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Mrs. HORT. It was a storm coat.

May I say the newspapers have it as a $24.75, which may be so. I don't want to belittle his gift to me. I was under the impression it was not more than $10 since I did see it at a retail store for $17.95, and he bought it at the manufacturer. So I don't know. I did see it at $17.95.

Mr. KENNEDY. He gave you this storm coat, did he?

Mrs. HORT. Yes; he gave that to me for Christmas.

Mr. KENNEDY. This is while you were working at ASTAPA?
Mrs. HORT. Yes.

Mr. KENNEDY. What was your salary at ASTAPA while contract administrator?

Mrs. HORT. Take-home pay was $50 a week.

Mr. KENNEDY. That was while you were contract administrator? Mrs. HORT. Yes.

Mr. KENNEDY. Did he make any other gifts to you?

Mrs. HORT. He gave me a couple of those little plaid jackets for the

children.

Mr. KENNEDY. He gave you some gifts for your children?

Mrs. HORT. Yes.

Mr. KENNEDY. Jackets for your children?

Mrs. HORT. Yes, sir.

Mr. KENNEDY. This is also while you were working at ASTAPA? Mrs. HORT. Yes.

Mr. KENNEDY. Did he make any other gifts to you?

Mrs. HORT. I believe he gave me a couple of slips when he came back from Puerto Rico. I do not remember, but I think he did.

Mr. KENNEDY. A couple of slips?

Mrs. HORT. Yes.

Mr. KENNEDY. Is there anything else you can think of, Mrs. Hort? Mrs. HORT. No, sir.

Mr. KENNEDY. That was all?

Mrs. HORT. Yes, sir.

Mr. KENNEDY. Did he ever give you any money?

Mrs. HORT. No, sir.

Mr. KENNEDY. Never gave you any cash?

Mrs. HORT. No, sir; he took me to lunch.

Mr. KENNEDY. He took you to lunch?

Mrs. HORT. Yes, sir.

Mr. KENNEDY. Did he take you out to dinner occasionally?

Mrs. HORT. Infrequently.

Mr. KENNEDY. Occasionally?

Mrs. HORT. Occasionally, yes.

Let me now say-I went out to dinner with him in

company

with my

husband, other people. The other people may have picked up the check, for all I know.

Mr. KENNEDY. But you did not go out to dinner with him that he picked up the check?

Mrs. HORT. I may have, sir, but I don't recall any specific instances. Mr. KENNEDY. That might have been done occasionally?

Mrs. HORT. It may have been.

Mr. KENNEDY. Lunch?

Mrs. HORT. Lunch I did have with him frequently.

Mr. KENNEDY. And these several gifts that you mentioned, is that right?

Mrs. HORT. Yes.

Mr. KENNEDY. That was the total that he ever gave to you?

Mrs. HORT. Yes, sir.

Mr. KENNEDY. Now, toward the end of 1952 when you were contract administrator, did he give you approximately $100?

Mrs. HORT. Sir, he never gave me any cash at all.

Mr. KENNEDY. On or about May 28, 1953, did he give you approximately $150?

Mrs. HORT. No, sir; he did not.

Mr. KENNEDY. He did not?

Mrs. HORT. No, sir.

Mr. KENNEDY. He never gave you any cash at all?

Mrs. HORT. No, sir.

Mr. KENNEDY. Now, Mrs. Hort, did any other contractor ever give you any money or any gifts?

First, did any other contractor make any gift to you?

Mrs. HORT. Yes, sir.

Mr. KENNEDY. Who was that?

Mrs. HORT. Harry Lev.

Mr. KENNEDY. What gift, or gifts, did he make to you?

Mrs. HORT. He gave me a couple of suits.

Mr. KENNEDY. Suits of cloth?

Mrs. HORT. Yes, sir.

Mr. KENNEDY. Could you tell the committee the circumstances under which he gave the suits?

Mrs. HORT. He had been in visiting. If I am not mistaken he had just become a grandfather at the time and was feeling rather ebullient, and he all but pleaded with me to please let him buy them for me, I was such a sweet kid and all that stuff. He said that mean nothing, absolutely, to him financially whereas I could probably use them very nicely, and I would be giving him great pleasure if I would accept the gift. It was not specific; it was if I would let him buy me something. Mr. KENNEDY. This occurred during 1953, did it?

Mrs. HORT. To the best of my recollection, yes.

Mr. KENNEDY. Is this about the period of time that the question of these deviations came up?

Mrs. HORT. No, sir; the deviations came up before, during and afterward.

Mr. KENNEDY. And he just liked you and he offered to buy you these several suits of clothes?

Mrs. HORT. That is the implication he left with me.

Mr. KENNEDY. Did you see him much prior to that time?

(At this point Senator Bender entered the hearing room.)

Mrs. HORT. About the same as I saw the other contractors who came to town. He was an out-of-towner. When he came in I believe he saw all the administrators. He had a lot of contracts. I don't believe I had them all.

Mr. KENNEDY. Did he ever buy you a drink, for instance?

Mrs. HORT. No, sir.

Mr. KENNEDY. Did you ever have lunch with him?

Mrs. HORT. I don't recall.

Mr. KENNEDY. Do you think it possible he might have taken you to lunch occasionally?

Mrs. HORT. Not occasionally, certainly.

Mr. KENNEDY. Do you think he might have taken you to lunch once?

Mrs. HORT. Yes, sir.

Mr. KENNEDY. Did he stay at the Hotel New Yorker when he was in New York?

Mrs. HORT. I don't know. I knew him once to be at the New Yorker and once at Gramercy Park.

Mr. KENNEDY. Did you ever visit him at the hotel?

Mrs. HORT. At the New Yorker once.

Mr. KENNEDY. Was this before you received the suits?

Mrs. HORT. After.

Mr. KENNEDY. After you received the suits?

Mrs. HORT. Considerably after.

Mr. KENNEDY. Could you tell us what happened? Where did he make this offer to make this purchase for you?

Mrs. HORT. At the office.

Mr. KENNEDY. At the office?

Mrs. HORT. Yes.

Mr. KENNEDY. At ASTAPA?

Mrs. HORT. Yes.

Mr. KENNEDY. You had seen him a couple of times prior to that time?

Mrs. HORT. Not privately.

Mr. KENNEDY. Several times?

Mrs. HORT. I had seen him many times in passing. I don't think I had personally interviewed him more than a few times. I don't remember. There were contractors coming in and out all day. I had about a hundred contracts.

Mr. KENNEDY. One day he asked you if you wanted

Mrs. HORT. He was passing out cigars. He had just become a grandfather and I did not smoke cigars.

Mr. KENNEDY. He asked you if you wanted suits?

Mrs. HORT. No, he didn't ask me if I wanted suits. He said, "Please come. Let me buy you something. You are a nice girl, smart girl, you are doing a nice job."

He told me how much he had done for the Government, research and development, a generally good fellow.

Mr. KENNEDY. Did you ask him for cash at that time?

Mrs. HORT. I never asked him for cash.

Mr. KENNEDY. Then did you go with him that evening or that afternoon?

Mrs. HORT. Yes, sir; I did.

Mr. KENNEDY. Where did you purchase the clothes?

Mrs. HORT. At Saks.

Mr. KENNEDY. At Saks?

Mrs. HORT. Yes, sir.

Mr. KENNEDY. You picked it out with him at that time?
Mrs. HORT. Yes, sir.

Mr. KENNEDY. Now, can you approximate the value of those two suits of clothes he purchased for you?

Mrs. HORT. I would say approximately $300. They were lovely

suits.

Mr. KENNEDY. That is $150 a piece?

Mrs. HORT. Approximately. I don't know. I didn't look at the price. They were altered by the time I got them and did not have price tags. They were good suits; I will say that.

Mr. KENNEDY. They were good suits?

Mrs. HORT. Yes. I mean they weren't the $10 coat.

Mr. KENNEDY. At this time you were working at ASTAPA, were you not?

Mrs. HORT. Yes, sir; I was.

Mr. KENNEDY. Did you receive any other gifts from Mr. Harry Lev? Mrs. HORT. No, sir; I did not.

Mr. KENNEDY. You never asked for any cash?

Mrs. HORT. No, sir.

Mrs. KENNEDY. Now, was there a transaction in which you received $2,000, a check for $2,000.

Mrs. HORT. Sort of. My husband actually received it, sir. I did

not.

The CHAIRMAN. Before we move to the check, as I recall, you began to discover these deviations in the early part of 1953, Mrs. Hort; is that correct?

Mrs. HORT. No, sir; I believe the deviations first came up in 1952. I would not swear to that, but to the best of my recollection

The CHAIRMAN. As I recall your previous testimony, you said in part, in 1953 you found the deviations in the Mid-City Cap Contracts, to pack two hats to a box instead of one; is that correct?

Mrs. HORT. At the moment I think it is 1952. I don't know. It can be checked in the files, I am sure.

The CHAIRMAN. At any rate, the deviations had been found prior to the time that he had bought you these suits?

Mrs. HORT. Yes, sir.

The CHAIRMAN. And also prior to the time of the check transaction you are now about to testify about?

Mrs. HORT. Yes, sir.

The CHAIRMAN. One other question before we proceed with the check.

I am not interested in your social life, other than as to its relation to your work in Government. You say you visited Mr. Lev at the New Yorker one time?

Mrs. HORT. Yes, sir; I did.

The CHAIRMAN. Was that on Government business?

Mrs. HORT. No, sir; it was not.

The CHAIRMAN. All right, proceed.

Mr. KENNEDY. Would you identify that check, Mrs. Hort?
Mrs. HORT. Identify it?

Mr. KENNEDY. Will you read what it says?

Mrs. HORT. It is a check made out to the order of Harry Lev, April 9, 1953, $2,000 and signed by Harry Lev. It is endorsed by Harry Lev and it is endorsed by Eugene V. Hort, who is my husband, and it is deposited in the Suburban Trust Co., West field, which is my bank. The CHAIRMAN. That may be made exhibit 18 to the testimony. (Exhibit No. 18 may be found in the files of the subcommittee.)

Mr. KENNEDY. Can you tell us the circumstances under which you or your husband, or whatever occurred, received this $2,000 check? Mrs. HORT. Just how much background on it do you want? I have testified to this previously.

The CHAIRMAN. Prior to the time of the receipt of that check, did your husband know Mr. Lev?

Mrs. HORT. Yes, he had met him once.

The CHAIRMAN. He had met him once?

Mrs. HORT. I believe once. He had certainly met him.

The CHAIRMAN. One time?

Mrs. HORT. At least one time.

The CHAIRMAN. How long before?

Mrs. HORT. Very shortly before.

The CHAIRMAN. Just a day or two before; is that correct?

Mrs. HORT. I can't confine it quite that closely because I don't remember, sir. It was 2 years ago. In fact, it was over 3 years ago. It certainly was within a week or two. It was shortly before.

The CHAIRMAN. This is the second time your husband and Mr. Lev had ever met, at the time this check was given?

Mrs. HORT. At least the second time.

The CHAIRMAN. At least the second time?
Mrs. HORT. Yes.

The CHAIRMAN. All right, proceed.

Mr. KENNEDY. Now, Mrs. Hort, will you tell the committee what the circumstances were leading toward Mr. Harry Lev making this check out for $2,000, which was deposited in your and your husband's account?

Mrs. HORT. Mr. Kennedy, I have a little tendency to digress. You know the evidence. You have heard it in closed session. If you could ask questions that would bring out the points you wish, I think it would probably shorten it.

If you want me to go on in my own way, I will be very happy to. Mr. KENNEDY. The chairman has just brought out the fact that this was the second time Harry Lev had seen your husband; is that right?

Mrs. HORT. Yes. My husband is a chemist. Shall I qualify him as a chemist for everyone here?

Mr. KENNEDY. No; just say he is a chemist.

Mrs. HORT. He is a chemist, Ph. D. Sometime earlier, I believe late in 1952-no, I can't pinpoint it exactly-Mr. Rubin was instrumental in getting my husband to meet a group of people who were interested in starting a chemical company which was directly related to the type of work he was able to do. They were interested in that particular product.

Well, meetings occurred back and forth. My husband saw these people. These people investigated the circumstances, the wisdom of going into such an enterprise.

The upshot was that they finally decided that they would. A contract was drawn up in which the backers, the financial backers participated, in which my husband was to be the head of research and in which he was to hold a stock interest also.

Marvin Rubin was included in this by way of a finder's fee actually because he had brought the principals together. I believe it was a

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