PO #627

ENCLOSURE I

CHARLES F. ROHLEDER,

2134 Cherry Street, Philadelphia, Pa., September Twelfth, 1941. CRAMP SHIPBUILDING COMPANY,

Richmond and Norris Streets, Philadelphia, Pennsylvania.

(Att'n Commander H. D. Weyerbacher.)

GENTLEMEN: Referring to certain purchases of material in connection with the Electrical Contract to which there has been some question raised as to the regularity of the procedure followed, we wish to explain why we proceeded in the manner questioned.

When awarded the Contract, we signed a Contract with Walker Brothers for the Conduit requirements in connection with the work. Walker Brothers being a manufacturer, selling their products through a jobber, the servicing of the Walker Contract was placed with Westinghouse Electric Supply Company for what benefits could later be obtained for the projects.

Naturally, no other jobber in a request for quotations could quote a price comparable with the Westinghouse Company. The savings made by the above arrangement has saved the Cramp Company approximately 6% on the amount spent for Conduit. This statement can easily be verified by the Cramp Purchasing Department.

The same procedure was followed in relation to the Wire required. The Wire Contract was placed with the Hazard Insulated Wire Division of the Okonite Company through the Westinghouse Company, and a saving of between 20% and 25% on the amount of money spent was saved by this procedure. This statement can also be very readily checked.

The prices on all other materials were very thoroughly checked and in most cases were below the market price or prices quoted from other reliable sources. In all cases we call on the phone three Supply Houses for estimates on all orders to be placed, and the award is made on the basis of the lowest total amount and the best delivery date. Confirming prices naturally follow and upon receipt of them we submit same for Navy Approval.

There seems to be some question as to our integrity in the procedure of these purchases, and I wish to assure you that we are only working for the interest of Cramp Shipbuilding Company, and that we do not have any personal friends or supply houses that we favor. All this material is purchased on the basis of the lowest price and best delivery and on that basis only.

Yours very truly,

JPR: mo.

CHARLES F. ROHLEDER By [s] J. P. RAINEY.

EXHIBIT NO. 253

OCTOBER 14, 1941.

Subcontractor J. P. Rainey Co. under General Contractor Charles F. Rohleder.
Information submitted by Mr. A. A. Ricker, Controller, 10/10/41.
J. P. Rainey was carried on C. F. Rohleder's pay roll.

First week ending 1/1/40, $125.00 per week, and continued to week ending 10/8/41. Total for 40 weeks, $5,000.00.

Lump sum subcontracts issued to Rainey by Rohleder:

NOTE.-Issued as a Purchase Order to J. P. Rainey Co., 511 N. Broad St., Philadelphia, and carried under caption of subcontractor by C. F. Rohleder, is an order to purchase 17,500 feet of lead cable. This order was approved by the Navy in a quotation approval. Two other bids were shown thereon:

EXHIBIT No. 254

STATEMENT OF W. F. MCCARTER, PREPARED AT THE REQUEST OF CHARLES A. RANDALL, ATTORNEY-INVESTIGATOR FOR NAVAL AFFAIRS INVESTIGATING COMMITTEE

I am the President of Cates & Shepard, Electrical Constructing Engineers, 401 North Broad Street, Philadelphia, Pa.

On January 16th, 1941, this Company bid on certain electrical work to be done at the Cramp Shipbuilding Company, at the request of Charles F. Rohleder.

The bid which you have shown me, and which was over my signature, was typed by a Miss Elsie Smith, in the office of J. P. Rainey, 511 North Broad Street, Philadelphia, Pa.

For a period of eleven years, from about 1923 to 1934, this Miss Smith was employed by Cates & Shepard, during which time, Miss Alice McDermott, now Secretary of the Company, was also employed. Hence, these young ladies were naturally old friends and, for the past several years, since Miss Smith has been employed by Mr. Rainey, have from time to time helped each other out when one or the other needed temporary assistance. Mr. Rainey and I are also on friendly terms due to our long acquaintanceship in the business. A number of times when either of the young ladies was not available and either Mr. Rainey or I had correspondence to be typed which could not wait for their return, a hand written draft has been sent by messenger to the other office, which is only a block distant, and the available typist would then write the correspondence on the other company's letterhead and return it for signature and mailing. There has never been an instant where either of these young ladies has disclosed to her employer any information thus gained with respect to the other company's business. About the end of September, due to a large increase in the volume of business, we employed another young lady to assist Miss McDermott, which naturally eliminates any further need for such an arrangement on our part.

With respect to the bid in question, Miss McDermott was at home ill on the day Mr. Rohleder wished his bid and the procedure described above was followed. It should be noted that no effort was made to conceal this fact as the bid clearly indicates it was typed by "S". This was in no sense a complimentary bid, as the amount of the quotation was reached by the usual methods of estimating by our Engineering Dept. We were not, however, particularly interested in securing this work at that time because we were not at the moment in a position to take this work conveniently.

Witness:

CHARLES A. RANDALL.

(Signed) W. F. MCCARTER.

EXHIBIT 257

JAMES WORK

NEW YORK, 3/26, 1940. No. 208.

JAMES WORK.

Corn Exchange Bank Trust Company, Plaza Branch L-27.
Pay to the order of R. D. Weyerbacher, $1,500.00.

[Interest] loan.

[Endorsement on back:] to Mr. M. B. Weyerbacher. R. D. Weyerbacher, for deposit to my account. M. B. Weyerbacher.

4.34 14.77

7.00

57.00

11.00

15.00

Condenser
Service &
E. Co.

50.00

3.25

7.02

60.00

10.00

50.00

25.00

EXHIBIT NO. 262-A

PHILADELPHIA, PA., March 27, 1939. No. 29.

THE KENSINGTON NATIONAL BANK

Girard and Frankford Avenues

Pay to the order of L. H. Sinclair, $455.00.
W. E. M.

[Endorsement on back:] L. H. Sinclair, Carl M. Butler.

R. D. WEYERBACHER.

Mr. Rohleder in the presence of Max Hollenbeck gave me permission to remove this from his files.

DEC. 5, 1941.

VINCENT A. BURNS.
MAX E. HOLLENBECK.

EXHIBIT No. 273

NOVEMBER 4, 1940.

ENCLOSURE A

SUPERVISOR OF SHIP CONSTRUCTION, U. S. N.

(Attention of Lieut. C. B. S. Bishop.)

PROPOSED CONTRACTS WITH CHARLES F. ROHLEDER-PLANT FACILITIES, No. 22

AND NO. 24

DEAR SIR: With respect to the necessary repairs and reconditioning in our office building under Plant Facility No. 22; replacing the roof of our fabricating shop; and repairing and reconditioning the floor of the mold loft, in the second story of the fabricating shop, under Plant Facility No. 24, we believe