We are operating under a tent or umbrella of secrecy. It becomes important, therefore, for us to be able to take these bits of evidence, fragmentary documents that they show us and speak to the only other persons who might be able to give us knowledge about it. When I say "speak" I mean in the discovery process of a fishing expedition rather than presenting a document to a witness and asking him to identify it and perhaps enlarge upon it. I feel that we need some of these fragments of evidence to find out what the complete story is. It may amount to nothing after I get through asking the questions or there may not be a story, but I feel that the only persons I can talk to about this are people who are now, or formerly were associated with the I. G. Farben. Mr. Bow. When do you anticipate the case will be tried by the special master? Mr. JAFFE. That is a very difficult estimate to make. I have made estimates in the past and each estimate has proved wrong. Two and a half years ago I estimated 2 years and I now estimate at least a year and a half before we are ready for trial. The reason for that is that we are always hit with proceedings not directly related to the trial of the case. I would not go so far as to say these are dilatory. Some of the proceedings I have initiated myself but we are kept on our toes and fully occupied with such things as injunction proceedings against the Attorney General, an attempt by I. G. Farben to intervene in the lawsuit and my attempt to have the actual trial restored to the court rather than before the special master, and leave the special master only as a supervisor over the discovery proceedings. That was unsuccessful, incidentally. Now we have this protective order proceeding. These things keep us away from the actual preparation of the case. Mr. Bow. Your feeling is it may be another year? Mr. JAFFE. At least another year or a year and a half, provided, of course, we are left alone to try to prepare it. We also have the difficulty of witnesses. In the absence of a treaty, we cannot compel the testimony of witnesses in Germany. We cannot compel them to come here. Germany will not make available to us the compulsory processes of their courts. Consequently, the only evidence we can get by way of depositions is that voluntarily given. Mr. Bow. Thank you, Mr. Chairman. Mr. ROONEY. Very well, Mr. Myron. Mr. MYRON. Shall I proceed? In the Stinnes case in the past year we have disposed of 16 claims seeking the return of $20 million to Mrs. Stinnes or alternatively to a Mexican national, Mrs. Wagenknecht, and numerous foreign corporations owned by her. We have also secured the dismissal with prejudice of four section 9(a) suits brought by Mrs. Wagnerknecht and a group of foreign corporations seeking an estimated $1,500,000 which was vested as property of Mrs. Stinnes. However, problems relating to this case remain. For example, the suit of the Atlantic Holding Corp., a vested Stinnes enterprise, is still pending in the Netherlands for the return of approximately $9 million, and negotiations are continuing with the English and Danish custodians to recover a substantial portfolio of shares in companies in those countries belonging to Atlantic Holding Corp. INTERNATIONAL MORTGAGE & INVESTMENT CORP. CASE The hearing examiner's decision in the International Mortgage & Investment Corp. case is before the Director for review. However, several of the claimants have instituted two section 9(a) suits in the southern district of New York for the return of approximatey $1 million. Other claimants will undoubtedly attempt to intervene in those suits. The 7,000 pages of testimony and 15,000 pages of exhibits required for the administrative claims hearing bear witness to the lengthy and difficult litigation we may expect. At the present time, the hearing examiner's decision is on review before the Director. I am the only person available to review that record and to make the decision as the Acting Director of the Office. The group of claims filed by Henckel & Cie and other Swiss companies, seeking the return of $17 million of vested assets in which many thousands of documents have been analyzed, is being prepared for docketing before a hearing examiner and it is anticipated that the proceeding will be a protracted one. This is what they call in the Office a miniature Interhandel case. OTHER ALIEN PROPERTY PROGRAMS Other programs essential to an orderly administration of alien property include the sale and liquidation of vested assets, the licensing of patents, copyrights, and trademarks, and the collection of royalties therefore, the supervision of estates and trusts, the resolution of intercustodial conflicts, the administration of a foreign funds. control program, and the Philippine alien property program. The copyright, patent, and trademark program and the contract interests therein often require proceedings to protect them from infringement. There are 30 royalty-producing patent contracts which are the subject of dispute as to the amount of royalties heretofore paid and the right of the Attorney General to receive future royalties. These disputes, if not resolved, will result in litigation. GENERAL ANILINE & FILM CORP. The Attorney General still holds over 95 percent of the stock of General Aniline & Film Corp., an enterprise with approximately 8,000 employees and doing a gross annual business in excess of $150 million. As the principal stockholder of this company the Attorney General must be kept advised by this Office of all significant developments and problems. I might say here that the action with respect to giving contracts or making other employment arrangements with officers is usually the action of the board of directors who, like in any other private corporation, runs the business. DIRECTORS AND OFFICERS OF GAF CORP. Mr. Bow. At this point, may I interrupt. We have several named people. I think we should have the full names of the board of directors of this corporation. Mr. MYRON. I will supply that information. Mr. ROONEY. You will supply their names, please. Mr. Bow. And what their connections are. Mr. MYRON. Do you wish the officers of the corporation, too? (The information requested follows:) The following constitute the present board of directors of General Aniline & Film Corp. There are two vacancies. John H. Hilldring, 200 East 66th Street, New York, N.Y.: Chairman of the board; joined corporation in 1950 and has served as vice president, senior vice president, executive vice president and president; elected to board in 1955; elected chairman in 1958; reached retirement age (65 years old) in 1960, but reelected chairman and has since served without pay. Philip M. Dinkins, 30 Sutton Place, New York, N.Y.: President and chief executive officer; joined corporation in 1955 as vice president-general manager of its Dyestuff and Chemical Division; elected to board in 1956; elected president in 1958, succeeding John Hilldring; reelected president in 1959 and in addition chief executive officer; born December 20, 1896, reaches retirement age, 65 years old, December 20, 1961; formerly president and director of Jefferson Chemical Co., Inc., 1946-55; formery vice president and general manager of Jefferson Chemical Co., Inc., 1944-55; served with American Cyanamid & Chemical Corp., and its predecessors since 1923; former director of American Cyanamid Co. Francis A. Gibbons, 356 Prospect Street, Nutley, N.J.: Executive vice president; served as treasurer and vice president; elected to board in 1953; has served over 20 years with corporation. Leopold F. Eckler, 24 Rugby Road, Binghamton, N.Y.: Vice president and group executive in charge of photo and repro group (Ansco and Ozalid Divisions); elected to board in 1958; has served over 20 years with corporation. Elmer H. Bobst, 120 Lloyd Place, Montclair, N.J.: Chairman of the board, Warner-Lambert Pharmaceutical Co., Inc., Morris Plains, N.J.; elected to General Aniline board in 1953. Winston Paul, 10 Crestmont Road, Montclair, N.J.: President, Domestic Exploration Corp., New York, N.Y., privately owned small corporation specializing in investment in equity enterprises; elected to the General Aniline board in 1953 and board chairman, serving until April of 1955 when no chairman was elected (board functioned from 1955-58 without a chairman); presently serves as chairman, finance committee of General Aniline board; formerly chairman of board of Huylers, Inc. Dallas S. Townsend, 24 Prospect Avenue, Montclair, N.J.: Retired; formerly Assistant Attorney General; Director of Office of Alien Property, appointed in 1953, resigned as Assistant Attorney General in 1960, resigned as Director of Office of Alien Property in January 1961; formerly senior partner of New York law firm of Townsend & Lewis, resigning in 1953; elected to General Aniline board in 1960. Arthur E. Pettit, Buena Vista. Rumson, N.J.: Attorney, member of New York law firm of Winthrop, Stimson, Putnam & Roberts, general counsel for General Aniline appointed in 1953; elected to General Aniline board in 1955. G. Schuyler Tarbell, Jr., 28 Strickland Place, Manhasset, N.Y.: Attorney, member of New York law firm of Townsend & Lewis; former associate of law firm of Chadbourne, Hunt, Jaeckel & Brown; named assistant U.S. attorney in 1931 for southern district of New York; joined New York law firm of Winthrop, Stimson, Putnam & Roberts serving from 1934-48; joined New York law firm of Townsend & Lewis in 1948; elected to General Aniline board in 1953. John M. Budinger, 10 Sussex Avenue, Bronxville, N.Y.: Senior vice president. Bankers Trust Co., New York, N.Y.: recommended for former Attorney General Herbert Brownell and elected to General Aniline board in 1956. Sidney D. Kirkpatrick, 52 Woodcrest Avenue, Short Hills, N.J.: Retired; former vice president, McGraw-Hill Book Co., Inc., New York, N.Y.; widely known in field of industrial chemicals; recommended to General Aniline board by Philip M. Dinkins, presidents, and elected to board in April of 1960. Horace C. Flanigan, Anderson Hill Road, Purchase, N.Y.: Chairman of the board, Manufacturers Trust Co., New York, N.Y.; also serves on boards of Hilton Hotels, Anchor Hocking Glass, New York Fire Insurance, Union Oil, Discount Corp. of New York, and others; elected to General Aniline board in 1948. Thomas A. Morgan, 217 East 62d Street, New York, N.Y.: Retired; former president of Sperry Corp.; serves as directors on number of boards of large U.S. corporations; elected to General Aniline board in 1951. Lewis E. Rubin, 5315 Connecticut Avenue NW., Washington, D.C.: Office of Alien Property, Department of Justice; elected as Department's representative to General Aniline board in 1957. The following is a list of the principal officers of General Aniline & Film Corp., as of February 7, 1961: Philip M. Dinkins, President and chief executive officer. Leopold F. Eckler, vice president. C. Joseph Hyland, secretary. LIQUIDATION OF ASSETS Mr. MYRON. In addition to the vested stock interest in General Aniline & Film Corp., the property remaining to be liquidated by the Office includes controlling interests in 21 dormant business enterprises which are presently in various stages of liquidation. Members of the staff of this Office serve as directors and officers of these corporations in liquidation and perform all the functions required to complete the liquidation. Other assets to be liquidated include 350 blocks of miscellaneous domestic and foreign securities. It is anticipated that about $2 million will be realized from the sale of these securities. There also remain to be liquidated 31 items of real and personal property, including mortgages, mineral leases, commercial, residential and farming properties and valuable paintings, most of which will be sold at public sale. The sales documents, including deeds, assignments and bills of sale, are prepared by the taff of this Office. Additional properties which will be received from time to time as distributions from estates and trusts must likewise be liquidated. INCOME AND REALIZATION FROM VESTED INTERESTS We must continue to administer present and future vested interests in over 500 decedents' estates and trusts and insurance annuity contracts from which we are receiving annually more than $1 million in income. Mr. Chairman, I would like to call your attention particularly to the income and realization from vested interests that the office is receiving at the present time. During fiscal 1960 over $4,600,000 was received as income and from the sale and liquidation of vested assets, and for the first 7 months of this fiscal year more than $3,500,000 has been received from these sources. There are still over 200 intercustodial claims with the Netherlands, Belgium, Denmark, and Canada which must be resolved. Congressional interest in the administration, liquidation and disposition of alien property is evidenced by the continuance from year to year of the Senate Judiciary Subcommittee on the Trading with the Enemy Act and the House Interstate and Foreign Commerce Subcommittee on Commerce and Finance. Each year the office is asked to report on 50 to 60 bills pertaining to alien property and the Director of the Office is called upon to appear and testify before these committees several times a year. Pursuant to Public Law 285 the Office vests all blocked property in the United States owned directly or indirectly by the Governments of Bulgaria, Hungary, and Rumania or their nationals except blocked property owned directly by natural persons. This is a separate program. Upon completion of the administration of this property the proceeds remaining are transferred to the Treasury Department and placed in claims fund accounts attributable to these respective countries for payment of American war damage claims arising in those respective countries. Property vested under the Trading with the Enemy Act which was directly owned at the time of vesting by natural persons who were residents of Bulgaria, Hungary, or Rumania is divested by the Office into blocked accounts in the Treasury in the names of the divestees. However, if the divestee is resident outside the Iron Curtain the property is directly divested to him. Over 700 divestings have been made since 1955, and it is anticipated an additional 200 will be made before the program is completed. The Comptroller's Section of the Office maintains all accounting records and perform all auditing functions pertaining the properties vested, properties turned over to this Office for custody and safekeeping and handles all tax matters relating to vested property, deposits for collection with the Treasury of the United States currency, checks, and drafts paid to or received by the Office and transfers the proceeds to the Treasury of the United States and arranges for the payment by check of all expenses of and claims against the Office. DEPOSITS MADE TO WAR CLAIMS FUND FROM WORLD WAR II GERMAN AND JAPANESE ASSETS Section 39 of the Trading with the Enemy Act, as amended, prohibits the return of World War II vested German and Japanese assets to the former owners thereof and provides that the net proceeds remaining upon the completion of the administration, liquidation and disposition of any such property or interest therein shall be covered into the Treasury at the earliest practicable date for deposit into the war claims fund, from which American war damage payments are made. Pursuant to the provisions of section 39 the Office is responsible for the closing out to the war claims fund cash balances in all vested German and Japanese accounts which are free from claims and litigation. The Office has heretofore advanced from the Attorney General's account in the U.S. Treasury to the war claims fund $228,750,000 which must be recovered from German and Japanese accounts. At this time over 28,000 of these accounts containing balances of some $210 million have been closed out and there remain about 6,000 German and Japanese accounts with balances of cash and unliquidated assets estimated at $300 million which either will be closed out to the war claims fund or returned to successful claimants. Furthermore, there are some 2,400 accounts other than German and Japanese which must be dis |