Mr. TOLAND. In 1939? Commander WEYERBACHER. In 1939 Rohleder dropped into the office and renewed old acquaintances; I hadn't seen him since the Lakehurst days and at that time the excellent work he did at Lakehurst came to my mind, and in the conversation he suggested that he had a little idle time and how about letting him make some estimates. I said, "Certainly, go ahead." He made those estimates. We checked them; they seemed to be fairly good estimates, and they were rechecked by the independent engineering firm and they were found to be accurate. Mr. TOLAND. What engineering firm checked them? Mr. TOLAN. They checked Rohleder's estimates? Commander WEYERBACHER. They checked the estimates that my report incorporated. Mr. TOLAND. After your report had been filed, sometime later, Day & Zimmermann made a check, is that it, or did they make it simultaneously? Commander WEYERBACHER. After I filed my report Day & Zimmermann checked the report and made a separate report. Mr. TOLAND. Do you know when it was that Day & Zimmermann were first consulted in connection with the survey to be made of the facilities of the old company? Commander WEYERBACHER. It was made some time after the date of my report, if my memory is correct. Mr. TOLAND. Wasn't it made in 1940? Commander WEYERBACHER. No, sir; to my recollection it must have been 1939. Mr. TOLAND. No, no; isn't it a fact that the Day & Zimmermann report said that to construct light cruisers that the plant could be rehabilitated? Commander WEYERBACHER. That is another report. Mr. TOLAND. They made two reports? Commander WEYERBACHER. Oh, yes. Mr. TOLAND. Day & Zimmermann? Well, let's take the report they made in October 1940. Didn't they report that the plant could be constructed, rehabilitated, for $7,907,000? Commander WEYERBACHER. Without land. Mr. TOLAND. Exclusive of the land? Commander WEYERBACHER. He made an interesting remark at that time. Mr. TOLAND. What has been the actual cost of the rehabilitation in the reconstruction of that plant? Commander WEYERBACHER. The cost when the job will be completed will be approximately $11,000,000 and seven to nine hundred thousand dollars. Mr. TOLAND. Close to $12,000,000? Commander WEYERBACHER. Including land. Mr. TOLAND. Close to $12,000,000? Commander WEYERBACHER. Including land. Mr. TOLAND. All right. What value is placed in that $12,000,000 on land? Commander WEYERBACHER. Approximately about a million and a half. Mr. TOLAND. Is that the land that has been acquired-parcels in addition to the land that was transferred and held by the old company? Commander WEYERBACHER. Repeat the question. Mr. TOLAND. Doesn't that amount just merely include the parcels the company has received or purchased since they started operation? Commander WEYERBACHER. Yes; it included the cost of what is known as the Lear property, the I. P. Morris property, and the Reading property. Mr. TOLAND. But not the actual old Cramp property? Commander WEYERBACHER. No. Mr. TOLAND. That is not included in the $12,000,000? Mr. TOLAND. It is just the three parcels that the company has purchased since they started to operate, so that out of the $12,000,000 it is approximately $1,000,000? Commander WEYERBACHER. A million and a half. Mr. TOLAND. For additions that the company has acquired, so that the actual cost of the rehabilitation is approximately $10,000,000, is that right? Commander WEYERBACHER. Approximately. Mr. TOLAND. And the report of Day & Zimmermann on October 1940 was approximately $8,000,000? Commander WEYERBACHER. Yes, Mr. Toland, but Mr. TOLAND (interposing). I just asked you if that was the report. Commander WEYERBACHER. The Day & Zimmermann report had a certain lay-out. After going over it very carefully it was evident to build ships economically the lay-out had to be changed. It required crane runways to the north; in the Day & Zimmermann estimate it required extensions of the shop cranes out in the open to the north, and required extensions of the shipway cranes themselves over the shop-extension cranes, and furthermore the Day & Zimmermann report had wooden slips. It was considered advisable and economical to put in concrete and to permit two destroyers to be laid down on slips A and B, which now are being used for submarines; instead of two we are beginning to lay down four at a time. Considering the changes made and the cost of those changes, the facts are the rehabilitation which Day & Zimmermann estimated at under $8,000,000 has been accomplished under that figure, considering the increase in prices, and so forth, from the time of that report. (Report of Day & Zimmermann, dated October 19, 1940, was received in evidence, marked "Exhibit No. 263," and is filed with the committee.) Mr. TOLAND. Now, did you ever work for Admiral Harris? Commander WEYERBACHER. No, I didn't. After I retired I had known Admiral Harris so I had a desk in his office and my name on his door. Mr. TOLAND. Did you ever make any statement under oath or any statement that you were employed by Admiral Harris? Commander WEYERBACHER. I said I was associated with Admiral Harris. Mr. TOLAND. Where did you say that? Commander WEYERBACHER. S. E. C., a statement concerning consulting engineer with Admiral Harris, yes. Mr. TOLAND. Did you ever say that any place else? Commander WEYERBACHER. I don't recall; I have been consulting engineer in his office. Mr. TOLAND. Did you ever make a statement that you were also a general manager in charge of shipbuilding? Commander WEYERBACHER. Not to my knowledge. Mr. TOLAND. Do you recall making this statement, filed with the Society of Naval Architects and Marine Engineers? Do you recall filing an application and statement there? Commander WEYERBACHER. Oh, yes; I was consulting engineer in his office, yes. Mr. TOLAND. I didn't ask you that. I asked you if you ever made a statement that you were employed by Admiral Harris at any time for any period. Commander WEYERBACHER. I made a statement I was employed by Admiral Harris? It was an incorrect statement, an error. Mr. TOLAND. I will show you this and see if there are any other statements in there that are not accurate. Mr. WHEAT. Who is Admiral Harris? Mr. TOLAND. Admiral Harris is a retired admiral that sometime in the near future we shall present before this committee. Mr. WHEAT. Where has he been stationed, in New York? Mr. TOLAND. He has a very large office in New York City and has a great many contracts. He is probably the greatest authority on building of drydocks in the country, if not in the world. At the proper time on the calendar we will present him to the committee. Commander WEYERBACHER. I think this is an application. They want to know what connection I had and I said here, "Between 1937 and 1940 with Harris, Inc.," reading it technically. Mr. TOLAND. That wasn't correct, was it? Commander WEYERBACHER. Technically it was incorrect. I occupied a desk in his office and was available in case of anything coming up. Mr. TOLAND. Did anything come up? Commander WEYERBACHER. No, sir. (The application for admission to the Society of Naval Architects and Marine Engineers of R. D. Weyerbacher was received in evidence, marked "Exhibit No. 263A," and is filed with the committee.) Mr. TOLAND. But you did wangle a contract for the admiral after you were employed by Cramp, didn't you? Commander WEYERBACHER. No, sir. Mr. TOLAND. Don't you have a contract right now that you are to get a 10-percent cut on anything that Admiral Harris gets out of Cramp Shipbuilding? Commander WEYERBACHER. No, sir; that was terminated prior to my employment with Cramp. Mr. MAAS. What is the name of Admiral Harris' firm? Mr. TOLAND. Frederic R. Harris, Inc. Do you have any written document to show that you terminated that contract? Commander WEYERBACHER. No, sir; but the evidence is my name went off the door right away and I have no written document, but Admiral Harris will so testify as to the time it terminated. Mr. TOLAND. I show you what purports to be a photostatic reproduction of a letter to you in the city of Washington. You lived in Washington a great part of your time? Commander WEYERBACHER. Yes. Mr. TOLAND. Didn't you? Commander WEYERBACHER. Yes, sir. Mr. TOLAND. After you had retired from the Navy? Commander WEYERBACHER. I was in New York most of the week and was in Washington during the week ends. Mr. TOLAND. How much time did you actually put in in Admiral Harris' office from 1937? Commander WEYERBACHER. I averaged about a day or day and a half a week. Mr. TOLAND. A day or day and a half a week? Mr. TOLAND. Did you pay any office rent? Mr. TOLAND. Were you not an employee of the admiral's? Commander WEYERBACHER. No, sir. Mr. TOLAND. I show you this photostatic reproduction of a letter from the admiral to yourself, dated December 13, 1938, and ask you if that is a true and correct copy? Commander WEYERBACHER. Yes, sir. Mr. TOLAND. I offer it in evidence. (The letter was received in evidence and marked "Exhibit No. 264.") Mr. TOLAND. Now, when did you cancel it? Commander WEYERBACHER. I canceled it in October 1940. Mr. TOLAND. In October 1940? Commander WEYERBACHER. Yes, sir. Mr. TOLAND. Your testimony is that you did not write the Admiral to revoke this contract? Commander WEYERBACHER. Not in writing; I just told the admiral I was leaving and that every arrangement we had was terminated on that date. Mr. TOLAND. The fact of the matter is, is it not, Commander, that we found this in your safe at Cramp Shipbuilding Co.? Commander WEYERBACHER. Not in my safe; in my files. Commander RALPH D. WEYERBACHER, ELIZABETH, N. J., December 13, 1938. Washington, D. C. DEAR WEYERBACHER: Confirming talk we had at lunch today: Any business that you bring into the office, I would suggest one of the two following arrangements, the one to be selected to be dependent upon how active you care to be, or are, in connection with carrying out the work. (1) In case the work is done in the office without your detailed direction, you are to receive 10 percent of the gross fee or receipts by this office for the work. (2) Where you are active in directing the work of design, estimates, or whatever is entailed, you are to receive one-half of the profit. This profit to be ascertained as follows: All of the cost of the work is to be charged against the fee or money received. This cost to consist of pay-roll expenses for engineers, draftsmen, and clerical, while they are actually engaged on the work, plus old-age-pension payments, unemployment insurance, and workmen's compensation insurance. There will Mr. TOLAND. In 1939? Commander WEYERBACHER. In 1939 Rohleder dropped into the office and renewed old acquaintances; I hadn't seen him since the Lakehurst days and at that time the excellent work he did at Lakehurst came to my mind, and in the conversation he suggested that he had a little idle time and how about letting him make some estimates. I said, "Certainly, go ahead." He made those estimates. We checked them; they seemed to be fairly good estimates, and they were rechecked by the independent engineering firm and they were found to be accurate. Mr. TOLAND. What engineering firm checked them? Mr. TOLAN. They checked Rohleder's estimates? Commander WEYERBACHER. They checked the estimates that my report incorporated. Mr. TOLAND. After your report had been filed, sometime later, Day & Zimmermann made a check, is that it, or did they make it simultaneously? Commander WEYERBACHER. After I filed my report Day & Zimmermann checked the report and made a separate report. Mr. TOLAND. Do you know when it was that Day & Zimmermann were first consulted in connection with the survey to be made of the facilities of the old company? Commander WEYERBACHER. It was made some time after the date of my report, if my memory is correct. Mr. TOLAND. Wasn't it made in 1940? Commander WEYERBACHER. No, sir; to my recollection it must have been 1939. Mr. TOLAND. No, no; isn't it a fact that the Day & Zimmermann report said that to construct light cruisers that the plant could be rehabilitated? Commander WEYERBACHER. That is another report. Mr. TOLAND. They made two reports? Commander WEYERBACHER. Oh, yes. Mr. TOLAND. Day & Zimmermann? Well, let's take the report they made in October 1940. Didn't they report that the plant could be constructed, rehabilitated, for $7,907,000? Commander WEYERBACHER. Without land. Mr. TOLAND. Exclusive of the land? Mr. TOLAND. What is the cost? Commander WEYERBACHER. He made an interesting remark at that time. Mr. TOLAND. What has been the actual cost of the rehabilitation in the reconstruction of that plant? Commander WEYERBACHER. The cost when the job will be completed will be approximately $11,000,000 and seven to nine hundred thousand dollars. Mr. TOLAND. Close to $12,000,000? Commander WEYERBACHER. Including land. Commander WEYERBACHER. Including land. Mr. TOLAND. All right. What value is placed in that $12,000,000 on land? |