Mr. VAN DAME. This is not the dividend; this is the bonus. Mr. VAN DAME. That is right. Mr. TOLAND. I offer it in evidence. (The check dated December 20, 1941, was received in evidence, marked "Exhibit No. 335," and is filed with the committee.) Mr. TOLAND. I show you photographic reproduction of a check dated December 21, 1940, in the amount of $8,498.35, and ask you if that represents the bonus that was paid to you in 1910? Mr. VAN DAME. Yes, sir. (The check dated December 21, 1940, was received in evidence, marked "Exhibit No. 336," and is filed with the committee.) Mr. TOLAND. Do you have any stock in the company? Mr. VAN DAME. Yes, sir; I do. Mr. TOLAND. How many shares of stock do you have? Mr. VAN DAME. At the present time I believe it is 250 shares. Mr. VAN DAME. No, sir; she does not. Mr. TOLAND. When did you acquire the stock? Mr. VAN DAME. I have acquired that over a period of years. Mr. TOLAND. Did you pay for it, or were the dividends on that stock charged by the company as against the selling price of the stock? Mr. VAN DAME. No, sir; I paid for every cent of it out of my own pocket. Mr. TOLAND. You paid cash? You didn't participate, you had no contract or agreement like Mr. Davis with regard to the stock that he received? Mr. VAN DAME. No, sir; I did not. Mr. TOLAND. Do you have with you the cost records of the company with regard to the items that it sells, manufactures? Mr. VAN DAME. I believe we do, Mr. Toland. Mr. ANDERSON. Were any bonuses paid to this witness prior to 1940? Mr. TOLAND. Yes; we have the complete records of his salary and bonuses. I will put this sheet in at the end. Mr. ANDERSON. What does it show for 1939? Mr. TOLAND. In 1939, he received $1,200 in bonuses. Mr. ANDERSON. 1938. Mr. TOLAND. We don't have 1938. In 1940 he received $8,500. His salary was $2,945, and he received no dividends on stock for either year, according to our records. In 1941 his salary was $3.214. He received a $12,000 bonus, plus dividends of $700, and he has an interest in the trust fund that is estimated at $1,846. I will bring out the trust fund later. The CHAIRMAN. Those facts are correct that have been read off by counsel? Mr. VAN DAME. Yes, sir. Mr. DREWRY. Did I understand you to say he received no dividends in 1939? Mr. TOLAND. I am going to ask him. Did you receive any dividends on stock in 1939? Mr. VAN DAME. Yes, sir; I did. Mr. TOLAND. Do you remember how much you received? Mr. VAN DAME. No; I don't. Mr. TOLAND. Is the figure of $700 dividends correct for 1941, that we have? Mr. VAN DAME. I think it was $800. I had 100 shares. Mr. TOLAND. $700 plus $100? Mr. VAN DAME. That is right. The CHAIRMAN. Mr. Toland, we are going into the cost now of the units? Mr. TOLAND. Yes, sir. I show you a comparison of selling prices to factory costs of welders and electrodes. This is for the period January 1 to March 31, 1941; April 1 to October 1, 1941; and October 1 to December 31, 1941; and on the electrodes, from January to May 31, 1942; and the average factory cost of the same article from January 1 to May 31, 1942, and ask you if these figures are correct? Mr. VAN DAME. I don't think that I am qualified, Mr. Toland, to go into detail on these factory costs as compared with selling prices. That is not exactly part of my job at the Lincoln Electric Co. I think if you want to get a true picture of the costs that Mr. Kneen, our factory superintendent, would be the one to question. Mr. TOLAND. I will ask him about it, then. Mr. VAN DAME. I am not familiar with the details. The CHAIRMAN. Aren't you the auditor? Mr. VAN DAME. Yes, sir; I am. The CHAIRMAN. Don't you figure the costs, the unit costs? Mr. VAN DAME. I do not figure the unit costs at our company. Mr. VAN DAME. The cost department. The CHAIRMAN. Is he here, Mr. Toland, the cost department man? Mr. TOLAND. He said the general superintendent is the one that can testify. The CHAIRMAN. Is he here? Mr. TOLAND. Yes; he is here. He is a witness. The CHAIRMAN. Then you can't tell the committee what the audit shows the unit costs to be? Mr. VAN DAME. No; the audit does not show a unit cost. Mr. VAN DAME. It shows the total cost, but it does not show it by units. Mr. TOLAND. Now, Mr. Van Dame, I show you a photostatic reproduction of a check to Mr. G. Landis, in the amount of $50,000, a bonus of December 21, 1941, and ask you if that is your signature and if you drew that check? Tell us who Mr. Landis is and what he does. Mr. VAN DAME. Yes; this is my signature. Mr. Landis is the chief engineer at the Lincoln Electric Co. Mr. TOLAND. What is his salary per annum? Mr. VAN DAME. I have that here, Mr. Toland. Mr. TOLAND. Isn't his salary $6,542, in 1941 ? Mr. TOLAND. $6,542. Mr. VAN DAME. That is right, exactly. (The check dated December 20, 1941, was received in evidence, marked "Exhibit No. 337," and is filed with the committee.) Mr. TOLAND. Who is Mr. Davis? Mr. VAN DAME. Mr. A. F. Davis is the secretary and vice president of our company. Mr. TOLAND. I show you a photostatic reproduction of a check of the same date, December 20, 1941, bearing your signature, and ask you if that wasn't a bonus to Mr. Davis? Mr. ANDERSON. How much is it, Mr. Toland? Mr. TOLAND. $50,000. Mr. VAN DAME. That is correct. (The check, dated December 20, 1941, was received in evidence, marked "Exhibit No. 338," and is filed with the committee.). Mr. TOLAND. And Mr. Davis's salary is what? Mr. VAN DAME. In 1941 Mr. Davis's salary was $6,634.08. Mr. TOLAND. Right. The total amount that he received of salary, dividends, and bonuses for the year 1941, Mr. Chairman, was $135,614. Now, who is Mr. T. E. Jerabek? Mr. VAN DAME. Mr. Jerabek is a metallurgist who is in research development in our electrode plant. Mr. TOLAND. Isn't he classified on the pay roll of your company as a plant foreman? Mr. VAN DAME. I would say he could be classified as that. Mr. TOLAND. Well, isn't he? Isn't it a matter of fact that the records of your company show that Mr. Jerabek is a plant foreman? Mr. VAN DAME. The pay roll records do not show the classification, Mr. Toland. Mr. TOLAND. The records of the company as to his title. Isn't it true that he is designated as a plant foreman? Isn't his salary $4,120 a year? Mr. VAN DAME. That is right; $4,141. Mr. TOLAND. I show you a check bearing your signature for $25,000 to Mr. Jerabek, dated December 20, 1941, and ask you if that wasn't a bonus to Mr. Jerabek? Mr. VAN DAME. That is correct. (The check dated December 20, 1941, was received in evidence, marked "Exhibit No. 339," and is filed with the committee.) Mr. TOLAND. Who is William Irrgang? Mr. VAN DAME. Mr. Irrgang? Mr. Irrgang is located in plant 2, and is in charge of the development of War Department machinery. Mr. TOLAND. What is his title? Is he another foreman? Mr. VAN DAME. Yes; he could be classified as a foreman. Mr. TOLAND. I show you a photostatic reproduction of a check of December 20, 1941, in the amount of $15,000, and ask you if that wasn't a bonus to Mr. Irrgang? Mr. VAN DAME. That is right. (The check dated December 20, 1941, was received in evidence, marked "Exhibit No. 340," and is filed with the committee.) Mr. TOLAND. What is his salary? Mr. VAN DAME. I don't have that here. Mr. DREWRY. What was the amount of that check? Mr. TOLAND. $15,000. Mr. VAN DAME. I could estimate it. It is approximately $330 a month. Mr. TOLAND. Less than $4,000 a year, or approximately $4,000 a year? Mr. VAN DAME. That is right. Mr. TOLAND. I show you a photostatic copy of a check to Mr. Dill. I ask you who Mr. Dill is. Mr. VAN DAME. Mr. Dill is general counsel of the Lincoln Electric Co. Mr. TOLAND. And his compensation per annum is what? Mr. VAN DAME. In 1941 he earned $5,192.40. Mr. TOLAND. Right. I show you a photostatic reproduction of a check to Mr. Dill in the amount of $15,000 bearing your signature, and ask you if that wasn't a bonus? Mr. VAN DAME. That is right. (The check dated December 20, 1941, was received in evidence, marked "Exhibit No. 341," and is filed with the committee.) The CHAIRMAN. That is a lawyer. Mr. DILL. I am a kept lawyer. Mr. TOLAND. Who is Mr. Č. J. Bowers? Mr. VAN DAME. Mr. Bowers is our production manager. Mr. TOLAND. What is his annual salary? Mr. VAN DAME. I am sorry, but I don't have that here. It is approximately five or six thousand a year. exactly. Do you want to know it exactly? I can give that to you Mr. TOLAND. I would like to have the exact figures. Mr. VAN DAME. During the year 1941 Mr. Bowers earned $5,620.63. Mr. TOLAND. Yes. I show you photostatic reproduction of a check to Mr. Bowers bearing your signature dated December 20, 1941, in the amount of $13,000, and ask you if that wasn't a bonus.? Mr. VAN DAME. That is right. Mr. TOLAND. I offer it in evidence. (The check dated December 20, 1941, was received in evidence, marked "Exhibit No. 342," and is filed with the committee.) Mr. TOLAND. Who is Mr, J. H. Morris, Jr.? Mr. VAN DAME. Mr. Morris, Jr., is the superintendent of plant No. 2, which is our electrode plant. Mr. TOLAND. And his salary in 1941 was $3,906, isn't that right? Mr. VAN DAME. Approximately. Mr. TOLAND. I show you a photostatic reproduction of a check bearing your signature to Mr. Morris, in the amount of $12,500, dated December 20, 1941, and ask you if that wasn't a bonus? Mr. VAN DAME. That is right. (The check dated December 20, 1941, was received in evidence, marked "Exhibit No. 343," and is filed with the committee.) Mr. TOLAND. Who is Mr. Dewald? Mr. VAN DAME. Mr. Dewald is the assistant to the vice president, and he is also in charge of our order department. Mr. TOLAND. What is his salary per annum? Mr. VAN DAME. In 1941 Mr. Dewald earned $3,958.27. Mr. TOLAND. Yes. I show you photostatic copy of a check dated December 20, 1941, bearing your signature, payable to Mr. Dewald, in the amount of $12,500, and ask you if that wasn't a bonus? Mr. VAN DAME. That is right. (The check dated December 20, 1941, was received in evidence, marked "Exhibit No. 344," and is filed with the committee.) Mr. TOLAND. Who is Mr. Raudebaugh? Mr. VAN DAME. Mr. Raudebaugh is manager of our cost depart ment. Mr. TOLAND. What is his salary per annum-in 1941? Mr. VAN DAME. In 1941 Mr. Raudebaugh earned $4,677.80. Mr. TOLAND. I show you photostatic reproduction of a check bearing your signature dated December 20, 1941, payable to the order of Mr. Raudebaugh, in the amount of $12,000, and ask you if that wasn't a bonus? Mr. VAN DAME. That is right. (The check dated December 20, 1941, was received in evidence, marked "Exhibit No. 345," and is filed with the committee.) Mr. TOLAND. Who is Mr. Griesinger? Mr. VAN DAME. Mr. Griesinger is the manager of our credit department; in other words, credit manager. Mr. TOLAND. How much does he get a year? Mr. VAN DAME. In the year 1941 Mr. Griesinger earned $3,426.91. Mr. TOLAND. I show you a photostatic reproduction of a check dated December 20, 1941, payable to Mr. Griesinger's order in the amount of $12,000, and ask you if that wasn't a bonus? Mr. VAN DAME. That is right. (The check dated December 20, 1941, was received in evidence, marked "Exhibit No. 346," and is filed with the committee.) Mr. TOLAND. Who is Mr. Hale? Mr. VAN DAME. Mr. Hale is our purchasing agent. Mr. TOLAND. What is his salary, or what was it in 1941? Mr. TOLAND. I show you a photostatic copy The CHAIRMAN (interposing). One moment, Mr. Toland. As the members know, we have up today the conference report on the pay bill for the Army and Navy and Marine Corps, and there probably will be a direct vote on the question as to whether or not the conference vote will be agreed to in regard to the pay of the lower grades. We had better take a recess, because we must have a roll-call vote on that. I imagine that the debate on the conference report will run an hour, and we ought to be able to continue this at 2:30. Mr. TOLAND. I would like to finish with these people. They are the principal people at this plant, and I don't want to keep them longer. The CHAIRMAN. We can't do both at the same time. Mr. HESS. It is 11. Can't we be back here at 2? The CHAIRMAN. All right. We shall take a recess until 2 o'clock. All witnesses be back. (Whereupon, at 11:15 a. m., the committee recessed until 2 p. m.) AFTER RECESS The hearing was resumed at 3 p. m., the chairman, Representative Vinson, presiding. CHAIRMAN. Let the witness come back to the stand, please. AND. Mr. Van Dame, will you tell the committee who Mr. le is and what he does? |