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Senator MORSE. Will you give me just a moment to refresh my recollection.

Mr. BENDETSEN. Surely.

Senator MORSE. Just for purpose of foundation, Mr. Bendetsen, I wonder if

you

would make a statement for the record as to your past experience in the field of railroad operations.

Mr. Chairman, I have sworn the witness, and have just started to ask him some preliminary questions as to his qualifiactions.

The CHAIRMAN. Go right ahead.

Senator MORSE. My question, Mr. Bendetsen, is that we ought to have in the record a statement of your past experience and qualitications as a foundation for asking such questions as the committee may wish to ask you in regard to the operation of the railroads under Government control.

Mr. Bendetsen, I have had no direct past experience in railroad operations of the type here involved. I have been exposed generally to such types of rail operations as are conducted by the Army, that is, in its normal military capacity.

Senator MORSE. Under what circumstances ?

Mr. BENDETSEN. In theaters of operations during World War II. During World War II I was deputy chief of staff of the communications zone, European theater.

Senator MORSE. Where?

Mr. BENDETSEN, On the far shore in the European theater, where, as you know, we undertook to operate railroads. But I have had no experience in what you might fairly describe as the type of operations we have in the United States, and particularly the railroads here involved. I wouldn't want to represent in any way to the committee that this job fell to my lot on account of any past experience. I am the Assistant Secretary of the Army, and I have this task in addition to my other duties.

Senator MORSE. Let me make it very clear to you, Mr. Bendetsen, that I am not seeking to elicit whether you have any special qualifications for this job. I recognize that this is one of the burdens attached to your office.

Mr. BENDETSEN. Yes, sir.

Senator MORSE. Nevertheless, I think for the purpose of the record we ought to have a statement of your past experience for whatever use the committee may wish to make of it.

Mr. BENDETSEN. In civilian life, prior to World War II and during the rather short time I have had in private affairs since the close of the war, I have been exposed to a variety of transportation problems, but I think

Senator MORSE. Suppose we just go back then for a quick chronological sketch. Did you graduate from college ! Mr. BENDETSEN. Yes.

Senator Morse. Suppose we go back from the date of graduation and move up chronologically from then until now as to your experience, business experience, and whatever experience you have had.

Mr. BENDETSEN. You want me to start with college and go through? Senator MORSE. Begin with your graduation from college.

Mr. BENDETSEN. I went to Stanford University, where I received an AB degree. I stayed on there for three additional years in the graduate school where I took law. I received the law degree at Stanford. I took the California bar exam and the Washington State bar exam in the summer of 1932. I was born and raised in Washington State. I engaged in the practice of law at Aberdeen, Wash., in general practice. Being a rather small town, there were no specialties. I practiced from 1932 to the summer of 1940. In the summer of 1940 I came to duty in the Army at about the time the draft law was passed. I remained in the service on a variety of assignments through the intervening years until the end of December 1945. I then had my terminaï leave, and I engaged for a year and a half in the practice of management engineering to lay à firmer foundation for the future practice of the law, to sort of get myself refreshed on how things were going generally in the business world.

I resumed the practice of law at San Francisco in 1947. That, too, was a general practice of general business law. In the spring of 1948, after being there a year in the practice, I was asked to come back to Washington by Secretary of Defense Forrestal for a short assignment as his assistant, and I was here for 3 months.

I returned again to San Francisco, where I resumed the practice of law, and in August of 1949 I was asked by the then Secretary of the Army, Gordon Gray, to come back here again as his assistant. With much hesitation but after considering the matter, I agreed to come for 6 months, and I am still here. I haven't returned since to the practice of law or to private life.

I spent the first 6 months as a consultant to Mr. Gray and as a special assistant. I was appointed Assistant Secretary of the Army on the 26th day of January of last year and sworn into office on February 2, 1950.

Here in the Department I have had a variety of assignments. I function as a general assistant to the Secretary. Practically anything falls to my lot in that capacity that comes to the Department.

In addition to these general and miscellaneous duties, I am directly responsible for the operations of the Comptroller's office and for the conduct of these functions throughout the Army as well as for the conduct of the management engineering function. This involves a management improvement program designed to do things more efficiently and at less cost. That falls under me. I am responsible to

. the Secretary for the budget and for the Army programing, that is, to try and see that all elements of our complex establishment are in balance and not out of phase. I also serve on the Defense Department Management Committee.

Prior to the time when Assistant Secretary Johnson came, I also had under me civilian components, Reserve affairs, and all personnel matters. I served on the Personnel Policy Board of the Department. I have been an alternate on the Munitions Board and I served on the Civilian Components Policy Board from its organization until Assistand Secretary Johnson came last May.

I believe that in a general way would provide the chronology.

Senator MORSE. I am very glad that you gave that, Mr. Bendetsen, because I believe it is that kind of background that we need in increasing numbers in Government service.

a

Mr. BENDETSEN. Thank you.

Senator MORSE. Now, Mr. Bendetsen, will you tell the committee the nature of the Army's operation of the railroads under the Executive order that seized them, in the execution of which you have been assigned the job of operating:

Mr. BENDETSEN. We are following the same pattern and precedent that had been established heretofore: An Executive order signed by the President, which runs to the Secretary of the Army. It is a selfexecuting order in that it provides that as of a certain date and time, which is in the record here, those roads listed in the exhibit are brought--not the roads--I should be more accurate and say the rail transportation systems of the Nation listed in the exhibit to the Executive order will come into the possession of the Government through the agency of the Department of the Army.

You have before you two such orders, the one which was No. 10141 with respect to a single railroad at that time, that is, the Chicago, Rock Island & Pacific. That was dated the 8th of July 1950. The second one, is Executive Order No. 10155, was dated August 25 of last year. The Secretary of the Army in turn assigned to me the responsibility for carrying out the functions involved in each of these Executive orders.

We are charged by these orders of the President with providing normal operation on the roads concerned. Under the order of August 25 there were 131 class I type railroads, and the balance are known technically, as short line railroads. We now have 199 all told that have been brought in under the order.

We are charged with many duties, of course, in the Department. This is not our primary one. Our effort, then, has been to try to carry out this imposed mission with all economy of personnel that we can.

At the time when this Executive order issued that I last cited, 10155, I asked, the heads of the two operating brotherhoods, the Order of Railway Conductors and the Brotherhood of Railroad Trainmen, if their members employed on the roads concerned would continue in their normal operating positions during the period of Government operation. At the same time I dispatched telegrams to the heads of the owning companies whose transportation systems would come into the possession of the Government asking whether those in man. agement positions would carry on under the orders of the Government in their normal duties. I received immediate response from the heads of the two operating brotherhoods concerned, who had given notice prior to the order of strike action, that their members would respond and would remain at work. From those in management positions, I received a like response.

We established seven regions. Those regions are staffed by a regional and a deputy regional director, and additional staff officers, such as a legal adviser from the Army staff, and a public information officer and an executive officer. These officers are, in effect, channels of communication.

Senator MORSE. May I interrupt just one moment. Go right ahead, but I want to dwell a little bit on the staff, since you are describing the staff.

Mr. BENDETSEN. I am describing a part of the staff.

Senator MORSE. I will ask the general question and then you can fill it in in your own way. I would like to have you put into the record a full statement of the staff that the Army has employed since the Executive order was issued for the operation of the railroads, including Army personnel and civilian personnel.

Mr. BENDETSEN. That is in the record before you, Senator Morse, in my letter of November 3, 1950, and it hasn't changed materially since that time.

Senator MORSE. Is the staff set out on page 2, the full staff? You do not have in the record, which I want to have, the names of the members of the staff in top positions—and you can supply this—with a statement of their names and their railroad experience, and their past connections, if any, with any of the railroads, including not only those in uniform, but civilians. Do we have that in the record ?

Mr. BENDETSEN. Yes, you do if you are referring to the key people. However, I will be glad to go over that for you now to spare you the trouble of going into the record.

Senator MORSE. I want to know what railroad experience and railroad connection any of these men, both in uniform and civilian positions, had who are now charged with the responsibility of operating the railroads.

Mr. BENDETSEN. I will have it in a moment, Senator.
Senator MORSE. Take your time.

Mr. MURDOCK. May we identify the communication, Senator, as committee's exhibit No. 6?

Senator MORSE. The November 3 letter?
Mr. MURDOCK. Yes.

Mr. BENDETSEN. That includes its attachment as I understand it, Mr. Murdock.

Mr. MURDOCK. That is right.

Mr. BENDETSEN. To start at the top I have already told you of my experience.

Senator MORSE. That is right. Mr. BENDETSEN. As a consultant I have had the advice and help of Mr. Luke Finlay, a practicing lawyer in New York. Mr. Finlay is a Military Academy graduate who resigned in the twenties and took law and engaged in the practice of law, who served throughout World War II as executive officer to the Chief of Transportation of the United States Army and as such while on duty, though I wasn't in the Department at the time, I can say that he went through two seizures in which he was then directly engaged during the war years. He is not here full time. He was here for 3 months during the beginning and has come down on call on various occasions.

Senator MORSE. Do you know whether or not he is in legal practice?

Mr. BENDETSEN. He doesn't represent any transportation companies that I know of. He would have to speak for himself, but I don't think so, and I base that only on general conversation. I haven't asked him.

Senator Morse. It is your opinion that his war experience, his Army experience with the railroads, is his only professional connection with the railroads?

Mr. BENDETSEN. That is my opinion, and the reason I have him as a consultant is because of his familiarity with the scene here and how

it was done before, and so on, not so much because—though I think he does know a great deal about railroading—I don't have him primarily because of that.

Senator MORSE. You have him more because of his experience with Army seizure procedures ?

Mr. BENDETSEN. That is right.
Senator MORSE. Who is the next one?

Mr. BENDETSEN. Then under our system of procedure the Chief of Transportation of the Army, who is Maj. Gen. Frank A. Heileman, a Regular Army officer of long service, was designated as Chief of Operations. As assistant to General Heileman is Brig. Gen. Andrew McIntyre. He is a Reserve brigadier general of war service throughout the years of the war not only in transportation but as an assistant Chief of Staff, G-4.

You are generally familiar with what that implies. As a chief of supply and operations for a major command. In civil life he is a vice president of the Pennsylvania Railroad Co. As I understand it, he came up through the ranks of the various jobs in the railroad. I can't describe to you specifically what his title is in the company, but I think it is what we would describe as vice president in charge of operations. That may not be a proper term in the company, but he is an operating man in the company.

Senator MORSE. Presently in civilian status or military status?
Mr. BENDETSEX. No, he is on duty and has been since last July.

Senator MORSE. Did he come back into military duty particularly for this purpose?

Mr. BENDETSEN. Yes, sir. I requested that he be brought in, or rather, General Heileman did. I didn't know him prior to the time when this task fell my lot. I had not met him before.

Senator MORSE. His rank is colonel?
Mr. BENDETSEN. No, brigadier general.

I will proceed as you would wish, of course, but I thought you wanted first a picture of the key people before you filled in on the rest of the staff people who are involved, both part time and full time.

Senator MORSE. I assume you are running down the list on page 2 of the attachment to your yetter.

Mr. BENDETSEN. Not exactly, sir. That is, if you are referring to page 2, brigadier general 1, colonels 12, and so on. Not exactly that, but I will try to indicate to you as clearly as I can where I depart from it.

I mentioned, you will recall, that we established seven regions in the United States following the same practice that was used before in the other cases and assigned to the regions the various rail transportation systems having their headquarters. It doesn't follow a geographical plan, but follows a rail system plan. We have a region here in Washington which we call the southeastern region. The head of that and the regional director is Col. Ernest E. Norris. He is a Reserve colonel on active duty since last August 26. He is president of the Southern Railway Co. He is now in active duty in the Army as head of this southeastern region.

Senator Morse. Is the Southern Railroad one of the parties to the dispute?

Nr. BENDETSEN. That is right. They are one of the roads seized, that is transportation systems received.

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