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constitution or of applicable law.
I was saying in the context of whether or not
it was a per se violation of the union's c9nstitution
for the union to be billed by a supplier where the union
would get a better rate than the individual union member
or official would, and for the union simplY to act as a
conduit, to then bill the officer or the member and to
have it promptly repaid, the union then in my judgment
was not in violation of the union's constitution and I
stand on that particular position.
MR. HARMON: Isn't it clear under these cir­
cumstances, Mr. CQnnerton, that if a union official
borrows these funds without authorization, the union
loses interust on the funds for the period of time that
the union official takes to repay the funds?
MR. CONNERTON: That is correct, but loans are
permissible, Mr. Harmon, under the Landrum-Griffin Act.
And there is no requirement under the Landrum-Griffin
Act that the loans have a certain rate of return.
There is a limit on the amount of money that
could be loaned to a trade union official, but there is
no requirement that a certain interest rate be charged
to be paid in addition.
MR. HARMON: Is it the policy of the Laborers'
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