Mr. GRISWOLD. We have here [indicating] a statement that you pay as low as 30 cents an hour for some labor. Mr. METTEN. No; that is below the code price. We have not changed that. We are paying a little more than any other private shipyard. Mr. GRISWOLD. We have evidence here that your pay roll shows some men drawing as little as $11 a week? Mr. METTEN. I myself never heard of that. Mr. GRISWOLD. But you would not say it is not true. Mr. METTEN. There is a list here of all wages we pay. We do not have any of that crowd that I know of. complete list certified by accountants. We can give you the Mr. GRISWOLD. Can you tell me something about Major Holthauser and his connection with your company? Mr. METTEN. We had many communications from men on strike asking us to devise some way by which they could show how they stood in connection with the matter, and we tried to effect a vote in a secret ballot box, but that proposal was fought at every turn by the union. They refused to allow the men to express themselves by secret ballot. Mr. GRISWOLD. The ballot was to be put out by whom? Mr. METTEN. We ourselves tried it. Mr. GRISWOLD. The company tried it. They never refused to have a secret ballot put out by their organization, did they? Mr. METTEN. We said that under these new conditions we would have to have all employees vote by secret ballot. Mr. GRISWOLD. Under whose auspices were you going to hold the election? Mr. METTEN. We ourselves tried to do it. independent authority to hold the election. Mr. GRISWOLD. What authority? We tried to get any Mr. METTEN. We tried to have the Camden authorities hold the election. Somebody suggested that we get the American Legion to superintend the election. Mr. GRISWOLD. Who suggested that procedure? Mr. METTEN. I think they were Camden people. I do not remember their names, though. Mr. GRISWOLD. Did Major Holthauser have anything to do with that suggestion? Mr. METTEN. I do not know. He was brought there to conduct a survey after we were unable to effect the vote. The idea was to get college students to make a house-to-house canvass and to get an individual, independent vote, without asking them what their ideas were. Mr. GRISWOLD. An independent vote of whom? Mr. METTEN. Of the men. Mr. GRISWOLD. Did you do that? Mr. METTEN. No. We started that, but they were broken up by gangs, and some of them were taken to union halls. were arrested over that. Mr. GRISWOLD. When did this occur? Mr. METTEN. About 2 weeks ago; 2 or 3 weeks ago. Two or three Mr. GRISWOLD. Getting back to Major Holthauser, you did not finish telling me who he was or his connection with your company. Mr. METTEN. I believe that he was at one time a member of the Judge Advocate General's Department of the Army, and I think he had some diplomatic mission in the Balkans at one time. He is a lawyer and lives in New York City, I believe. Mr. GRISWOLD. Had he ever been interested in labor disputes before that you know of? Mr. METTEN. I do not know much about it. We had been asking about an adviser and he was recommended, and he suggested this survey. That was how it started. Mr. GRISWOLD. As I understand, Major Holthauser suggested the survey. Mr. METTEN. We all thougt it was necessary to get some kind of survey to get a true vote of the men affected." Mr. GRISWOLD. What part has Major Holthauser taken in the strike? Mr. METTEN. He started that survey as an independent, unbiased individual. We could not do it, because they would at once accuse us of partiality. Mr. GRISWOLD. Did Major Holthauser contact the American Legion at your request and get that organization interested in the matter? Mr. METTEN. There were so many discussions, I do not remember. We were trying to get some independent concern to act. Mr. GRISWOLD. Did he or did he not at your request or at the request of your company contact the American Legion? Mr. METTEN. I do not remember. Mr. GRISWOLD. Do you remember how these advertisements placed in the newspapers by the American Legion were paid for, whether they were paid for by the Legion or by your company? Mr. METTEN. We paid for them. Mr. GRISWOLD. Has Major Holthauser any official connection with your company at this time? Mr. METTEN. He is still down there trying to help us arrive at a solution of the question. I have not seen him since the middle of last week. His efforts fell through, Mr. Chairman. Mr. GRISWOLD. He was on the company's pay roll, was he not? Mr. METTEN. No; we arranged for his services just the same as we would arrange for the services of a legal adviser. Mr. GRISWOLD. You paid him for his services-the New York Shipbuilding Corporation paid him? Mr. METTEN. Eventually the New York Shipbuilding Corporation will pay him, I suppose. Mr. GRISWOLD. You did not have any understanding about the payment of Major Holthauser? Mr. METTEN. We did not. Mr. GRISWOLD. How long has Major Holthauser been working on that kind of an agreement? Mr. METTEN. He started about 4 weeks ago. Mr. GRISWOLD. He started 4 weeks ago? Mr. METTEN. Yes. Mr. GRISWOLD. Did you consider Major Holthauser, who would have to be in the final analysis a petitioner of the company on a salary basis that has not been adjusted by the company, to be an unbiased agent? Mr. METTEN. He was not to do anything but carry out certain things. We thought Mr. GRISWOLD. Certain things that the company thought should be carried out. Mr. METTEN. Certain things that the men themselves had requested of us. We have 300 or 400 communications from different men, many of them old-timers in our business, requesting us to give them a chance to vote. They said they never had a chance to vote. Mr. GRISWOLD. I notice in the Courier-Post, Camden, N. J., issue of July 24, 1935, a statement headed "$250 Reward," in which the New York Shipbuilding Corporation offers to pay $250 for information leading to the arrest and conviction of anyone molesting, interfering with, or injuring any employee who returns to work at the New York Shipbuilding Corporation's yard, or any members of his family, or defacing or damaging the employee's home or property. The notice is signed by you as president. Mr. METTEN. Yes; that is right. Mr. GRISWOLD. Have you paid any reward under that advertisement? Mr. METTEN. We have not. Mr. GRISWOLD. Under date of July 26, 1935, Mr. Metten, is another advertisement. I do not know where it came from; but it offers a $5,000 reward. Mr. METTEN. I myself authorized that. Mr. GRISWOLD. You authorized it? Mr. METTEN. I did. Mr. GRISWOLD. Have you paid any reward under that advertisement? Mr. METTEN. We have not. Mr. GRISWOLD. You should get some replies to that advertisement; that is a lucrative offer. Mr. METTEN. We thought somebody at least would bring to light where this trouble was coming from. Mr. GRISWOLD. You have stated that your company has not made any money since you took it over. Mr. METTEN. I was principally interested in the accounts for the last year and the 12 months prior, and it certainly has not made any money during that time. Mr. GRISWOLD. The company has said it has not made any money. You as president of the company ought to know whether it has made money. Mr. METTEN. That is the statement of the certified accountant. I am going by what he says. Mr. GRISWOLD. Have you any doubt in mind as to whether the certificate of the accountant is correct? Mr. METTEN. Not in the least. I would be running in the hole if I had. Mr. GRISWOLD. When did you take over there? Mr. METTEN. November 1, 1934. Mr. GRISWOLD. There has been entered in the record a copy of a letter dated October 27, 1934, of the New York Shipbuilding Corporation, signed by C. L. Bardo. Have you read that letter? Mr. METTEN. I have. 25507-35-7 Mr. GRISWOLD. That letter would seem to indicate that from 1927 to October 27, 1934, the company was unusually prosperous. Mr. METTEN. It might seem to indicate that and to also indicate that Mr. Bardo, when leaving, was anxious to put his best foot forward. In other words, it was a swan song of a retiring man. Mr. GRISWOLD. Those facts would be easily susceptible to investigation and verification by the board of directors if the statement were only a swan song. Mr. METTEN. I think that is so. Mr. GRISWOLD. The facts are that the funded debt of the corporation was reduced $1,500,000, preferred stock was reduced from $4,100,000-including $1,000,000 of preferred stock of a subsidiary afterward sold-to $2,000,000, participating and founders_stock, 695,256 shares, reduced to 500,000 shares of $1 par value. That is true, is it not? Mr. METTEN. I do not know whether it is true or not. Mr. GRISWOLD. Why did you state a little while ago that you had been principally interested in going over the records of your predecessor trying to straighten things? Mr METTEN. I took the records existing at the time I took over, and did not go back of that. Mr. GRISWOLD. As the present president of this corporation, having taken it over in November of last year, you do not know whether it is or is not true that between 1927 and October 27, 1934, the funded debt of the corporation was reduced by $1,500,000? Mr. METTEN. That is a matter of bookkeeping. Mr. GRISWOLD. You do not know whether that is true or not, and you are at present the president of the corporation? Mr. METTEN. I do not know. Mr. GRISWOLD. Do you, as present president of the company, know whether the participating and founders stock, 695,256 shares, was reduced to 500,000 shares of $1 par value? Mr. METTEN. I do not know. I am not interested in conditionsMr. GRISWOLD. If there is nothing further, let us hear the next witness, Mr. Kaltwasser. STATEMENT OF C. M. KALTWASSER, EXECUTIVE VICE PRESIDENT, THE NEW YORK SHIPBUILDING CORPORATION Mr. SCHNEIDER. What is your position with the New York Shipbuilding Corporation? Mr. KALTWASSER. I am executive vice president.. Mr. SCHNEIDER. What does that embrace with respect to responsibilities in the corporation-what are your duties? Mr. KALTWASSER. I would say that it covers the outlining of policies and directing of activities in conjunction with the president of the corporation. Mr. SCHNEIDER. Have you anything to do with the management of the New York Shipbuilding Corporation? Mr. KALTWASSER. I direct the general manager. Mr. SCHNEIDER. You have a general manager? Mr. KALTWASSER. Yes. Mr. SCHNEIDER. The president of the corporation receives a salary? Mr. KALTWASSER. Yes. Mr. SCHNEIDER. And you yourself receive a salary? Mr. KALTWASSER. I do. Mr. SCHNEIDER. And the corporation has how many vice presidents? Mr. KALTWASSER. It has only one. Mr. SCHNEIDER. And it has a manager? Mr. KALTWASSER. A general manager. Mr. SCHNEIDER. Have you any assistant managers? Mr. KALTWASSER. We have one man called "assistant general manager." He acts as general superintendent. Mr. SCHNEIDER. Have you any assistant superintendents? Mr. SCHNEIDER. And you are the executive vice president? Mr. SCHNEIDER. You have to do with making of policies of this corporation; therefore, can you explain to this committee the corporation's policy with reference to labor and labor relations? Mr. KALTWASSER. I have a statement about that. Mr. SCHNEIDER. Is your statement a tirade such as we heard a little while ago? Mr. WALTWASSER. It is not a tirade. It consists of facts, the same as the other statement did. Mr. SCHNEIDER. There is no use repeating what has been said. We do not want all about communistic propaganda in the record. Mr. KALTWASSER. I have the facts and the figures. Mr. SCHNEIDER. I want to know who is responsible for the corporation's policy with respect to labor. Mr. KALTWASSER. I should like to take this opportunity to deny some of the untruths that have been voiced in testimony before your committee and published throughout the country. I refer particularly to the statement of Representative Edward A. Kenny, of New Jersey, that the company is paying "starvation wages. This probably results from the fact that he did not know what he is talking about. The fact is that the average weekly earnings of the New York Ship employees, based upon the guaranteed hourly rates in effect before the strike and on a 36-hour week, were $29.74. This is higher than the wages paid by any competitive private shipyard. Forty percent of the employees, however, were on the incentive system, by which they earned an average of 20 percent in addition to their guaranteed hourly pay. Mr. SCHNEIDER. Does that include all employees? Mr. KALTWASSER. It includes only hourly workers. No salaried men are included. It includes only those on strike-hourly men. Mr. SCHNEIDER. What percentage of them? It does not include all on strike. Mr. KALTWASSER. It includes only those on strike. All hourly men are on strike. Mr. SCHNEIDER. Does it include all on strike? Mr. KALTWASSER. All hourly men are on strike. Mr. SCHNEIDER. Have you not many pieceworkers in your plant? Mr. KALTWASSER. They are considered to be hourly workers. |