Evening star., 1936-09-22
RAIL AUDIT HEAD
ADDS TO DEFIANCE
OF SENATE PROBE
G. Eugene Iyey Refuses to
Talk at Labor Espion-
age Inquiry.
MOVE MADE TO LEARN
UNDERCOvER METHODS
Contact Man" Relates That He
Posed as Insurance Agent
and Reporter.
BY JOHN C. HENRY.

Processing TO q poor memory, the
Atlanta manager of the Railway Audit
q Inspection Co. today added to that
concerns defiance of the Senate COM
mittee investigating coercion and
espionage in labor relations, as he
refused fatty to answer when asked
if he had destroyed subpoenaed docu-
ments. Finally, he refused even to
answer questions about any destruc-
ton OF documents on grounds it
might incriminate" him.
The recalcitrant witness, G. Eu-
gene Ivey, finally was excused tenn
porarily to allow the committee to
hear how the detective companies 60
about their undercover industrial ac-
tivities and engage their employe
agents
William H. Gray. describing him.
self as a contact" man, explained
this procedure. Gray said he usually
identified himself as an insurance
agent or q newspaper man in max
ing his inquiries and seeking to add
an employe to his staff.
Questioned on Former Work.
With Gray and Ivey sitting together
on the stand, Chairman La Toilette
then questioned the former on some
work in labor dispute of the Ten
nessee Public Service Co. Confronted
with written evidence in his own hand,
Gray admitted previous testimony in
correct to the effect he was working
for straight salary and received no
commission for signing up undercover
agents.
Ivey was called back later and re-
called in detail the circumstances of
Gray's arrival at the Atlanta Office
about two years ago. He remembered
these distinctly" he said.
The first witness as the committee
resumed its hearing this morning was
Robert P. Wohlforth, secretary to the
committee. He took the stand to in
troduce material on the corporate
structure and fiscal set-up of the audit
company and its several affiliates.
Included in the evidence were in
come tax returns for the company and
the Central Industrial Service Co., an
afhliate. The parent concern reported
increasing profits from 1882 to 1885,
inclusive. the figure ranging steadily
upward from $500, 900 to s4o0, 900.
Much Of the evidence, Wohlfortn
reported. was reconstructed from waste
paper discards. The income tax re-
turns were obtained from the Bureau
of Internal Revenue.
individual Income Returns
Individual income returns for w. W.
Grove, president, showed a range from
about $4,000 in 1882 TO more than
$4,000 in 1885. Both the Railway
Audit and Central Industrial Service
contributed to this income.
w. B. Grove, vice president, had an
income from $4,820 to $9,400 in the
four-year span.
Ivey followed Wohlforth on the
stand, appearing under subpoena. He
said he had been with the company
for four and half years, serving as
| Atlanta manager.
for records on August IL. Ivey testified
he had no records in Atlanta, that
they were all sent TO Philadelphia
headquarters.
Are you aware of the fact that
documents covered by the subpoena
were subsequently found in waste pa
per coming from your building?" asked
Chairman La Toilette.
so am informed" Ivey replied.
For Ivey's information, La Toilette
then handed him a letter from L. D.
Rice, secretary-treasurer of the COM
pany, which had been recovered from
the waste paper basket.
Ivey said he supposed" he must
have received it. but declined to ad-
NIT 1t was in his possession when the
subpoena was served.
A second letter, addressed to "7o0,'
was then submitted.
Ivey said 100" was the Atlanta Of
(See LABOR Pace ADJ