meeting where this was approved both Mr. Rubin and Mr. Baynton attended the General Dyestuff meeting and lent their approval, the approval of their office, to the transaction. Mr. NAIRN. To what extent did the Office of Alien Property participate in the actual determination of the advisability of sale prior to the appearance of Mr. Baynton and Mr. Rubin at the board meeting where the decision was made? Mr. FRYE. Well, I know at one point during these negotiations we heard rumors that Mr. Halbach intended to use this company as a vehicle to go in competition with General Dyestuff, and we were told that the Office of Alien Property investigated those rumors and studied them and came up with the conclusion that there was no foundation for them. Senator DIRKSEN. This might be a good point in the record to clarify this situation. What relationship did Mr. Halbach have to General Aniline? Mr. FRYE. Mr. Halbach, during his employment by General Dyestuff Corp., I guess from the time of vesting up until some time after I came in, was performing the duties of general manager of the General Dyestuff Corp., which was the sales agent for General Aniline Works. He had no connection with General Aniline itself, other than service on a committee of the board on increasing manufacturing facilities. Senator DIRKSEN. He was not an officer, director, or paid employee of General Aniline? Mr. FRYE. No, sir. Senator DIRKSEN. So his whole relationship is with the sales outlet! Mr. FRYE. Yes, sir. Senator DIRKSEN. What was his relationship there to General Dyestuff? Mr. FRYE. Well, he performed, before vesting he was president of General Dyestuff, and after vesting he performed the function up until I would say a year or a year and a half before he retired, of general manager. Senator DIRKSEN. What was his financial interest in General Dyestuffs? Mr. FRYE. Well, his financial interest had been vested. I don't know personally, but I understand it was a majority interest, perhaps over 50 percent. Senator DIRKSEN. So his interest was vested? Mr. FRYE. Yes, sir. Senator DIRKSEN. Is he an American citizen, by the way? Mr. FRYE. I understand he is. Senator HENDRICKSON. Where does he live now, do you know? Mr. FRYE. He had always lived in New Jersey at Short Hills. I assume he still lives there. Senator DIRKSEN. We might pursue one other thing. In your slide yesterday you indicated that 82 or 83 of your top men in the $10,000 bracket or over had left the company, had left General Aniline? Mr. FRYE. Yes, sir. Senator DIRKSEN. Where did they go, by the way? Just give us a general statement. Mr. FRYE. They went all through the chemical industry pretty much. A number went to either old competitors or new companies that set up dyestuff manufacturing. Senator DIRKSEN. Now Eastman Kodak is a competitor. Did some go to Eastman? Mr. FRYE. I don't know of any, sir, that went to Eastman. I have a complete list of them and where they went. Senator DIRKSEN. We might insert that in the record. Mr. NAIRN. That would be a good idea. (The information referred to is as follows:) LIST OF KEY EMPLOYEES GAF-GDC TERMINATING DURING PERIOD FEBRUARY 16, 1942 TO PRESENT MARCH 15, 1953 Part I (employees $10,000 and over, 91) (This section lists all terminations except for death and retirement and shows place of employment immediately after termination.) Part II (employees under $10,000, 36) (This section lists only those terminating employees who are known to have left GAF-GDC to join competitive companies and to associate themselves in those companies with previously terminated employees listed in part I.) |