Evening star., 1942-03-23
bonuses in l941. Several checks for
amounts up to $500 were deposited

amounts up to $500 were deposited
to Mr. Lakes wife's bank account.
The checks, Mr. Lake said, were put
down on the books as additional
compensation"
This month, Mr. Lake said, he has
received a bonus of $1,000.
Can you give any valid reason
for this?" asked Mr.. Toland.
Long hours and hard work" re-
piled Mr.. Lake
Notwithstanding you earned ST.
400 year up to August, l940?" asked
Mr. Toland.
That's right" replied the con-
troller
Mr.. Lake testified that no part
of the money received had ever
been returned to Mr.. Jack.
The witness affirmed, in response
to Chairman WILSON'S question, that
the more the expense of manufac-
turing an article through bonuses
and the like, the less excess profits
taxes would have to be paid
Mr., Toland brought out that on
December 20. l941. the firm paid
out $537.3l2 in bonuses to employees
Asked Expansion Loan.
THE money all came from the
Government said Chairman Vim
son. To keep your profits down
you pay these large bonuses"
Not necessarily replied Mr.
Lake.
He explained that the firms
profits were about u per cent and
that it would have been 20 per cent
without payment of the bonuses.
Mr. Lake said that through the
payment OF the bonuses the indi-
vidual would pay income taxes in
stead of the corporation.
But they won't pay as much, +"
Chairman Vinson commented The
record shows also that the company
has asked for plant expansion loan
of 100000 and at the same time
large amounts have been paid out
in bonuses"
Mr.. Toland told the committee
that the firm last June had esti-
mated the unit cost of the starters
at $272, but that the Navy pays
$500 per unit
The Navy Department asked for
reduction in the contract price" :"
said Mr.. Toland, and the company
declined. The Navy bought 8l9
starters at 5000 a piece"
Harry Yoxtheimer, former War
Department civilian employe at
Wright Field, Dayton, Ohio, testi-
fled earlier he went to work for
Jack & Heintz November Is, and
received a $4,000 bonus check less
than two months later.
Bonus a Surprise"
The bonus came as a complete
surprise" he added
Mr.. Yoxtheimer said he left his
$4,000 Government job to take
s3,600-a-year offer from Jack &
Heintz, for whom he said he had
prepared a Government loan form
calling for 100000 for plant ex-
pansion October 10. He is assistant
controller of the firm.
His salary was increased to $4,000
on December / and is now $4,000,
Mr.. Yoxtheimer said, adding that
he had also received additional
bonuses amounting to $1,1O0.
There's no need to keep up with
your salary" Mr. Vinson COM
mented, when you get all these
bonuses"
$4,000 in 43 Days.
The witness said he merely took
what was offered to him.
Mr.. Yoxtheimer admitted that he
was aware that bonuses were added
to the cost of the article made,
and said he also knew that the
higher the cost, the less excess
profits taxes the firm would have
to pay.
Mr. jack" he said, told me when
he gave the $4,000 check, that he
appreciated my work and knew I
was loyal to him."
Asked whether he thought he had
earned $4,000 in 43 days, the wit
ness replied, mo"
He said it was the policy of Mr..
Jack which few people understand,
to pay high salaries and give bonuses
to show his men work together"