrimmages. Today no one is immune from violence. Recent victims include police, prosecutors, and grand jurors. A Federal judge in San Antonio, Tex., was recently murdered. Not too long ago a newspaper reporter was slain in Phoenix, Ariz. Organized criminals have developed new arsenals of weapons that increase the likelihood of indiscriminate violence and that makes those criminals much more dangerous and difficult to contain. We will view some of these weapons on Friday. Shakedowns and threats remain the standard mob business tool, with bombings, arson and murder the necessary backup. To insure its success, the mob bankrolls political corruption so that eyes are averted and backs are conveniently turned, leaving the victims helpless and utterly alone. Some ask what good it will do for the Senate to investigate organized crime. Organized crime will thrive no matter what, the reasoning goes, because it provides illegitimate services to a willing popula tion. I reject that line of thinking. It assumes a relatively benign description of organized crime which is not and never has been valid. We are talking about an operation that drains our economy of billions of dollars of untaxed profits every year, and weakens the integrity of our economic system through corruption and violence. It adds to the inflation by jacking up the prices of goods and services wherever the mob gains control. These are ruthless psychopaths and sociopaths, who believe they have the right to do away with anyone or any institution that stands in their way. Mr. Chairman, I want to express deep appreciation to you for your responsible leadership in returning this subcommittee to its historic mandate to investigate organized crime in America and to propose appropriate legislative action. You have gathered together a truly impressive staff of counsel and criminal investigators, headed by Marty Steinberg as chief counsel. They bring to the Senate years of experience in successfully investigating and prosecuting members of organized crime. I would like to put in the record, Mr. Chairman, members of the majority staff who have worked under your able direction along with Marty Steinberg on these hearings, Mike Levin, LaVern Duffy who has been with the subcommittee for many, many years, Bill Goodwin, Jack Key, Bill Colombell, Don Zell, Ray Maria, and Ray Worsham. As you have indicated, the minority staff worked with the majority staff on a nonpartisan basis, chief minority counsel Jerry Block, general counsel Chuck Berk, investigator Howard Marks. Lynn Lerish, Adele Linkenhoker, and Sarah Presgrave have worked with the majority staff to bring these hearings about. We think they will be a tremendous public service, and we are grateful for the interest of everyone in this room. I also want to thank Senator DeConcini who has a deep abiding interest in this problem, particularly in the area of narcotics, for being here. We have invited him to participate with us to the extent he possibly can. Thank you. Chairman NUNN. Thank you very much, Senator Percy. Senator Chiles has been an extremely valuable member of our subcommittee for a long time and has played a vital role in these hearings. Senator Chiles. Senator CHILES. Mr. Chairman, I will withhold any opening statement. I am delighted you are holding these hearings. You mentioned the State of Florida in your statement. Florida has been the battleground because of the infusion of narcotics and the illegal moneys which it generates. We have seen tremendous violence there. I am delighted that you are starting these hearings and that you have been able to assemble the qualified staff to go forward with these hearings. We are hopeful that this will help us develop some kind of a national plan so that we can get some relief from the tremendous problems that we are having. Chairman NUNN. Thank you very much, Senator Chiles. Senator Cohen also has been a valuable member of our subcommittee, and is vitally interested in this matter, and formerly was on the Judiciary Committee on the House side, and has had experience from that end, too. Senator Cohen. Senator PERCY. I particularly would like to say how pleased I am Senator Cohen has chosen to be on this subcommittee. We fought to get him on it because he distinguished himself in hearings in the Judiciary Committee in the House. He brings very valuable counsel to the subcommittee. Chairman NUNN. I agree. Senator COHEN. I had an eloquently worded and incisive statement, Mr. Chairman, which has been rendered completely redundant by Senator Percy and the chairman. Chairman NUNN. We haven't heard one of that description this morning. Maybe you had better go ahead. [Laughter.] Senator COHEN. I yield back my time. Chairman NUNN. Judge Webster, we are delighted to have you here, and I understand Mr. Heymann could not be here and Mr. Nathan is representing him. Mr. NATHAN. That is correct, Senator. Chairman NUNN. We are delighted to have both of you here this morning. We swear in all of our witnesses before this subcommittee without exception. So if both of you would stand and raise your right hand. Do you swear the testimony you will give before this subcommittee will be the truth, the whole truth, and nothing but the truth, so help you God? Mr. WEBSTER. I do. Mr. NATHAN. I do. TESTIMONY OF WILLIAM H. WEBSTER, DIRECTOR, FEDERAL BUREAU OF INVESTIGATION, ACCOMPANIED BY IRVING B. NATHAN, DEPUTY ASSISTANT ATTORNEY GENERAL, CRIMINAL DIVISION, U.S. DEPARTMENT OF JUSTICE Chairman NUNN. Thank you. I believe both of you have an opening statement. Not being thoroughly familiar with protocol, I will leave it up to the Justice Department to determine the order of the witnesses. Mr. NATHAN. I will defer to Judge Webster. Chairman NUNN. Judge Webster, we are delighted to have you here and we appreciate what you are doing, and I might add from the outset it was my impression that the FBI, under your charge, is more vitally involved in this important mission now than ever before. We congratulate you on that and we are delighted to have you. Mr. WEBSTER. Thank you, Mr. Chairman. I do appreciate this opportunity to appear before the subcommittee and discuss with you the various aspects of the organized crime problem. The FBI defines organized crime groups as criminal organizations having some manner of formalized structure and whose primary objective is to obtain money through illegal activities. Such groups maintain their position through the use of violence or threat of violence, corrupt public officials, graft of extortion, and generally have a tion. I reject that line of thinking. It assumes a relatively benign description of organized crime which is not and never has been valid. We are talking about an operation that drains our economy of billions of dollars of untaxed profits every year, and weakens the integrity of our economic system through corruption and violence. It adds to the inflation by jacking up the prices of goods and services wherever the mob gains control. These are ruthless psychopaths and sociopaths, who believe they have the right to do away with anyone or any institution that stands in their way. Mr. Chairman, I want to express deep appreciation to you for your responsible leadership in returning this subcommittee to its historic mandate to investigate organized crime in America and to propose appropriate legislative action. You have gathered together a truly impressive staff of counsel and criminal investigators, headed by Marty Steinberg as chief counsel. They bring to the Senate years of experience in successfully investigating and prosecuting members of organized crime. I would like to put in the record, Mr. Chairman, members of the majority staff who have worked under your able direction along with Marty Steinberg on these hearings, Mike Levin, LaVern Duffy who has been with the subcommittee for many, many years, Bill Goodwin, Jack Key, Bill Colombell, Don Zell, Ray Maria, and Ray Worsham. As you have indicated, the minority staff worked with the majority staff on a nonpartisan basis, chief minority counsel Jerry Block, general counsel Chuck Berk, investigator Howard Marks. Lynn Lerish, Adele Linkenhoker, and Sarah Presgrave have worked with the majority staff to bring these hearings about. We think they will be a tremendous public service, and we are grateful for the interest of everyone in this room. I also want to thank Senator DeConcini who has a deep abiding interest in this problem, particularly in the area of narcotics, for being here. We have invited him to participate with us to the extent he possibly can. Thank you. Chairman NUNN. Thank you very much, Senator Percy. Senator Chiles has been an extremely valuable member of our subcommittee for a long time and has played a vital role in these hearings. Senator Chiles. Senator CHILES. Mr. Chairman, I will withhold any opening statement. I am delighted you are holding these hearings. You mentioned the State of Florida in your statement. Florida has been the battleground because of the infusion of narcotics and the illegal moneys which it generates. We have seen tremendous violence there. I am delighted that you are starting these hearings and that you have been able to assemble the qualified staff to go forward with these hearings. We are hopeful that this will help us develop some kind of a national plan so that we can get some relief from the tremendous problems that we are having. Chairman NUNN. Thank you very much, Senator Chiles. Senator Cohen also has been a valuable member of our subcommittee, and is vitally interested in this matter, and formerly was on the Judiciary Committee on the House side, and has had experience from that end, too. Senator Cohen. Senator PERCY. I particularly would like to say how pleased I am Senator Cohen has chosen to be on this subcommittee. We fought to get him on it because he distinguished himself in hearings in the Judiciary Committee in the House. He brings very valuable counsel to the subcommittee. Chairman NUNN. I agree. Senator COHEN. I had an eloquently worded and incisive statement, Mr. Chairman, which has been rendered completely redundant by Senator Percy and the chairman. Chairman NUNN. We haven't heard one of that description this morning. Maybe you had better go ahead. [Laughter.] Senator COHEN. I yield back my time. Chairman NUNN. Judge Webster, we are delighted to have you here, and I understand Mr. Heymann could not be here and Mr. Nathan is representing him. Mr. NATHAN. That is correct, Senator. Chairman NUNN. We are delighted to have both of you here this morning. We swear in all of our witnesses before this subcommittee without exception. So if both of you would stand and raise your right hand. Do you swear the testimony you will give before this subcommittee will be the truth, the whole truth, and nothing but the truth, so help you God? Mr. WEBSTER. I do. TESTIMONY OF WILLIAM H. WEBSTER, DIRECTOR, FEDERAL BUREAU OF INVESTIGATION, ACCOMPANIED BY IRVING B. NATHAN, DEPUTY ASSISTANT ATTORNEY GENERAL, CRIMINAL DIVISION, U.S. DEPARTMENT OF JUSTICE Chairman NUNN. Thank you. I believe both of you have an opening statement. Not being thoroughly familiar with protocol, I will leave it up to the Justice Department to determine the order of the witnesses. Mr. NATHAN. I will defer to Judge Webster. Chairman NUNN. Judge Webster, we are delighted to have you here and we appreciate what you are doing, and I might add from the outset it was my impression that the FBI, under your charge, is more vitally involved in this important mission now than ever before. We congratulate you on that and we are delighted to have you. Mr. WEBSTER. Thank you, Mr. Chairman. I do appreciate this opportunity to appear before the subcommittee and discuss with you the various aspects of the organized crime problem. The FBI defines organized crime groups as criminal organizations having some manner of formalized structure and whose primary objective is to obtain money through illegal activities. Such groups maintain their position through the use of violence or threat of violence, corrupt public officials, graft of extortion, and generally have a |