"Even a superficial investigation leads one to believe that the Bergoff agents are in the employ of Republic Steel and Youngstown Sheet and Tube." As your committee has discovered as a result of its painstaking investigation, this charge was a deliberate misstatement of fact. On July 8, 1937, the Youngstown Vindicator reported as follows: "Nearly 20,000 of about 25,000 who were on the pay rolls of Youngstown Sheet & Tube and Republic Steel in Youngstown plants have returned to work." Two days later the Buffalo Courier Express reported: "Phil Murray reported satisfaction with the progress of the strike at the plants of Republic Steel, Youngstown Sheet & Tube and Bethlehem. Production at those plants, he continued, is negligible. The morale of the strikers is excellent. At no time during the course of the strike was it any better than it is today." In a telegram by Murray sent to Senator Bridges in June 1937, he made this statement: * "The Steel Workers Organizing Committee has no objections to the appointment of a Senate committee * * but demand that the resolution be amended to include an investigation of the moral conduct of both parties to the strike-who precipitated it, and does the action of Republic Steel Corporation, Youngstown Sheet & Tube, and Inland Steel, in refusing to sign an agreement although these corporations have agreed to accept the terms and conditions submitted to them by the Steel Workers Organizing Committee constitute a violation of the Wagner Labor Relations Act." The facts are that Republic Steel Corporation had no agreement of any kind with C. I. O., either oral or written, and my information is that no such agreement existed either with Youngstown or Inland. Senator LA FOLLETTE. Is there anything else, Mr. Girdler? Mr. GIRDLER. That is all. Mr. PATTON. That is all. Senator LA FOLLETTE. The committee will gratefully take a recess, subject to the call of the Chair. Mr. PATTON. Mr. Chairman, we have talked once or twice about a number of witnesses whose names and the substance of the testimony of whom have been made available to the committee. It is my understanding, and if it isn't correct, I would like to be corrected, that you are going to send one of your staff to investigate these things and at the proper time incorporate them in the record in affidavit form. Senator LA FOLLETTE. I made a statement for the record last night, Mr. Patton, I don't suppose you have had time to read it. Mr. PATTON. I haven't seen it. Senator LA FOLLETTE. In which I said that these proceedings are not in the nature of adversary proceedings, that because of the limitation of time and money this committee of necessity has to make a selection of witnesses to the best of its ability in an effort to present an accurate picture of the events and incidents which it investigates. I stated that you had submitted a list of 12 witnesses and that I had conferred with you about it, and that my understanding was that the committee would send a representative to interview these witnesses, and you may designate someone to be present if you desire, and that statements would be taken. Then, if, after they were taken, the committee found that their testimony was essential to the balance and impartiality of these hearings, that they would be inserted in the record in affidavit form, rather than having them called before the committee, which is the arrangement which we have made with numerous other persons who have appeared before the committee. Mr. PATTON. Well, for the record I would like to state that we fee that the testimony of each and every one of those witnesses is perti- ! nent and that the testimony introduced up to date is not, in our opinion, sufficient to give a full understanding of the entire situation. and that we think all of them should be included in the record.1 Senator LA FOLLETTE. Mr. Patton, if there is any doubt in your mind after these statements are returned to Washington, I would be glad to arrange at some convenient time for you to sit down with me and we will go over them, and I am sure that you and I will have no difficulty about agreeing upon those that are to be inserted in the record. Mr. PATTON. Very good. Senator LA FOLLETTE. And if we have any difficulty I will call a special meeting of the committee so you will have a full opportunity to interpose for the record any objections which you may make to my decision. Mr. PATTON. All right. Senator LA FOLLETTE. The committee will take a recess subject t the call of the Chair. All witnesses under subpena in these hearings are hereby excused. (Whereupon, at 7:35 p. m., an adjournment was taken subject to the call of the Chair.) 1 See pt. 24, pp. 10299-10306, and S. Rept. No. 6, pt. 2, 76th Cong., 1st sess., pp. 219 f. APPENDIX EXHIBIT 5199 UNITED STATES OF AMERICA CONGRESS OF THE UNITED STATES o T. M. Girdler, Greeting: Pursuant to lawful authority, YOU ARE HEREBY COMMANDED to appear before he Subcommittee of the Committee on Education and Labor of the Senate of he United States, on August 11, 1938 at 10 o'clock a. m., at their committee oom 247-C, Senate Office Building, Washington, D. C., then and there to testify 7hat you may know relative to the subject matters under consideration by aid committee, and not to depart without leave of said committee. Hereof fail not, as you will answer your default under the pains and penalties n such cases made and provided. Given under my hand, by order of the committee, this 8th day of August, n the year of our Lord one thousand nine hundred and thirty-eight. ROBERT M. LA FOLLETTE, Jr., Chairman, Sub-Committee of the Committee on [On reverse side] AUG. 9, 1938. I made service of the within subpena by handing the original to W. B. Beldin, of counsel for the within-named T. M. Girdler, at Washington, D. C. in the Sen. Off. Bldg. at 10: 10 O'clock a. m. on the ninth day of August, 1938. EXHIBIT 5200 (Signed) ROBERT WOHLFORTH. Excerpt from Transcript of Official Report of Proceedings before the Securities & Exchange Commission, January 24, 1938. Testimony of W. R. Burwell, exPresident of Continental Shares, Inc., given at the SEC's hearings re Investment Trust Study, Continental Shares, Inc., pursuant to Section 30 of the Public Utility Holding Company Act of 1935, William W. Swift, trial examiner (pp. 21095-21096): "Mr. BURWELL. At the time Continental bought the Donner Steel Company, Mr. Donner, who had run it for some years, made a condition of the sale that he should retire from the management. Mr. Girdler and Mr. Weiser [Wysor] were then associated with Continental Shares in an advisory way on the steel interests of Continental Shares, and they gave their attention to the operation of the Donner Company." EXHIBIT 5201 MARCH 14, 19 Holdings of 20 largest holders of record-Republic Steel Corporation Name and address Number % of Name and address Number of shares N. V. Amsterdamsch Administra- The Cleveland-Cliffs Iron Com- The Cliffs Corporation, Union Fenner & Beane, 60 Beaver Street, New York, New York. Paine Webber & Company, 25 York. Compiled from official list of stockholders at March 14, 1938. (Signed) W. W. HANCOCK, Secretary. EXHIBIT 5202 RELATIONS OF CLIFFS CORPORATION AND CLEVELAND-CLIFFS IRON COMPANY The Cliffs Corporation owned 408,296 shares, or 100 per cent of the common stock of the Cleveland-Cliffs Iron Company. The preferred stock, too, had vot ing rights; but Mr. William G. Mather, Chairman of the Cliffs Corporation and a voting trustee for the shares of this common stock held by the Cliffs Corpora tion, was the owner of record of 54,953 preferred shares. Thus Mr. Mather and the Cliffs Corporation were in possession on December 31, 1937, of 463,249 shares of the 895,534 shares of Cleveland-Cliffs Iron Company stock eligible to vote This represented 51.7 per cent of stock eligible to vote. NOTE. Although The Cliffs Corporation owns all the 408.296 outstanding Common Shares of the registrant, the Preferred Shares of the registrant, of which 487,238 shares (exclusive of 5 shares held in the treasury of the regis trant) are outstanding, have since September 15, 1931, been entitled, by reason of default in the payment of dividends and failure to comply with sinking fund requirements, to vote share for share with the Common Shares for the election of directors and on all other matters. The Cliffs Corporation does not own any of the Preferred Shares of the registrant, although Wm. G. Mather, Chairman of the Board of Directors of the registrant and of The Cliffs Corporation, was on December 31, 1937, the owner of 54,953 Preferred Shares. The registrant disclaims any admission of the actual existence of effective control of the regis trant by The Cliffs Corporation or by Wm. G. Mather, S. Livingston Mather, and G. G. Wade, or Wm. G. Mather, Cyrus S. Eaton, and Edward B. Greene, as Trustees under the respective Voting Trust Agreements referred to below. EXHIBIT 5203 epublic Steel Corporation stock held by Cleveland-Cliffs Iron Company, Cliffs Corporation, A. C. Brown, C. S. Wachner, and W. G. Mather, 1936 and 1937 [Source: Reports to Securities and Exchange Commission, Forms 4, 5, 6 and 10 K] Investment of Cliffs Corporation and Cleveland Cliffs Iron Company in certain little steel companies as of December 31, 1937 Source: Securities & Exchange Commission, Annual Report of Cliffs Corporation and Cleveland Cliffs Iron Company, Form 10-K, Schedule 1-A. Percentages computed by Committee staff] 19,500 shares pledged as collateral security on notes payable to banks. 2 Stated at cost values which represent mainly values determined at dates of acquisition of the investment in exchange for capital stock of the corporation. |