The CHAIRMAN. Wait one minute, Mr. Maas. What was the purpose of giving you this bonus? Mr. YOXTHEIMER. I can't answer that. I don't know. offered to me. The CHAIRMAN. Don't you know? It was Mr. YoXTHEIMER. I think I do know the purpose or partly the purpose. The CHAIRMAN. What was the purpose? Mr. YOXTHEIMER. Partly the purpose of giving these bonuses, I think, it is a policy of Mr. Jack, which few people understand. The CHAIRMAN. That may be a laudable purpose in giving bonuses to a man who has been there for a long period of time and who is an actual laborer and sweating and gets some bonus when he is getting a large profit; but what I am driving at is what you did to get your $10,000 bonus which you said you did nothing to justify, and you, yourself, admit that you are not entitled to a $10,000 bonus? Then, what was the motive that prompted Mr. Jack to give it to you? Mr. YOXTHEIMER. It has always been Mr. Jack's policy wherever he has been in charge and owner of a company, to pay high salaries, to relieve key workers of worry, and do everything he could along those lines to get his employees to work together, or associates, as he calls them, to work together and work for him and for the company, the same as though they owned it themselves. The CHAIRMAN. Did you think he started off with you with a very high salary of $3,600 or $3,900-the amount of salary is somewhat confused as to amount? Do you think that is a very high salary? Mr. YOXTHEIMER. Yes, I do; I think it is very high. The CHAIRMAN. Then that makes it worse when you got the $10,000 bonus. Mr. YOXTHEIMER. As far as the amount is concerned, that is correct, yes. Mr. MAAS. Has there been any understanding, implied or otherwise consider this question carefully-that any part of that bonus was to be returned to Mr. Jack or the company or anybody else connected with the company? Mr. YOXTHEIMER. Absolutely not, and there hasn't been anything like that happen, and I think your bank records, if you have them all, will show it. it? Mr. HESS. Was there anything said as to where you should invest Mr. YOXTHEIMER. Absolutely not. The CHAIRMAN. Your money? Mr. YOXTHEIMER. Yes, sir. The CHAIRMAN. And you are holding onto it? Mr. YoXTHEIMER. Yes, sir. The CHAIRMAN. And you returned it on your income tax? Mr. TOLAND. Mr. Chairman, I would like to offer in evidence- Why not take a recess now until 1 o'clock and we will all be back here at 1 o'clock, and take a new witness at 1 o'clock? The committee will take a recess until 1 o'clock, and all the witnesses sworn, please be back here at 1 o'clock, and we want to try to get through with all you witnesses here today, if possible. (The hearing was recessed at 11:50 a. m.) AFTER RECESS (The committee reconvened at 2:05 p. m., the chairman, Mr. Vinson, presiding.) The CHAIRMAN. The committee will come to order. All right, Mr. Toland. Mr. TOLAND. Mr. Chairman, I would like to offer in evidence two files of the committee. One contains copies of the subpenas and correspondence with the officials and employees of the company. These records are not to be printed; merely filed as an exhibit. And, secondly, the correspondence with officials of the Navy Department regarding this company, bringing the matter to the attention of the committee. This morning I failed to state that the Navy Department, the Under Secretary, Mr. Forrestal, not only in this instance, but in many others, brought to my attention matters that in the opinion of the Department warranted investigation, and in this particular case the responsibility for bringing the matter to our attention rests solely with him, and it was while I was ill, in December, that he first asked that we look into the matter. The CHAIRMAN. They will be filed but there is no need to print them. Mr. TOLAND. Nothing is to be printed that I offer except when I say it is to be printed, with your approval and the committee's approval. (The file of subpenas served on the officials and employees of Jack & Heintz, Inc., was received in evidence, marked "Exhibit No. 18," and is filed with the committee.) (The file of correspondence with officials of the Navy Department regarding Jack & Heintz, Inc., and with officials and employees of Jack & Heintz, Inc., was received in evidence, marked. "Exhibit No. 19," and is filed with the committee.) TESTIMONY OF MISS ADELINE R. BOWMAN, SECRETARY TO THE PRESIDENT OF JACK & HEINTZ, INC., CLEVELAND, OHIO Mr. TOLAND. Will you tell the reporter your full name, please, and address? Miss BOWMAN. My name is Adeline R. Bowman. I live at 12900 Forest Hill Avenue, East Cleveland, Ohio. Mr. TOLAND. Where are you employed? Mr. TOLAND. What is your position there? Miss BOWMAN. I am secretary to Mr. Jack, the president. Mr. TOLAND. How long have you been associated with Mr. Jack? Miss BOWMAN. For 25 years. Mr. TOLAND. Will you tell us briefly the employment that you had with him in the different companies that he was connected with during that period? Miss BOWMAN. I worked for him when he was president of the Marquette Metal Products Co., president of the Pump Engineering Service Corporation, and president of Jack & Heintz. Mr. TOLAND. And what was the compensation that you received as secretary at each of those companies? Miss BOWMAN. I really couldn't tell you. I don't remember. Mr. TOLAND. In 1939, you were secretary to Mr. Jack when he was president of the Pump Engineering Co? Miss BOWMAN. Yes. Mr. TOLAND. You were Mr. Jack's secretary? Miss BOWMAN. That is right, sir. Mr. TOLAND. What compensation did you receive as secretary to Mr. Jack when he was head of the Pump Engineering? Miss BOWMAN. You mean the salary including bonuses? Mr. TOLAND. Basic salary. Miss BOWMAN. I couldn't tell you; I don't remember. Miss BOWMAN. No, sir. Mr. TOLAND. You have no recollection as to the per annum salary that you received for any time during the 25 years? Miss BOWMAN. No; I really don't. Mr. TOLAND. When were you first connected with Jack & Heintz, Ltd.? Miss BOWMAN. It was in 1939 or 1940, I can't tell you. I know it was the beginning of the company. Mr. TOLAND. Isn't it a fact that Mr. Jack sold out his interest in the Pump Engineering Co.? Miss BOWMAN. Yes; he did. Mr. TOLAND. And isn't it a fact he moved to California? Miss BOWMAN. Yes; he started up again in California. Mr. TOLAND. Were you employed by Mr. Jack after he ceased his connection with the Pump Engineering? Miss BOWMAN. Yes; I was. Mr. TOLAND. In Cleveland? Miss BOWMAN. Yes, sir. Mr. TOLAND. What business did Mr. Jack have then? Miss BOWMAN. He was experimenting with the new starter. Mr. TOLAND. He was experimenting with the new starter? Miss BOWMAN. Yes. Mr. Heintz was on the coast. That was the experimental department on the coast. Mr. TOLAND. That was the Jack & Heintz, Ltd. company? Mr. TOLAND. Was there any intervening time between the time that he left or sold his interests in the Pump Engineering and the start of the Jack & Heintz, Ltd.? Miss BOWMAN. Golly, I don't know, so many things have happened all through those years. Mr. TOLAND. You have no recollection as to that? Miss BowMAN. No. Mr. TOLAND. Can you tell us when it was in 1940 that you first became connected with Jack & Heintz, Ltd.? Miss BOWMAN. All I know is that I worked right along with them. Mr. TOLAND. There was a start of Jack Miss BOWMAN (interposing). We had an office in the Hanna Building and we put the office in my dining room at home, and we went back again to the Hanna Building, and so many things have happened. Mr. TOLAND. What was the salary you received when you were secretary to Mr. Jack with Jack & Heintz, Ltd.? 70333-42--3 Miss BOWMAN. That was just a tentative salary; I don't remember. Mr. TOLAND. What was it? Miss BOWMAN. I couldn't tell you. Mr. TOLAND. You have no recollection of what your salary was in 1940? Miss BOWMAN. No, sir. Mr. TOLAND. You were served with a subpena to produce certain records, were you not? Miss BOWMAN. That is right, sir. Mr. TOLAND. I show you what purports to be a pay-roll sheet of Jack & Heintz, Ltd., for the year 1940 and ask you if that refreshes your recollection as to the compensation you received as the secretary to Mr. Jack, president of Jack & Heintz, Ltd.? Miss BOWMAN. Yes; I do believe I received checks like that. Mr. TOLAND. And the amount set forth on November 15-that is the first entry that appears on that sheet, is it not? Miss BOWMAN. You have the record, sir. Mr. TOLAND. I show it to you; isn't that right? Miss BOWMAN. Yes. Mr. TOLAND. And the amount is $213.33, isn't that correct? Mr. TOLAND. And the next entry is of the same amount for November 30? Miss BOWMAN. That is right. You have the records. I don't remember. Mr. TOLAND. The next entry is December 15, and that is $213.33, isn't that right? Miss BOWMAN. That is right. Mr. TOLAND. And the next entry is December 31, for the same amount? Miss BOWMAN. It is on the record. Mr. TOLAND. And the total amount received for that year was $4,448.33, with a bonus of $132.54. Doesn't that correctly reflect your pay-roll record? Miss BOWMAN. If it is on record, it must be correct. Mr. TOLAND. You have no independent recollection at all as to what your salary was? Miss BOWMAN. No, sir; all I have been doing is working. We have been working so hard I don't remember. Mr. TOLAND. I would like to offer that in evidence. (The 1940 pay-roll sheet of Adeline Bowman was received in evidence, marked "Exhibit No. 20" and is printed in the appendix of this volume.) Mr. COLE. What year was that? Mr. TOLAND. 1940. Mr. COLE. What is the connection between Jack & Heintz, Ltd., and Jack & Heintz, Inc.? Mr. TOLAND. It is the same company. Jack & Heintz originally started as Jack & Heintz, Ltd., in Palo Alto. It was engaged in research and experimentation work for both the Navy and the War Departments. It had labor difficulty. It moved to Cleveland. It incorporated and became Jack & Heintz, Inc., so it is the same company. Mr. COLE. These payments that you are putting in the record— Mr. TOLAND (interposing). Are the payments to this witness as secretary to the president, as they appear on the pay roll of Jack & Heintz, Ltd. Mr. COLE. For the fall of 1940? Mr. TOLAND. For 1940. Mr. COLE. The previous witness was employed by "Inc." or "Ltd."? Mr. TOLAND. The previous witness was employed by Inc., which was incorporated on November 5, 1940. Mr. COLE. Is Jack & Heintz, Ltd., still in existence? Mr. TOLAND. We will bring that out when we have Mr. Jack on the stand, but Jack & Heintz, Inc., is the successor of Jack & Heintz, Ltd. It couldn't operate under the laws of Ohio. It was a California company. Mr. TOLAND. What was your salary in 1941 as secretary to the president of Jack & Heintz, Ltd.? Miss BOWMAN. It has been changed several times, sir. I don't remember. Mr. TOLAND. Give us the changes, if you can give them to me. Miss BOWMAN. I can't give them to you. You have the record, sir. Mr. TOLAND. You have no independent recollection of the various salaries that were paid to you by the company in 1941? Miss BOWMAN. No, sir; I don't. Mr. TOLAND. What is your salary now? Miss BOWMAN. Twenty-five thousand a year. Mr. TOLAND. Twenty-five thousand a year. I show you, Miss Bowman, what purports to be a photostatic reproduction of your 1941 pay-roll record at Jack & Heintz, Inc., and ask you if you have ever seen the original of that, and if it correctly reflects the salary and the bonuses that you received as an employee of that company? Miss BOWMAN. It is a photostat copy. It must be correct. Miss BOWMAN. I can identify it as correct, because those are the records. Mr. TOLAND. You are willing for the purpose of the record to identify this as a photostatic copy of your pay-roll sheet of the company? Miss BOWMAN. That is right, sir. Mr. TOLAND. I offer it in evidence. (The pay-roll sheet of Adeline Bowman for 1941 was received in evidence, marked "Exhibit No. 21" and is printed in the appendix of this volume.) The next The next The next The next The CHAIRMAN. Read it. Mr. TOLAND. The first entry is April 15, 1941, $208.33. is April 30, $208.33. The next entry, May 15, is $208.33. entry, May 31, is $208.33. The next entry is $62.50. entry is $49.60. The next entry, June 14, is $208.33. entry is $83.33. The next entry, June 30, is $208.33. The next entry, July 10, $13.88. The next entry, July 15, is $208.33. The next entry, July 20, is $208.33. The next entry, July 28, is $208.33. The next entry, August 10, is $12.34. The next entry, August 15, is $208.33. The next entry is August 29, $62.50. |