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berg to do the engineering work in connection with the construction of the New York City Fashion Institute of Technology Building for a fee of $25,000?

Mr. STROBEL. No, I don't recall that. What was the date?
Mr. MALETZ, May 27, 1955.

Mr. STROBEL. May 27 might possibly be right but I think the amount is wrong

Mr. MALETZ. What would the amount be, Mr. Strobel?
Mr. STROBEL. I think it would be, as I said before, just below $30,000.

Mr. MalETz. That was the contract which you subsequently canceled on August 4, 1955; is that right?

Mr. STROBEL. Right.

Mr. MALETZ. Now, was Mr. Blumenthal of assistance to Strobel & Salzman in getting this commitment from De Young & Moscowitz!

Mr. STROBEL. No, sir.
Mr. MALETZ. He had nothing to do with it?
Mr. STROBEL. Only the preliminaries.

Mr. MALETZ. Did he act as representative for De Young & Moscowitz in—I will put it this way. Did Mr. Blumenthal act as representative of De Young & Moscowitz in connection with this contract which Strobel & Salzman got on May 27, 1955?

Mr. STROBEL. I think the answer would be "No," because I don't think he represented that firm for a very long time.

Mr. MALETZ. Did he represent the firm in May 1955 ?
Mr. STROBEL. I kind of doubt that.
Mr. MALETZ. Did he represent the firm in August of 1955?
Mr. STROBEL. No, sir.
Mr. MALETZ. You are positive about that?
Mr. STROBEL. I am positive about that.
Mr. MALETZ. Are you positive about it?
Mr. STROBEL. Yes.

Mr. MALETZ. Now with respect to Mr. Blumenthal, did it come to your attention

Mr. STROBEL. I should say I am positive—I don't know the De Young & Moscowitz business but it is my feeling or recollection that he is not representing that firm at that time.

Mr. MALETZ. Did it come to your attention in any way, shape, or form that in August 1955 Mr. Blumenthal was representing De Young & Moscowitz?

Mr. STROBEL. In August 1955?
Mr. MALETZ. Yes, sir.

Mr. STROBEL. Yes; it might have come to my attention at that time because I think he called on me in my office here in Washington.

Mr. MALETZ. In connection with the first job_that your concern was negotiating with De Young & Moscowitz, Blumenthal was an important element was he not in arranging that?

Mr. STROBEL. In the beginning, yes.

Mr. MALETZ. And you say now he was not an important element in arranging this contract which Strobel & Salzman secured on May 27, 1955

Mr. STROBEL. I don't think so, because as far as I recall that was done between Mr. Salzman and Mr. Moscowitz.

Mr. MALETZ. It is correct, is it not, that to your knowledge on May 27, 1955, Strobel & Salzman received a contract from De Young & Moscowitz?

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Mr. STROBEL. I think that is correct.

Mr. MALETZ. You don't know now though whether or not Mr. Blumenthal was a representative on that date?

Mr. STROBEL. I do not.

Mr. MALETZ. With respect to Mr. Blumenthal did it come to your attention that in June 1955, he shared in a $25,000 brokerage commission for negotiating a lease renewal with the New York Office of your Public Buildings Service for Government office space at 346 Broadway?

Mr. STROBEL. This is the first time I heard about that.
Mr. MALETZ. You knew nothing about that!
Mr. STROBEL. I heard nothing about that.

Mr. MALETZ. And Mr. Blumenthal never discussed the matter with you?

Mr. STROBEL. No, sir.
Mr. MALETZ. Did Mr. Mansure discuss the matter with you?
Mr. STROBEL. No, sir.

Mr. MALETZ. Did the question of lease renewal for 346 Broadway come to your attention at all?

Mr. STROBEL. Only in a general way, and that was because the realestate division in New York was working up a method of shifting certain offices in order for us to be able to release rented space and I recall that particularly, that particular building being discussed or the occupancy of that building being discussed with Internal Revenue in New York.

However, they refused to go in there unless they could get very major alterations and modifications done to that old building which we refused to go along with.

Mr. MALETZ. But you didn't know of the fact that Mr. Blumenthal was a cobroker?

Mr. STROBEL. I had no knowledge whatsoever.

Mr. MALETz. The Broadway-Lafayette Corp., the owner of that space filed a Form 119: Contractor's Statement of Contingent or Other Fees and this was filed on June 14, 1955. It points out that Mr. Daniel J. Riesner and Mr. Morton Blumenthal both of New York City were cobrokers, and I quote from this form

Brokerage compensation to be fixed according to legal rates of New York RealEstate Board, amounting to $25,000.

This form points out that Daniel J. Riesner represents contractor on other business. Morton Blumenthal is cobroker on this contract. And the duties performed by these gentlemen also include inspection of building, preparation of data, submission of bid, discussion, and negotiation of terms, and as to Daniel J. Riesner, closing of lease, preparation and examination of documents, and legal services.

Daniel J. Riesner has been an attorney with broker privileges and rights for 28 years. Morton Blumenthal has been a broker since 1954.

a Daniel J. Riesner has done work for contractor for 2 years. Morton Blumenthal has rendered services on this lease.

Mr. KEATING. Where is that form filed ?

Mr. MALETZ. This form was filed with the General Services Administration.

Mr. FINE. In Washington or where?

Mr. Malatz. I belive it was filed with the New York office of GSA, but I am not positive about that.

Mr. KEATING. Filed by the contractor?
Mr. MALETZ. Filed by the contractor.
Mr. KEATING. By this concern-
Mr. MALETZ. The owner of the building.
Mr. FINE. Of 346 Broadway?
Mr. KEATING. Yes.
The CHAIRMAN. Do you want that in the record ?
Mr. MALETZ. I offer that in the record.
The CHAIRMAN. That will be received.
(The document referred to is as follows :)

COPY
INVITATION 10.

CONTRACT NO.

STANDARD FORN 119 - DECENDER 1992
PRESCRIBED BY GENERAL SERVICES ADMINISTRATION
GENERAL REGULATION NO. 12

CONTRACTOR'S STATEMENT

OF CONTINGENT OR OTHER FEES*
FOR SOLICITING OR SECURING, OR RESUL TING FROM AWARD OF, CONTRACT

NAME OF GOVERNMENT PURCHASING OFFICE

The following in forestion is furnished by the undersigned contractost concerning any company or person employed or retained to solicit or secure the sbove identified contract, or concerning any company or person to whom the contractor has paid or opreed to pay any fee, commission, percentage or brokerage fee, contingent upon or resulting from the mard of that contract. 1. State full nane nd business address of such company or personlit more than one, identify all) and indicate whether

corporation, partnership. individual, etc.

DANIEL J. RIESNER

551 Fifth Avenue, New York 17, N. Y.

MORTON BLUMENTHAL lo East Loth Street, New York 16, N. Y. 26. Describe relationship to contractor of the company or person listed under item 1, that is, whether such company or

person is • sales agent or representative, broker, employee, corporate officer or principal, or other relatior ship.

Co-brokers b. If there is written contract or agreement covering such relationship, attach . copy. If not in writing. state

in detail the terms of such arrangement. Include the mount and method of computation of compensation and erpenses.

Brokerare compensation to be fixed according to legal rates
of New York Real Estate Board, amounting to Twenty-five Thousand

Dollars.

CONTINUE ON OTHER SI DE • Thi, fora is prescribed by General Services Administration for use as part of the procedure concerning the Covenant

against contingent Fees." See General Services Administration Regulations, Title 44, Part 150 (Fed. Rer. Dec. 31. 1957). + As used throughout this fom. the term "contractor include, bidder..

IF ADDITIONAL SPACE IS REQUIRED. ATTACH SEPARATE SHEET, WICH MUST AL SO DE SIGNED

3. Il wch person is n employee:
.. Specify the duration (period) of employment

b. such person on the contractor', payroll for purposes of Social Security and Federal Income tax withholding

Yes No

c. Is
person employed by or does he represent any other concerns?

Oyes ONO
If answer is "Yes," state names and addresses of such concerns and in what capacity.

O yes

4. Does the company or person listed under Item 1 represent the contractor: .. With respect to both commercial and Government business?

ONO b. Tith respect to Government business only? Yes O No c. Solely with respect to this contract?

Yes

No d. With respect to contracts of particular Government procurement offices?

If ansver is "Yes, specify the offices.

[blocks in formation]

Daniel J. Riesner represents contractor on other business.

Morton Blumenthal is co-broker on this contract.

5.. With respect to this contract, are the duties of the company or person listed under Item 1 confined to soliciting.

obtaining, or assisting in obtaining the contract?

Cres

No

b. If the duties include other services, specify such services

Also includes inspection of building, preparation of data, sub, ission of bid, discussion and negotiation of terms and, as to Daniel J. Riesner, closing of lease, preparation and examination of documents, and legal services.

6.

Is it the contractor's regular practice to have an arrangement of the type specified herein?

[blocks in formation]

7.

With respect to the company or person specified under Item 1, state:
.. How long wuch comp my or person has been engaged in this type of work (i.e., sales representative, etc.)

Daniel J. Riesner has been an attorney (with broker privileges and rights)
for 28 years.

Morton Blumenthal has been a broker since 1951..

b. How long such company or person has performed this type of work for the contractor

Daniel J. Riesner has done work for contractors for two years.
Morton Blumenthal has rendered services on this lease.

CONTRACTOR

BROADWAY-LAFAYETTE CORP.

BY (To be ined only by authorised principal, such as corporate ollicer, of conU.S. Code, Title 18 (Crimes tractor, i.e.. may not be sinned by mle. fent, etc.) and Criminal Procedure) Sec.

/s/ David Rappaport tion 1001 makes it . criminal offense to make a will fully TITLE

DATE false statement or represen. President

June 11, 1955 tation herein.

ADORESS OF CONTRACTOR

280 Broadway, New York, N. Y.

IT ADDITIONAL SPACE IS REQUIRED, ATTACH SPARATE SHEET, WHICH MUST ALSO BE SIGNED

Mr. MALETZ. Were you familiar with the fact that that form was filed with the Public Buildings Services?

Mr. STROBEL. This is the first time I hear about that.

Mr. MALETZ. I would like to turn to the circumstances surrounding the selection by the Public Buildings Service of De Young & Moscowitz as participating architects to design the new CIA headquarters building in Washington, D. C., together with the role if any Mr. Blumenthal played in that selection.

With respect to the construction of the CIA building, you are aware I think that there has been and still is a dispute between the CIA and the Public Building Service as to which should be the contracting agency for this new building?

Mr. STROBEL. That is correct.

Mr. MALETZ. I take it that that dispute has not been resolved as of this date?

Mr. STROBEL. Not as yet.
Mr. FINE. Are you switching into something else?
Mr. MALETZ. Yes.
Mr. FINE. You got away from 346 Broadway?
Mr. Malerz. Yes.
Mr. FINE. What was the purpose of the question?

Mr. MALETZ. The purpose was to ascertain whether Mr. Strobel is familiar with that and he is not.

In the latter part of July 1955, was the Public Buildings Service requested by CIA to submit to it a list of outstanding architects who could design this building ?

Mr. STROBEL. I don't recall the date but we were talking with the representatives, facility representatives of CIA in regard to selection of architects in connection with a new headquarters for them and a list of architects was discussed with those representatives of CIA in my office around that time.

I should like, Mr. Chairman, to supplement my information given the other day in regard to selection of architects for certain special projects.

The method I described the other day applies primarily or in general to our average projects that are spread out over the country. When it comes to exceptionally large and important buildings, that can be classified as being of a national character, we do not follow the exact method that I described.

We have established in my office a file, up to date, of information in regard to capacity and qualifications of the most outstanding firms in the whole country. I think the list contains around 90 firms. I could describe the picking of those firms as being from the top of the deck, according to a national reputation and capacity. A project like CIA, which is extremely large, it is estimated to cost $46 million, and to be located in or near Washington, is in our judgment one of these special projects where we do not solicit any given number of architects. We look over our up-to-date file and make a selection on that basis which in some respects will nullify the normal consideration for using local firms.

You must understand that big cities like Boston, Chicago, New York, and Los Angeles, and San Francisco have many large, important architectural firms. And for the very important projects—and there will be several such projects under consideration very shortly—one is a large extension for the State Department. Another one is a museum for history and technology for the Smithsonian Institution and there might be others later on. Those projects will be given to outstanding qualified firms, not on a local basis.

Mr. MALETZ. Now, did you have discussions with the people in Public Buildings Service with respect to sending to CIA a list of outstanding architects who could design the CIA building?

Mr. STROBEL. We made up a list. Whether it was sent to CIA I don't know, but it was discussed with them.

The CHAIRMAN. You participated in making up that list?
Mr. STROBEL. That is right.

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