Mr. LEV. They have done, as I mentioned--we had the contract of three hundred eighty-some thousand garrison caps to make. Senator BENDER. What else did you make?

Mr. LEV. Nothing.

Senator BENDER. That was a company set up especially for that contract?

Mr. LEV. That is all.

Senator BENDER. Yesterday you listed some of the corporations that you own. I think you left out the Stay-well Manufacturing Co., didn't you?

Mr. LEV. Well, I believe maybe.

Senator BENDER. What is the Stay-well Manufacturing Co. ?

Mr. LEV. The Stay-well Manufacturing Co. is my own company. We are manufacturing over there, visors. We are the only cap manufacturer in the United States, and I broke up the entire combination as far as Government is concerned, and it resulted substantially in millions and millions and millions of dollars.

Senator BENDER. Except to Mr. Lev?

Mr. LEV. Well, I wouldn't say to Mr. Lev. To the Government, too. I will give you an example.

Senator BENDER. You don't have to draw any pictures for me. I understand without your drawing pictures.

Mr. LEV. No, I just wanted to show what it is.

Senator BENDER. Well, tell me.

Mr. LEV. Senator Bender?

Senator BENDER. I know what a visor is. I have been in the department store business for a long time myself. I know what a visor is. Mr. LEV. Uniform?

Senator BENDER. I know. I know exactly what a visor is.

Mr. Lev. O. K. That is all right.

Senator BENDER. But what is the Stay-well Manufacturing Co.? Mr. LEV. The Stay-well Manufacturing Co. is making visors for

all kinds of uniform caps, including Government.

Senator BENDER. Where is headquarters for this business?

Mr. LEV. At 2330 West Cermack Road, Chicago.

Senator BENDER. Is it a subsidiary or a separate company?

Mr. LEV. A separate company.

Senator BENDER. But you own it?

Mr. LEV. I do.

Senator BENDER. Who are the officers of that company?

Mr. LEV. My wife and myself.

Senator BENDER. How many employees do you have at Stay-well? Mr. LEV. At Stay-well, as of now, we have approximately 3 or 4. Senator BENDER. Approximately 3 or 4?

Mr. LEV. Yes, and maybe five.

Senator BENDER. What is your production?

Mr. LEV. Well, we are making for commercial work right now. We are manufacturing grommets, and we are manufacturing also visors of all kinds.

Senator BENDER. That is all for now.

Mr. KENNEDY. Could you tell the committee who Captain Eichelberger is?

Mr. LEV. Who?

Mr. KENNEDY. Captain Eichelberger.

Mr. LEV. Captain Eichelberger?

Mr. KENNEDY. Do you know Captain Eichelberger?

Mr. LEV. That is very strange to me.

Mr. KENNEDY. He is a major in the Marine Corps. Do you know a Major Eichelberger, a major in the Marine Corps? Mr. LEV. No; that name is very strange to me.

Mr. KENNEDY. Would you identify this letter? (Document handed to witness.)

Mr. KENNEDY. The only paragraph I am interested in, again, is the last one on the first page.

(Witness conferred with his counsel.)

The CHAIRMAN. For the record, does the witness identify the letter? Mr. LEV. I do. I identify the letter. That Eichelberger, I might know him, but I cannot recall him at all. It must be a long, long time. The CHAIRMAN. This letter dated August 26, 1953, addressed to "Dear Pop," signed by "Bernie"-that is your son-in-law?

Mr. LEV. That is my son-in-law.

The CHAIRMAN. You recognize it?

Mr. LEV. Yes, sir.

The CHAIRMAN. It may be made exhibit No. 63.

(Exhibit No. 63 may be found in the files of the subcommittee.) Mr. BELLINO. The later dated August 26, 1953, the last paragraph on the first page [reading]:

There is a Captain Eichelberger who, to my recollection, sends in orders every year for FREE

F-R-E-E in caps

FREE caps for himself, and you always O. K.'d this. This year was no excep tion. And he had the nerve to order 3 service caps, 1 each in fur felt, suntan gabardine, and chino khaki, and also 1 officer's overseas cap. Knowing that you have taken care of him before, I put the orders through to the specifications he listed. Now he has returned the caps stating that he gave us the wrong size and wants them replaced with the correct size! You know, Pop, I don't mind taking care of some of these guys, but I sure think he has a helluva lot of nerve. Since I don't know just how friendly you are towards him, I am not going to put through the replacement order until you tell me to. As I said, I put through the original order based on past experience, but when this jerk sent them back and wants new ones because he doesn't know what size he wears, I won't take care of him unless you tell me to do so. Please let me know about this.

The CHAIRMAN. Did you have him take care of him?
Mr. LEV. I told my son verbal to forget it.

The CHAIRMAN. How about the other times you had taken care of him, how many times?

Mr. LEV. Well, I wouldn't remember exactly, because the man in here now I can recall. He is a young fellow. I do not remember. During the war he was in the Philadelphia Quartermaster, but I do not know what position he was. He liked our cap, and at that time I charged him $2.50 apiece actual cost of overhead. From that time on, it seems to me, like the way my son-in-law Bernie says, every year, at least, I am not aware of it.

(At this point, Senator Ervin withdrew from the hearing room.) Mr. LEV. The way he says, "Dear Pop." That is right. My son-inlaw wrote me "Dear Pop.'

The CHAIRMAN. You hadn't forgotten that?
Mr. LEV. I couldn't forget.

The CHAIRMAN. Anyway, he says there you have been taking care of him in the past, and the letter says for free. What does that mean, for free?

Mr. LEV. Free? Free means no charge at all.

The CHAIRMAN. Well, that had been your practice with this officer? Mr. LEV. It looks like it.

The CHAIRMAN. It looks like it now, doesn't it?

Mr. LEV. I remember him just like through a dream.
The CHAIRMAN. You remember him like a dream?

Mr. LEV. Through a dream, like a dream.

The CHAIRMAN. Just what was the connection there that was so favorable, so intimate and friendly, that you felt some obligation or that it was to your advantage to furnish him caps for free? Give us a little light on that.

Mr. LEV. Let me explain you about this here, Mr. Chairman.
The CHAIRMAN. Let you figure about it?

Mr. LEV. Let me explain you about this.

The CHAIRMAN. All right, I am willing.

Mr. LEV. To me a cap amounts to as much as the ashes of a cigarette. The CHAIRMAN. I don't understand. What?

Mr. LEV. To me, a cap amounts to as much as the ashes of a cigarette. The CHAIRMAN. To you, a cap amounts to as much as ashes of a cigarette?

Mr. LEV. That is right.

The CHAIRMAN. All right. Let's go on from there.

Mr. LEV. But if he had the nerve to write and asking for a free cap, I do not remember that I O. K.'d him. However, according to my son-in law's letter, it seems to me like he was getting every year. I think, and I maybe I am not correct on it, I believe approximately that I knew him in 1942, I was met him, in 1942. He always liked the cap, the way the Mid City makes caps. He wanted to have a certain shape and so forth and so on.

The CHAIRMAN. You became acquainted with him, as I understand you, in 1942?

Mr. Lev. 1942.

The CHAIRMAN. And 11 years later he is still demanding caps for free. How many caps did you give him over that period of time? Mr. LEV. I would not know, Mr. Chairman.

The CHAIRMAN. Well, don't be exact, but approximate.

Mr. LEV. Pardon?

The CHAIRMAN. If you cannot be exact, can you approximate the number?

Mr. Lev. If I would tell you that, I couldn't possibly tell you the truth, because I do not know.

The CHAIRMAN. Mr. Lev, is it a fact that it is such a custom and general practice with you in dealing with Government officials in the procurement services that you constantly handed out gratuities and favors of one kind and another to the extent that now you can't remember the individual instances, is that correct?

Mr. LEV. Well, I do not know whether he wears them 2 or 3 years at a time, or whether he wears every year. The way he says in here is every year. I cannot recall that at all.

62915-55- 46

The CHAIRMAN. I mean, it is such a common practice with you in the transaction of business with Government officials that you do so much of it that you can't recall the specific instances?

Mr. Lev. No. I usually charge for it. But how come he got away with that free, that is something strange to me.

The CHAIRMAN You were O. K.'ing it, your son-in-law says.

Mr. LEV. Well, I do not deny it, but it is really foreign to me, why I would O. K. them.

The CHAIRMAN. I don't know. That is what we are trying to find

out.

Mr. Lev. It is not common practice with me.

Senator BENDER. Mr. Chairman, in listening to that letter the way it was read, it referred to his friends.

He didn't know how friendly you were. How friendly were you and to how many? How many of these gratuities did you give? How many were on your friendly list?

Mr. LEV. Senator Bender, I worked for the Government approximately 20 or 21 years. I couldn't help it to say hello, or people say hello to me, and so forth and so on.

Senator SYMINGTON. Why don't you answer the question?

Mr. LEV. The question is what?

Senator BENDER. How many hats did you give?

Mr. Lev. How can I go ahead, Senator Bender, to know exactly? Senator BENDER. Well, would you say thousands?

Mr. Lev. Oh, no.

Senator BENDER. How many friends did you have in the military who looked after you and you looked after them in this way? Mr. LEV. Do you mean for a cap?

Senator BENDER. For caps or anything else.

Mr. LEV. Oh, no.

Senator BENDER. Just tell me how many. Bernie said about this man, he didn't know whether he was one of the friendly fellows. How many friendly men did you have in various military services that you provided for?

Mr. LEV. Senator Bender, I cannot recall how many it is. I can't. It is impossible.

Senator BENDER. Guess.

Mr. LEV. Well, maybe 10 or 15.

Senator BENDER. Fifty?

Mr. LEV. No.

Senator BENDER, One hundred?

Mr. Lev. No, sir; it can't be that many.

Senator BENDER. Why did you give them these caps?

Mr. LEV. Why did I give them the caps? I am sure there are a lot of them are charged for. It is not all of them got free. That I am sure of.

Senator BENDER. You are just a goodhearted soul?

Mr. LEV. Well, Senator Bender, as you mentioned it before, I admit. I admit that I am goodhearted and I think maybe-not maybe, but I realize right now that I am goodhearted maybe to the wrong people,

too.

Senator BENDER. You said you were goodhearted to Captain Wool. You sent caps to him?

Mr. LEV. No, sir. I have never given one

Senator BENDER. Well, your testimony is that you have.

Mr. LEV. Testimony?

Senator BENDER. Not your testimony, but the testimony of the captain indicates that you sent him hats.

Mr. LEV. I did not. I did not.

Senator BENDER. Did you send them to Rubin to give to Wool?

Mr. LEV. No, sir. I never did. I certainly deny this in here because I never did. I only know the man as much as maybe 3 or 4 times the most, and on official business.

Senator BENDER. What was the official business?

Mr. LEV. Official business about the white hats. Now let me explain you, Senator Bender.

Senator BENDER. You knew him enough to give his wife $5,000, didn't you?

Mr. LEV. I have never. I definitely deny it. Because I never give it to her. I never give it to her.

Senator BENDER. Wasn't Rubin your contactman with Wool?

Mr. LEV. If he would told me that he knows at that time Wool, I would definitely drop him like a hot potato, because if I cannot get a contract on my own merits, I do not want them.

Senator BENDER. You have heard about this business here. You haven't dropped Mr. Rubin like a hot potato yet, have you?

Mr. LEV. That is why I am considering to sell my interest.

Senator BENDER. I say, you are on friendly terms, and you have a business relationship now with Mr. Rubin?

Mr. LEV. Not as I used to be, because after all the paper, what happened in the paper, I am friendly to that extent until I wan to sell out my end that is all.

Senator BENDER. When did you last pay Ruben money?

Mr. LEV. I have never given one cent.

Senator BENDER. To Mr. Rubin?

Mr. Lev. To Mr. Rubin personal.

Senator BENDER. Who did in your company?

Mr. LEV. In my company? Nobody.

Senator BENDER. In any one of your companies?

Mr. LEV. Nothing.

Senator BENDER. Who paid Mr. Rubin's salary?

Mr. LEV. Spencer Manufacturing Co.

Senator BENDER. Isn't that your company?

Mr. LEV. But let me explain you, Senator Bender. He has never got from me one cent, personal.

Senator BENDER. You are very adroit in answering questions, and you certainly operate in a rather mysterious way, your wonders to perform, but you find some way of evading a nanswer to a question. Mr. LEV. I am not trying to. Senator Bender, I am sorry.

Senator BENDER. Your business partner is Rubin. Rubin receives a salary from a company that you are a majority stockholder of. Mr. LEV. I am not a majority stockholder of. I am not. Senator BENDER. You are a substantial stockholder?

Mr. LEV. I am 45 percent, which is substantial; yes, sir.

Senator BENDER. But you did have majority control of that company?

Mr. LEV. At one time; yes.