ARTICLE XIV. NONDISCRIMINATION IN EMPLOYMENT In connection with the performance of work under this contract, the Architect agrees not to discriminate against any employee or applicant for employment because of race, creed, color, or national origin; and further agrees to insert the foregoing provision in all subcontracts hereunder, except subcontracts for standard commercial supplies or for raw materials. ARTICLE XV. DEFINITION The term "Contracting Officer" as used herein shall mean the Director, Region 2, General Services Administration, and shall include his successor or his authorized representative. IN WITNESS WHEREOF, the parties hereto have executed this contract as of the day and year first above written. This contract has been negotiated under the Act of March 31, 1930 (46 Stat. 137; 5 U. S. C. 276), Public Law 105, 81st Congress, Approved June 16, 1949, and Public Law 152, 81st Congress, Approved June 30, 1949, and is authorized by Public Law 414, 82d Congress, approved June 27, 1952, 66 Stat. 163, 8 U. S. C. 1252C and Public Law 471, 83d Congress, approved July 2, 1954. Mr. MALETZ. Now, Mr. Strobel, you have informed the committee that the normal procedure for the Public Building Service in selecting architects was to have the architects' qualification rated by a rating board of three; is that right? Mr. STROBEL. That is right. Mr. MALETZ. Was that done in this case? Mr. STROBEL. That was not done in this case because this was an alteration project, and, as I mentioned, the authority for making contracts or selecting contracts rests with the regional officers. It is only on new building construction that the board of three gets into action. Mr. MALETZ. Now, Mr. Strobel, is it or is it not true that you personally decided to have the contract given to Serge Petroff? Mr. STROBEL. I would say that I told Lawton, "Here is a man; if he will take it, he can get us out of the woods and get the plans done in time." And that is what the subject was about, for the Government to perform in an unreasonable length of time. Mr. FINE. Are you saying that Mr. Petroff would be doing you a favor or doing GSA a favor if he had taken it? Mr. STROBEL. He would be doing, not me, a favor; he would be doing the Government a great favor by taking on this work. Mr. MALETZ. Were other architects in New York City available to do this work? Mr. STROBEL. I suppose so, because there are hundreds of architects in New York. Mr. MALETZ. Who are fully competent to do this kind of work? Mr. STROBEL. Fully competent, yes. There is no question about it. Mr. MALETZ. Now, as a matter of fact, is it not true that you met with Mr. Petroff in Washington, D. C., some time in August 1954? Mr. STROBEL. That is correct. Mr. MALETZ. What did you discuss with Mr. Petroff? Mr. STROBEL. Mr. Petroff was approached by me. I offered him the position of Chief of Director of our Design and Construction Division, a position that has been vacant ever since I took office, a position I have not been able to fill to this day with a properly qualified man. Mr. MALETZ. Now, is it not also true that you offered the position, too, to Mr. Henry Otis Chapman, of Chapman, Evans & Delehanty? Mr. STROBEL. That is correct. Mr. MALETZ. And he was another client of the Strobel firm? Mr. MALETZ. A client from whom Strobel & Salzman first secured business in January 1955? Mr. STROBEL. They might have gotten their first job at that time; yes. Mr. MALETZ. Thank you. Mr. STROBEL. But we have been negotiating for a long time. Mr. STROBEL. I beg your pardon? Mr. MALETZ. I take it, then, on the basis of your testimony that you deny that you instructed Mr. Lawton to give this architectural contract to Serge Petroff? Mr. STROBEL. My recollection is that it was not in the form of an order from me to Mr. Lawton. The CHAIRMAN. In the form of what, sir? Mr. STROBEL. In the form of an order from me to Mr. Lawton that he had to use that man. The CHAIRMAN. What was the nature of the Mr. STROBEL. The nature was a recommendation, because I knew from personal experience that if Mr. Petroff would take the project on, we would get it in time, and we would get a good one. Mr. MALETZ. With reference to Mr. Petroff, I think you said that you had a meeting with him in August of 1955. Was the only subject of discussion the possibility of his becoming an official of GSA? Mr. STROBEL. That is correct. Mr. MALETZ. Will you refer to a memorandum from Mr. Schwarz to you dated September 13, 1954? Mr. ROBB. 1954 you say ? Mr. MALETZ. Yes; September 13, 1954. Mr. ROBB. We have it. Mr. MALETZ. Do you have that document, Mr. Strobel? Mr. STROBEL. Yes. Mr. MALETZ. Would you read the last paragraph? First, let me ask you whether that is a copy of the memorandum which Mr. Schwarz sent to you. Mr. STROBEL. That is right. Mr. MALETZ. Would you read the last paragraph, sir? Mr. STROBEL (reading): Here is a copy of a letter from the OCE Mr. MALETZ. That is the Office of Chief of Engineers? Dated September 10, requesting info on Contract DA-49-129-eng-260, which is our latest warehouse contract. They would like to see the work sheets on which the contract was negotiated. I believe these sheets are in with the papers which Petroff brought down to you several weeks ago. Will you arrange to supply them with the required info, or do you want us to do anything about it here in New York? Mr. MALETZ. Therefore, you did have a discussion with Mr.-or did you have a discussion with Mr. Petroff about some plans? Mr. STROBEL. No, sir. Mr. MALETZ. You did not? Mr. STROBEL. He had Mr. KEATING. I am mixed up. This letter is 1954? Mr. STROBEL. This is September 13, 1954. Mr. KEATING. Oh. Mr. MALETZ. And this contract was between Public Buildings Service and Petroff, and was when? August 1954? Is that not right? Mr. ROBB. Mr. Maletz, I thought you asked about a meeting in 1955. Mr. KEATING. Yes. I am sure you did. Mr. MALETZ. If I did, I misspoke myself. I was referring to a meeting which Mr. Strobel had with Mr. Lawton on August 26, 1954, concerning the alterations of the Columbus Mr. ROBB. No, sir. I am sorry. You asked Mr. Strobel about a meeting which he had with Mr. Petroff in 1955, and Mr. Strobel told you he tried to get Mr. Petroff to accept a position. Mr. MALETZ. I beg your pardon, Mr. Robb. Mr. ROBB. And then afterward, that was the only thing he talked about. Now, was that 1955? Mr. MALETZ. I am very sorry. I am referring to August 1954. Mr. MALETZ. You had a meeting with Mr. Petroff in or about August 1954, concerning some plans, some drafting plans; is that right? Mr. STROBEL. Not down here. Mr. MALETZ. Then this memorandum from Mr. Schwarz to you was not correct? Mr. STROBEL. I beg your pardon? This note is perfectly correct. Mr. Petroff in this respect acted as a messenger. He had to come down to Washington. I wanted to talk to him about the possibility of taking over this position. Mr. MALETZ. That was when, sir? Mr. STROBEL. That was in September 1954. Mr. MALETZ. 1954? Mr. STROBEL. That is right; September 1954. Mr. MALETZ. That was 1 month after he got the contract with Public Buildings Service? Mr. STROBEL. Well, if that is the time he got it, then it would be 1 month after that. I don't know. Mr. MALETZ. Yes, sir. I see. Mr. STROBEL. Our discussion there was very short. I think we met in my hotel room, and I explained to him the duties of the position of the director of design and construction, trying to interest him in that. He was interested, but as it turned out, in a negative way. Mr. MALETZ. Mr. Chairman, I offer in evidence a list of Strobel & Salzman's clients, and I also offer in evidence a memorandum from Mr. Mr. STROBEL. Mr. Chairman, there is no connection between Petroff and the papers that he brought down. The CHAIRMAN. I see. Mr. STROBEL. No connection whatsoever. He did not even know what was in it. It was just a package that he picked up from Mr. Schwarz. Mr. MALETZ. And a memorandum from Mr. Schwarz to Mr. Strobel dated September 13, 1954. The CHAIRMAN. That will be accepted in the record. Client Project Contract date Contract amount J. W. Ryan Construction Co. (C). Ciba Pharmaceutical Products, Aug. 17, 1955 Do. Eggers & Higgins (A). Brown & Guenther (A). Lathrop Douglass (A). Chapman, Evans & Delehanty Maurice R. Salo (A). Staten Island Hospital... Air conditioning, Bamberger, Newark. Warner Lambert Pharmaceuti- Inc., building D, annex. Corning Glass Bldg. _do_ Sept. 20, 1955 Do. Do. Do. Mar. 9, 1955 Do. Apr. 6, 1955 May 11, 1955 $9,800. I had lunch with Tizian today and he suggested Sherwood, Mills & Smith of Stamford, Conn., as a good firm of architects for any possible work in Connecticut. He has dealt with them and recommends them. Regarding that Navy project which we were working on together he told me our brochures got in too late. There were 15 architectural engineer groups being considered on the project and Urbahn was one of them. Tizian contacted Max and was lined up with them for the mechanical work if they got the job. There are several other projects contemplated and maybe we might get consideration on one of the others? Here is a copy of a letter from the OCE dated September 10 requesting information on contract DA 49-129-eng-260 which is our latest warehouse contract. They would like to see the work sheets on which the contract was negotiated. I believe these sheets are in with the papers which Petroff brought down to you several weeks ago. Will you arrange to supply them with the required information or do you want us to do anything about it here in New York. The CHAIRMAN. We will ask you to desist one moment, Mr. Strobel. I would like to call to the witness stand the deputy regional director of the Public Buildings Service, Mr. Lawton. Mr. Lawton, will you take your seat? You can remain where you are, Mr. Strobel. Mr. STROBEL. All right, sir. The CHAIRMAN. Will you raise your right hand, Mr. Lawton, please. Do you solemnly swear to tell the truth, the whole truth, and nothing but the truth, so help you God? Mr. LAWTON. I do, sir. |