Mr. O’CONNELL. As I understand, there were two Pettuses who

were newspapermen, Ken Pettus and Terry Pettus, and I am pretty sure

the party involved here is the editor of the New World, or does it say?

Ken Pettus, I think, was editor of the Stars and Stripes in the Far

Eastern area at one time, and then Terry was editor of the New World in

Seattle, Terry Pettus.

Mr. TAVENNER. Do you know which one taught this course on

labor news reporting?

Mr. O’CONNELL. No, I don’t.

Mr. TAVENNER. You do not?

Mr. O’CONNELL. My guess would be that it would be Terry

because he was in Seattle but I don’t know whether he actually did.

Mr. TAVENNER. Terry Pettus was identified before this

committee as having been a member of the Communist Party by Elizabeth

Boggs Cohen and Barbara Hartle.

Did Mr. Daschbach when he called you indicate his reason for calling

you about teaching this course in the Pacific Northwest Labor School?

Mr. O’CONNELL. He thought because of my political experience

and because of the position, I think I had just shortly concluded my

term as executive secretary of the Democratic Party, that was when, in

December of 1947.

Mr. TAVENNER. Yes, sir.

Mr. O’CONNELL. That was in April of 1947, wasn’t it?

Mr. TAVENNER. October to December 1947.

Mr. O’CONNELL. Anyway, he thought because of my political

experience and because of my previous position that I could do a job

and that I would be able to do it. When he told me what it was I told

him it was in a field that I was not particularly qualified to do.

Mr. DOYLE. The committee will stand in recess until 2 o’clock.

(Whereupon, at 12:10 p. m., the committee was recessed, to reconvene at

2 p. m. the same day.)

AFTERNOON SESSION, JUNE 1, 1955

Mr. DOYLE. Let the record show that the legal quorum of the

subcommittee is present, Mr. Velde, of Illinois, and Mr. Doyle, of

California.

Mr. Tavenner, will you proceed, please.

TESTIMONY OF JEREMIAH JOSEPH O’CONNELL--Resumed

Mr. TAVENNER. Mr. O’Connell, were you acquainted with Robert

Marshall during his lifetime?

Mr. O’CONNELL. Yes, I was.

Mr. TAVENNER. What were the circumstances under which you

became acquainted with him?

Mr. O’CONNELL. Robert Marshall at the time of my original

acquaintance with him was chief of the reclamation division of the

forestry service. He had begun his early career in the forestry service

at Missoula, Mont., which was located in my Congressional District, the

First or Western Congressional District of Montana.

Shortly after I came back to Washington to take my seat in 1937, Robert

Marshall came to my office and introduced himself and told me that

because he had started his career in the forestry service out there he

had always had an interest in the district particularly because of its

large forestry holdings, large forestry provisions, and he and I became

close friends, socially, I would say more socially than anything else.

I think he died about a year and a half or maybe two years after I--I

can’t remember whether he died in 1938 or 1939.

Mr. TAVENNER. His will was probated in 1940.

Mr. O’CONNELL. I think that is correct. His death was probably

in 1939.

Mr. TAVENNER. Were you one of the witnesses to his will?

Mr. O’CONNELL. No, I was not.

Mr. TAVENNER. Did he discuss with you at the time of the

making of his will or prior thereto the purpose he had in mind in

setting up a trust in which you were named as one of the trustees?

Mr. O’CONNELL. No, he had never discussed--in fact, I really

did not know that Bob Marshall had any money. He lived very ordinarily,

didn’t give any indication he had any money. I was back out in Butte,

Mont., and I had been defeated for Congress and I got a notice from the

surrogate court in New York that I was named trustee in the will and I

thought I had come into a lot of money. I was sent a copy of the will

and I was named as trustee of what later became the Robert Marshall

Foundation.

Mr. TAVENNER. The will authorized you and the other trustees

to apply the income derived from the trust and such parts of the

principal as the trustees in their own unlimited discretion deemed

necessary for the following objects and purposes:

The education of the people of the United States of America to the

necessity and desirability of the development and organization of

unions of persons engaged in work or of unemployment and unemployed

persons, and the promotion and advancement of an economic system in

the United States based upon the theory of production for use and

not for profit.

Did it not?

Mr. O’CONNELL. That is correct.

Mr. TAVENNER. That part of the will which related to the

education of the people of the United States to the necessity and

desirability of developing and organizing unions of persons engaged in

work was actually considered by the trustees as more or less window

dressing, wasn’t it?

Mr. O’CONNELL. No it was the other way around, Mr. Tavenner. I

don’t know when Bob Marshall prepared this will, but I think Mr. Doyle

would know about this, Upton Sinclair had his so-called epic movement

in California, and there was a lot of discussion of an economy based

on production for use rather than for profit and in the first meeting

of the trustees that we held there was actually a resolution passed

where the rather untenable idea of getting a production-for-use economy

in the United States was discussed and it was decided by the trustees

that the money should actually be employed to develop as much as we

could the organization of trade unions, development and organization

of trade unions, organizing of unemployed people, and actually for the

development of a cooperation between farmers and workers, farmers and

labor, so that instead of having a division of interests as far as they

were concerned, and the trustees laid down a rule that with reference

to grants, that in order to come within what the trustees considered

the provisions of the will as the development of trade unions was

concerned, that the grants would have to be made for some trade-union

purpose, or development of trade unions, and so on, and that was what

was actually done by the trustees.

Mr. TAVENNER. Were there occasions when grants were made on

that theory--on that principle?

Mr. O’CONNELL. On what principle?

Mr. TAVENNER. The one you just named.

Mr. O’CONNELL. Actually, as far as I can remember--and of

course this goes back a long, long time, from 1940 on--I can’t remember

all of the organizations but we usually had an annual meeting of the

trustees and applications were made to the trustees by practically--I

mean just hundreds of organizations around the country that applied to

foundations of this kind, and I think, I can’t remember any exceptions,

I don’t recall any now.

As closely as we could the applications were considered from the point

of view that the money was to be applied by the organization to whom it

was granted to help the organization and development of trade unions

and organizing of unemployed people and particularly the development of

a principle of cooperation between farmers and laborers.

Mr. TAVENNER. But actually the will did provide for the use of

the money for promotion and advancement of an economic system in the

United States based upon the theory of production for use?

Mr. O’CONNELL. Yes; I think another thing that would lend

some stability to what I am saying is that I think the tax bureau at

one of the local Federal district courts in determining the taxability

of the foundation itself actually I think handed down a ruling that

the foundation was not entitled to a section 101 exemption because

that particular provision actually called for the elimination of the

capitalistic system. I think that was the wording used either by the

bureau or the court and from that time on the trustees never actually,

I can’t think of a single organization or a single group--and we had

applications I know, I am trying to think of some of the organizations

that existed over that period of time--I can’t recall any of them now

who specifically asked for grants based on what they called theory

of production for use rather than for profit. But I can’t think of a

single instance where the trustees actually made----

Mr. TAVENNER. That was actually the system in use in the

Soviet Union, was it not?

Mr. O’CONNELL. I have never been in the Soviet Union and I am

not----

Mr. TAVENNER. However, you know, that is true, don’t you?

Mr. O’CONNELL. My information that I get from reading and so

on is that there is a modification. I think if I state it correctly in

the industrial field I think there is production for use rather than

for profit, but as I understand the Soviets have now abandoned as far

as particular foreign farm production is concerned----

Mr. TAVENNER. Was it not the purpose of the Communist Party in

the United States at that time to foist upon this country just such a

plan, namely, to establish a Communist system of production for use and

not for profit?

Mr. O’CONNELL. I, of course, wouldn’t be qualified to say, I

wouldn’t be qualified to state whether or not that was their purpose or

their program.

As a matter of fact, the program of the Communist Party as I remember

it before I came to Congress, while I was in Congress and after the

program of the Communist Party in the United States was fluctuating--as

a matter of fact, I think there was a removal of Browder because he

was advocating--removal of Browder by the Communist Party leadership

because he was advocating a companionship or partnership with capital

and that capital and communism could exist and there could be as I

understand it--that was the program of the Communist Party for a long

time until he was removed, I can’t remember when.

But I knew Bob Marshall those years--I think I can positively state

that Bob Marshall was not a Communist and that the provisions in that

will and certainly the people that were named as trustees in addition

to the trade union trust as we called it, the Marshall Foundation

Trust, there was a civil liberties trust of which I think Roger

Baldwin was the head and I think everyone will agree he is decidedly

anti-Communist.

There was also a wilderness area trust. In fact, out in the State of

Montana there is a great wilderness area named the Robert Marshall

Wilderness Area after Robert Marshall.

My distinct feeling about that is that in talking with Bob and talking

to him that he was caught up in the period of the depression situation

where there were all kinds of economic theories advanced at the time,

not only New Deal but all kinds of other movements and I don’t think

there was actually any connection in Bob Marshall’s mind between what

the Communist Party might be advocating at that time and what he

actually put in his will.

Mr. DOYLE. May I ask this about that will? Was it a

typewritten will or a will written by him?

Mr. O’CONNELL. Actually his brother, Jim Marshall, is an

attorney in the city of New York and I think a member of the New York

City Board of Education and the will was actually prepared by Jim

Marshall’s firm, I can’t remember all who are in it, but the copy which

I got was actually a copy of the will which I received through the

surrogate court in New York, actually a printed form.

Mr. TAVENNER. Mr. O’Connell, you mentioned the fact that tax

exempt status of the trust was removed by action of the court. Was that

a result of action taken by the Internal Revenue Bureau?

Mr. O’CONNELL. That is correct.

Mr. TAVENNER. Was it after the Internal Revenue Bureau learned

of the type of grants being made under this trust that it took the

action it did to remove the tax exemption status of the trust?

Mr. O’CONNELL. My best recollection, Mr. Tavenner, is that

Congressman Dies made a speech on the floor, and if I remember

correctly, in which he discussed the Robert Marshall Foundation in

which he went into the various grants that we had made and shortly

after that, on whose initiative I don’t know, the Bureau took up with

the foundation the matter of its one exemption and the Bureau exemption

was removed and I believe as trustees we appealed it to the courts and

the courts decided against us.

We appealed, I am sure the briefs will show that we appealed to the

courts on the basis that the grants were being made for the purpose

of organizing and developing of trade unions and for organization of

unemployed people and not for the theory of production for use rather

than for profit. I am sure the briefs will bear me out on that. I of

course had nothing to do with the preparation of them.

George Marshall, who is Bob Marshall’s brother, was the manager of the

trust funds and as I said, the trustees usually met annually, once a

year.

Mr. TAVENNER. You were aware, were you not, that the Communist

Party in the State of Washington just 2 years prior to the probate of

this will, endeavored or at least proposed a plan for legislation to

set up exactly the same type of economy in the State of Washington?

Mr. O’CONNELL. I knew nothing about that. The first time I

ever went to the State of Washington in August 1944----

Mr. TAVENNER. Robert Marshall you say was from the State of

Montana?

Mr. O’CONNELL. No, Robert Marshall was actually a New Yorker,

his dad was Louis Marshall, a partner of Samuel Untermyer, outstanding

corporation lawyer in New York.

Mr. TAVENNER. Was a great deal of his experience in the

forestry service on the west coast?

Mr. O’CONNELL. No; 3 years of his service in the Forestry

Department were at Missoula, Mont., but not on the west coast. We are

in the Rocky Mountain area, you see.

Mr. TAVENNER. I understand.

Mr. O’CONNELL. Is this within the scope of the hearing?

Mr. VELDE. The Robert Marshall Foundation?

Mr. O’CONNELL. Yes.

Mr. VELDE. I think it would be.

Mr. DOYLE. We will take a short recess.

(Brief recess.)

(Committee members present after recess: Representatives Doyle and

Scherer.)

Mr. DOYLE. The committee will come to order and let the record

show that the chairman of the full committee, Mr. Walter, appointed

a different subcommittee to continue this hearing today, consisting

of Mr. Moulder, Mr. Doyle, and Mr. Scherer, of Ohio, and that Mr.

Scherer and Mr. Doyle are both present, a legal majority of the new

subcommittee.

Mr. O’Connell, will you please rise and be sworn again.

Do you solemnly swear to tell the truth, the whole truth, and nothing

but the truth, so help you God?

Mr. O’CONNELL. I do.

Mr. TAVENNER. Mr. O’Connell, I referred to the proposal

sponsored by the Communist Party in the State of Washington in 1936 for

the enactment of a law establishing production-for-use initiative as it

was called.

Mr. O’CONNELL. That was stolen from Upton Sinclair’s

legislation.

Mr. TAVENNER. And possibly also from the Soviet Union.

Mr. O’CONNELL. I don’t propose to speak for the Soviet Union.

Mr. TAVENNER. Do you propose to speak for Mr. Upton Sinclair?

Mr. O’CONNELL. I knew Mr. Sinclair quite well and he used

to contribute to my campaign and I had some opportunity to see his

campaign in California.

Mr. TAVENNER. Eugene V. Dennett described a convention of the

Washington Commonwealth Federation, held in April 1936 in Everett,

Wash., and the part that the Communist Party played in that convention.

His testimony relating to this particular matter is as follows:

There was another matter which arose as a serious issue in that

convention and it concerned a proposal for an initiative measure

which became known as the production-for-use initiative. Many

people, because of the Communist Party influence in the unemployed

days, were quite concerned and alarmed over the problem of

unemployment, insecurity, possible impoverishment, et cetera.

All the consequences of economic dislocation. They had read many

of the so-called utopian pieces of literature such as Bellamy’s

Looking Backward and other documents of the kind. They had also

read Mr. Upton Sinclair’s Program in California. They were somewhat

acquainted with the propaganda of the Soviet Union to the effect

that production for use was the solution to the problems of

capitalist lack of planning. In other words, planned economy.

The story on the production-for-use initiative is simply this:

Because there was such a popular demand for some change in the

economic situation to assure continued production and a cooperative

effort, many people tried to translate an ideal of a cooperative

commonwealth into some form of legislative effort. This resulted

in many conferences and the calling in of legal talent to try

to draft a measure which would be legal and which would satisfy

the ambitions of the people to have the so-called dream of a

cooperative commonwealth organization.

Question. Now, at that point describe a little more fully what

production for use meant in a practical sense.

Mr. DENNETT. I wish I could satisfy you completely on

that point, because that is one of the problems we ran into in

trying to draw up this initiative measure. We could never satisfy

ourselves that we had it satisfactorily organized. However, the

staff who worked on it worked long and hard and finally produced a

measure which was known as the production-for-use initiative. It

was ready for presentation to that convention. However, some of us

in the Communist Party, while we agreed that such a measure was a

good propaganda weapon and felt that it was an excellent means of

popularizing the ideas which we understood and claimed were the

basis of the operation of the economy in the Soviet Union, we were

startled when we read the document and found that it sounded a

little bit more like the Fascist corporate state that the Italian

leader Mussolini had established. We became so alarmed about it and

we were so perplexed that we asked a very world famous person who

happened to be a guest of the convention what this person thought

about it. The person to whom I refer is Anna Louise Strong, who

had just come from the Soviet Union, extended greetings to the

convention and otherwise gave a very enlightening report on her

travels and won wide acclaim for that effort.

Question. Did she on the floor of the convention address herself to

the problem of production for use?

Mr. DENNETT. She did not. Not at that moment. She spoke

only in general terms about the referring to it in a complimentary

way and hoping for success, but at that moment she did not know

very much about what was in that document. However, we felt that

she, coming from the Soviet Union with fresh knowledge, might know

quite a lot about it and might be able to assist us in revising the

document so that it would be possible to satisfy us that it was in

fact a step in the right direction of a cooperative commonwealth.

So she consented very graciously to take the document and work on

it overnight. She did exactly that and we read it the next morning

and much to our surprise she had moved the emphasis in the control

even more in the direction of top control and less in the direction

of allowing the members or the organization to have anything to say

about it, which was just the reverse of the trend that we had hoped

for.

Consequently we began to ask ourselves, that is, the Communists

asked themselves, if this is the end result of an effort to draw

up an initiative maybe it would be smarter politically for us to

see that the measure died a-borning. Consequently we came to the

conclusion that it was impossible to draw up an initiative measure

which would be adequate and which would answer our propaganda

needs and our desires to satisfy us that it was in harmony with

our program. So we embarked upon a campaign in the course of the

election.

Question. Was this a campaign to pass the proposed bill or to

defeat it?

Mr. DENNETT. We all went out presumably to win support, to

get the measure adopted. That is, it was an initiative measure and

it was before the voters. The voters were to cast a vote “yes” or

“no” on this initiative. The Communist Party found itself in that

predicament.

We were committed to support the measure but we were determined

to bring about its defeat. Consequently, we campaigned far and

wide all over the State of Washington explaining the measure in

such a way as to convince the people that they should not vote for

it. At the same time we represented ourselves as campaigning for

the measure and we did it so successfully that the measure was

defeated. If we had not have done it I am afraid it would have been

adopted.

Mr. O’CONNELL. Sounds like he needs a mental examination.

Mr. TAVENNER. I think it is rather consistent with Communist

Party tactics.

Mr. DENNETT. My counsel asked me who was “we.” I am

referring to the Communist Party in that instance, the leaders of

the Washington Commonwealth Federation were terribly disturbed

by the nature of the campaign we were carrying on--that is, the

Communists.

Question. I should think it would be a rather confusing campaign

where the Communist Party in order to defeat it actually supported

it.

Mr. DENNETT. That is true. It was a very confusing to

every one, even to us at times.

Question. That is a very interesting thing. The Communist Party in

order to defeat this measure went out and conducted a statewide

campaign in favor of it but in order to accomplish its defeat, if I

understand you correctly, it so represented the issues that people

would be bound to vote against it.

Mr. DENNETT. That is true. There is triple deception

in this maneuver, which is rather hard to follow. I hope I have

explained it.

Question. I am afraid that the point may not be absolutely clear in

the record, and I want to be sure that it is clear.

If I understand you correctly, it was not the fact that the

Communist Party was supporting this measure that caused its defeat.

Mr. DENNETT. You are correct, sir; that was not the

reason. It was the way we as disguised Communists carried on the

campaign, ostensibly for it, but in fact against it.

Question. In other words, your representations were of such a

character as to make known the weaknesses in the bill and the

person would actually think you were supporting it.

Mr. DENNETT. True. You understand it quite clearly.

Question. I hope so. I think the bill was properly named when you

used the word “initiative” because that certainly is the use of

initiative. I am glad to know it is Communist Party initiative. It

is a very deceptive type of campaign.

That was the history of production for use as first sponsored by the

Communist Party until they found that it was not workable to reduce to

a form of legislative enactment in the State of Washington.

Mr. O’CONNELL. In 1936.

Mr. TAVENNER. In 1936.

And yet the will of Robert Marshall was prepared 2 years later in 1938,

and it embraces the same principle of the promotion and advancement

of an economic system in the United States based upon the theory of

production for use. And you were one of the trustees of that foundation.

Do you know of any connection or any influence brought upon Robert

Marshall to establish this trust fund for the changing of the system

of economy in the United States which had its origin in the Communist

Party?

Mr. O’CONNELL. I know absolutely none. As I said earlier, and

I am sure Bob had no connection with the Washington situation that you

have read about in detail. I think like a great many others in that

depression period, there were all kinds of discussions of panaceas to

solve the economic situation that existed at the time. I am positive

that Bob Marshall was not a member of the Communist Party, that he was

not influenced by the Communists in the preparation of that will or the

provisions that are in it, and as a trustee I want to assure you that

I can’t think of a single instance, a single instance where any grant

of any money was made to any organization to begin an economy based on

production for use or propagandize it or publicize it or anything.

I can remember at one time the National Farmers Union came to the

foundation, Mr. Patton, the national president, particularly presented

the proposal and wanted to establish branch centers throughout the

United States trying to some extent bring about what he called a

cooperative movement and an economy based upon cooperatives. I think he

wanted an immediate expenditure of some $160,000 and it was rejected by

the trustees. I know that.

Mr. TAVENNER. Were you acquainted with Lem Harris?

Investigation of Communist activities in Seattle, Wash., area. Hearings, Part 3 · 第 3 / 13 段