I have two letters, one dated June 1, 1955, and the other October 12, 1952, from the Philadelphia Uniform Co., relating to the same matter. I will let them be made exhibits 55 and 57. (Exhibit Nos. 54, 55, 56 and 57 may be found in the files of the subcommittee.) Before the chairman calls the next witness, he wishes to insert in the record as exhibit 58 a letter received by the committee on June 6, 1955, from R. J. Arnold, rear admiral, SC, USN, Chief of the Bureau. This letter was addressed to the chairman and relates to some of the subject matter under investigation. It will be made the next exhibit number, No. 58. This letter gives a breakdown of the contracts on which the Government, the Navy, is asserting a claim against the Mid-City Uniform Co., or Harry Lev's company, on contract No. TAP-8122. Without reading all of it, it lists five items on which they are filing a claim, and the total claim that the Navy is making against Mr. Lev on these contracts, on this white hat contract, is $184,481.30. It shows that payments apparently withheld amounted to $41,717.06. This letter may be printed in full in the record. (Exhibit No. 58 will be found in the appendix on p. 1139.) (At this point Senators Mundt and Symington entered the hearing room.) The CHAIRMAN. The Chair has consulted with the majority of the members of the committee with respect to some testimony taken in executive session, making it public, releasing it, and also making it a part of this public record. Captain Wool, who testified a few days ago, and whose wife had previously testified in executive hearings, indicated that his wife's condition was such that she probably would not be able to appear at these hearings and testify in public and, therefore, with the consent of the majority of the committee members, the Chair makes public the testimony that Mrs. Wool gave in executive session, and makes it a part of this public hearing. The Chair will not take time to read the testimony into the record. It can all be printed in the record as a part of these proceedings. Those who are interested in it will have to inspect the transcript of it at their convenience when they have the opportunity. (See p. 671 of this volume.) The CHAIRMAN. Is there anything else? Is Mr. Harry Lev in the room? Mr. Lev, if you will come around, please. Will you be sworn? You do solemnly swear that the evidence you shall give before this Senate Investigating Subcommittee will be the truth, the whole truth, and nothing but the truth, so help you God? Mr. LEV. Yes, sir. TESTIMONY OF HARRY LEV, CHICAGO, ILL., ACCOMPANIED BY HIS COUNSEL, ROBERT C. PIERCE, CHICAGO, ILL. The CHAIRMAN. You may have a seat. Please state your name. Mr. LEV. My name is Harry Lev. The CHAIRMAN. What is your residence, Mr. Lev? Mr. LEV. Manufacturing uniform caps. The CHAIRMAN. Mr. Lev, you have consulted with members of the staff of this committee in the past and know the subject matter of this investigation and have a general idea of the line of interrogation that will be followed, have you? Mr. LEV. Yes, sir. The CHAIRMAN. Having that information, have you elected to be represented by an attorney in the course of these hearings? Mr. LEV. Yes, sir. The CHAIRMAN. He accompanies you here? Mr. LEV. Pardon? The CHAIRMAN. Your attorney accompanies you here? Mr. PIERCE. Robert C. Pierce, Chicago. The CHAIRMAN. Mr. Counsel, you may proceed. Senator BENDER. Before he proceeds, I would like to question what he does. He says he manufactures caps. Mr. Lev, I understand you are a millionaire. You have many other interests? Mr. LEV. Pardon? Senator BENDER. You are a millionaire; you have many other interests? Mr. LEV. I didn't get you. Senator BENDER. Mr. Lev, you are a millionaire; you have many other interests in addition to manufacturing caps? Mr. LEV. I don't know anything about being a millionaire. Mr. LEV. I wouldn't say. It all depends. Senator BENDER. What do you mean, it all depends? How does it depend? Mr. LEV. It all depends on what you think a millionaire is. Mr. LEV. I don't know what it is. The only thing I know is that I have been spending all my life since I was a kid of fourteen and a half years old, I started up with my father Senator BENDER. We know about your life. Mr. LEV. Oh, you do? Senator BENDER. Yes. You are a successful self-made man. Mr. LEV. Thank you. Senator BENDER. And you are a big-business man? Mr. Lev. All right; thank you. Thanks for the compliment. Senator BENDER. You are a millionaire? Mr. LEV. It all depends on what you mean by a millionaire, Senator. Senator BENDER. A millionaire is a man who is very rich. Mr. LEV. Well, I wouldn't say that. Maybe there are some other outside sources may think I am a millionaire, but as far as I am concerned, I am a man, just as good as the average. Senator BENDER. I am not questioning your manhood. I do not question your veracity or anything else. I say you are a very rich man. Mr. Lev. All right, but I am not a millionaire as far as character is concerned. (At this point Senator Ervin entered the hearing room.) Senator BENDER. We will take that for granted. That is your comment. We are not making that comment. I mean, as far as money concerned, you are a millionaire? is Mr. LEV. Money is not everything to me. Accomplishment, Senator, is more than money. Senator BENDER. I agree with you on that, too. But you have accomplished a great deal in your life. That is, in addition to being a cap manufacturer, you have other business interests, do you not? Mr. LEV. Yes, sir. Senator BENDER. And you have extensive real estate holdings? Senator BENDER. Who owns it? Mr. LEV. My estate. Senator BENDER. You have made it available to your estate? Senator BENDER. So that you really are a millionaire? Mr. LEV. I still don't say as far as my character is concerned, as far as I am concerned Senator BENDER. We are not talking about your character. We are talking about your wealth. Mr. LEV. My wealth? Well, I am not considered to be a millionaire. Senator BENDER. What do you consider to be a millionaire? Mr. LEV. Senator, I do not know what you actually are explaining to me, to be a millionaire. Senator BENDER. You are a very rich man? Mr. Lev. Called that way, it is all right. There is nothing wrong with that, is there? Senator BENDER. Nothing. I am just trying to establish that you are a self-made man, a man of wealth, a man with position; is that correct? Mr. LEV. Yes, sir. Senator BENDER. And you have other interests besides manufacturing caps? Mr. LEV. Yes, sir. Senator BENDER. What else do you manufacture? Mr. LEV. What I manufacture? Senator BENDER. Yes. Mr. LEV. Uniform caps. Senator BENDER. In addition to the caps? Mr. LEV. In addition to the caps? Senator BENDER. Yes. Mr. LEV. Citation hats. Senator BENDER. What is a citation hat? Mr. LEV. Citation hat means a hat every person wears, civilians. Senator BENDER. For men? Mr. LEV. Yes. Senator BENDER. And boys? Mr. LEV. No-boys, too, uniform caps and civilian wear, yes. Senator BENDER. How about ladies' ready-to-wear? Do you manufacture any ladies' ready-to-wear? Mr. LEV. No, sir. Senator BENDER. Any ladies' goods at all? Mr. Lev. During the war we used to make caps for the Marine Corps WACS. Senator BENDER. For the WACS and the WAVES? Mr. LEV. Yes, sir. Senator BENDER. What other business do you have? Mr. LEV. I was in the billboard business. Senator BENDER. You have a billboard business? Senator BENDER. Did you sell that out? Mr. LEV. Sell it out, yes. Senator BENDER. How much did you make on that? Senator BENDER. How much did you have to start with before you lost it? Mr. LEV. Pardon? Senator BENDER. How much was it worth? Mr. LEV. I paid $20,000. Senator BENDER. In addition to the billboard business, what else do you do? Mr. LEV. I was at one time in the clothing business, forest clothes. I lost approximately about thirty-five to forty thousand dollars. Senator BENDER. You had a lot of money to lose that. That did not seem to faze you. So you are a millionaire ? It did not seem to bother you too much. Mr. LEV. I am not a millionaire as far as money is concerned. Money does not bother me a bit. Senator BENDER. But you established an estate, did you not, for your family? Mr. LEV. Yes, sir; trust. Senator BENDER. How much is in trust? Mr. LEV. $1,400,000, subject to mortgage. Senator BENDER. Now, that is what I have been trying to get you to say. You see, you are a millionaire, you placed that money in trust for your family. Mr. LEV. I also have a mortgage on it. The estate has a mortgage on it. Senator BENDER. How much is the mortgage? Mr. LEV. There was $800,000. It is possibly right now about $600,000. Senator BENDER. Mortgage? Mr. LEV. Yes, sir. Senator BENDER. On $1,400,000? Mr. LEV. Yes, sir. Senator BENDER. You have some wealth besides that, have you not? Mr. LEV. Yes, sir. Senator BENDER. You own some property, some real estate? Mr. Lev. I own the plant in Chicago. Senator BENDER. Who owns the mortgage; I mean on the trust? Mr. LEV. The insurance company. Senator BENDER. In addition to that, you own real estate? Mr. LEV. The factory. Senator BENDER. How much is the factory worth? Mr. Lev. Maybe it is worth about $200,000 or so. I paid $175,000. Senator BENDER. What else do you have in the way of real estate? Mr. LEV. That is all. Senator BENDER. You have your own home? Mr. LEV. My home, yes. Senator BENDER. How many homes do you have? Mr. LEV. I have one. Senator BENDER. Where else do you live? Mr. LEV. Where else? Mr. LEV. Puerto Rico. Senator BENDER. When you go away? Mr. LEV. Puerto Rico. Senator BENDER. You have a home there, too? Mr. LEV. Not a home; just an apartment, rented. Senator BENDER. You own some real estate there, too? Mr. LEV. No, sir. Senator BENDER. Do you not own that manufacturing company there? Mr. LEV. Not the plant; no, sir. Senator BENDER. Who owns the plant? Mr. LEV. The Puerto Rican Government. We rent it. Senator BENDER. How much do you have in the way of equipment there? Mr. LEV. This is something to it is pretty hard for me actually, Senator. The only thing you could do is ask Colonel Painter. He would give you actual figures. Senator BENDER. Is he in business with you? Mr. LEV. Yes, sir. Senator BENDER. You have a quarter of a million dollars in that plant? Mr. LEV. Approximately, about. Senator BENDER. About a quarter of a million dollars? Mr. LEV. Machinery, yes. Senator BENDER. Machinery? Mr. LEV. Yes, sir. Senator BENDER. What other plants do you have in various parts of the country? Mr. Lev. Well, we have a plant in Chicago. Senator BENDER. One in Chicago? Mr. LEV. Yes, sir. Senator BENDER. Do you own the real estate there? Mr. LEV. Chicago? Senator BENDER. Yes. Mr. LEV. The plant? Senator BENDER. Yes. Mr. LEV. Clarify me, Senator. Senator BENDER. Is that a corporation? Mr. LEV. It is a corporation, yes. Senator BENDER. You own the stock? Mr. LEV. Not right now. Senator BENDER. Who owns the stock, your family? Mr. LEV. Yes, my family. Senator BENDER. Your family owns it, but you turned it over to them? |