Mr. TOLAND. Is it a fact that your company has submitted a great many bids to the Cramp Shipbuilding Co., and at the same time you submitted bids on behalf of the Walker and the Adelphia Co.'s which bids were not signed by representatives of either one of those companies?

Mr. DEWEES. That is correct.

Mr. TOLAND. Is it the practice of your company to sign people's names without their authority or consent?

Mr. DEWEES. That is the first time that ever happened, in my experience in the business.

Mr. TOLAND. On how many occasions did you do that? Do you remember?

Mr. DEWEES. No; I do not. There were a number of them, I know that.

Mr. TOLAND. Here are a large number of bids that were filed by your company, together with bids by the other companies.

I would like to state for the record that up to the time of the investigation, Mr. Chairman, the Westinghouse Electric Supply Co., the company that the witness, Mr. Dewees, represents, received $139,218.63 or almost 50 percent of the total amount of purchases by Rohleder, of electrical equipment and supplies, which was slightly less than $300,000. I would also like to state for the record that the analysis of the bids revealed that the total number of jobs bid on was 178, and that this gentleman's company bid on exactly 100 of the 178 contracts. A tabulation of the bids of Westinghouse is as follows: When the Walker and Adelphia Co.'s were not bidding, the Westinghouse won 13 and lost 15; when either one of them was bidding, the Westinghouse won 28 contracts and lost 1; and when bids were submitted for both the other companies by this witness, the Westinghouse won 43 bids and lost none. The total shows that 83 bids were won by the Westinghouse Co. out of 178. Now, Mr. Callanan, will you tell the reporter your full name?

Mr. CALLANAN. My full name is Anthony Margerum Callanan. Mr. TOLAND. Where do you live?

Mr. CALLANAN. Philadelphia, Pa.

Mr. TOLAND. What is your present business or occupation? Mr. CALLANAN. I am with Walker Bros. as vice president in charge of sales. Walker Bros. are located in Conshohocken, Pa.

Mr. TOLAND. Have they any relation with Walker Bros., of Atlanta, Ga.?

Mr. CALLANAN. No, sir; none whatever.

Mr. TOLAND. You have heard the testimony of the other two witnesses; have you not?

Mr. CALLANAN. I have, and everything as nearly as I could that was read, and, unfortunately, they haven't told you all the circum

stances

Mr. DEWESS (interposing). We haven't had an opportunity yet. Mr. CALLANAN. Wait a minute; I am talking-surrounding the statements that were made here.

Mr. TOLAND. Let me ask you a few questions first. Did you give any of these gentlemen any stationery of your company?

Mr. CALLANAN. Westinghouse Electric Supply Co. are a distributor for Walker Bros.

Mr. TOLAND. I didn't ask you that.

Mr. CALLANAN. They have the authority to quote for Walker Bros., sell our material.

Mr. TOLAND. Just a minute; you answer the question.
Mr. CALLANAN. That is what I am trying to do.

Mr. TOLAND. Let me question you now. You will get plenty of opportunity to make any explanation, but when I ask you a question, I want a responsive answer, if you can answer the question. I asked you the plain question, Did you give either of these gentlemen stationery of your company?

Mr. CALLANAN. I gave Mr. Dewess of the Westinghouse Co. stationery to make quotations on to J. P. Rainey & Co.

Mr. TOLAND. You gave that on how many occasions and to whom? Mr. CALLANAN. Maybe four or five.

Mr. HERMES. May he not finish, Mr. Toland?

Mr. TOLAND. Counsel for the witness is going to be excluded from the table, if he interrupts again.

Mr. MAAS. Let's get the circumstances of your giving that stationery to the other company.

Mr. TOLAND. How did you happen to give the stationery to either of the other two gentlemen?

Mr. CALLANAN. Mr. Toland, we had a contract to furnish material on that job-I can't get the story across if you are not going to let me talk. Do you want the facts?

Mr. TOLAND. Yes.

The CHAIRMAN. You talk to the committee.

Mr. TOLAND. Do it quickly.

Mr. CALLANAN. We had a contract through the Westinghouse Electric Supply Co. for J. P. Rainey for 250 tons of conduit for the Cramp Shipyard job, and we took that contract in November 1941 at the time the market was rising, and rising rapidly, to protect the contractor and Cramp. The material was sold through Westinghouse and then they came to us and said that Rainey had to have competitive prices, and we furnished the stationery to make those competitive prices, which seemed ridiculous in view of the fact that we had a contract below the market and we were selling all of that contract to Rainey for Cramp below the market price.

Mr. TOLAND. The fact of the matter is, you haven't answered the question. How did you come to give them stationery?

Mr. CALLANAN. At their request.

Mr. TOLAND. What were the circumstances, and when?

Mr. CALLANAN. At their request. They wanted stationery—— Mr. TOLAND (interposing). For what?

Mr. CALLANAN. To quote the Rainey Co. for such material as we manufacture and sell.

Mr. TOLAND. They wanted to quote that for you?

Mr. CALLANAN. That is right, and as our agent that is permissible. Mr. MAAS. Did you know what was being quoted? Did you give them stationery in blank and let them quote for you without your participating in those quotations?

Mr. CALLANAN. They told us they were called upon to make quotations to Rainey on material we had under contract.

Mr. MAAS. But were doing it in your name. Didn't you know what was going on in your name?

Mr. CALLANAN. We have had a contract with them. We could only quote on such materials as we make and sell.

Mr. MAAS. You knew the purpose of letting them have your stationery was to create the impression that you were making the quotation. Why did you permit them to do that?

Mr. CALLANAN. Because they are our agent. There is nothing wrong in that.

Mr. MAAS. Why didn't they quote on their own stationery as your agent and indicate on their stationery that they were your agent?

Mr. CALLANAN. Because the material had been delivered to the job and the contractor said, "I have to have competitive prices," which was ridiculous.

Mr. MAAS. You just said that, that it was ridiculous. In the face of the fact that it was ridiculous, why did you give them the stationery? You know the impression was that you were the bidder, didn't you? When you furnished that stationery, you knew the impression was going to be that you were the bidder in that case?

Mr. CALLANAN. That is right, and there was nothing wrong about that.

Mr. TOLAND. Now, that is a question of opinion, Mr. Callanan. Didn't you hear me read the letter of the Captain in which he related your visit to him?

Mr. CALLANAN. Yes; but he didn't state all the facts.

Mr. TOLAND. I didn't ask you that. I asked you the question, if you heard it.

Mr. CALLANAN. Yes; Mr. Toland, I recall it.

Mr. TOLAND. Isn't it a fact that you said to the Captain on that date, when he showed you a bid or a carbon copy, that it was not your signature?

Mr. CALLANAN. That is right, I did.

Mr. TOLAND. Didn't you say it was not the custom of your firm to submit or to authorize, except when you were absent in the field, anybody to sign your name; and didn't you further say that you had not authorized the signature on this particular bid that is referred to in this report? Didn't you make that statement to Captain Hanson?

Mr. CALLANAN. I never met a Captain Hanson. I met a man by the name of Hanson but he was not introduced to me as a captain and the stationery doesn't show that he was a captain.

Mr. TOLAND. Did you make the statement?

Mr. CALLANAN. To a Mr. Hanson-I may have made it, yes; I don't recall all the circumstances.

Mr. TOLAND. Now, I show you some bids that were submitted for your company that are not for the material covered by the contract that you say this company had and on which it was acting as your agent. Isn't that a fact?

Mr. CALLANAN. Mr. Toland

Mr. TOLAND (interposing). Isn't it a fact? That is all I want an answer to is it a fact or isn't it? Are they covered by the contract you just testified about in answer to the question Mr. Maas propounded to you and the questions I asked you-yes or no?

Mr. CALLANAN. Will you give me an opportunity to look at them? Mr. TOLAND. Right. Here are some more; take a good look. We have a lot of them.

Mr. COLE. Do I understand, Mr. Toland, that these papers which the witness is examining are bids bearing what purports to be his signature, but actually is not?

Mr. TOLAND. Right.

Mr. COLE. How many are there that he is examining?

Mr. TOLAND. We have hundreds of similar situations, not all involving these three people who are here but involving others. Mr. COLE. How many are there as far as this witness is concerned? Mr. TOLAND. I will have the number as far as he is concerned in a moment.

Mr. CALLANAN. Some of it is material we manufacture and that is under contract; some of it is not.

Mr. TOLAND. Let's pick out those that are not under the conduit contract that you testified about.

Mr. CALLANAN. They are not [handing bids to Mr. Toland]. Mr. TOLAND. Here are one, two, three, four, five, six, seven, eight that are not covered by the contract that the witness has testified about.

Mr. CALLANAN. Here are three more. Here are three that are covered by the contract.

The CHAIRMAN. Then there are 11 not covered by the contract and 3 that were covered.

Mr. TOLAND. But of course, Mr. Chairman, we did not bring the hundreds or thousands of purchase orders. We selected a proportionate number merely to present to the witnesses to establish the custom and the practice that existed on the part of these gentlemen. Mr. MAAS. Now, Mr. Toland, are you going to get the circumstances from him as to those noncontract bids?

Mr. TOLAND. Right. I am going to ask the men who had them written to explain them.

Suppose you answer Mr. Maas' question, Mr. Dewees, and tell how you signed somebody else's name, and who you had do it, and why you did it.

Mr. DEWEES. In practically every case these orders were telephoned into our office. They had to be delivered right away.

Mr. MAAS. Telephoned by whom?

Mr. DEWEES. By J. P. Rainey's office or Mr. Rainey.

Mr. TOLAND. Or Mr. who?

Mr. DEWEES. Mr. Rainey.

Mr. TOLAND. Did Mr. Ward or anybody from Mr. Rohleder's office ever call you and ask you to get bids?

Mr. DEWEES. After September 24 he did; yes.

Mr. TOLAND. Who was that?

Mr. DEWEES. Mr. Ward, and he would send a written proposal asking us to bid on certain materials.

Mr. TOLAND. Did Mr. Baldridge ever ask to get forged bids or complimentary bids?

Mr. DEWEES. No, sir.

Mr. TOLAND. Did Mr. Rohleder, himself, ever ask you?

Mr. DEWEES. No, sir.

Mr. TOLAND. But Mr. Ward did.

Mr. DEWEES. Mr. Ward did not.

Mr. TOLAND. Who did?

Mr. DEWEES. Mr. Ward asked us for quotations on material after September 24, and we would submit a Westinghouse Electric Supply bid for that material only, and he would get bids from other companies.

Mr. MAAS. When you signed those names, did you put your initials underneath the signature to indicate that you were signing it in his behalf?

Mr. DEWEES. I don't know whether I did or not.

Mr. MAAS. Yes; you do. Was it your practice to do it?

Mr. DEWEES. Sir?

Mr. MAAS. Was it your practice to indicate it was not the signature of the man for whom you were signing it? Did you customarily put your initials underneath to indicate you were signing for somebody else?

Mr. DEWEES. It is the first time I ever signed for anybody on this job.

Mr. TOLAND. Mr. Dewees, take a look at these and see if you signed Mr. Callanan's name and this gentleman's name and if you put any initial of yours under it, and tell the committee whether or not at the time you did it you had the express authority of the other two individuals to do what you did.

While he is looking through that, Mr. Leithold, did your company have any contracts with Cramp, Rohleder, or anybody else?

Mr. LEITHOLD. No; not on the yard. We are doing business with them on ships, but that has been since the yard has been finished, I believe.

Mr. TOLAND. I show you a letter addressed to Mr. Burns of the committee staff, bearing your signature, and ask you if you sent that letter?

Mr. LEITHOLD. That is right.

Mr. TOLAND. I offer it in evidence.

(Two letters, one dated August 15, 1941, to attention of R. T. Hanson, signed by N. T. Leithold, and one dated January 5, 1942, to Vincent A. Burns, signed N. T. Leithold, were received in evidence, marked respectively "Exhibits Nos. 188 and 189” and are printed in the appendix of this volume.)

Mr. MAAS. Whenever you put them in evidence will you give us the purport?

Mr. TOLAND. I am going to read them. Exhibit 188, the first letter that is attached, written to the supervisor of shipbuilding, which was referred to in the captain's letter of September 11, stated that the Walker Electric Co. has no connection with the Walker Electrical Co., of Atlanta, Ga.

Then in Mr. Leithold's letter to a member of the Naval Affairs Investigating Committee staff he says:

In answer to your inquiry, we wish to advise that on only two or three occasions did we submit bids to the Cramp Shipbuilding Co. on the rehabilitation contract.

We wish to advise that we were not successful in being awarded any of this business.

So that out of the total number of bids bearing this witness' signature on his company's stationery, his statement in January of this year was that only on two or three occasions did the witness or his company actually submit a bid to the Cramp Shipbuilding Co. Mr. MAAS. And that they were unsuccessful.