Mr. YOXTHEIMER. No; I didn't discuss the change in employment with him.

Mr. TOLAND. Did you discuss production output with any Army officer at Wright Field?

Mr. YOXTHEIMER. I knew the production officer.

Mr. TOLAND. That is not answering the question. You said you made an investigation. I am trying to find out what investigation you made, whether or not you discussed the production capacity or output of this company with any Army officer or civilian employee of the War Department at Wright Field. Answer "yes" or "no."

Mr. YOXTHEIMER. Yes.

Mr. TOLAND. Give us the names.

Mr. YOXTHEIMER. Of the Army officer?
Mr. TOLAND. Yes.

Mr. YOXTHEIMER. Well, I talked with several Army officers. I can't answer your question, if that is what you mean.

Mr. TOLAND. You have no recollection of who it was?

Mr. YOXTHEIMER. Just by saying one name.

Mr. TOLAND. You can't give us the name of any individual you talked with when you were making this investigation that resulted in your deciding to take this job, is that it?

Mr. YOXTHEIMER. I can't swear I talked with any one man at Wright Field. I talked with everyone at Wright Field that I knew was in contact with Jack & Heintz Co. I naturally would.

Mr. TOLAND. You can't tell us who they are, though?

Mr. YOXTHEIMER. You could include every one of the higher-ups in the contract section. I think I talked with almost every one of them.

Mr. TOLAND. Will you state for the record, after the 19th day of October, who it was you talked with at Wright Field, if anyone-the names of the officers-regarding the production capacity and output of Jack & Heintz?

Mr. YOXTHEIMER. You are putting the question wrong. I didn't discuss with them the production output of Jack & Heintz. I was only interested in knowing the character of Jack & Heintz and my conversation with anyone there was just in a general way to determine

Mr. TOLAND (interposing). You made a statement-you don't want to change your statement, do you that you made an investigation.

Mr. YOXTHEIMER. In conversation I did find out that their production was way ahead of schedule.

Mr. TOLAND. But the fact is you did take the job, didn't you?
Mr. YOXTHEIMER. That is right.

Mr. TOLAND. And the fact is until December 5, 1941, you were an employee of the Government of the United States receiving compensation from the Government of the United States?

Mr. YOXTHEIMER. That is right.

Mr. TOLAND. And the fact is on the 29th day of November 1941 you received a salary check in the amount of $179.58. Isn't that a fact? That is a fact, isn't it?

Mr. YOXTHEIMER. No, sir, that is not a fact, and I will explain to you why. My termination with the Government came on November 6-is that correct? Is that what the record shows?

Mr. TOLAND. You resigned as of November 6, effective December 5.

Mr. YOXTHEIMER. I had worked at Wright Field for a year and a half with no leave to speak of, no vacations, and I had accumulated annual leave, and at the time I left I told them that they could handle that anyway

Mr. TOLAND (interposing). Whom did you tell that?

Mr. YOXTHEIMER. The personnel department.

Mr. TOLAND. What is his name?

Mr. YOXTHEIMER. Mr. Barnhart.

Mr. TOLAND. And what did you say to him?

Mr. YOXTHEIMER. I asked him how it was best to handle the accumulated leave I had coming.

Mr. TOLAND. You wanted the money, didn't you, that you were entitled to on the basis of the leave? Didn't you apply for the leave? Mr. YOXTHEIMER. That is regular in civil service.

Mr. TOLAND. I didn't ask you whether it was regular. I asked you, didn't you apply for the accumulated leave you had and receive compensation for it?

Mr. YOXTHEIMER. I asked him how it was best to have it handled. Mr. TOLAND. Did you apply or did you not apply for the leave? Mr. YOXTHEIMER. I believe I finally filled out an application form after finding out how it was best to handle it.

Mr. TOLAND. And you were paid by the Government of the United States until December 5, 1941. That is true, isn't it?

Mr. YOXTHEIMER. My annual leave extended to that time; yes, sir. Mr. TOLAND. You were an employee and received compensation, and the fact is, Mr. Chairman, that the courts have declared that there is no vested right in any Government employee as to annual leave, and at any time up to and including the 5th of December the Government of the United States could have called this man back to duty to perform the services for which he was paid. The fact is also, is it not

Mr. YOXTHEIMER (interposing). I don't believe that statement is quite correct.

Mr. MAAS. Counselor, was his resignation accepted by the Government prior to the final termination of his leave?

Mr. TOLAND. His resignation was accepted as of December 5, 1941. Mr. MAAS. What date was it accepted?

Mr. TOLAND. I will have the file from Bolling Field brought here. Mr. MAAS. Is the contention, Mr. Chairman, of the counsel that there is anything illegal in what the witness did?

Mr. TOLAND. The question there is as to a problem that has arisen

The CHAIRMAN (interposing). I would suggest let's get him with the company.

Mr. TOLAND. He resigned on November 6, to take effect at the expiration of accrued annual leave, December 5, 1941. He was employed by Jack & Heintz on November 13, 1941, while still drawing salary from the Army Air Corps.

Mr. MAAS. I want to find out the purpose of this line of inquiry. This man is not on trial before this committee. This is an investigation. I have no objection to the line of inquiry, but I want to find out if you are imputing criminal, or wrong procedure, or intent, or what.

Mr. YOXTHEIMER. I have a little more information, if I may Mr. Chairman.

Mr. MAAS. I want to get the status.

Mr. TOLAND. The only purpose of this is in connection with the matter that has been raised as to whether or not Congress should make a recommendation regarding employees of the Government not appearing before Government agencies or handling Government matters for 2 years after the expiration of their employment.

Mr. MAAS. Fine, I wanted to get the purpose of it.

Mr. TOLAND. I make no claim directly or indirectly that the payment received from the Government at the same time as the payment received from the contractor is a civil or a criminal act.

The CHAIRMAN. So we can go on the assumption that on November 13, I think, he sent in his resignation and then went to work for this company, and you were paid one-hundred-and-some-odd dollars for the time that had accumulated as your leave.

Mr. YOXTHEIMER. The $177 was paid to me by Jack & Heintz. Mr. TOLAND. $179.58.

Mr. YOXTHEIMER. I received a check for the accumulated time, which of course was paid to me after I was working for Jack & Heintz. I was innocent of anything.

Mr. TOLAND. I am not making any claim, as I told Mr. Maas; I make no claim nor in that regard do I make any reference.

Mr. MAAS. Just one point. I want to ask counsel if he intends to develop the point as to whether the witness appeared before the Government in any capacity representing the Jack & Heintz Co. during the time he was at Wright Field.

Mr. TOLAND. I am going to inquire into that.

Mr. YOXTHEIMER. I would like to have on record here at the time I talked to Mr. Barnhart, of the personnel department, that I could have left the accumulated time there and had it stay and get the benefits that I would get from that if I had continued as an employee of the Government, but I decided that the amount was so small and the benefits so small that it would be better to clear it up and take it out. If I had left it there, I suppose there would have been no question, as we have here on it.

Mr. TOLAND. We have you now working on November 13 with Jack & Heintz, Inc. I would like you to tell the committee briefly but thoroughly what you did for Jack & Heintz, Inc., in the performance of your duties from the 13th day of November 1941 to the 1st day of January 1942?

Mr. YOXTHEIMER. I performed the duties of an assistant comptroller of the company as best I could.

Mr. TOLAND. What were the duties? Tell us what you did. Mr. YOXTHEIMER. Naturally, going with a new company, the first thing you have to do is to get familiar with the details of the operations of the new company.

Mr. TOLAND. How long did it take you to become familiar with the productive operations of that company and the accounting methods of that company?

Mr. YOXTHEIMER. Well, you gradually learn it and you gradually get so you learn more. I don't think there is any definite time you can say you know it all. I don't know it all yet.

Mr. TOLAND. What thing did you do from the 13th day of November to the 1st day of January that was outstanding in connection with your work as assistant comptroller?

Mr. YOXTHEIMER. I don't believe I performed any outstanding things at Jack & Heintz. I don't think my work has been outstanding at all. I have worked hard, I have worked long hours and did the best I could to learn and do everything I can for the company.

Mr. TOLAND. Your compensation was at the rate of $300 a month, less social security, is that right?

Mr. YOXTHEIMER. That is right.

Mr. TOLAND. Mr. Chairman, exhibit 11 of the committee shows on December 10, 1941, $10,000 was paid to the witness by Jack & Heintz. The CHAIRMAN. For what length of service?

Mr. TOLAND. As a bonus. The check was dated, however, December 29, 1941. I show you a photostatic reproduction of a check number 5068 of Jack & Heintz, Inc., dated December 29, 1941, and ask you if that is your endorsement on the back?

Mr. YoXTHEIMER. Yes.

Mr. TOLAND. I offer it in evidence.

(Photostatic copy of check No. 5068, dated December 29, 1941, of Jack & Heintz, Inc. was received in evidence, marked "Exhibit No. 12" and is printed in the appendix of this volume.)

Mr. TOLAND. When was the first time you had any discussion with anyone regarding the payment to you of $10,000 as a bonus, and who was it you discussed it with?

Mr. YOXTHEIMER. The first notice I had of a bonus of $10,000 was when Mr. Jack called me into the office.

Mr. TOLAND. When was that?

Mr. YOXTHEIMER. That was before the end of the year.

give you the exact date. It was during the last few days in December. Mr. TOLAND. What did he say? Tell us what he said.

Mr. YOXTHEIMER. He said, "I'm going to give you a bonus of $10,000," and it took me entirely by surprise.

Mr. TOLAND. I should think it would.

Mr. YOXTHEIMER. I had no idea I was going to receive it before that time.

Mr. TOLAND. And that is all he said?

Mr. YOXTHEIMER. That is right.

Mr. TOLAND. Just that he was going to give you a bonus of $10,000? Mr. YoXTHEIMER. That is right.

Mr. TOLAND. I show you a photostatic reproduction of a record of the company marked "Employee advance to Harry Yoxtheimer," and ask you if you ever saw the original of that document?

Mr. YOXTHEIMER. That is our regular voucher we make out with all checks, and while I haven't seen the original, that is it.

Mr. TOLAND. No dispute that it is a photostatic reproduction of the record and attached thereto is an order? Do you recognize the initials on that?

Mr. YOXTHEIMER. Yes, sir.

Mr. TOLAND. Who is it?

Mr. YOXTHEIMER. D. W. Lake, comptroller.

Mr. TOLAND. Your boss?

Mr. YOXTHEIMER. He is.

Mr. TOLAND. I offer it in evidence.

(Photostatic copy of record No. 5068, dated December 29, 1941, Voucher No. 7005 of Jack & Heintz, Inc., together with photostatic copy of order, dated December 29, 1941, initialed by D. W. Lake were received in evidence, marked "Exhibit No. 13" and are printed in the appendix of this volume.)

Mr. MAAS. What is it?

Mr. TOLAND. That voucher is dated December 29, "Harry Yoxtheimer, employee advance, $10,000," and attached to it is an order to "D. A. Lake, subject, employee" and the next word is difficult of interpretation. "Check to Harry Yoxtheimer $10,000, charge 7-18" and the initials "DWL".

Mr. TOLAND. Did Mr. Jack say anything about his going to advance you $10,000, when he talked with you?

Mr. YOXTHEIMER. No; I don't believe that was considered.

Mr. TOLAND. As a matter of fact, he corrected the record, did he not, while members of the staff of this committee were there, and instructed Mr. Lake to change it from an advance to a bonus?

Mr. YOXTHEIMER. Yes; I believe that record of an advance was wrong.

Mr. TOLAND. And in addition to that-

The CHAIRMAN (interposing). Wait one minute. That is the same, is it, Mr. Counsel, as the bonus?

Mr. TOLAND. That is the $10,000 bonus.

It is a fact, is it not, in addition to the $10,000 and in addition to the salary you received for the month of December 1941, you received another bonus of $1,000?

Mr. YOXTHEIMER. Yes, sir.

Mr. TOLAND. I show you a photostatic reproduction of a check and ask you if that is your signature that appears as the endorsement thereon?

Mr. YOXTHEIMER. Yes, sir, that is the regular Christmas bonus. Mr. TOLAND. I offer it in evidence. This is a check dated December 20, 1941, made out to the witness, Harry E. Yoxtheimer, signed by Wm. S. Jack and Wm. R. Jack, in the amount of $990.

(Photostatic copy of check No. 23790, dated December 20, 1941, of Jack & Heintz, Inc., was received in evidence marked "Exhibit No. 14" and is printed in the appendix of this volume.)

Mr. COLE. When and what were the circumstances that he first learned about that?

Mr. TOLAND. When were you first told you were going to get this? Mr. YOXTHEIMER. That was the regular Christmas bonus that was paid to everyone and announced at the Christmas banquet. Mr. TOLAND. Everybody got $1,000?

Mr. YOXTHEIMER. Everybody received a bonus at that time and that is my bonus.

Mr. TOLAND. So that you received during the month of December -I show you another check dated December 20, and ask you if that is your signature on the back?

Mr. YOXTHEIMER. Yes, sir.

Mr. TOLAND. I offer this check in evidence.

(Photostatic copy of check No. 23008, dated December 20, 1941, of Jack & Heintz, Inc., was received in evidence and marked "Exhibit No. 15" and is printed in the appendix of this volume.)

The CHAIRMAN. What is this amount?