The CHAIRMAN. The committee will now adjourn and tomorrow our witness will be Mr. Leonard Pasek, former WOC of the Forest Products Division, and now employed, as well as at that time, by Kimberly-Clark Corp. We will meet at 10 o'clock. We will have Mr. Honeywell, and Mr. Ray back on Friday, at 10 o'clock, when we will resume where we left off this morning. There will be a meeting of the full Judiciary Committee on Thursday. Unless there is something else to come before the meeting, we will now adjourn. We will be in executive session of the members of the committee, and the room will now be cleared. (Whereupon, at 12:30 p. m., the committee adjourned.) WOC'S AND GOVERNMENT ADVISORY GROUPS WEDNESDAY, JULY 27, 1955 HOUSE OF REPRESENTATIVES, The subcommittee met, pursuant to recess, at 10:25 a. m., in room 362, Old House Office Building, Hon. Emanuel Celler (chairman) presiding. Present: Representatives Celler (chairman), Rodino, Rogers, Fine, and Scott. Also present: Herbert N. Maletz, chief counsel; Kenneth R. Harkins, cocounsel; and Jerrold Walden, associate counsel, of the subcommittee. The CHAIRMAN. The meeting will come to order. Our first witness this morning is Mr. Leonard E. Pasek, of the Kimberly-Clark Corp. Mr. Pasek, will you step forward please, and give your name and present affiliation to the stenographer, please? STATEMENT OF LEONARD E. PASEK, APPLETON, WIS., ACCOMPANIED BY PAUL F. MYERS, ESQ. (WILLIAMS, MYERS & QUIGGLE), WASHINGTON, D. C., HIS COUNSEL Mr. PASEK. Leonard E. Pasek, Appleton, Wis., employed by Kimberly-Clark Corp. The CHAIRMAN. This gentleman is? Mr. MYERS. Paul Myers, of Williams, Myers & Quiggle, counsel. Mr. PASEK. I have asked him to be my personal representative and assist me. Mr. WALDEN. Mr. Chairman, before we start, I would like to indicate first that the Kimberly-Clark Corp. has furnished us with the documents that we are using today. The CHAIRMAN. The Chair wishes to express its thanks to KimberlyClark for its cooperation. Mr. PASEK. Thank you, sir. Mr. WALDEN. I would like to refer to a letter that you wrote to the Secretary of Commerce on July 7, almost 3 weeks ago asking for all correspondence, letters, and memorandums written by Leonard Pasek while occupying the following positions in the Department of Commerce, and you listed the positions occupied by Mr. Pasek; and I would like to state for the record at this point that we have received none of this information and therefore are not able to examine Mr. Pasek as fully as we would have wanted to for the benefit of the subcommittee. Mr. Chairman, also I think since some of these documents deal with the competitive activities of Kimberly-Clark; I believe the corporation should be afforded the opportunity of reading the documents and asking the subcommittee if it could eliminate any material that would have anything to do with a competitive matter except that which deals with Mr. Pasek's activities. The CHAIRMAN. That course will be followed. Mr. WALDEN. Mr. Pasek, will you tell the corporation that it may do this? Mr. Pasek, you have already stated your name and address. What is your position with Kimberly-Clark at the present time? Mr. PASEK. I am a member of our staff in the main office and my duties are in organization planning in the general offices of our company. Mr. WALDEN. Could you please give for the benefit of the subcommittee a little bit of your past experience in the pulp and paper industry? Mr. PASEK. I am an engineer by education and I came to work for Kimberly-Clark in 1937, and have been in the pulp, paper industry since that time-18 years. Our company is an integrated company; by that I mean, we have woodlands, et cetera, we own, on lease, and we buy wood, make pulp as well as a variety of other products, end products, such as The CHAIRMAN. You make kraft paper, newsprint? Mr. PASEK. Kimberly-Clark does not make kraft paper in the sense that this is a kraft board. The CHAIRMAN. But you do make paper products? Mr. PASEK. We make paper products, a wide variety of them. Some are called sanitary products and so forth. The CHAIRMAN. Do you make newsprint? Mr. PASEK. Kimberly-Clark itself does not make newsprint. The CHAIRMAN. But you are interested by virtue of stockholding interests in a corporation that makes newsprint? Mr. PASEK. That is right. The CHAIRMAN. What company is that? Mr. PASEK. That is the Coosa River Newsprint Co. in Alabama. I have had a series of jobs in our company which has given me an opportunity primarily from the technical side to learn about the paper industry. Mr. WALDEN. Were you at one time Washington representative for the Kimberly-Clark Corp.? Mr. PASEK. Yes, sir. Mr. WALDEN. Would you give the periods, roughly, to the best of your ability? Mr. PASEK. During World War II, from some time in the summer of 1942 until the end of the war and, roughly, September 1, 1945, I held such position with our company. Then, from about September of 1950 until approximately September last year when I returned to Wisconsin, our main office, to assume this new assignment. Mr. WALDEN. Mr. Pasek, were you Assistant Director of the Pulp, Paper, and Paperboard Division of NPA and its successor, BDSA? Let me rephrase the question: Were you at one time Assistant Director of the Pulp, Paper, and Paperboard Division of NPA? Mr. PASEK. Yes. Mr. WALDEN. Do you recall the dates? Mr. PASEK. I believe I was sworn in at about January 22, or thereabouts, 1953. Mr. WALDEN. And were you in that position until July 9, 1953, and then were you Assistant Administrator? Mr. PASEK. That sounds correct. Mr. WALDEN. And were you during part of that period Acting Director of the Pulp, Paper, and Paperboard Division? Mr. PASEK. Yes. I don't recall whether there was an official document or not. I think there perhaps was. Mr. WALDEN. Were you Assistant Administrator of BDSA or NPA? Mr. PASEK. Yes. Mr. WALDEN. Was that period from July 10, 1953, to October 30, 1953? Mr. PASEK. I believe that is correct, sir. Mr. WALDEN. At that time when you were with NPA and BDSA in this Division and as Assistant Administrator were you a WOC? Mr. PASEK. Yes. Mr. WALDEN. Did you receive your ordinary salary from your company? Mr. PASEK. Yes; I did, sir. Mr. WALDEN. Are you still a WOC consultant with BDSA? Mr. PASEK. I think I am. I have not received any notice of anything else. Mr. WALDEN. Now, when you were Assistant Director of the Division and a WOC, did you also engage in business for your company? Mr. PASEK. Yes; I maintained the work the best I could with my office. The CHAIRMAN. What is that? You maintained work as best you could with your office? That would mean with Kimberly-Clark office? Mr. PASEK. That is right. The CHAIRMAN. Would you amplify further a little bit on that? Mr. PASEK. I would be glad to. When I was asked to assume this WOC assignment, it was estimated that it might be 3 months, it might be 4 or 5, but probably not be very long. The CHAIRMAN. Was this with BDSA? Mr. PASEK. This was with NPA. So in discussing it within our own company as to how we would handle this office in Washington, because I was the only employee in the office other than the secretary, "well, if it is only going to be for a short period we will defer those things that we can. Perhaps some things that need handling you can stop there in the evening and Saturday and do what is necessary so that the secretary of the office could then carry on." The CHAIRMAN. This is in the Washington office of KimberlyClark? Mr. PASEK. Yes, sir. So in that respect, for that reason I answered the question the way I did. The CHAIRMAN. And there was no other work that you did for Kimberly-Clark other than that, during those periods? Mr. PASEK. No; that is right. Mr. WALDEN. Mr. Pasek, is it your testimony in response to the chairman's question that your activities for Kimberly-Clark were confined to the evening periods and Saturday work? Mr. PASEK. No; not necessarily. Mr. WALDEN. Ápproximately how much time, Mr. Pasek, did you spend with the Division and how much of your time was spent in your office, could you roughly approximate for us? Mr. PASEK. I would have to say this, sir. I put in the regulation full time in the WOC assignment, which was normally, I believe, 8 to 5. I have forgotten the hours. Five days a week and occasionally some Saturdays and nights. I can recall now only 1 full day that I purposely did not go to the NPA office but went to our own office to have an all-day conference with a man in our company. Mr. WALDEN. You would usually show up at the NPA at least every day? Mr. PASEK. Oh, yes. To my recollection that was the only full day. There may have been some others, but I don't recall them. Mr. WALDEN. Would you usually show up at the company some time during the day, too? Mr. PASEK. No; usually not. Mr. WALDEN. Would you frequently show up at the company during the day? Mr. PASEK. No; I don't suppose it would average, including weekends, more than 2 or 3 times a week. Mr. WALDEN. I read you a portion of a letter-let me show you the letter Mr. Pasek The CHAIRMAN. Show it to your counsel. Mr. WALDEN. So you can see what I am doing here. This letter reads in part-the letter is dated August 25, 1953. First, was that during the period when you were a WOC? Mr. PASEK. Yes. Mr. WALDEN. It is the first letter-it is attached to that document. It is a letter dated August 25, 1953, to you from the company. Were you a WOC at the time that letter was written? This letter reads in part: It has been agreed to assign you the responsibility. The CHAIRMAN. This is a letter written by Kimberly-Clark to Pasek? Mr. WALDEN. I do not have the letter before me. Mr. PASEK. You can have it back because I have a copy. Mr. WALDEN. It is dated August 25, 1953. It is a memo from the Kimberly-Clark Corp. dated August 25, 1953, signed by the treasurer and it is to Mr. L. E. Pasek, Washington office. And it says: It has been agreed to assign you the responsibility of purchasing the 9 shares of common stock of Munising Paper Co. from Eleanor Perkins Backus and the additional 9 shares controlled by her as trustee. We are transmitting to you along with this letter copies of previous offers to all stockholders of The Munising Paper Co. and a brief memo which contains all that we know about Eleanor Perkins Backus. It seems best to assign this job to you who are located in the area because you will be continually available if it takes the stockholder some time to make up her mind. Then it relates to the figure to be paid for the stock. The question I ask you is whether or not one of the jobs you did for your company while you were a WOC was to purchase stock into the corporation in which Kimberly-Clark wished to obtain 100 percent control? |