The CHAIRMAN. What contractor was that? Mr. O'SHIVER. I don't remember the name. It was not Mid City. The CHAIRMAN. Mid City? Mr. O'SHIVER. It was not Mid City. It was somebody else. I can't remember. When she told me that, she didn't know what to do. I said, "What do the other contractors say? Has the same issue been raised?" She said, "They all raised the same thing." I said, "Go to the contracting officer or whoever negotiated this contract and get a statement in writing. If that is correct, take it up with the legal office and get a decision from them." I don't recall what they did with it or whether this resulted from it. This evidently is what resulted from that, when I said to get a statement from the legal officer. Mr. KENNEDY. You understand that is in direct conflict with what she testified to before this committee? Mr. O'SHIVER. I didn't hear all of her testimony. Perhaps if I could hear it Mr. KENNEDY. She stated on page 595 that she had a conference. with you, with you and Captain Wool, and that you told her to write this memorandum, that she was against it, that she had no knowledge that they were told they could pack two hats to a box, and that you told her "not to meddle." Mr. O'SHIVER. That testimony is untrue. Mr. KENNEDY. And, furthermore, that you and Captain Wool told her to stop being a crusader, and ordered her to prepare that memorandum which ultimately appeared in the file of Mid City Uniform Cap Co. Mr. O'SHIVER. That is untrue, Mr. Kennedy. In the first instance, I don't recall Captain Wool ever discussing this with me at all. The only one who may have discussed it with me would be the contract administrator, Mrs. Hort. In the second place, I was the person who put out a purchasing order memorandum, stressing the fact that all savings must be recovered at all times. Mr. KENNEDY. Mr. O'Shiver, if that was discussed with you at all, and you looked it up at all, you would have found that the contractors under those directives, at least half of them, had already sent in their hats and had packed one hat to a box, so it didn't make any sense. Mr. O'SHIVER. That would have been true, Mr. Kennedy, if I looked it up. Mr. KENNEDY. You didn't bother looking it up? Mr. O'SHIVER. Mr. Kennedy, I was in an office, with 300 people in the purchasing division, and at various times, maybe half of those people came in to consult me. I certainly couldn't go ahead on every particular matter, and look into the files, and look into the last details. It would have been a physical impossibility. Mr. KENNEDY. You claim she took an entirely different position than she claims she did before this committee? Mr. O'SHIVER. I can only tell you what I remember. I remember she discussed it with me, and I told her to get a statement from the contracting officer or whoever negotiated the contract. As to say she was not to meddle and not to be a crusader, that is not true. I did not say that at any time. Mr. KENNEDY. If Captain Wool said he discussed this with you, you say that is not true? Mr. O'SHIVER. I don't remember Captain Wool ever discussing this thing with me. The CHAIRMAN. Mr. O'Shiver, what was your salary in the Government in the position you held in 1952, 1953, and 1954? Mr. O'SHIVER. In 1952, I think it was $8,300 a year. The CHAIRMAN. And in 1953? Mr. O'SHIVER. Than I took a decrease. It was about $8,000. The CHAIRMAN. And in 1954? Mr. O'SHIVER. It was the same, $8,000, I believe. The CHAIRMAN. You were paid by the Government in check? Mr. O'SHIVER. Yes. The CHAIRMAN. In what bank did you deposit your checks? Mr. O'SHIVER. Manufacturers Trust Co. The CHAIRMAN. Manufacturers Trust Co. where? Mr. O'SHIVER. New York. The CHAIRMAN. All of your salary checks during those 3 years were deposited in the bank? Mr. O'SHIVER. Well, I don't remember whether I deposited the whole check or I cashed part of it and deposited part of it. I just don't remember how I handled it. But whatever I deposited went into that bank. The CHAIRMAN. The bank records, of course, would reflect that? Mr. O'SHIVER. That is right. The CHAIRMAN. Did you have any other income during those years? Mr. O'SHIVER. No. The CHAIRMAN. You had no other income during those years. Do you have his banks records here, those deposits! Mr. BELLINO. Yes, sir. The CHAIRMAN. I would like to call you to the stand for a moment to identify the bank records. TESTIMONY OF CARMINE BELLINO-Resumed The CHAIRMAN. I believe you have been sworn previously in these hearings? Mr. BELLINO. Yes, sir. The CHAIRMAN. Mr. Bellino, have you examined the subpenaed bank records of the witness, Mr. David O'Shiver, of the bank he has identified as Manufacturers Trust Co. ? Mr. BELLINO. Yes, sir. The CHAIRMAN. For the years 1952, 1953, and 1954? Mr. BELLINO. Yes, sir. The CHAIRMAN. Do you have photostatic copies of the bank's ledger for his account for those years? Mr. BELLINO. Yes, sir. Two banks, the National City Bank of New York and the Manufacturers Trust Co. The CHAIRMAN. Did they later merge? Mr. O'SHIVER. I discontinued my account in the National City and went to Manufacturers. The CHAIRMAN. Originally it was in National City, and then you transferred your account to the Manufacturers Trust Co. ? Mr. O'SHIVER. Yes. The CHAIRMAN. Are these photostatic copies of the bank's ledger of Mr. O'Shiver's account? 62915-55-40 Mr. BELLINO. Yes, sir. The CHAIRMAN. They may be made exhibit No. 52. (Exhibit No. 52 may be found in the files of the subcommittee.) Mr. Bellino, have you examined those ledger sheets of Mr. O'Shiver's account? Mr. BELLINO. Yes, sir. The CHAIRMAN. I wish you would state with respect to the deposit of his salary check for the 3 years 1952, 1953, and 1954. Mr. BELLINO. I will give it to you, Senator, as it has been prepared here. The first table is from July 2, 1952, to May 27, 1953, and shows a portion of the salary which he deposited was $3,444.08. He retained salary that he did not deposit, in cash retained, $1,166.29. His total salary during this period was $4,827.89. The CHAIRMAN. That is for the year 1952? Mr. BELLINO. That is from July 2, 1952, to May 27, 1953. From June 10, 1953, to December 30, 1953, his net salary received was $3,959.51. He deposited $3,183.50, and cash which he did not deposit was $776.01. The CHAIRMAN. What was the amount of the other cash? Mr. BELLINO. $1,166.29. The CHAIRMAN. And the cash? Mr. BELLINO. $776.01. The CHAIRMAN. $776.01? Mr. BELLINO. A total of $1,942.30. The CHAIRMAN. And do you have another year, 1954? Mr. BELLINO. In 1954, net salary received from January 13, 1954, through December 30, 1954, was $6,626.29, and the portion of salary deposited was $5,711.60, and the portion of the salary not deposited $914.69. The CHAIRMAN. Over that period of time, what was the total of his salary that was not deposited? Mr. BELLINO. $2,856.99. The CHAIRMAN. $2,800-what? TESTIMONY OF DAVID O'SHIVER-Resumed The CHAIRMAN. Mr. O'Shiver, during the period covered by your bank accounts that have been testified to here, I believe you stated that had no other income, no other source of income? you Mr. O'SHIVER. That is right. The CHAIRMAN. You withdrew, according to your bank, out of your salary, in cash, or failed to deposit, the amount of $2,856.99 during that period of time. Is it true that during the year 1952, you made cash expenditures as folows: For a Crosley television set, $200; a watch purchased at Kleins, $600 Mr. O'SHIVER. No. The CHAIRMAN. $60; a mink stole, $900; spent on a Habana vacation, $1,500 cash; and for a painting, $300, making a total of $2,960 you expended in cash during the year 1952 for the items we mentioned? Mr. O'SHIVER. Senator McClellan, I don't recall that those expenditures were made in 1952. In fact, I don't think they were all made in 1952. I don't recall when they were made. The CHAIRMAN. They were made since the beginning of 1952 ? Mr. O'SHIVER. I don't remember that. They may have been made prior to that time. I don't recall. The CHAIRMAN. Do you want to insist that they were? We don't want to clutter this up with all of the records, but I want to ask you about them. If there is any error, we want it corrected. But apparently, this information is pertinent to the subject of this inquiry, and we want your explanation. Mr. O'SHIVER. The expenditures were made, but I don't know if they were made in 1952. The CHAIRMAN. Let's go to 1953. During 1953 you paid in cashwhen I say cash, I mean not by check-you paid $1,500 cash on an Oldsmobile automobile. Is that correct? Mr. O'SHIVER. That is correct. The CHAIRMAN. Let's go to 1954. In 1954 you bought Eastern Airline tickets for yourself and your wife to Puerto Rico for $300. Is that correct? Mr. O'SHIVER. I don't remember the amount, but I did buy Eastern Airline's tickets. The CHAIRMAN. That would be substantially correct? Mr. O'SHIVER. Yes. The CHAIRMAN. Then you flew there, and your hotel expenses in Puerto Rico were $1,200 that you paid in cash; is that correct? Mr. O'SHIVER. That is correct. The CHAIRMAN. Then you also bought another television set, an RCA television set, for $200 in cash; is that correct? Mr. O'SHIVER. I believe that is correct. The CHAIRMAN. And you made repairs in building, at your home I assume, building a recreation room, that cost you $2,100 in cash? Mr. O'SHIVER. I think that is about correct. The CHAIRMAN. These cash expenditures during the period covered by your bank accounts, and these are the large items because we have not gone out to the other cash expenditures you would normally make, these items that I have mentioned here and which you have acknowledged, I believe, total cash expenditures of $8,260 during that period of time as against cash withheld from your salary checks when you deposited them of $2,856.99, or something over $5,000 cash that you expended during that time that obviously didn't come out of your salary. Have you any explanation of that? Mr. O'SHIVER. Yes; I have. The CHAIRMAN. All right. Mr. O'SHIVER. That money came out of savings. You see, I originally came from Philadelphia where I practiced law from 1932 on. I went with the Government in 1942. When I first got married in 1933, we decided to put aside money in cash, in savings, for the time when I could go out and open my own law office. We kept putting that aside. We kept saving it all the time up until 1946 when we came to New York. My object in coming to a new town was because I had this cash money put aside. I came to a town where I had no friends, I had no relatives, I didn't know anybody. My object was in getting admitted to the New York bar, leaving the Government and going out and practicing law. I never could get around to it. I never could get around spending that paycheck every 2 weeks, so we finally got around to spending the savings. The CHAIRMAN. Where were your savings kept? The CHAIRMAN. In a box somewhere? Mr. O'SHIVER. In envelopes. The CHAIRMAN. Were the envelopes kept in a box? The CHAIRMAN. You kept these savings for a number of years? The CHAIRMAN. And this does not represent all of your savings, I assume? You had not spent all of them? Mr. O'SHIVER. Yes, it does. I had about reached the end. The CHAIRMAN. You have about reached the end, and this is all the savings you have. Any other questions? Senator ERVIN. Mr. O'Shiver, are you a lawyer? Mr. O'SHIVER. Yes, I am. Senator ERVIN. Your savings must have been in the neighborhood of $8,300 as a minimum? Mr. O'SHIVER. I don't recall. They probably could have. Senator ERVIN. And you tell us that you kept approximately $8,300 in an envelope? Mr. O'SHIVER. Yes. Senator ERVIN. In a bureau drawer? Mr. O'SHIVER. Yes. Senator ERVIN. And in your home for a period of from 6 to 8 years? Mr. O'SHIVER. Yes, I did. Senator ERVIN. And you knew all the time that you were living in a city where there are some burglars? Mr. O'SHIVER. That is right. But my home is not such a large home that it would attract burglars. Senator ERVIN. You don't stay there all the time, do you? Mr. O'SHIVER. No. Senator ERVIN. And you also know as a lawyer that if you just put that money in a bank, it would be covered by Federal deposit insurance, and, therefore, that you couldn't have lost it if the bank had failed, could you? Mr. O'SHIVER. Well, I will tell you. These things started-I was married in 1933. The banks had failed just about that time. We were a little bit leery of the banks, and we started the savings this way, and that is the way we continued them. Senator ERVIN. Well, of course, the banks did fail in 1933. They popped like firecrackers. As a consequence of that, to keep people from losing confidence in the banks, the Congress passed the Federal deposit insurance law, didn't they? Mr. O'SHIVER. I think they did. Senator ERVIN. And you, as a lawyer, knew that from approximately some time around 1934, a law was on the books under which bank depositors were secured against loss by reason of bank failures for $5,000 at first, and subsequently the amount of the insurance was raised to $10,000. You knew that, didn't you? Mr. O'SHIVER. Well, I should have known as a lawyer. |