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Mr. LILIENTHAL. It does have a contract, and Mr. Winne, as I heard his testimony, did not say the thing that you have said in the question.

Senator MCKELLAR. Let me ask you if Justus L. Schlichting, president of the Commerce Clearing House, Public Utilities and Carriers' Service, has a contract in any of his companies with you? Mr. LILIENTHAL. No.

Senator MCKELLAR. You know him very well; do you not?

Mr. LILIENTHAL. I know him. I knew him at the time I had dealings with Commerce Clearing House, and the last I saw of him would be about 1932. But, as far as I know, neither he nor his company have any such contracts.

Senator MCKELLAR. Did you ever give a memorandum as to amount of power that you sold the Alabama Power Co.?

Mr. LILIENTHAL. I said yesterday, Senator, that it would be put in the record, but it has not yet been done.

Senator McKELLAR. And the same with the North Carolina company.

Mr. Chairman, I believe that is all.

Senator KNOWLAND. Have any of the members of the committee any questions at this time?

This will complete the public hearings relative to the nomination by the President of members of the Atomic Energy Commission, and the committee will now stand adjourned.

The committee is holding an executive session this afternoon. (Whereupon, at 11 a. m., the hearing was adjourned.)

APPENDIX

EXHIBIT No. 1

UNITED STATES ATOMIC ENERGY COMMISSION,
Washington 25, D. C., March 4, 1947.
To: Mr. Fred B. Rhodes, Jr., executive director, Joint Congressional Committee
on Atomic Energy.

From: Mr. Joseph Volpe, Jr., deputy general counsel.

Subject: Material requested by Senator McKellar on page 334, volume 6, of the testimony.

Smith case.--Smith was granted an administrative hearing following charges brought by a shop committee of a TVA union. Mr. Melvin Siegel, a member of the legal staff of TVA, assisted in the preparation of the complainant's case. Mr. Smith was represented, at his own request, by Louis Krainock, assistant to the head of the Central Files, the division in which Mr. Smith was employed. The hearing officer was Arthur Jandray. The ruling was made by Gordon Clapp, then Director of Personnel.

Pierce case. The Pierce case originated in the General Manager's office on numerous complaints that Pierce had accepted favors and gratuities from various people and companies. He was reprimanded several times by John B. Blandford, General Manager. Later, on receipt of additional complaints, Blandford referred the case to Clapp for investigation of the complaints. Clapp made arrangements to hear the individuals making the complaints and offered Pierce an opportunity to be present. Pierce refused, Clapp went ahead, sifted the evidence and recommended termination. In this case, neither side was represented, except that after notice of termination, Pierce engaged outside counsel. His attorney wrote Clapp a letter substantially admitting the charges but setting up what in their opinion amounted to mitigating circumstances. The attorney was advised that Pierce would be granted an opportunity to be heard, represented by counsel. The General Manager did not receive a reply to his letter, nor did Pierce or his attorney take any further action.

EXHIBIT No. 2
[Copy]

P. O. Box 1604, KNOXVILLE, TENN., January 31, 1939.

Mr. ROBERT F. HALL,
Secretary, Communist Party,

District No. 17, P. O. Box 1871, Birmingham, Ala.

Dear Comrade ROB: We have had signal success in our latest undertaking to purge the TVA of a reactionary-burgeois supervisor who stood in our way and prevented the expansion of the party control of the employes organization. He was antilabor and his point of view was so repugnant to our ideals that we determined to get rid of him, as further argument seemed definitely hopeless.

We must explain that under the Employe Relationship Policy of the TVA, we were confronted with certain definite obstacles. We presume of course, that the oral reports to you from Comrade Laurent Frantz have covered this in detail. The move was accomplished thru the party fraction of the Files Shop Committee of the Knoxville Lodge of the UFW, it now having been two years since we were overwhelmingly victorious in throwing the AFGE bodily into the UFW in a clever maneuver in 1937, the details of which we assume you heard from Comrades Ted Wellman and Kennneth Malcolm, at the time it occurred.

Comrade John Frantz was selected to bring the charges and was aided magnificently by Comrades Cameron, Miller, Urban and another Comrade whose name will not be mentioned here because of the high position he occupies, but you doubtless know of whom we speak. I, myself, did some work on the matter, but the credit goes to those named above and below.

The skunk, who was the object of our efforts, was James L. Smith, Chief of the Central Files. We took unusual precautions to insure that once we brought the charges that we could make them stick all along the line and this, of course, involved considerable ground work.

But Comrades Abercrombie of the Norris branch and Chairman Borah of the Knoxville TVA branch did a wonderful job of persuasion and were especially diligent and at the same time properly secretive, so as to accomplish the desired end, without disclosing the ultimate and basic objective, to all of whom they had to contact, in order to insure that Smith would receive only a cool reception and no encouragement in his fight against our charges.

Many meetings and conferences had to be held and it was also necessary to consult with Comrades Wellman and Crouch several times on matters of strategy and policy.

In the end we were successful, because today, the 31st, Gordon Clapp, Director of Personnel, signed a previously prepared finding that Smith must be and is removed as head of the central files. Smith is now expected to resign since he has made only a very feeble attempt to defend himself. It is, of course, highly gratifying to know that the party here is just beginning to realize the strength of or ganization and we should be able to expand the party and obtain additional recruits on the fine showing we have made in the Smith case.

All the comrades in the TVA and Norris branches send you and Comrade Taylor our best regards and wishes for future success.

/s/ HENRY C. HART.

Asst. Chr.

P. S.-We received your urgent request regarding distribution of extra bundles of the Daily Worker in the TVA offices and this matter will receive immediate at tention. The best means of distribution which we have employed so far is to put the DW in another paper and deliver it with a nod to the member.

EXHIBIT No. 3

[From the Knoxville Journal weekly feature section, Cavalcade, June 27, 1943]

"THAT SKUNK," KNOX COMMUNIST CALLED NATIVE KNOXVILLIAN WASHINGTON, June 26.-The happiest moment in the lives of the Knox County Communists must have transpired when they conducted a successful "purge" in the TVA of a "reactionary bourgeois supervisor who stood in our way."

The man who stood in their way was a native of Knoxville, James L. Smith, now chief of the Knox County Gasoline and Tire Rationing Board.

The story of how the Communists gloated over "getting" Smith is told in a letter from Henry C. Hart, Jr., still a TVA employee, to Robert F. Hall, secre tary of District 17, Communist Party, Birmingham, Ala. A photostatic copy of this letter lies in the confidential files of the Dies committee here. Hart, who admitted to the Dies committee he had been a Communist but had left the party, in 1940, signed the letter as assistant chairman. The letter was dated January 31, 1939.

Smith resigned as head of the Central Files after charges were brought against him. The text of Hart's letter of exultation follows:

Mr. Robert F. Hall,

P. O. Box 1604, KNOXVILLE, TENN., January 31, 1939.

Secretary, Communist Party,
District No. 17, P. O. Box 1871,

Birmingham, Alabama.

Dear Comrade Rob: We have had signal success in our latest undertaking to purge the TVA of a reactionary-bourgeois supervisor who stood in our way and prevented the expansion of the party control of the employes organization. He was antilabor and his point of view was so repugnant to our ideals that we determined to get rid of him, as further argument seemed definitely hopeless. We must explain that under the Employe Relationship Policy of the TVA, we were confronted with certain definite obstacles. We presume, of course, that the oral reports to you from Comrade Laurent Frantz have covered this in detail. The move was accomplished thru the party fraction on the Files Shop Committee of the Knoxville Lodge of the UFW, it now having been two years since we were overwhelmingly victorious in throwing the AFGE bodily into the

UFW in a clever maneuver in 1937, the details of which we assume you heard from Comrades Ted Wellman and Kenneth Malcolm, at the time it occurred. Comrade John Frantz was selected to bring the charges and was aided magnificently by Comrades Cameron Miller, Urban, and another Comrade whose name will not be inserted here because of the high position he occupies, but you doubtless know of whom we speak. I, myself, did some work on the matter, but the credit goes to those named above and below.

The skunk, who was the object of our efforts, was James L. Smith, Chief of the Central Files. We took unusual precautions to insure that once we brought the charges, that we could make them stick, all along the line and this of course, involved considerable ground work.

But Comrades Abercombie of the Norris branch and Chairman Borah of the Knoxville TVA branch did a wonderful job of persuasion and were especially diligent and at the same time properly secretive, so as to accomplish the desired end, without disclosing the ultimate and basic objective, to all of whom they had to contact, in order to insure that Smith would receive only a cool reception and no encouragement in his fight against our charges.

Many meeings and conferences had to be held and it was also necessary to consult with Comrades Wellman and Crouch several times on matters of strategy and policy.

In the end we were successful, because today, the 31st, Gordon Clapp, Director of Personnel, signed a previously prepared finding that Smith must be and is removed as head of the central files. Smith is now expected to resign since he has made only a very feeble attempt to defend himself, it is, of course, highly gratifying to know that the party here is just beginning to realize the strength of organization and we should be able to expand the party and obtain additional recruits on the fine showing we have made in the Smith case.

All the comrades in the TVA and Norris branches send you and Comrade Taylor our best regards and wishes for future success.

/s/ HENRY C. HART,

Asst. Chr.

P. S.-We received your urgent request regarding distribution of extra bundles of the Daily Worker in the TVA offices and this matter will receive immediate attention. The best means of distribution which we have employed so far, is to put the DW in another paper and deliver it with a nod to the member. NOTE. Boldface indicates matter which was indicated in colored pencil on original.

(Sender :)

HOUSE OF REPRESENTATIVES

MUNICATIONS COMMISSION

(Free)

(Addressee:)

Ollie C. Osborne,
City Detective,
Police Department,
Birmingham, Ala.

EXHIBIT No. 4
[Envelope]

SELECT COMMITTEE TO INVESTIGATE FEDERAL COM

(Facsimile) E. E. Cox, M. C.

(Dated :) Jul 16 12:30PM 1943 Washington, D. C.

EXHIBIT No. 5

[From the Knoxville (Tenn.) News-Sentinel]

REDS WERE FOUND ON STAFF OF TVA, DIES AIDE SHOWS

COMMITTEE FILES CONTAIN LETTER FROM HENRY C. HART, JR., CLAIMING COMMUNISTS GOT JAMES L. SMITH FIRED

Special To The News-Sentinel

WASHINGTON, July 26.-That the Dies Committee did find 55 Communist Party members in their investigation of the TVA area six years ago was verified today by Robert Stripling, chief of the Dies staff.

"We did not make the names public, but certainly expected TVA to see that Communists were purged from its staff," Mr. Stripling said.

Instead, the committee files contain a letter from Henry C. Hart, Jr., TVA personnel employe, claiming that the Communists were instrumental in getting James L. Smith, native Knoxvillian, fired from TVA. Mr. Smith now heads the Knox County ration board.

The Hart letter was addressed to Robert F. Hall, Communist Party secretary at Birmingham, Ala. It is dated from Knoxville, Jan. 31, 1939, and reads:

"DEAR COMRADE ROB: We have had signal success in our latest undertaking to purge the TVA of a reactionary-bourgeous supervisor who stood in our way and prevented the expansion of the party control of the employes organization. He was anti-labor and his point of view was so repugnant to our ideals that we determined to get rid of him, as further argument seemed definitely hopeless. "We must explain that under the Employe Relationship Policy of the TVA, we were confronted with certain definite obstacles. We presume of course, that the oral reports to you from Comrade Laurent Frantz have covered this in detail.

"The move was accomplished thru the party fraction on the Files Shop Committee of the Knoxville Lodge of the UFW, it now having been two years since we were overwhelmingly victorious in throwing the AFGE bodily into the UFW in a clever maneuver in 1937, the details of which we assume you heard from Comrades Ted Wellman and Kenneth Malcolm, at the time it occurred. "Comrade John Frantz was selected to bring the charges and was aided magnificently by Comrades Cameron, Miller, Urban, and another Comrade, whose name will not be mentioned here because of the high position he occupies, but you doubtless know of whom we speak. I, myself, did some work on the matter, but the credit goes to those named above and below.

"The skunk, who was the object of our efforts, was James L. Smith, Chief of the Central Files. We took unusual precautions to insure that once we brought the charges, that we could make them stick all along the line and this, of course, involved considerable ground work.

"But Comrades Abercrombie of the Norris branch and Chairman Borah of the Knoxville TVA branch did a wonderful job of persuasion and were especially diligent, and at the same time properly secretive, so as to accomplish the desired end without disclosing the ultimate and basic objective to all of whom they had to contact, in order to insure that Smith would receive only a cool reception and no encouragement in his fight against our charges.

"Many meetings and conferences had to be held and it was also necessary to consult with Comrades Wellman and Crouch several times on matters of strategy and policy.

"In the end we were successful, because today, the 31st, Gordon Clapp, director of Personnel, signed a previously prepared finding that Smith must be and is removed as head of the central files. Smith is now expected to resign since he had made only a very feeble attempt to defend himself.

"It is, of cours, highly gratifying to know that the party here is just beginning to realize the strength of organization and we should be able to expand the party and obtain additional recruits on the fine showing we have made in the Smith

case.

"All the comrades in the TVA and Norris branches send you and Comrade Taylor our best regards and wishes for future success.

"HENRY C. HART,

"Asst. Chr.

"P. S. We received your urgent request regarding distribution of extra bundles of the Daily Worker in the TVA offices and this matter will receive immediate attention. The best means of distribution which we have employed so far is to put the DW in another paper and deliver it with a nod to the member." The Dies files carries this description of Mr. Hart:

"Henry C. Hart, Jr., native of India, employed in TVA personnel department at time he testified before Dies subcommittee at Chattanooga, July 17, 1940, residence than 230 Keeble Street. Started with TVA in 1936. Very active in Communist or near-Communist circles, joined Communist Party in Knoxville in summer of 1937 and left in January of 1939. Still employed by TVA and lives on Holston Hills Road. Solicited to enter party by Ted Wellman, state secretary, and by Catherine Buckles, a TVA employe."

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