Evening star., 1937-01-25
|U.S. INDUSTRY PAYS.
bic FOR HARMONY
Corporations Auxiliary Co.
Got $780, 600 in Three
Years, Inquiry Shows.
BY JOHN C. HENRY.


Corporations Auxiliary Co., pro-
moters of harmony and happiness in
industry" received $l.750,0l9 from
big business concerns from January
/, 1888, to November /. 1885, evidence
before the Senate Civil Liberties
Committee showed today.
James H. Smith, $4,000 president
of this and numerous subsidiary COM
panies, told the committee his enter
prises deal exclusively with the
human element"
If you were a manufacturer, Sena-
tor, I could sell 1t to you," Smith said
at one point.
In the list of 499 clients Of Corpora
tions Auxiliary in IS groups Of indus
tries in 10 States were the following
principal ones:
Chrysler Corp. (23 plants), General
Motors Corp. and subsidiaries u3
plants, Electric Auto-Lite Co., Kelsey
Hayes Wheel Co.. Midland Steel
Products Co., American Medicinal
Spirits Co., Quaker Oats Co., Great
Lakes Steel Co.. Wheeling Steel Corp,
International Shoe Co., Crane Co..
Kelvinator Corp, Mergenthaler Limo
type Co., Firestone Tire Rubber Co.,
New York Edison, Postal Telegraph l.
Cable, Radio Corp. Of America. Under
wood Elliott Fisher Co. and the Texas
| Corp.
Chrysler Corp. had from 81 to 7s
| operatives Of Corporations Auxiliary
In its plants from 1884 through 1885,
records OF the latter concern showed.
General Motors over the same period
used 81 to 35 agents.
Justice Department Complaint.
A verbal complaint against the labor
relations policies Of the Department OF
Justice has been made to the commit
tee, Chief Investigator Robert Wohl-
forth said today. However, no action
is contemplated unless the charges are
filed formally in writing.
In brief, the accusations were to the
effect the department has practiced
intimidation of union organizers.
Smith, today's first witness. told the
committee he is president of some half
a dozen companies incorporated in
various States under the name Of
Corporations Auxiliary. He said he
also heads several amusement COM
panies. among them the Beehive and
Kiddyland companies. and Is q prac-
| ticing attorney.
The committee evinced considerable
interest in occasional use by Smith and
his associates of dummy letterheads
for such non-existent companies as
Atlantic Production Co. and Allied Pro-
duction Co. These were used in en-
ploying individuals on certain occa-
sions. Smith said
The principal purpose of his COM
panies, Smith said, was to maintain
harmony in industry. We're interested
only in having everybody working
shoulder to shoulder with perfect
harmony"
| No Engineers on StaR.
Il think we've been exceedingly
successful" Smith answered when
asked to what degree his services have
promoted efficiency and harmony" in
|
few labor troubles"
Asked about company advertising
of a consulting engineers" service,
Smith admitted that no real engineers
are on the STATS of his companies.
Turning to finances of the Smith
enterprises, Chairman La Toilette sub
mitted gross income figures for five
operating companies showing totals
of s284,s47 in 1888, s4se.1s1 in 1884
and $5l8,215 in 1888.
Smith said his own income was a
salary of $4,000 yearly from each of
the five companies. plus possible divi-
dends. In 1885. though he said he
collected only about $4,000. His
general manager, Dan G. Ross, is listed
for a salary of s12,500 yearly from
each concern with "a little bonus
arrangement"
Chrysler Paid OF Big.
The Chrysler Motor Co. is the larg-
est of about 200 clients, Smith said,
whereupon La Toilette submitted for
the record the invoices Of payments
by Chrysler to Smith companies.
In 1888. this payment was s61, ,627
and in 1884, it was $76,4ll, both to
the corporations auxiliary company.
In 1885, the payment was divided to
four Smith companies and totaled
$72,611.
Among the latter was q payment Of
$19,447 to the law firm Of Smith and
Weber, although the witness said he
could recall no legal service to
Chrysler.
The Equitable Auditing & Publish
ing Co. was listed for $16,sl0 in the
1885 total.
Smith finally said all these pay
ments were for services of the corpo-
ration's auxiliary company.
Clients Asked for Billing Method.
why was Chrysler billed in this
way in 1885, but not previously"
"I guess because our clients asked
it." Smith answered as La Toilette
angrily asked him to testify without
reservation.