tract with the C. I. O., the American Federation of Labor, or any other organization. Senator LA FOLLETTE. The exhibit itself will show. Mr. GIRDLER. The number of employees in Youngstown, 8,600 the year 1933, the total cost including the management represents tives, the employee representatives while engaged on that duty, and so forth, was $8,499, or less than a dollar for the year per employee Senator LA FOLLETTE. That is correct. But when you add then all together, anybody who wants to take the time to do that, car do so. Mr. GIRDLER. Then you get $392,000, which is not anything but¦ an infinitesimal amount on a pay roll-I mean spread over 4 yearsit is an infinitesimal amount in my opinion on a pay roll that runs. into millions of dollars a month. Senator LA FOLLETTE. That is all true, but I simply wanted to in the light of the testimony given before the Post Office Committe and the testimony, and this exhibit, to give you an opportunity to make your statement about it. Mr. GIRDLER. Well, the word "infinitestimal" as used before the Post Offices and Post Roads Committee, I respectfully submit, is still correct. Senator LA FOLLETTE. That may be your judgment about it. Somebody else might have a different judgment. Mr. GIRDLER. Why certainly. That looks like a lot of money, but it is still a very, very small percentage of our pay roll. Senator LA FOLLETTE. Your testimony before the Senate Post Offices and Post Roads Committee Mr. GIRDLER (interrupting). Excuse me. I never tried to figure out what the $392,000 on 4 years was in the percentage of $125,000,000 to $150,000,000 a year in wages. Senator LA FOLLETTE. Well, if some one desires to do that now, they can do so in the record and take the time. Mr. GIRDLER. I doubt if I ever do it, because I do not think it is necessary. Senator LA FOLLETTE. All right, sir. I call your attention to the fact that in your testimony before the Post Offices and Post Roads Committee in the excerpt which I have just read you stated [reading]: On the passage of the law, we withdrew that infinitesimal support completely. Mr. GIRDLER. That was a complete mistake on my part, Senator. I thought we had; I thought we did it on the passage of the law, but I find out from my staff, because it was brought up recently-I don't know how recently-I have not the least idea when it was brought out-that we did not withdraw all those expenditures until the law was declared constitutional, and the reason we did not was because of advice of counsel. Senator LA FOLLETTE. You anticipated my next question. Mr. GIRDLER. I thought I would. Mr. PATTON. Which proved to be bad advice. Mr. GIRDLER. I made several mistakes, Senator, in the testimony before the Post Offices and Post Roads Committee, and I assure you they were all honest mistakes. I said that the company had no rifles or that the guards were not armed with rifles, and so forth. The first statement, if I made it, and I have been told I had—the newspaper I said last night I had-was not correct because I understand the company owned some rifles, a large part of which belonged to a company that we had bought and were found in the property. The statement that I made that the guards were not armed with rifles was a correct mistake-a correct statement, because the guards were not armed with rifles. The famous Youngstown riot at stop something or otherSenator LA FOLLETTE (interrupting). Stop 5. I think I can find my way into your plants better than you can. [Laughter.] Even through the back door. Mr. GIRDLER. Youngstown was always a hard place for me to find my way around, anyhow. If you want to put the people on the stand and get the testimony, you will find that the rifles in the Youngstown plant that night were locked up in a cupboard. Senator LA FOLLETTE. If there is any testimony about that riot that night that we have not gotten, it is not because we did not try. Mr. GIRDLER. Senator, I will have to dispute you there because there are a lot of witnesses that you did not call. Senator LA FOLLETTE. We have not called everybody in Youngstown, but this record is so voluminous now because we have called so many already, that you discourage me by telling me that you are never going to read it. [Laughter.] Let us have a little order in the committee room. Mr. Girdler, what is in the policy of the Republic Steel Corporation toward affiliation with employers associations? Mr. GIRDLER. Well, I don't know what the policy is. I would say that we were mostly trying to stay out of them, but I don't know what an employer association is. On what basis are you tagging an employer association? Senator LA FOLLETTE. I am not tagging; I am not playing tag with anybody. I am not tagging anybody, but when I say "employer association" I mean, for want of a better term, groups of employers who form themselves into organizations or associations. Mr. GIRDLER. We are a company member of the American Iron and Steel Institute, and I am president of the American Iron and Steel Institute for my second year, which is the last year I can be president under the rules. I am thankful for that. That comprises practically all of the legitimate steel companies in the United States. I mean concerns that are really in the steel business. I don't go into these wild figures of five or six or seven hundred steel companies, of which there are no such animals, because I do not take in the corner blacksmiths who fabricate a horse shoe; but the company members of the American Iron and Steel Institute, I think there are about somewhere around a hundred, I think there are probably 100 or 120 companies that belong to the American Iron and Steel Institute. Senator LA FOLLETTE. I call your attention to exhibit Mr. GIRDLER. We belong to and contribute to the National Association of Manufacturers, and I am some kind of a regional vicepresident or something of the National Association of Manufacturers. I really cannot tell you what that is; I wish I could. I have not attended a meeting of the National Association of Manufacturers for a long time, and I don't know very much about it. And we belong to a lot of things, ore associations, and development of waterways, and better business bureaus, and all sorts of things. I suppose that perhaps you already have a list of all of the things that we belong to. Senator LA FOLLETTE. Yes; when it comes my turn I am going to ask you about it. [Laughter.] Mr. GIRDLER. I was very hoarse and had a sore throat this morning, but this afternoon I got a good rest in my throat when the other testimony was going in. Senator LA FOLLETTE. Exhibit 4383, which appears on page 15483 of the transcript is an exhibit showing the list of the associations to which the Republic Steel Corporation made payments during the year 1937. According to this exhibit, Republic Steel Corporation made payment to 145 different organizations in that year. Mr. GIRDLER. It sounds like too many. Senator LA FOLLETTE. I also should like to call your attention to exhibit 4381. This exhibit represents a partial list of contributions made by Republic Steel Corporation to the employers' associations during the period 1933 through 1937. The exhibit shows that Republic Steel Corporation contributed $219,812.35 to the American Iron and Steel Institute during this 5-year period. Mr. Boyer when on the stand informed the committee that of this amount $58,659.92 represents payments made to the code authority of the steel industry, which leaves $161,152.43 as the total payment in dues and assessments to the American Iron and Steel Institute itself. When were you first elected president of the American Iron and Steel Institute? Mr. GIRDLER. May 1937. Senator LA FOLLETTE. Had you held any other office or position in the institute prior to your election as president? Mr. GIRDLER. I had been vice president for some time before that; I don't know how long. I had been a director-oh, I think since 1928. Senator LA FOLLETTE. Is there any connection between the American Iron and Steel Institute and the National Association of Manufacturers? Mr. GIRDLER. None, whatever, that I know of. Senator LA FOLLETTE. Do you know whether the American Iron and Steel Institute is a member of the National Industrial Council Mr. GIRDLER (interrupting). I do not. Senator LA FOLLETTE (continuing). Which is an affiliate of the N. A. M. Mr. GIRDLER. I don't know. Senator LA FOLLETTE. Exhibit 4385 on page 15502 of the record shows that it is. The Republic Steel Corporation, according to this exhibit, has contributed a total of $25,845.70 to the National Association of Manufacturers in the 5-year period from 1933 through 1937. In 1933, Republic paid dues of only $287.50. In 1934, the company paid $3,105. Do you know why the Republic increased its contribution to the N. A. M. by $2,817? Mr. GIRDLER. Between what years? Senator LA FOLLETTE. In 1933 the dues of the company were $287.50 to N. A. M. Mr. GIRDLER. Yes. Senator LA FOLLETTE. In 1934 it jumped to $3,105. Do you know why? Mr. GIRDLER. No; I don't know why. I think they probably told us we were not paying our share of the expenses. They were extending their activities, and they were doing a lot of educational work. Senator LA FOLLETTE. To your knowledge has there been any reorganization of the N. A. M. during 1933? Mr. GIRDLER. I don't remember anything about it. Senator LA FOLLETTE. I offer for the record a memorandum from W. M. F. to Mr. Girdler, dated February 6, 1933. This was obtained from the files of the Republic Steel Corporation under subpena. (The document was marked "Exhibit 5227" and appears in the appendix on p. 13925.) Senator LA FOLLETTE (reading): Mr. GIRDLER: We have one membership in the National Association of Manufacturers. It costs $100 per year and expires in 1932. Before the merger Union Drawn and Central Alloy both had memberships. These were canceled and we had no memberships in 1930 or 1931. We were asked by the association to contribute to the National Committee for Economy in Government last October but did not do so. 2/6/33. W. M. F. Mr. GIRDLER. That was Warren M. Fording, the secretary I referred to that was killed a couple of years ago. Senator LA FOLLETTE. I offer for the record a letter from Charles R. Hook, president of the American Rolling Mill Co., addressed to Mr. Girdler. This letter is not dated, but appears to be approximately the same date as the memorandum; that is, around February 1933. It may be given an exhibit number and printed in full. (The document was marked "Exhibit 5228" and appears in the appendix on pp. 13925-13926.) Senator LA FOLLETTE. I read excerpts from it: At the suggestion of Mr. E. F. Hutton, Chairman of the Board, General Foods Corporation, who has consented to assist the finance committee of the National Association of Manufacturers, I am addressing you with respect to a matter I believe of vital importance to our industry. * * * The directors of the National Association of Manufacturers have adopted by unanimous vote a definite program, and the organization committee has recommended an oorganization to effectively carry out this program. We need an outstanding executive giving his full time to the association, backed up by a competent staff. We cannot wait to put on a general membership campaign to raise the additional funds necessary to secure the managing executive and additions to the staff, and therefore we must resort to an appeal to a few of the larger corporations to underwrite this addition to our budget until we can secure the necessary funds through our regular membership appeal. I am enclosing herewith an underwriting subscription blank, the same as the one signed by those of us who have already come in, and we would appreciate your company joining us so that we can complete the underwriting of the additional fund needed. I do not think the subscribers will be called upon for very much of their underwriting, and in any event after the campaign for funds is completed I am sure we will have raised enough money so that a return can be made to the underwriters of the amount they have paid in over and above their proper membership fee. Will you please reply to me care of The National Association of Manufac turers, 11 West 42nd St., New York. Very sincerely, (Signed) CHARLES R. HOOK, Chairman, Finance Committee. P. S.-Attached is list of those who have already subscribed. Mr. GIRDLER. Did I answer that, do you know? Senator LA FOLLETTE. We were shown no carbon or reply. Senator LA FOLLETTE (interrupting). Do you recall anything about this underwriting fund? Mr. GIRDLER. I don't remember anything specific about it. I know that Charlie Hook and some others, and I think Frank Purnell of the Youngstown Sheet & Tube were both working on me pretty hard to put up more money. Senator LA FOLLETTE. Do you know how much the underwriting fund was? Mr. GIRDLER. I don't remember it. Senator LA FOLLETTE. I offer for the record a letter from Mr. C. R. Hook, addressed to you, dated April 11, 1933. (The document was marked "Exhibit 5229" and appears in the appendix on p. 13926.) Senator LA FOLLETTE (reading): "DEAR TOM: I am trying to complete the two-year underwriting fund of the National Association of Manufacturers this week. We cannot employ an outstanding full-time man and carry on the field work, which should be pushed, unless I have subscriptions in the amount of $50,000 for each of two years. We have $40,250 to date. Won't you join in putting this job over this week. Hastily and sincerely (Signed) CHARLIE. Mr. GIRDLER. Evidently I did not come across the first time and he was after me again. Senator LA FOLLETTE. You remember whether you did the second time? Mr. GIRDLER. I don't remember anything about it, Senator. Senator LA FOLLETTE. Do you know what the job was that he referred to? Mr. GIRDLER. No, I don't remember; I don't remember a thing about it. As far as I can remember anything about it, the National Association of Manufacturers, they were always trying to get more money. |