Mr. GREEN. I certainly was not. I would not know Mr. Murphy. Senator NIXON. And Mr. Dawson did not contact you? Mr. GREEN. No, sir. Senator NIXON. Nobody else contacted you? Mr. GREEN. No, sir; did not. Senator NIXON. Now, we have been talking about gifts and gratuities. Just to be sure that the record is clear on that point, now that you have refreshed your recollection, do you know of any other gifts or gratuities of any type that have been given to employees of the Government or to employees of either national committee, Democratic or Republican, other than those that have been mentioned up to this point, by the American Lithofold Co., by you, or any other employee of the company? Mr. GREEN. Not to my recollection, Senator. Senator NIXON. Now, you say that the only occasion that you can recall having been in the White House was this occasion when you gave Mr. Connelly a camera? Mr. GREEN. No. I think that I was in there on one occasion when I went over there for my father-in-law. As I told you, I have taken people in-it is the best of my recollection-merely to have them go through the White House. Senator NIXON. Do you know the President? Mr. GREEN. I certainly do. Senator NIXON. That is all. Senator HOEY. That is all, Mr. Green, you are excused. Mr. MURPHY. May I make a short statement before the record closes in light of the recess that was taken, Mr. Chairman? Senator HOEY. All right. Mr. MURPHY. Mr. Green advises me that he was suffering from a stomach condition, and, of course, he was laboring under great emotion today. I am sure that the interest of the members of the committee in his condition bore no malice at all, but I do think that we ought to straighten the record out on that point, because it embarrassed him. I think the record should state we have been sitting here in a rather close room filled with smoke and, of course, many questions. I have taken the matter up with Mr. Green, and he has assured me, sir, that there is nothing to this incident other than what he has stated on the record. Senator HOEY. That is entirely appropriate to leave in the record. You are excused now, Mr. Green. Mr. GREEN. Thank you. Senator HOEY. Before the committee adjourns, I will say something off the record. (Discussion off the record, after which the subcommittee recessed to reconvene at 10 a. m. Monday, September 24, 1951.) INFLUENCE IN GOVERNMENT PROCUREMENT MONDAY, SEPTEMBER 24, 1951 UNITED STATES SENATE, INVESTIGATIONS SUBCOMMITTEE, COMMITTEE ON EXPENDITURES IN THE EXECUTIVE DEPARTMENTS, The subcommittee met at 10: 15 a. m., pursuant to adjournment, in room 357, Senate Office Building, Senator Clyde R. Hoey (chairman) presiding. Present: Senator Clyde R. Hoey, of North Carolina; Senator John L. McClellan, of Arkansas; Senator Thomas R. Underwood, of Kentucky; Senator Joseph R. McCarthy, of Wisconsin; and Senator Richard M. Nixon, of Califorina. Also present: Francis D. Flanagan, chief counsel; Howell J. Hatcher, chief assistant counsel; Carmine S. Bellino, accounting consultant; William Leece, assistant counsel; and Ruth Young, clerk. Senator HOEY. The subcommittee will come to order, please. Charles B. Moling, come to the stand. Hold up your right hand. Do you solemnly swear that the testimony that you give in this hearing shall be the truth, the whole truth, and nothing but the truth, so help you God? Mr. MOLING. I do. Senator HOEY. Have a seat. Senator MCCARTHY. Mr. Chairman, before we commence, some of the other Senators on the subcommittee have suggested that if we have some idea of when some of the key witnesses, such as Siskind, Boyle, and Gabrielson, are going to be called, if we can work out some kind of schedule so that we can plan our work accordingly, that it would help our work greatly. Senator HOEY. At the present time it is our hope that we may call Mr. Siskind tomorrow, and Mr. Boyle Wednesday. Senator McCARTHY. How about Mr. Gabrielson? Senator HOEY. I do not know that date just yet. The reason I say that is that we have some preliminary work to do on that. Senator MCCARTHY. I see. Senator HOEY. It depends on whether we can get ready with respect to that; but we will call Mr. Gabrielson at the earliest date we reasonably can, and I will tell you in advance. Senator MCCARTHY. There is one other thing, Mr. Chairman, and I think this should be on the record. I am inclined to think that there may have been a serious oversight the other day when Mr. Finnegan was on the stand. I may say I left before his hearing was completed, and I thought that additional evidence was going in. Appar ently we were operating under the impression that we should only put in evidence of Finnegan's connection with the American Lithofold Co. I believe, in view of the fact that he was the collector of internal revenue and received some $45,000 from American Lithofold, the evidence as to the salaries which he received from any other companies, essentially those with which he was dealing as collector of internal revenue, should be put in the record. I understand the staff has a considerable amount of that evidence, and I think it would be unfair to put it in while he is not present, while he is not here. I just wonder whether he should be recalled for the purpose of putting in evidence showing his income from other firms in his tax area at the time he received the $45,000 from American Lithofold. May I say this, Mr. Chairman: I do not want to go too far afield from American Lithofold at this time. The power of this committee, of course, extends far beyond the American Lithofold Co., but we may find that we are much more interested in some of the collectors of internal revenue, in some of the activities of those individuals, than we are in the activities of Mr. Boyle before we get through with this; and I do think, when we have one of those collectors on the stand. where he is receiving a high salary from an outfit like American Lithofold, over whom he had jurisdiction, we should put in all of the evidence concerning his income from any other company in his tax area. Senator HOEY. I would say to the Senator that we do not have the evidence in form to put in. We have been making investigations with reference to the income-tax returns, but those are not available to us yet, and we deferred that purposely until we could get that as a separate investigation. Senator MCCARTHY. I wonder if it would not be a good idea, Mr. Chairman, if the evidence is not in form to put it in now by the staff, would it not be well to call Mr. Finnegan in executive session and put him under oath and ask him about those other particular transactions? That will save the staff a great deal of work. I am sure we can do that. I understand there are five or six others. Is that right, Mr. Flanagan? Mr. FLANAGAN. There probably are; we are not sure of all of them, Senator. I know of two specifically. Senator HOEY. I will be glad to discuss that with you and the other members of the committee. I do not believe it is a good idea to inject this right now. I think we had better take this up as a separate proceeding. Senator NIXON. Mr. Chairman, may I say just one thing at this point, too: Did I understand the chairman to say that the plan was to call Mr. Siskind tomorrow? Senator HOEY. Yes; and probably Mr. Boyle Wednesday. Senator NIXON. I would like to make a request to the chairman, if this can be done: Has the staff asked either Mr. Siskind or Mr. Boyle voluntarily to turn over their income-tax returns? Has that request been made? Senator HOEY. I think, Senator, that is a matter we have under discussion, and I think we had better consider that Senator NIXON. Let me say that we have it under discussionSenator HOEY (continuing). In executive session. I may say we are going to hold an executive session this after noon to discuss this matter. Senator NIXON. The point is-the reason I bring it up at this time so that there will be no misunderstanding—that in order to understand the nature of the transaction by which Mr. Siskind purchased the law practice of Mr. Boyle, it becomes very important to see the incometax returns for the years involved, and in my opinion we cannot possibly have a complete hearing of either Mr. Siskind or Mr. Boyle unless we furnish their income-tax returns for 1949 and 1950. Now, that is the reason I raise the question, and I intend to present that this afternoon in executive session. Senator HOEY. I may say, Senator, that that has been discussed with the staff, and they have been working on the situation, and that is one of the things I want to present to you in executive session this afternoon so that the committee can consider the different phases at this point. I may say in connection with Mr. Boyle that he had previously advised me that he was ready to testify any time we might desire to have him. I have not notified him as to the time yet, but it looks like now that we will be able to probably reach him by about Wednesday. Mr. Moling, will you give your name and address to the reporter. TESTIMONY OF CHARLES B. MOLING, EASTERN DIVISION SALES MANAGER, AMERICAN LITHOFOLD CORP. Mr. MOLING. Charles B. Moling, 217 Barton Street, Arlington, Va. Senator HOEY. What is your present employment? Mr. MOLING. Eastern-division sales manager of American Lithofold Corp. Senator HOEY. How long have you been with this company? Senator HOEY. Prior to March of this year, how were you engaged? ment. Senator HOEY. In that capacity? Mr. MOLING. Do you want me to start at the beginning? Senator HOEY. Well, you do not need to go all the way back; but, in the last few years, what has it been? Mr. MOLING. Well, my entire 30 years has been in the field of publication work. Since 1942 I have been with the Army Air Forces. Seantor HOEY. Located where? Mr. MOLING. Originally the first activity was at the Headquarters, Air Service Command, in Washington. The next was the Deputy Chief of Staff, Matériel; and last, the Publications Division of the Air Adjutant General's office, all in Washington. Senator HOEY. What was the nature and character of your service for the Air Forces? Mr. MOLING. Starting in 1942 it was until almost 1949-it was with a supply activity. That name is the Deputy Chief of Staff, Matériel, which was responsible for the supply, distribution, and requirements for all Air Force material, from aircraft down to printing. 81249-51-pt. 3- -32 I was the staff agent or the staff official responsible for what we called class 30, that is, publications. That included the operation of Air Force field printing plants, field contract printing, through the Air Service Command or other activities, and departmental printing, which is procured through the Washington channel. Senator HOEY. Did you have anything to do with the letting of contracts for any of this work? Mr. MOLING. Sir, I nor anyone else in the headquarters of the Army Air Forces is authorized to purchase, procure, contract, or let an award for printing. Senator MCCARTHY. I am sorry; I did not get that answer. Mr. MOLING. I say neither I nor anyone else in the Army Air Forces is able to procure, contract for, purchase, or let an award for printing. Senator MCCARTHY. I do not think you have answered the chairman's question. Mr. MOLING. Sorry, sir. Senator MCCARTHY. The question was, Did you have anything to do with purchasing?-not whether you let the contracts. Senator HOEY. Did you have anything to do with the award of those contracts? Mr. MOLING. I had nothing to do with them; no, sir. Senator HOEY. Did you have anything to do with preparing a contract? Mr. MOLING. Preparing a contract, sir? Senator HOEY. Yes. Mr. MOLING. No, sir. Senator HOEY. Did you have any connection at all with the awarding of contracts for this work? Mr. MOLING. No, sir. Senator HOEY. What service, if any, did you perform with reference to preparing the forms and the different things for the Air Forces? Mr. MOLING. Well, in the last position, which was the Air Adjutant General's office, we had a number of branches under military control, and I was the chief civilian in the Printing Control Branch. That Branch had in it a field printing section, which had to do with the operation, establishment of field printing plants belonging to the Government. We had a Copy Section; we had a Budget and Fiscal Section, which was responsible for the preparation and defense of all budgets for printing for the Air Force. We had then a section which I called the Requisitioning Section, because they use a Form 1, which is called a requisition, and that is the basic piece of paper which is submitted to the Government Printing Office for a printing job of any kind. That requisition has on it the office, the obligations of funds, the quantity, the delivery instructions, planning. Senator HOEY. Mr. Moling, without going into all those details as to exactly how you operated, were you ever contacted by representatives of the American Lithofold Corp. in connection with their contracts? Mr. MOLING. How do you mean "in connection with their contracts"! Senator HOEY. Did they ever contact you in connection with business in any way? |