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(
THE ROLE OF THE COMMUNIST PRESS IN
THE COMMUNIST CONSPIRACY
HEARINGS
BEFORE THE
COMMITTEE ON UN-AMEEICAN ACTIVITIES
HOUSE OE KEPRESENTATIYES
EIGHTY-SECOND CONGRESS
SECOND SESSION
JANUARY 9, 10, 15, 16, AND 17, 1952
Printed for the use of the Committee on Un-American Activities
UNITED STATES
GOVERNMENT PRINTING OFFICE
95830 WASHINGTON : 1952
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COMMITTEE ON UN-AMERICAN ACTIVITIES
United States House of Representatives
JOHN S. WOOD, Georgia, Chairman
FRANCIS E. WALTER, Pennsylvania HAROLD H. VELDE, Illinois
MORGAN M. MOULDER, Missouri BERNARD W. KEARNEY, New York
CLYDE DOYLE, California DONALD L. JACKSON, California
JAMES B. FRAZIER, Jr., Tennessee CHARLES E. POTTER, Michigan
Frank S. Tavenner, Jr., Counsel
Louis J. Rossell, Senior Investigator
John W. CaRrington, Clerk of Committee
Raphael I. Nixon, Director of Research
II
CONTENTS
Page
Foreword 2127
January 9, 1952 : Testimony of—
Courtney E. Owens___" 2130
Clarence E. Gauss 2143
John Carter Vincent 2158
January 10, 1952: Testimony of Morris L. Appelman 2173
January 15, 1952 : Testimony of —
Elizabeth Terrill Bentley 2205
Louis Francis Budenz 2208
January 16, 1952 : Testimony of —
Max Granich 2253
Grace Maul Granich 2285
January 17, 1952, testimony of Grace Maul Granich (resumed) 2293
in
FOREWORD
The hearings contained in this volume reveal the activities of two
American-born international Communists, Max and Grace Granich.
Max and Grace Granich were sent to Shanghai, China, in 1936 by
the Communist Party of the United States to establish, edit, and
publish a Communist propaganda organ in that city to be circulated
l hroughout the entire Far East. The Granichs proceeded to Shanghai
and, from March 19-36 until the first week in November 1937, published
a Communist propaganda organ in Shanghai called The Voice of
China in accordance with instructions received by them from the
Communist Party.
After encountering repeated difficulty with Chinese and French au-
thorities in the Shanghai area, as well as with postal authorities
throughout the Far East, the Granichs were recalled to the United
States by the Communist Party. The Communist Party had made ar-
rangements for the Granichs to be relieved of their duties, in an effort
to attempt to keep The Voice of China in operation. The Granichs'
successor, however, never arrived in China because of the outbreak of
Mar in that country in 1937.
Following the return of the Granichs to the United States, the
Communist Party used Grace Granich particularly to great advantage
when they devised a method by which they could avoid the require-
ments of the Foreign Agents' Registration Act. This was at a time
when the Daily Worker, official organ of the Communist Party in the
United States, was endeavoring to conceal its affiliation with the Com-
munist Party and the Communist Party was endeavoring to conceal
its connection with the Communist International in Moscow. Such a
disclosure of the Daily Worker was imminent because of the Foreign
Agents' Registration Act and some means had to be devised to cir-
cumvent the requirements of said act.
Grace Granich, therefore, at the direction of the leaders of the
Communist Party in this country, established the Inter-Continent News
Service in New York City in March 1941. Inter-Continent News
Service, as operated by Grace Granich, was a device used by the Daily
Worker and the Communist Part}' to obtain party information and
directives from the Communist International in Moscow.
Likewise, Grace Granich was instructed to register her news service
as an independent business organization in this country, as an agent
of a Moscow principal, therebv diverting attention away from any
public connection between the Daily Worker and Moscow. Immedi-
ately prior to the establishment of Inter-Continent News Service,
Grace Granich had been working at Communist Party headquarters
in New York City, then located at 35 East Twelfth Street. When she
embarked on this new mission for tin1 Communist Party, she was told
that her offices should be removed from Communist Party headquarters
in order that there should be no indication of any connection between
her agency and the Communist Party.
2127
2128 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
The Committee on Un-American Activities received testimony to
the effect that Inter-Continent News Service, as operated by Grace
Granich, received all Communist Party directives and policy instruc-
tions directly from Moscow which, in turn, were passed on to the
editor of the Daily Worker and to the Politburo of the Communist
Party, United States of America.
All cablegrams received or sent by the Inter-Continent News Service
were paid for by the People's Commissariat of Communications of the
Soviet Union, located in Moscow, and, other than a small remuneration
from the Daily Worker and the Morning Freiheit, also a Communist
organ in this country, the operation of this so-called news service was
completely subsidized by Moscow.
The value of this service to the Communist Party in the United
States was estimated to be in the thousands of dollars per year.
THE ROLE OF THE COMMUNIST PRESS IN THE
COMMUNIST CONSPIRACY
WEDNESDAY, JANUARY 9, 1952
United States House of Representatives,
Committee on Un-American Activities,
Washington, D. C.
PUBLIC HEARING
The Committee on Un-American Activities met pursuant to call
at 10 : 45 a. m., in room 226, Old House Office Building, Hon. John
S. Wood (chairman), presiding.
Committee members present : Representatives John S. Wood, Fran-
cis E. Walter, James B. Frazier, Jr., Harold H. Velde, Bernard W.
Kearney, Donald L. Jackson, and Charles E. Potter.
Staff members present: Frank S. Tavenner, Jr., counsel; Thomas
W. Beale, Sr., assistant counsel ; Courtney E. Owens, investigator ;
John W. Carrington, clerk ; and A. S. Poore, editor.
Mr. Wood. The committee will be in order.
Let the record disclose that there are present as members of the com-
mittee, Messrs. Walter, Velde, Kearney, Potter, Frazier, and Jackson.
Mr. Tavenner. Mr. Chairman, the hearings which are to be con-
ducted for the next 2 days of this week and then several days during
next week have grown out of the testimony of Gen. Charles A. Wil-
loughby before this committee.
On August 23, 1951, General Willoughby testified for this committee
as follows :
Affiliated with the Cormnunist-front, American League Against War and Fas-
cism, the American Friends of China published its own monthly magazine, China
Today, which was pro-Communist. The American group also sponsored a Shang-
hai publication of similar nature, the Voice of China, published by Max and Grace
Granich. This paper was published from March 193(3 until the latter part of 1937.
Although not overtly a Communist publication, it portrayed the Chinese Com-
munists as the only defenders of Chinese independence and resistance to the
Japanese. The magazine was suppressed after more than IS months of exist-
ence, and the Graniches returned to the United States December 21, 1937.
Additional information contained in the Shanghai police files
subpenaed by this committee reflects some of the circumstances under
which the Voice of China was edited and published by Max Granich
and Grace Granich. The first phase of the hearings, which will take
place today and tomorrow, will be devoted to an investigation of these
matters revealed by the Shanghai police files.
Now, during the preliminary investigation conducted by the staff
relating to the first phase of these hearings, leads were developed
showing alleged participation at a later date by Grace Granich and
a strategic plan of the Communist Party to make available to the
2129
2130 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Daily Worker and the Communist Party information and instruc-
tions having their origin in Moscow, at the time when the Daily
Worker and the Communist Party of the United States were publicly
disavowing all connection with Moscow and the Communist Inter-
national.
These matters will be the principal subject of the second phase of
the hearing.
I would like to call as the first witness, Mr. Courtney Owens, one
of the investigators of the committee.
Mr. Wood. Will you raise your right hand, Mr. Owens, and be
sworn, please, sir ?
Do you solemnly swear the evidence you will give this committee
shall be the truth, the whole truth, and nothing but the truth, so help
you God ?
Mr. Owens. I do.
Mr. Tavenner. What is your name, please ?
TESTIMONY OF COURTNEY E. OWENS, INVESTIGATOR, HOUSE
COMMITTEE ON UN-AMERICAN ACTIVITIES
Mr. Owens. Courtney E. Owens.
Mr. Tavenner. What position do you hold with the Committee
on Un-American Activities.
Mr. Owens. I am an investigator for the committee.
Mr. Tavenner. How long have you been so employed ?
Mr. Owens. Approximately Sy2 years.
Mr. Tavenner. Mr. Owens, foot lockers containing official files of
the Shanghai police were produced before the committee and marked
as exhibits for identification only, by Gen. Charles A. Willoughby.
You have been requested to extract from these exhibits all docu-
ments relating to Max Granich, Grace Granich, the Eastern Publish-
ing Co., and the publication known as the Voice of China. Have you
done that?
Mr. Owens. Yes, sir.
Mr. Tavenner. Will you please present for the present use of the
committee the documents you have extracted ?
Mr. Owens. These (indicating) are all of the Shanghai police re-
ports and files which relate to the subjects just mentioned by you.
Mr. Tavenner. Those are all of the documents found in the ex-
hibit which relate to the subject?
Mr. Owens. These were taken from both foot lockers and different
volumes contained in the foot lockers.
Mr. Tavenner. Will you please relate what the files reveal con-
cerning the arrival of Max Granich and Grace Granich in China ?
Mr. Owens. On January 31, 1936, Max Granich, accompanied by
his wife, Grace Granich, arrived in Shanghai from San Francisco,
Calif., aboard the steamship President Taft.
A report of the Shanghai police shows that in the alien declaration
form executed by Max Granich, he stated that he was a journalist
by profession and was on a visit to Shanghai, where he would remain
for an indefinite period.
On February 27, 1936, C. E. Gauss, American consul general, wrote
the commissioner of police at Shanghai, advising that Mr. Max
Granich, an American citizen residing at Cathay Mansions, recently
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2131
called at the consulate general and stated that he is the sole owner
of the Eastern Publishing Co., 749 Bubbling Well Road, Shanghai,
and that Mrs. Granich, also an American citizen, is engaged with her
husband in business stated to be "news syndicate, picture service,
publishing."
The consul general then proceeds to request that his office be ad-
vised whether the commissioner of police has any information regard-
ing the activities of these two persons.
This letter was answered by the commissioner of police on March
12, 193(5, wherein he supplied the consul general with all information
available to him at that time; namely, the dates of the arrival of Mr.
and Mrs. Granich, and the residences that they had occupied since
their arrival.
Mr. Tavenner. Do the files reflect that Mr. Granich made a declara-
tion in writing of the purposes for which the Eastern Publishing Co.
was established?
Mr. Owens. Yes; there is in the file a document purporting to be
a copy of such a declaration.
Mr. Tavenner. Will you present it, please?
I desire to offer the document in evidence and ask that it be marked
"Owens Exhibit No. 1."
Mr. Wood. Let it be so marked, and received.
(The document referred to was marked "Owens Exhibit No. 1," and
received in evidence.)
Mr. Tavenner. Will you read it, please?
Mr. Owens. This is a letter to the consul general by Mr. Granich.
I am reading. It is dated March 11, 1936.
Dear Sir: Continuing our recent conversation, this is to advise you that the
Eastern Publishing Co., which I have formed, will collect material for pub-
lications abroad, translate the literary works of modern Chinese authors, and
establish a picture and news service for the United States and other countries.
To further these ends, I also expect to publish a magazine here, dealing with
various phases of Chinese life and culture. Trusting this gives you the informa-
tion you desire. I am
(Signed) Max Granich.
Mr. Tavenner. In other words, the notice or declaration given by
Mr. Granich was to the effect that the magazine he proposed to publish
would be of a cultural nature or character?
Mi-. Owens. Yes, sir.
Mr. Tavenner. Will you please continue with the chronological
statement of the activities of Max Granich and Grace Granich as
reflected by the Shanghai police files ?
Mr. Owens. On March 20, 1936, the American consul general, Mr.
Gauss, in a letter to the commissioner of police at Shanghai, requested
the commissioner to provide him with any further information that
he may have obtained relating to Max and'Grace Granich.
Also under date of March 20, 1930, there appears in the files a
Shanghai municipal police memorandum revealing that Max Granich
located the offices of the Eastern Publishing Co., at 749 Bubbling
Well Road and began publication of a semimonthly periodical entitled
"The Voice of China."' This report states that the Eastern Publish-
ing Co.. had been registered at the United States consulate. The re-
port continues that the periodical is written in English, and that 2,000
copies of the first issue, dated March 15, wore printed by the Mercury
Press, No. 17 Avenue Edward VII, for sale in Shanghai and abroach
2132 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Tavenner. At that point, may I interrupt you ?
Does your subsequent investigation show that the Mercury Press
was an American printing firm?
Mr. Owens. That was an American printing firm, located in the
French Concession in the International Settlement.
According to reports subsequent to March 15, the Shanghai police
continued to maintain observation of Mr. Granich and his activities
and his publication.
Later, the Chinese Ministry of Judicial Administration received a
dispatch dated April 13, 1936, from the Statistical Bureau of the
Military Committee of the Nationalist Government.
Mr. Tavenner. That is, the Nationalist Government of China ?
Mr. Owens. That is right.
In the course of that it was recommended as follows :
The settlement authorities — ■
speaking of the International Settlement of Shanghai —
are also ready to prohibit the sale of the magazine (Voice of China) in this
settlement. It will be better if the Chinese authorities would directly apply to
the American consul general in Shanghai for the cancellation of the permit to
publish the magazine.
Mr. Tavenner. Now, what was the nature or basis of the Chinese
objection to the printing and distribution of the Voice of China ?
Mr. Owens. These files indicate that this confidential memorandum
was in the possession of the Chinese authorities, that they were in pos-
session of confidential information relating to the purposes of Max and
Grace Granich in coming to China, and that from a review of the first
two issues of the Voice of China it was their opinion, that of the
Chinese authorities, that the contents were of an anti-Chinese National-
ist Government nature.
Mr. Tavenner. Is there any information contained in the Shanghai
police file indicating that any action was taken about this time by the
American consulate general regarding the publication of this maga-
zine, the Voice of China ?
Mr. Owens. Yes, sir. There is a report bearing date of May 21,
1936, a Shanghai municipal police report, in which it is stated that
the registration with the American consulate of the Eastern Publish-
ing Co. was canceled by the American consul general in the latter
part of April of 1936, due to the fact that the contents of the Voice of
China, after an examination by the consul general, had exceeded the
cultural articles on China as stipulated by Granich when registering
his concern with the consulate.
Mr. Tavenner. In other words, the consul general had canceled the
registration because the magazine indicated that it had gone beyond
the purposes for which it had been set up ?
Mr. Owens. That's correct. I think his language was "had ex-
ceeded the limits of the cultural aspects" as indicated in his letter.
Mr. Tavenner. By way of explanation to the committee at this
.time, I would like to ask you whether or not your study of the files
and your interviews with other persons have given a clear picture
to you of the effect of concellation of registration in the publication
of the magazine at this time.
Just what does cancellation of the registration amount to ?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2133
Mr. Owens. As subsequent investigation revealed, registration at
the consulate was not mandatory by law, but it lent to any American
who was establishing himself as a businessman or a publisher in any
foreign country, as a matter of fact, an air of respectability and an
indication that they had gone to the American authorities and ex-
plained entirely what their purposes were in a given locality and what
sort of business they were going to be engaged in and what their pur-
poses were. And after they supply this information to the consulate.
they can state on letterheads, mastheads, or in whichever sort of publi-
cal ion or business they may be in, they are allowed to state, "Registered
at the United States consulate."
Now, when this is removed it takes away that air of confidence and
respectability as far as foreign officials are concerned.
Mr. Tavexxer. It does not prevent the continued publishing of the
paper or magazine merely to have the registration canceled ?
Mr. ( )wexs. In no way whatsoever.
Mr. Tavexxer. Do the fdes reflect that Granich continued to pub-
lish and distribute the Voice of China after the registration had been
canceled by the American consul general ?
Mr. Owens. Yes, sir.
As I stated, the only effect that that had was that it forced him to
remove from his masthead, the statement "Registered wTith the U. S.
consulate."
And these files show that he continued to publish the Voice of
China until November 1, 1937. which was the last issue that he printed,
or had printed.
Mr. Tayexner. What action, if any, was taken by the Shanghai
municipal police regarding the distribution of the issues of the Voice
of China?
Mr. Owexs. According to a report of May 21, 1936, members of the
Shanghai municipal police, on May 19, 1936, acting on the authority
of a search warrant issued at the instance of the Bureau of Public
Safety, raided the book store at 300 Foo Chow Road. The names of
these stores are in Chinese, and I had best spell them rather than try
to pronounce them.
This particular book store was the Jung Tsong Book Store, J-u-n-g
T-s-o-n-g.
The police seized 251 copies of the second, third, fourth, and fifth
issues of the Voice of China.
This action was followed on May 23 by a notice of the banning of
the sale of the Voice of China within the French Concession.
Mr. Tavkxxer. That is, a notice by French authorities?
Mr. Owexs. French authorities. That is correct. Notwithstanding
the seizure of the copies of the Voice of China, deliveries continued
to be made to numerous book shops according to the reports of the
Shanghai municipal police.
Beginning with October 14, 193(5. periodic visits' were made by the
police to these book shops to explain the anti-Japanese and anti-Na-
tionalist Government position of the publication and to seek agree-
ments with the managers to withdraw copies from sale and refrain
from receiving further consignment ;s.
Mr. Tavexxer. Did the police files reflect that this situation was
brought to the attention of any American officials?
2134 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Owens. Yes, sir, a police report bearing date of January the
12th, 1937, shows that a memorandum on the activities of Mr. Granich
was drafted, and that copies were handed to Mr. Schields, district
attorney of the United States Court for China, and to the United
States consul general.
Mr. Tavenner. Will you produce the memorandum, please?
I offer it in evidence and ask that it be marked 'Owens Exhibit
No. 2."
Mr. Wood. Without objection, it is so ordered.
(The document referred to was marked "Owens Exhibit No. 2,"
and received in evidence.)
Mr. Walter. Is that the same consul general that directed that the
registration be withdrawn?
Mr. Owens. The same one. He was there throughout this entire
period.
Mr. Tavenner. Who was he?
Mr. Owens. Clarence E. Gauss, G-a-u-s-s.
Mr. Tavenner. Mr. Chairman, I will read what I think are per-
tinent portions of the memoranda.
The information on this subject in the possession of the municipal police was
passed to the United States consul general, by whom the registration of the
Far Eastern Publishing Co., was canceled. The publication of the magazine by
Granich has continued, however, much to the annoyance of the Chinese author-
ities, whose only remedy has been application for the confiscation of the periodical
offered for sale in shops subject to the jurisdiction of Chinese courts. Under
these circumstances, while the circulation of the Voice of China in the settle-
ment is a misuse of the protection afforded by the international settlement and
extraterritorial rights, the police arrived at an impasse in attempting to control
the circulation of subversive literature of this nature.
Stated briefly the situation at present is as follows : Max Granich, in publish-
ing the Voice of China, is undertaking a commission which, executed by a
person subject to the jurisdiction of the Chinese court, would constitute a
criminal offense punishable with imprisonment. The contents of the Voice of
China are the work of Chinese citizens, and the publication is widely read by
Chinese citizens, as is witnessed by the invitation extended therein to students
to submit articles for publication. Furthermore, it is known to the police that
articles of a subversive nature from the Voice of China were used for English
lessons in a local school.
Mr. Owens, do the files reflect a response to this memorandum by
the district attorney?
Mr. Owens. Yes, sir. In a report by section 1 of the special branch
of the Shanghai municipal police, bearing date of February 9, 1947,
the following was recorded. I am quoting from the report :
With reference to the special branch report dated January 12, 1937, on the
subject of a memorandum on the activities of Max Granich, copy of which was
passed to the district attorney of the United States Court for China, I now
have to report that Mr. Shields states that he is unable to take any action in the
matter. No provisions are made in the Federal Penal Code for cases of this
nature, and it is the opinion of Mr. Shields that the Chinese authorities will
not be successful in curtailing the activities of Granich until they take the
matter up with the United States diplomatic representatives in China.
Mr. Tavenner. What response to this memorandum, if any, was
attributed to the consul general, that is, response to the memorandum
which was handed him and Mr. Shields, United States attorney?
Mr. Oavens. You must remember there was no letter addressed to
him. It was just an enclosure for his use. There was no formal
reply.
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2135
Mr. Tavenner. Just a moment.
I believe the report itself merely shows that this memorandum
was handed to the consul general and to Mr. Shields.
Mr. Owens. That's correct. As I say, there was no formal reply,
but in the report, the Shanghai municipal police report, January
14, 1937, there appears a record of a conversation with Mr. J. B.
Pilcher, United States vice consul, which states as follows :
During a recent conversation with Mr. J. B. Pilcher, United States vice consul,
who has been handling the Granich case, from a consular viewpoint, this gentle-
man expressed it as his personal opinion that the Chinese authorities seem re-
luctant to curb the activities of Granich in the Voice of China. According to
Mr. Pilcher, the American consul general received a communication from the
president of the second branch of the Kiangsu high court last May —
Mr. Tavenner. Will you spell that?
Mr. Owens. K-i-a-n-g-s-u.
—similar in tone and contents to the letter of May 5, 1936, addressed to the com-
missioner of police from the chief of the police bureau of the municipality of
Shanghai. Mr. Clarence Gauss. American consul general, replied direct to
the court, acknowledging receipt of the communication, and requested the Chinese
nuthorities to furnish proof that Granich was a representative of the Third Inter-
national and that the Voice of China was of a communistic nature. Mr. Pilcher
now states that no further letter of dispatch had been received from the Chinese
Government representatives ; and taking into consideration that the publication is
now registered as a newspaper with the municipality of Shanghai and the United
State Post Office, Granich is now afforded post office privileges which he never
previously enjoyed.
Mr. Walter. Was the circulation of this material in violation of
Chinese law \
Mr. Owens. According to Chinese police memoranda, if he were
a Chinese subject he would be subject to prosecution.
Mr. Walter. Well, why was not an alien subject to the same law?
Mr. Owens. Because it was an American firm: and they had no
jurisdiction.
Mr. Walter. What difference does that make ? If it violated the
Chinese law. his nationality made no difference.
Mr. Owens. They could not arrest him or prosecute him. They
later approached the consul general for suppression of the publication,
as we will show.
Mr. Walter. Is there not anything in the record to show why the
Chinese did not prosecute these people?
Mr. Owens. They never arrested them.
Mr. Jackson. Would not the matter of extraterritoriality enter
into that, in the settlement, and so forth? They would have no juris-
diction within the foreign settlement.
Mr. Walter. But this circulation took place all over, not only in
the settlement.
Mr. Tavenner. I think those questions will be answered in the course
of the examination of other witnesses, who are more or less experts
in this field, and I believe the question will hinge upon what are the
extraterritorial rights of American citizens.
And probably the question was narrowed down to whether or not
an American citizen wa> disturbed in any way in his property rights,
or was being subject to arrest, as distinguished from a different type
of action necessary to curtail publication of the magazine.
2136 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Walter. Well, it is very clear that what this man was doing
was not in violation of any United States law but was in violation of
the Chinese law. And the thing that I do not understand is why the
Chinese officials attempted to have the United States Government
take some action, when it could not take action, and did not take any
action itself when it could have taken action.
Mr. Tavenner. I believe that will be satisfactorily answered.
Mr. Walter. All right.
Mr. Tavenner. Now, you have stated, from this report that you
have read from, that it appeared that the Chinese Government itself
may have changed its attitude toward the publication of the Voice
of China, as shown by the fact that it was being extended postal facili-
ties that it had not theretofore been extended.
Mr. Owens. That's right,
Mr. Tavenner. Now, does this report show any particular interest
on the part of the Shanghai police in this situation, which was brought
to the attention of the Shanghai police by the American authorities ?
Mr. Owens. Yes, sir. As was stated before, the original Shanghai
police files, many of them, have handwritten notations appearing
either at the bottom or in the margin thereof. There is a notation in
ink at the bottom of this report which states :
Yes. Edit with care. I should like to know how Chinese authorities have come
(a) to register, (&) to extend postal facilities.
That is signed "D. S. B.," probably the initials of the chief of the
division.
Mr. Tavenner. Do the files indicate that that matter was followed
up by the Shanghai police to attempt to get an explanation from the
Chinese as to how this magazine that they had been complaining about
now bears postal privileges that it had not borne before?
Mr. Owens. Yes. There is a report from the superintendent of the
Special Branch of the Shanghai Municipal Police, dated December 21.
Mr. Tavenner. What year?
Mr. Owens. 1937. It states :
Inquiries made of Chinese press censorship and Dr. Hung Chi shows that the
Voice of China
Mr. Tavenner. Just a minute. Do j-ou know who Dr. Hung Chi
was?
Mr. Owens. He was the official who was either the secretary or the
head of the Chinese press censorship and post office facilities there
in Shanghai.
Inquiries made of the Chinese press censorship and Dr. Hung Chi show that
the Voice of China was never registered with the Ministry of Home Affairs nor
with the Shanghai city government. It appears from investigation by these
officials that the management of the journal produced the receipt or reply of the
city government to the post office regarding its application for registration
dated March 1936, and induced the latter into the belief that the paper had been
properly registered. Upon receipt of information furnished by Shanghai Mu-
nicipal Police, the city government has requested the postal authorities to ban
the transmission of the booklet and has written to the Ministry of Home Affairs
not to issue the registration papers. Furthermore, the city government in a
day or two will negotiate with the American consul general for the suppression
of the publication.
Mr. Tavenner. Did the files also show that a few days later another
communication was addressed to the Shanghai Municipal Police?
I believe it bears the date of March 3.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2137
Mr, Owens. March 3, 1937, there was a letter from the Chinese
Press Censorship to the superintendent, spoken of a moment ago. His
name was Superintendent Tan Shao-ling. This letter is dated March
3, 1037.
Mr. Tavenner. He was superintendent of the special branch of the
Shanghai Municipal Police?
Mr. Owens. Yes. With reference to the question of the registra-
tion of the Voice of China, and that is the registration for postal facil-
ities, this says that the Shanghai city government recently received
the registration certificate issued to the magazine by the Ministry of
Interior.
Upon receipt of my petition, the city government returned the certificate to
the Ministry, instead of transmitting it to the management of the magazine.
On February 2, 1937, the city government sent a letter canceling the postal privi-
leges granted to the magazine.
Mr. Tavenner. Do the files reflect that Max Granich made an appeal
to the central Kuomintang headquarters to lift this ban against the
transmission of the Voice of China through the mail?
Mr. Owens. Yes, sir. There is a report by the superintendent,
spoken of in the last question, the superintendent of the special branch
of the Shanghai municipal police, bearing date of June 8, 1937, re-
lating to this subject. I will quote from this report :
Inquiries have been made to the city government and the police bureau as to
the truth of the allegation that the above magazine had been registered with the
Central Kuomintang Headquarters. The authorities had no knowledge in the
matter until they telegraphed Nanking for information. A reply has now been
received from the Central Kuomintang Headquarters at Nanking. It states
that Max Granich, publisher of the Voice of China, had an interview with Mr.
Zao Lih Ts, chief of the publicity department of the Central Tangpu, and after
alleging his loyalty to the Central Government, was granted permission by the
latter to lift the ban against the transmission under the following conditions:
(1) The magazine will hereafter not propagate communism. (2) It will not
publish articles inimical to the Chinese Government.
It is also stated that a letter, not a certificate, was given to Mr.
Granich confirming this verbal agreement. This letter was submitted
at the Chinese post office either by Granich himself or his representa-
tive, applying for the privilege of transmitting the Voice of China
through the post as mail matter.
This was referred to the police bureau, who did not approve of the
measure until more definite instructions were received from Nanking.
Mr. Tavenner. Do the Shanghai police files reflect any further
interviews between representatives of the Shanghai Metropolitan
Police and officials of the American consulate general?
Mr. Owens. Yes. sir. There is a confidential report made by De-
tective Sgt. F. A. Pitts, special branch, Shanghai municipal police,
bearing date of September 2, 1937.
Mr. Tavenner. Will you produce that, please?
I desire to offer this' report in evidence, marked "Owens Exhibit
No. 3."
Mr. Wood. Without objection it is so ordered.
(The document referred to was marked "Owens Exhibit No. 3," and
received in evidence.)
Mr. Tavenner. Mr. Chairman, I will read the pertinent parts of
this report.
2138 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
"With reference to the endorsement of the DC (crime and special branches)
appearing on the attached report dated September 2, 1937, I have to state that
Mr. J. B. Pilcher, United States consul, was interviewed at 5 p. m., September 2,
with the object of seeking the views of the local American authorities regarding
the banning and closing down of the Voice of China. Mr. Pilcher stated that
at the moment the American consulate general in Shanghai was in an invidious
position since the Department of State had recently reprimanded it for con-
tinually harassing the activities of Max Granich, editor and owner of the pub-
lication in question. This was brought about, it would appear, by a protest
made to Washington by highly placed Communist circles in the United States
regarding the treatment accorded to Granich by the American authorities in
Shanghai.
Whilst it is known confidentially that the American consul general is prepared
to give the police its utmost assistance in suppressing the Voice of China, it is
appreciated that it has been placed in such a position that it cannot satisfy us
officials without invoking further reproaches from Washington.
Nevertheless Mr. Pilcher states that whilst the police could not confiscate
those copies of the present issue now harbored in American premises at 749
Bubbling Well Road (the Eastern Publishing Co.), we could seize all copies for
sales on the streets, since they would then no longer be American property,
having already been sold to various news vendors.
Mr. Owens, do the files indicate that the Shanghai Municipal Police
followed the suggestion made by Mr. Pilcher, that all copies of the
Voice of China exhibited for sale on the streets be seized?
Mr. Owens. Yes, sir. Subsequent to this report which you have
just read, there are reports dated September 3, 4, and 5, 1937, showing
the seizure of copies of this magazine, which were being offered for
sale publicly on the streets.
Mr. TAvenner. Will you hand me the exhibit again ? I will read
another paragraph from Owens' exhibit 3.
In regard to further issues of the Voice of China, Mr. Pilcher stated that the
best course to take to suppress future publications would be for the French
police to visit the Mercury Press, 21 Avenue Edward VII, where the paper is
printed and published, and warn the management quite definitely that they
would not tolerate any further copies being printed or published in the French
concession. (The sale of the paper is already banned in the French concession.)
Mr. Owens, do the files reflect whether any further action was taken
by the French in regard to the publication of the magazine in the
French concession?
Mr. Owens. Yes, sir. There appears in this file a copy of a re-
quest by the chief of the French police to the managing director of
the Mercury Press. It is dated September 5, 1937. I quote from
the letter :
I have the honor to draw your attention to the fact that your company con-
tinues to carry out the printing of the Voice of China, registration of which
was withdrawn in the French concession on May 8, 1936, following a formal
request of the Chinese judicial authorities. In the interest of public order
and bearing in mind the present local situation, I will be greatly obliged if you
will print no further copies of this publication in the French concession. I have
the honor to be —
and so forth; signed by the chief of French police.
In connection with this, there is a report made by Detective Sgt.
Pitts, special branch of the Shanghai police, bearing date of Septem-
ber 7, showing that Mr. G. C. Bruce, managing director of the Mer-
cury Press, advised that his company would respect the wishes of the
French police and that no further copies of the Voice of China would
be printed or published by his concern.
Mr. Tavenner. Mr. Owens, will you now briefly summarize the
remaining pertinent documents in the file ?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2139
Mr. Owens. Yes, sir. Subsequent to this date, the files reflect
that Mr. Granich made a complaint to the consul general in Shang-
hai regarding the seizure of his publications on September 3, 4, and
5; thai the consul general on September 8, 1937, formally requested
the return of confiscated copies on the ground that they Mere the prop-
erty of an American citizen at the time of seizure. Further, the files
disclose that on September 12, the commissioner of police returned
these confiscated copies to the consul general, who delivered them to
Mr. Granich and took his receipt therefor. The files also disclose
that Mr. Granich succeeded in procuring the China Science Corp.,
located in the French concession, to publish one issue, the November 30,
1937, issue, of the Voice of China. And shortly thereafter the China
Science Corp. was fined $50 by the French authorities for publica-
tion of the issue and warned not to print any further issues, because
the sale and distribution of this publication within the French con-
cession had been banned.
The files next include a report bearing date of December 29, 1937,
in which it is stated :
Max Granich, the American editor of the Voice of China, left Shanghai on
December 21, 1937, on the steamship Rampura for Marseille, France. He was
accompanied by his wife. Two clays prior to his departure Granich received
a large draft from the United States in an amount which he utilized to pay his
and his wife's passages to Europe. At the time of his departure, the Shanghai
police reported that Granich remarked sometime prior to his departure despite
all his efforts he could not succeed in his work in China as he received no
Millport from the American authorities here and was continually setting into
trouble with the police of the international settlement and the French concession.
And that was the last report on Max and Grace Granich.
Mr.' Tavenner. Mr. Owens, in your review of these files, have you
been able to ascertain the number of copies that were made of the
various issues '.
Mr. Owens. Yes. There was a running account kept. Two thou-
sand copies of the first issue of March 15, 1930. were delivered for dis-
tribution. This number increased to 5,500 by July 1 and increased to
6,000 by January 15, 1937, and reached its peak in March of 1937, when
they had printed 7,750 copies.
From that date on, from March until November 1937, the copies
gradually decreased in number printed.
Mr. Walter. And on what date did the Chinese Government extend
the postal privileges ?
Mr. Owens. It was in June. That controversy arose in May and
June of 1937.
Mr. "Walter. That was after the peak had been reached ?
Mr. Owens. Yes, sir.
Mr. Tavenner. Mr. Owens, is there any information contained in
the files which would indicate the areas of distribution of the Voice of
China ?
Mr. Owens. Yes. The various records of seizure show that the
Voice of China was being distributed by 15 book stores and numerous
magazine stands, the names of which are contained in the files, which
were located in the international settlement.
In addition, the magazines were also distributed by individuals in
this area. The report of the police, bearing date of June 27, 1936.
95830—52 2
2140 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
shows that 3,000 copies were delivered to the post office for delivery to
Canton, China.
In a report dated March 12, 1937, 1,500 copies were delivered to a
Chinese post office, addressed to various places in the South Seas,
which were confiscated by the local branch of the Chinese post office.
Mr. Tavenner. Have you ascertained from an examination of other
files and documents that the area of distribution was even broader
than you have just indicated?
Mr. Owens. Yes. Subsequent investigation of another file, which
will be introduced later, disclosed that some copies were sent to the
International House in Chicago, as I recoiled. Copies were sent to
Chinese students in this country, particularly those in colleges and
universities on the west coast.
There was also a hold-up of a consignment of publications in
Manila, if I remember correctly, which will be developed later.
Mr. Tavenner. I have no further questions, Mr. Chairman.
In light of the information contained in Owens exhibit No. 3, which
sets forth the conversation with Mr. Pilcher regarding the action of
the State Department in Washington in regard to these matters, I
have submitted interrogatories to Mr. Pilcher, who was located in
Government service in Japan.
Mr. Wood. You mean presently?
Mr. Tavenner. Presently. I submitted them because there was
no prospect of his early return here.
And I would like to read the interrogatories.
Mr. Wood. Very well. Without objection.
Mr. Tavenner (reading) :
In re the hearing by the Committee on Un-American Activities of the House
of Representatives, United States Congress, relating to the activities of Max
and Grace Granich in China and elsewhere:
The Committee on Un-American Activities of the House of Representatives
calls up J. B. Pilcher to answer upon oath the following interrogatories to be used
in evidence in the course of the said hearing :
Interrogatory No. 1: When and where were you born?
Answer to interrogatory No. 1 : September 28, 1899, at Dothan, Ala.
Interrogatory No. 2: What is your present occupation?
Answer to interrogatory No. 2 : Foreign-service officer of the United States.
Interrogatory No. 3 : State brieliy the positions you have held with the United
States Government, giving dates and places of service.
Answer to interrogatory No. 3 : The information requested is as follows : Ap-
pointed foreign-service officer unclassified and vice consul of Korea October 24,
1928. Foreign Service School November 5, 1928. Vice consul at Nanking,
March 29, 1929. At Hankow July 2, 1929. At Harbin October 21, 1933. At
Shanghai March 21, 1935. Class 8 consul at Shanghai October 1, 1935. Secre-
tary to the diplomatic service August 17, 1937. Third secretary at Peiping
October 25, 1937. Class 7 May 1, 1938. Second secretary at Peiping May 12,
1938. Class 6, March 1, 1940. Consul at Tientsin in addition to duties as second
secretary at Peiping April 1, 1940. Consul at Amoy April 17 to December 7, 1941.
To the Department of State December 23, 1941. Class 5 February 1, 1942. Act-
ing Assistant Chief, Division of Foreign Service Administration, October 12,
1942. Class 4 July 16, 1944. First secretary and consul at Paris March 19,
1945. Class 3 August 13, 1945. Consul at Shanghai March 1, 1946. Foreign-
service officer of class 3 November 3, 1946. Class 2 April 14, 194S. To the De-
partment of State July 1, 1948. Detailed to National War College October 30,
194S, to June 21, 1949. Consul at Yokohama July IS, 1949. Consul general Sep-
tember 22, 1949. Consul general at Yokohama September 30, 1949. Consular
mission in addition to duties as consul general at Tokyo December 19, 1949.
Interrogatory No. 4: What position did you hold in the United States con-
sulate in Shanghai in 1936 and 1937?
Answer to interrogatory question No. 4 : American consul.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2141
Interrogatory No. 5: Attached hereto, marked "Exhibit A" for the purpose
of identification only, is a copy of the Shanghai municipal police report dated
September 2, 19:17, entitled "The Voice of China Interview with Mr. J. B. Pilcher,
American Consul General, Regarding Suppression."
Mr. Chairman, this is the same document which has been put in evi-
dence as Owens exhibit No. 3 :
Will you state all the circumstances which led up to the interview which is the
subject of this report?
Answer to interrogatory No. 5 : To the best of my recollection, Mr. Max
Granicb. a naturalized American citizen of former Russian nationality, filed
application in 1937 or perhaps earlier at the American consulate general in
Shanghai for the registration of the Eastern Publishing Co. as an American sole
proprietorship. The magazine published by him was called the Voice of China.
In the fall of 1037, the Japanese and Chinese were waging a full-scale war in
the Chinese area of Shanghai. American authorities cooperated with the
Shanghai Municipal Council police in their endeavor to keep law and order in
the international settlement. The Voice of China was not conducive to this
effort, and the police authorities undertook to prevent or limit its distribution
in the international settlement.
Since Mr. Granich was an American citizen and held that his activities,
including the publication of the Voice of China, should be extended protection
by American consular authorities in Shanghai, the international-settlement
police naturally turned to the consulate general for advice and assistance. Mr.
F. A. Pitts, of the Shanghai municipal police, called upon me in this connection.
Interrogatory No. 6 : In exhibit A —
which, I will refresh the committee's recollection, is the same as Owens
exhibit Xo. 3—
the following statement was attributed to you.
"Mr. Pilcher stated that at the moment the American counsul general at
Shanghai was in an invidious position, since the Department of State in Wash-
ington had recently reprimanded it for continuously harassing the activities
of Max Granich. editor and owner of the publication in question." Were you
correctly quoted in the said statement attributed to you?
Answer to interrogatory No. 6: Although I do not recall the exact words
of the conversation, which took place approximately 14 years ago, my sense of
propriety as an officer of the Department of State would have precluded the use
of words and phrases attributed to me, regardless of the subjct of discussion.
Interrogatory No. 7: What action was taken by the consulate general in
Shanghai which affected the activities of Max and Grace Granich?
Answer to interrogatory No. 7 : I do not recall any specific action in the
summer of 1937, but I do recall that the sum total of actions taken then amounted
to nonsupport of his activities.
Interrogatory No. 8 : Did the Department of State in Washington repri-
mand the consul general in Shanghai for any alleged treatment of Max and Grace
Granich?
Answer to interrogatory No. 8: I would not use the word "reprimand." It
would seem that there was a routine instruction to Shanghai consulate general
regarding Mr. Granich, in which the consul general was instructed to exercise
caution in any action taken by the consulate general in Shanghai. I do not re-
call any specific instructions along these lines.
Interrogatory No. 9: What was the nature of such reprimand?
Answer to interrogatory No. 9 : See answer to No. 8, above.
Interrogatory No. 10: Attached hereto and marked "Exhibit B" for identi-
fication only is a copy of the telegram from the Department of State to the
American consul at Shnghai, bearing date May 13, 1937. Will you please ex-
amine this exhibit and state whether or not this message influenced you in any
statement you made to Mr. Pitts on the subject of your interview?
Answer to interrogatory No. 10: I do not recall ever having seen exhibit B.
This exhibit will be introduced subsequently in the course of the hear-
ing.
Interrogatory No. 11 : Attached hereto and marked "Exhibit C" for identi-
fication only is a copy of the report from the American Consul General in
Shanghai to the Secretary of State, Washington, D. C, bearing date of June 25,
2142 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
1936. Will you please examine this report and state whether or not you pre-
pared the report, assisted in its preparation, or were familiar with its con-
tents at the time of its dispatch?
Answer to interrogatory No. 11 : I do vaguely recall having seen exhibit C,
which to the best of my knowledge and belief was prepared by Consul General
Gauss, who possibly may have used some data furnished by me, but I do not re-
member participating in its preparation.
Interrogatory No. 12 : Attached hereto and marked "Exhibit D" for identi-
fication only, is a copy of a departmental memorandum of the Department of
State, Division of Far Eastern Affairs, bearing date of August 9, 1937, which
refers to the contents of exhibit C. Will you please examine exhibit D and state
whether or not you were familiar with its contents at the time of your said
interview with Mr. Pitts on September 2, 1937?
Answer to interrogatory No. 12 : I do not recall ever having seen exhibit D
before this interrogation, and therefore could have had no knowledge of its
contents at the time of my interview with Mr. Pitts.
Interrogatory No. 13 : Was any of the information contained in exhibit D to
your knowledge transmitted to the consul general or to you prior to September
2, 1937, in official channels or any manner?
Answer to interrogatory No. 13 : I do not know.
Interrogatory No. 14: Reference is again made to exhibit A, wherein Mr. F. A.
Pitts, the writer of the report, in referring to the alleged reprimand of the con-
sul general of the Department of State, stated : "This was brought about, it would
appear, by protests made to Washington by highly placed Communist circles in
the United States regarding the treatment accorded to Granich by American
authorities in Shanghai." What information did you have on September 2, 1937,
or what information do you have now, of making any protest to the State
Department by any member of the Communist Party or any person outside of the
State Department, complaining of the treatment accorded Max and Grace
Granich by the consul general in Shanghai?
Answer to Interrogatory No. 14 : I had no information on September 2, 1937,
and have none now, as to the making of the protest to the State Department by
Communists or any other persons concerning the treatment accorded to the
Graniches.
Interrogatory No. 15 : Please explain fully the basis for your answers to the
preceding question.
Answer to interrogatory No. 15 : See answer to No. 14, above.
Interrogatory No. 16 : Please state fully any information you may not have
covered by your answers to the preceding questions, which would aid the Com-
mittee on Un-American Activities in its investigation of the alleged Communist
Party activities of Max and Grace Granich and any information which might
tend to show whether or not special considerations were afforded Max and Grace
Granich by the State Department.
Answer to interrogatory No. 16: I have nothing further to add.
Subscribed to this 19th clay of September 1951.
J. B. PlLCHEB.
And I will not read the affidavit,
Mr. Wood. We will recess until 2 o'clock this afternoon.
(Whereupon, at 11 : 50 a. m., a recess was taken until 2 p. m., this
same day.)
AFTERNOON SESSION
(The hearing reconvened at 2 : 28 p. m., Kepresentatives Harold H.
Velde and Bernard W. Kearney (appearance noted in record) being
present, Mr. Wood presiding.)
Mr. Wood. Come to order, please.
Let the record disclose that for the purposes of the hearing this
afternoon, acting under the authority vested in me by the resolution
establishing this committee, I have set up a subcommittee composed
of Messrs. Velde and Doyle and Mr. Wood. Messrs. Velde and Wood
are present and Mr. Doyle is on the way.
We have a quorum and we will proceed.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2143
Whom do you have, Mr. Tavenner?
Mr. Tavenner. Mr. Chairman, a subpena duces tecum was served
on the State Department for the production of all records, corre-
spondence, memoranda, under the control of the State Department
relating to Max Granich, Grace Granich, the publication Voice of
China, and the Eastern Publishing Co.
In response to the subpena the State Department has delivered
to me the bound documents and papers that I have here before me.
My purpose in presenting them at this time is to use them in part
as a basis for the examination of the next witness who will be called.
These documents fall into two main categories :
First, instructions and memoranda having origin in the State De-
partment; and
Second, dispatches originating in the field.
I shall introduce in evidence and make a part of the record any of
the documents of the first class having their origin in the State De-
partment, the contents of which warrant their introduction. The
introduction in evidence and the making a part of the record of dis-
patches from the field presents a special problem. Where the dis-
patches from the field contain reports of information, it would seem
unwise to make them verbatim a part of the public record, because
of the over-all harmful effect upon objective reporting in the field.
For this reason, in appropriate cases, I will paraphrase dispatches
from the field for the benefit of the public record, or read in evidence
only the parts pertinent to this investigation without divulging pub-
licly the full text of the dispatch and names of those who assisted
in the preparation.
And I will present the actual dispatches in executive hearing for
any further information the committee may desire on the subject.
Mr. Velde. Mr. Counsel, who in the State Department was the sub-
pena duces tecum served upon?
Mr. Tavenner. No one. I served the subpena duces tecum, and as
will appear presently, through the chairman, requested the State De-
partment to send anyone who was qualified to explain the documents.
Mr. Velde. I see.
Mr. Tavenner. It was addressed to Mr. Acheson.
Mr. "Wood. Very well, you may proceed.
Mr. Tavenner. My next witness is Mr. Clarence E. Gauss.
Mr. Wood. Mr. Gauss, will you come around, please?
Will you be sworn?
Do you solemnly swear the testimony you will give this subcom-
mittee shall be the truth, the whole truth, and nothing but the truth,
so help you God?
Mr. ( rAUSS. I do.
Mr. Wood. Have that chair, sir.
TESTIMONY OF CLARENCE E. GAUSS
Mr. Tavenner. What is your name, please, sir?
Mr. Gauss. Clarence Edward Gauss.
Mr. Tavenner. When and where were you born?
Mr. Gauss. Washington, D. C. January 12, 1887.
Mr. Tavenner. How are you now employed. Mr. Gauss \
2144 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Gauss. I am a member of the Board of Directors of the Ex-
port-Import Bank.
Mr. Tavenner. How long have yon been employed in that capacity ?
Mr. Gauss. Since 1946, January 2.
Mr. Tavenner. Prior to that, did you serve for a considerable pe-
riod of time in the service of the State Department?
Mr. Gauss. Yes. I have been 38 years in the State Department,
since 1906 until the 31st of May 1945.
Mr. Tavenner. Will you state briefly to the committee what your
principal assignments have been?
Mr. Gauss. I spent over 30 years in China in various assignments
and various ports from deputy consul general in 1907 to Ambassador
from 1941 through 1944.
I was consul general in Shanghai twice. Once on a temporary basis ;
the second time from 1936 to the spring of 1940.
I have served as charge d'affaires. I served on the consular legation,
consul general, and consul in various ports and advisory consul in var-
ious ports.
Mr. Tavenner. As I understand it, you were consul general in
Shanghai during the years 1936 and 1937?
Mr. Gauss. Yes.
Mr. Tavenner. Mr. Gauss, do you recall from your independent
recollection the incidents arising out of the establishment of the
Eastern Publishing Co. in March 1936 in Shanghai by Mr. Max
Granich and his wife, Grace Granich, and the publication of the
magazine, the Voice of China ?
Mr. Gauss. Well, those names rang a bell in my memory, but I
did not recall the details, exactly what had occurred.
I knew the Voice of China was an organ there that had been
considered as prejudicial to peace and good order, and that we had
had to deal with that situation, but I didn't recall the details.
Mr. Tavenner. Have you refreshed your recollection regarding
these incidents. by an examination of the Shanghai police files in con-
junction with the files of the State Department made available to you
on yesterday ?
Mr. Gauss. Yes. I haven't examined them in detail, but we went
over them sufficiently to refresh my memory very rapidly.
Mr. Tavenner. I hand you Owens Exhibit No. 3, which is a copy
of a report by Mr. F. A. Pitts, detective sergeant, special branch of
the Shanghai Municipal Police, bearing the date the 2d day of Sep-
tember 1937, in which Detective Sergeant Pitts records an interview
with Mr. J. B. Pilcher, vice consul in your office in Shanghai.
Do you recall from your independent recollection whether you were
reprimanded by the State Department as indicated in the second para-
graph of that exhibit?
(At this point Representative Bernard W. Kearney entered the
hearing room.)
Mr. Gauss. No; I was not reprimanded by the State Department
as indicate in the second paragraph of that police report.
The State Department and I might differ as to what should be
done in the case, but I don't think I was ever reprimanded in that
case.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2145
Mr. Tayexxer. Well, will you explain to the committee in a very
general way what situation was created by the establishment of the
Eastern Publishing Co., and the publishing of the Voice of China?
Mr. Gauss. Yes.
I should perhaps first explain that we had a system in China which
was an extraterritorial jurisdiction where the American authorities
had jurisdiction in courts over American citizens. We had a system
under which an American company or partnership or sole proprietor-
ship, when it came to China, would register at the consulate. That
involved a preinvestigation, let us say, of the exact status of that
enterprise; who the people were — say it was in this case a sole pro-
prietorship— was he an American citizen; what was he going to do;
what capital, and so forth; a record of his passport, so that in any
case where application was made to the consulate general for consular
assistance, intervention, or whatever you want to call it, we would have
that information all ready on our files so that we could go ahead.
That was common in China. Registration was not prescribed by
law ; it was not a registration which we particularly wanted to publish.
But every American corporation, partnership, and sole proprietor-
ship out there so registered. The National City Bank, the Standard
Oil Co.. and so on and so forth.
Now, then, Mr. Granich appeared at the consulate general to register
the Eastern Publishing Co. which was, he stated, established for the
purpose of a news syndicate, which was rather vague in itself, a picture
service, and also the publication of a magazine relating to Chinese life
and culture.
We knew nothing about Mr. Granich, but we spent considerable time
investigating so far as we could locate, before we approved that regis-
tration. It was very unusual for someone to come out and start a news
syndicate.
We had the Associated Press and United Press. We had corre-
spondents there of the reputable larger newspapers in the United
States. We had the International News Service, also, and it was
rather unusual for someone to be establishing a news syndicate which
we did not quite understand.
But Ave never got to the bottom of that. Picture service, yes. But
these things would not be profitable enterprises. And what concerned
us most was the statement that they were going to publish a maga-
zine involving Chinese life and culture.
We had had some experience with that type of publication in China
which had given strong indications of being a subversive publication.
In any case, we accepted Mr. «Granich's application. We investi-
gated so far as we could and we finally approved it and waited to see
Avliat would happen.
Mr. Velde. May I ask a question ?
Mr. Wood. Mr. Velde.
Mr. Velde. Coming back to the Shanghai police report which I
think you have just read, or that portion with reference to Mr.
Pilcher's statement as to the investigation, in which he states that:
At the moment the American Consulate General in Shanghai was in an invidious
position, since the Department of State in Washington had recently reprimanded
it for continually harassing the activities of Max Granich, editor and owner of
the puhlication in question. That was brought about, il would appear, by
2146 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
protests made to Washington by highly placed Communist circles in the United
States regarding the treatment accorded to Granich by the American authorities
in Shanghai —
I believe in answer to that question you said that you yourself
never were reprimanded by the State Department.
Did you have any communication at all with the State Department
here in Washington with reference to Max Granich ?
Mr. Gauss. Yes.
Mr. Tavenner. May I suggest, Mr. Velcle, that we have those docu-
ments here and are going to introduce them in evidence, and I propose
to question him regarding each one of them.
Mr. Velde. I have one more question I would like to ask along this
line, if it may be permitted.
Mr. Wood. Very well.
I was going to suggest on the matter that he would be given an
opportunity. If you have another one you would like to present at
this time, go ahead.
Mi1. Velde. I would like to ask you, Mr. Gauss, if this report, then,
is not in accordance with the facts, in your opinion ?
Mr. Gauss. It is not accurate.
After all, you have got to realize that this, I think it was Dectective
Sergeant Pitts, or somebody, who was talking with a member of my
staff and who perhaps was not entirely accurate in reporting to the
Commissioner of Police.
However, we had had certain instructions from Washington, which
I think they can definitely show you there. Some people might have
considered them a reprimand. It took 15 months before I got any
instructions from Washington. And when I got them they were in-
structions which I could disagree with, but were purely, I should say,
legal, technical legal developments, which I would be glad to explain
now, if you wish, Mr. Chairman, or if we could go as we have been.
Mr. Velde. I am through with my questions, if you will follow
up my questioning.
Mr. Wood. I think it will develop further, Mr. Velde. If not,
all members will be given an opportunity to elaborate.
Mr. Tavenner. We have shown through the introduction of the
excerpts from the Shanghai police file that Mr. Granich, as an Ameri-
can citizen, had made various complaints to you regarding the seiz-
ure of his publication. Do you recall that?
Mr. Gauss. Yes. But before there was a seizure — I believe it was
before ; I am not exactly clear as to the dates — but I believe before
the seizure of those publications, the first seizure, we had cancelled
his registration. I would have to refer to the files again to verify
which date that was.
But we canceled his registration because he had put out a magazine
called the Voice of China which, upon examination, was shown to be
an organ detrimental to peace and order in the settlement, in the
International Settlement, I mean, the foreign area in the Port of
Shanghai, in that it was — that particular first issue I haven't ex-
amined again, but, anyhow, the first or second issue were more or less
anti-Nationalist Government, anti-Japanese, anti-imperialist powers,
and of a character designed to stir up and foment agitation among
Chinese students.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2147
There had been complaints to the Consulate General. The French
concession authorities prohibited the circulation of the publication in
the French concession as detrimental to peace and good order.
The Chinese court in our usual proceeding communicated with the
consulate general saying that Mr. Granich appeared in Shanghai as
the representative of the Third Internationale to conduct anti-Com-
munist propaganda. That anti-Communist
Mr. Tavexner. Anti-Communist?
Mr. Gauss. Anti-Communist propaganda. I am sorry — to con-
duet Communist propaganda. That Communist propaganda was
prohibited under the Chinese criminal code, and if it were published,
they therefore moved to have the American authorities take action
to suppress this publication.
The police of the International Settlement, those police were largely
British at the top, also complained to the Consulate General that this
publication was prejudicial to peace and good order in the settle-
ment.
It was calculated to stir student activities and agitation at the
time.
(representative Bernard W. Kearney left the hearing room at this
point.)
Mr. Gauss (continuing) . Just what of these protests had come to us
before I canceled the registration, if you can call it that, of the Eastern
Publishing Co., I do not recall, and I couldn't say without referring
to the record on that particular point.
But in any event, the publication, when it came out, had its mast-
head, Eastern Publishing Co., registered at the consulate general.
So that in the eyes of foreigners, as well as Chinese in Shanghai,
the thought would be that this was being published with the consent or
approval of the American authorities.
Now, then, when it turned out that the publication was not a maga-
zine dealing with Chinese life and culture, I considered that Mr. Gran-
ich had made a false representation to the consulate general as to the
purpose of the magazine, and I canceled his registration.
I did not want that magazine to be published with that masthead
which placed the responsibility, in a measure, at least, on the consulate
general.
Mr. Velde. That cancellation was a result of your own consideration
of the problem. It was not influenced by outside sources ?
Mr. Gauss. Outside, sources? We examined it.
Mr. Velde. Or within the Department?
Mr. Gauss. And I believe there — I would have to check the record —
I believe we had had a complaint. I am not just sure, but I believe
we had a complaint from the Chinese authorities, the British authori-
ties and the French concession authorities, who had prohibited circu-
lation of the magazine so that it was brought to our attention very
pointedly.
TVe examined the magazine ourselves and concluded that we should
cancel the registration.
Mr. Velde. Do you remember whether you contacted the State De-
partment before such cancellation to get their approval '.
Mr. Gauss. No, I don't think I did.
PUBLIC
2148 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
As a matter of fact, Mr. Velde, when we made a registration we were
supposed to report it to the Embassy at Peking. And if I remember
correctly in this case, we not only reported it to the Embassy in Peking,
but also reported it directly to Washington because there were ques-
tions involved there in our minds, and we wanted Washington to be
informed.
We certainly informed Washington when we had canceled the regis-
tration. We informed them properly and promptly and kept them
constantly informed of everything that we were doing and why, of all
the protests that we had received and so on.
Mr. Tavenner. Mr. Gauss, your dispatch to the State Department
bearing date of May 22, 1936, reports the making of a complaint by
Max Granich on May 20, 1936, concerning the seizure of 400 copies
of the May 1 and May 15, 1936, issues of the Voice of China.
Will you please examine the report and state whether or not it is
the report made by you?
Mr. Gauss (after conculting document). Oh, yes.
Mr. Tavenner. Will you examine the first two paragraphs begin-
ning on page 2 of your report and either summarize those two para-
graphs for the committee, or read them, if you like ?
Mr. Gauss' (reading) :
On May 21, 1936—
I am reading textually —
after I had been consulted on the case, Mr. Granich was informed orally that
the consnlate general declined to intervene in the matter.
That was the seizure.
Thus leaving' him to pursue his legal remedies if he so desired. He was not
advised as to any course of procedure which he might follow. He was, of
course, at liberty to retain counsel and apply to the Shanghai district court'
for the return of any American property unlawfully seized.
I felt that the consulate general should give Mr. Granich no official support
or countenance in the activities in which he is engaged. He is publishing and
disseminating a political magazine of a highly radical propaganda character,
likely to incite the student and radical element to agitation and perhaps dis-
orders inimical to peace and good order and to the good relations between the
United States and China and other countries.
If I may be permitted, Mr. Chairman, to explain there that these
several hundred copies of this Voice of China were seized in the
International Settlement under an order of the Chinese court direct-
ing the seizure of these publications in a book store known as the
People's Book Store. The seizure was made in the International
Settlement and with the assistance, if not by, the municipal, or inter-
national municipal police, principally British, but it was made under
this Chinese court order. t
The copies were then handed to the Chinese court.
Now, I might have been able to intervene in that case with the
Chinese court for the redelivery of these copies to Mr. Granich, or to
me, if he had shown that they were still his property.
On the other hand, Mr. Granich had his legal remedy which was
to retain counsel,, which could have been American, British, Chinese,
French, or anything else that could practice in that Chinese district
court, and go into court and claim those as his property.
For me to have intervened in the case would have been to give faith
and countenance to this man who was publishing this propaganda
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2149
organ which was detrimental to the peace and order of China, of
Shanghai, and I refused him that assistance.
Mr. Tavenner. Reference was made a few moments ago to the
receipt by you of certain inquiries from the State Department, and
finally instructions.
I hand you a photostatic copy of a telegram sent by the Department
of State to you on May 13 and ask if you recall receiving that tele-
gram which relates to a request for your position in the matter.
Mr. Gauss (after consulting document). Yes.
Mr. Tavenner. I desire to offer the document in evidence and ask
that it be marked "Gauss Exhibit No. 1."
Mr. Wood. It will be admitted.
(The document above referred to, marked "Gauss Exhibit No. 1,"
is filed herewith.)
Mr. Tavexner. Will you read it, please, sir ?
Mr. Gauss. This is marked, so it is not confidential.
Mr. Tavkxxee. Only read the body of the text.
Mr. Gauss. It refers to a dispatch of mine and correspondence in
regard to the Eastern Publishing Co. and says :
Inasmuch as this case seems to be substantially on all fours with the case
on the Searchlight Publishing Co. —
and it gives a reference to correspondence there and instructions which
occurred in 1932 —
the Department would appreciate receiving from the consulate general an ex-
planatory statement of the grounds upon which the consulate general has de-
clined to intercede on behalf of Eastern Publishing Co. in an endeavdr to obtain
the return to the company of the copies and volumes of the Voice of China
seized by the Chinese postal authorities.
Mind vou, this is in 1937. This is almost a year after the first
seizure. These were seized by the Chinese postal authorities; they
were not seized under an order of the Chinese court.
Please reply by radio.
Mr. Tavenner. I hand you a dispatch by telegram, bearing date
May 19, 1937. and I will ask you if this was your reply.
Mr. Gauss (after consulting document) . Yes, sir ; it was.
Mr. Tavenner. I would like to introduce it in evidence and have
it marked as "Gauss Exhibit No. 2."
Mr. AVood. That will be so admitted.
(The document above referred to, marked "Gauss Exhibit No. 2,"
is filed herewith.)
Mr. Tavenner. Mr. Gauss, will you hand that to me for a moment?
The first part of your reply relates to facts regarding the Granich
matter, much of which has been covered by previous dispatches; is
that not true ?
Mr. Gauss. Yes ; it outlines the history of the case.
Mr. Tavenner. I would like for you to read or paraphrase, as
you may determine, the last paragraph in your reply which sum-
marizes your views regarding the magazine in question.
Mr. Gauss (reading) :
As has been fully reported to the Department —
And I quote here verbatim —
the consulate general canceled the registration of the Eastern Publishing Co.
when the character of its activities became apparent. Those activities cannot
2150 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
be considered in any way as advancing American interests or prestige in China.
They are calculated to foment discord and to disseminate propaganda prejudicial
to peace and good order and to the friendly relations between peoples and
governments with which the American Government and people are at peace.
I consider that such activities are a gross abuse of the privilege of extra-
territoriality, and that in pursuance of the good-neighbor policy of the Ameri-
can Government no recognition, countenance, or support should be given to
Granich in such activities. The Department is aware that there is suspicion
that the activities of Granich are being conducted in the interests of the Third
Internationale.
Mr. Tavenner. Did you further reply by written dispatch under
date of June 25, 1937, to the telegram of inquiry of May 13 from the
Department ?
Mr. Gauss. Yes. I seem to have elaborated on that a bit.
Mr. Tavenner. In the course of that additional reply you made
further comments regarding your position, and your views relating
to the Voice of China. I refer you to the paragraph on page 3 be-
ginning with the w7ords, "I continue to hold."
Mr. Gauss. Yes.
Mr. Tavenner. Will you read that paragraph to the committee, or
paraphrase it, as you desire?
Mr. Gauss. I will read it.
I continue to hold firmly to the view expressed in the last paragraph of my
telegram No. 233 of May 19—
and so forth —
to the effect that the activities of this publication cannot, be considered in any
way as advancing American interests or prestige in China, that they are calcu-
lated to foment discord and to disseminate propaganda prejudicial to the peace
and good order and to friendly relations between the peoples and government
with which the American Government and people are at peace, that such activi-
ties are a gross abuse of extraterritoriality, and that in pursuance of the good-
neighbor policy of the American Government no recognition or countenance or
support should be given to Granich in such activities. The Department is aware — -
Mr. Tavenner. I think that is sufficient.
Mr. Gauss. It is exactly the same text as the telegram I read.
Mr. Tavenner. Now I refer you to page 4 and call to your attention
the last two paragraphs on that page.
Mr. Gauss. Yes.
Mr. Tavenner. Beginning "I shall, of course."
Mr. Gauss. Yes.
Mr. Tavenner. And I will ask you to summarize or read it.
Mr. Gauss (reading) :
I shall, of course, continue in my attitude that the person and property of Max
Granich as an American citizen are subject to American protection, but I shall
also continue, unless otherwise instructed by the Department or by the Ambossa-
dor, to decline to give Granich any recognition, countenance or support in his
anti-Japanese propaganda activities.
While numerous reports on the Voice of China have been communicate d to
the Department, I have received no instructions therefrom in criticism of the
attitude assumed by the consulate general or in correction of the position which
has been taken as representing, in my opinion, the attitude calculated to serve
the best interests of the United States. I invite any instructions the Depart-
ment may see fit to give for my guidance in the future in connection with this
magazine and the activities of its editor and publisher.
That is dated June 25, 1937, more than a year after the case first
arose.
Mr. Tavenner. Did you receive definite instructions from the State
Department on July 12, 1937, regarding the handling of the case ?
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2151
Mr. Gauss (after consulting document). Yes, I received an in-
struction from Washington dated July 12, 1937.
Mr. Tavenner. It was not in code?
Mr. Gauss. No: it is a written instruction, a mailed instruction. It
came by pouch.
Mr. Tavenner. I desire to introduce the document in evidence and
ask that it be marked "Gauss exhibit No. 3."
Mr. Wood. It will be admitted.
(The document above referred to, marked Gauss exhibit No. 3," is
filed herewith.)
Mr. Tavenner. Mr. Gauss, do those instructions show the legal
grounds and position taken by the State Department as to how. in its
judgment, this matter should be handled?
Mr. Gauss. Yes. They refer to instructions that have come out in
1932 in the Searchlight Publishing Co. case.
Mr. Tavenner. Will you please read the instructions?
Mr. Gauss. Read the whole thing?
Mr. Tavenner. I believe — read the whole thing, yes.
Mr. Gauss (reading) :
With reference to your telegram No. 233 of May 19, 5 p. m., the Department has
reviewed the correspondence in regard to the Eastern Publishing Co. and has
given careful consideration to the statements of fact and of your opinion and
official position based thereon which are contained in the telegram under ref-
erence.
The Department concurs in the view that the activities in which Mr. Max
Granich, the owner of the Eastern Publishing Co., is engaged in China, should
not receive encouragement or support from this Government. However
Mr. Tavenner. Just a moment. At that point, the instructions
confirmed and approved practically what you had been doing; is that
right ?
Mr. Gauss. Yes, I suppose so.
However, it does not seem to the Department, all available evidence being con-
sidered, that the circumstances of this case warrant any qualification for de-
parture from the position taken in the Department's telegram No. 230 of July
30 at 2 p. m. in regard to the Searchlight Publishing Co.
Inasmuch as the Eastern Publishing Co. appears to be an American firm and
the confiscated magazines appear to be the property of that firm it follows that
the property is subject to exclusively American jurisdiction, and that this con-
fiscation of the property by the Chinese authorities is an unwarranted invasion
of American jurisdiction and a violation of our treaties with China.
A correctness of that conclusion would not seem to be affected by the fact
that the property in question was deposited with the Chinese postal authorities
for transmission, or by the fact that the seizures were made by censors operat-
ing Tinder the national military commission.
While the publication under reference does not appear to be legally objection-
able under the laws of the United States, and does not, therefore, warrant
judicial action by the American authorities in China, the Department, never-
theless, desires to cooperate in every reasonable way with the Chinese author-
ities toward preventing the publication and distribution in China by American
nationals of material which could reasonably be regarded by those authorities
as offensive to the Chinese Government or people and, therefore, prejudicial to
friendly relations between the United States and China.
The Department, therefore, would not be disposed to raise objection to the
adoption by the Chinese authorities of such reasonable administrative measures
as may be available to prevent circulation and distribution of the magazine
under reference, such as a denial of postal facilities, or any other facilities under
the^ exclusive control of the Chinese authorities ; provided, however, that any
action which the Chinese authorities might take for the accomplishment of
this purpose would not include any assumption of jurisdiction over an American
national or his property.
2152 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
This is the position taken by the Department in the case of the Searchlight
Publishing Co. and is based on the distinction between diplomatic protection
which may be granted or withheld in the discretion of the President, and the
treaty rights of extraterritoriality to which American nationals have a legal
claim which are not within the authority of this department to disregard.
If the Chinese authorities should attempt to confiscate future issues of the
publication under reference, you should be guided by this instruction in pro-
testing seizure, and in endeavoring to effect the return of any properties seized
to the American owner. You may in your discretion inform the appropriate
Chinese authorities of the Department's position as set forth hereinbefore and
request their cooperation in making that position effective.
For the Secretary of State, Sumner Welles.
Mr. Tavenner. Prior to the receipt of those instructions, you had
not taken any definite action to recover any of the seized copies which
Mr. Granich had complained about?
Mr. Gauss. I had not. Mr. Granich had his legal remedies which
he could have pursued and which I thought it was more desirable
that he should pursue than that we should give any face or counten-
ance to his activities by intervening in his behalf.
I differ radically from the State Department in that view. I re-
ceived my instructions, and thereafter carried them out.
Mr. Tavenner. So after the receipt of these instructions, the differ-
ence in your procedure was to demand the return of the confiscated
or of the seized copies?
Mr. Gauss. We had only one case, as I recall, of seized copies. They
said that some 10 or 11 copies had been seized by the municipal council.
Mr. Granich came in and made the declaration that they were his
property. We asked for their return. They were returned and we
redelivered to him and their face value was 30 cents.
We had another case where I intervened. This publication was
printed at the Mercury Press in the French concession. It was an
American institution. A number of copies, I think several hundred,
perhaps several thousand, I don't remember, were en route from Mer-
cury Press to Mr. Granich's office in the International Settlement.
The international police came in to us and said they would like to
seize it. Would we in the Consulate General acquiesce? The answer
was "No, you cannot seize American property." It was evidently the
property of Mr. Granich being delivered by his printers to himself.
Mr. Tavenner. Do you recall whether that was before the receipt
of the instructions of July 12, or after ?
Mr. Gauss. No, I think that was after. I am not quite certain, but
I would have taken that position, and we were not parties to a seizure.
Mr. Tavenner. Yes. I have a reference to that incident of being
September 1, 1937.
Mr. Gauss. Yes. And that was a very serious situation in China.
I think I would have been justified even in seizing those properties.
It was a situation, a condition in Shanghai when we should have had
martial law, and when martial law should have suppressed any such
publication.
It was after the outbreak of the Japan incident. We had a major
battle going on around Shanghai. We had the International Settle-
ment, the French concession crowded with Chinese refugees, about a
million of them — and I am not exaggerating the amount — and it was
touch and go whether we were going to hold that situation there
against possible Japanese invasion even into foreign areas.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2153
So that the police, and even our Marines and the other foreign
troops there, Mere all very tense holding that situation, which we
tried to do.
And this was no time for any such magazine to come out, even if
they considered it was not prejudicial to peace and order.
Mr. Velde. You have said that the author of that last communica-
tion whereby you were given this instruction was Sumner Welles?
Mr. Gauss. Sumner Welles. He was Acting Secretary.
Mr. Velde. Do you know who the author of the original telegram
requesting information concerning this was?
Mr. Gauss. I don't know who the author of it was. I might be
able to give you some initials on it : I don't know.
Mr. Tavexxer. The author, I believe, is here, and will testify.
Mr. Velde. I would like to know if Mr. Gauss knows.
Mr. Gauss. I wouldn't know at this time. I am sure, sir. [After
consulting document:] Yes, I recognize the initials of the author
of that telegram, the original drafter of it. Whether he did it under
instructions or in consultation with others, I wouldn't know.
Mr. Velde. Who is that person ?
Mr. Gauss. JCV.
Mr. Velde. And do you know who that is ?
Mr. Gauss. Yes, John Carter Vincent. But it doesn't necessarily
follow that if he was the drafting officer on that that he originated it.
Mr. Velde. No; I appreciate that; and the same, I think, is true
of Mr. Welles, isn't it?
Mr. Gauss. Yes; they have given us there a photostatic copy of
the instruction that was signed by Mr. Welles. It might have any
number of initials on it; I believe it does, even the legal adviser;
but I wouldn't know when I got it in China. All I would get was
the original without anything, so I don't know how it originated.
Strictly speaking, the instruction that I got from the State De-
partment was sound, and healthy, although I think it could be dis-
puted from a legal standpoint. It was purely a legal question
involved.
As to whether or not I had been doing what was strictly — and I
considered that was undesirable to give any face or countenance t»
this man who was publishing this magazine which was one the
French authorities, the international authorities, and the Chinese
authorities, objected to as being prejudicial to peace and good order,
and whose views I confirmed by our examination of the publication
\n the consulate general.
Mr. Tavexxer. Are these two exhibits, that is, Gauss No. 1, which
is the telegram of May 13 from the State Department to you, in-
quiring as to the basis for your action, and the instructions issued
to you on July 12, constituting Gauss exhibit No. 3, the only docu-
ments that you received from the State Department as far as you
recall, or from examining these files '.
Mr. Gauss. To the best of my knowledge and belief, yes.
Mr. Tavexxer. In view of the nature of the comments made by
Mr. Pitts in his report of his conference with Mr. Pilcher, I desire
to ask you this question :
Did you receive any request from the State Department, either
directly or indirectly, indicating a desire on its 'part to extend any
special privileges or concessions to the Granichs?
2154 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Gauss. Oil, no.
Mr. Tavenner. Do you know, or do you have any information, that
anyone in your office received any such request?
Mr. Gauss. No, no ; I don't believe that any such request was ever
made. I cannot conceive of any coming from the State Department.
Mr. Tavenner. Nothing has come to your attention?
Mr. Gauss. Nothing. ,
Mr. Tavenner. To indicate the use of any pressure by the Com-
munist Party, or any members of it in the manner in which you should
handle the Granichs ?
Mr. Gauss. Oh, no, indeed; the Granichs or anyone else.
Mr. Tavenner. I wish you would explain to the committee what
you consider the importance of the issuance of such a publication at
that particular time, was to the American interests in China?
Mr. Gauss. Well, there existed in China at that time a very tense
situation between China and Japan b< juse of the Japanese incursion,
first, in Manchuria, then into Np(S } ' ,aina.
And, of course, it did not break out in Shanghai until 1937, although
there had been the incident in 1933.
The Communists in China were very strongly anti-Japanese and
urging Chiang Kai-shek to resist the Japanese. Chiang Kai-shek was
not militarily in a position to resist the Japanese except for a very
brief period, perhaps, and naturally, the Nationalist Government was
seeking to hold this situation to invoke foreign assistance and support,
if they could get it, and to suppress the radical student agitation which
was being fomented there by Communist and other interests toward
demonstrations and disturbances, anti-imperialist, and so on.
Now, as to these publications, after all, they were in English. There
were not a large number of Chinese who could read them, but there
would be enough Chinese reading them, to whom they would be
distributed, who would then read them to the others and stir up anti-
government, antinationalist government, anti- Japanese, anti-imperial-
ist, if you will — we were imperialists, too — and the foreign people.
It was undesirable in a country where their laws prohibit and pun-
ish Communist propaganda for an American to go in, first to concern
himself in the political and internal affairs or external affairs of that
country, and, secondly, to be circulating Communist propaganda or
propaganda calculated to disturb peace and order.
Therefore, these publications — and this is not the only one — there
is a record of a number of them behind this, the Searchlight Publish-
ing Co., and there have been those cases where we had to deal, and it
was very difficult to deal, with those propositions.
After all, these are American citizens. We have a right to free
speech under the Constitution, although I believe that it has been
held the Constitution does not follow the flag.
But we had all sorts of difficulties trying to deal with the situations,
meeting complaints from the Chinese Government or authorities, from
local authorities, and from others. We did the best we could under
the circumstances.
And I think that what I did in Shanghai in the present case was
the thing that I would do again under any circumstances.
Mr. Velde. Mr. Gauss, this publication was actually printed in the
States; was it not?
Mr. Gauss. No ; it was printed in Shanghai.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2155
Mr. Velde. In Shanghai? "Well, now, if the State Department
had taken the attitude that this publication was designed to cause
unrest and disturbances, and probably poor relations between the
Chinese and the United States, would it not have been possible for
the United States or the State Department to have stopped that cir-
culation of that publication in China (
Mr. Gat ss. How \
Mr. Veide. I am just asking you that.
Mr. Gauss. We had a district attorney there. We had a district
court uf the United States. He examined this case. He could find
no basis upon which he could take any action against Mr. Granich.
That is why I say that if it had been possible for us to have had
martial law in 1937, when this thing broke out, we might have been
able to. and that is the only way I know of to have stopped it.
Mr. Tavenner. Mr. Gauss, in that connection, if we had extraterri-
torial rights in China today, . would ask you a number of questions
regarding possible improvement "igh the legislative approach of
the handling of situations of this kind, but it would be rather a moot
question now.
Mr. Gauss. We have lost extraterritoriality throughout the world
except, I believe, in perhaps Morocco.
Mr. Wood. I take it from your testimony here, Mr. Gauss, that you
have taken some pains to familiarize yourself with the contents of the
publication \
Mr. Gauss. Oh, yes: we examined every copy that came in to the
Consulate General.
Mr. Wood. In the last sentence of your telegram to the Secretary of
State of May 1937, you conclude by saving:
The Department is aware that there is suspicion that the activities of Granich
are being conducted in the interest of the Third Internationale.
I take it that you were expressing your own opinion ?
Mr. Gauss. No, sir. I base that statement upon an official dispatch
addressed to me as Consul General by the President of the Chinese
District Court in Shanghai, which stated that they had had a report
that Mr. Granich and his wife — I don't remember whether his wife was
in there, or not — had come to China as agents of the Third Inter-
nationale to conduct Communist propaganda. anti-Nationalist propa-
ganda.
Mi'. Wood. In the light of that information that you received from
that source, together with your personal appraisement of the contents
of the publication, the word "suspicion" in here was rather an under-
statement, was it not '.
Mr. Gauss. Perhaps an understatement; but, Mr. Chairman. I
asked the Chinese authorities in reply to their dispatch to me to give
me any proof that they had that Mr. Granich was a representative of
the Third Internationale. I never had any proof forthcoming. I
doubt whether they could produce it.
It was probably
Mi-. Tavenner. In that connection, referring to a dispatch of yours
of April -2:>. 1936, 1 will read to you this sentence :
While nothing has yet heen developed to prove that Granich or his wife may lie
engaged in Communist activities in Shanghai, I should mention that in discussing
the Voice of China with an American journalist, who lias at times heen in more
95830—52 3
2156 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
or less close touch with the Soviet activity in China, he expressed the opinion
that it may represent a Communist intent and anti-Japanese propaganda.
Although you were not fortified with the facts at that time as to any
Communist Party connection of the Graniches, if that were true, the
publication of this magazine constituted a very serious threat in
Shanghai, did it not?
Mr. Gauss. Well, I feel so, I feel so ; I certainly do.
Mr. Velde. I take it that you satisfied yourself that Max Granich
and his wife Grace were not registered with the State Department or
the Department of Justice as foreign agents ?
Mr. Gauss. At that time there was no such law, sir.
Mr. Velde. That is probably right.
Mr. Gauss. Thirty-six and thirty-seven.
Mr. Velde. That is probably right.
Mr. Gauss. They were asked at the consulate general — without dis-
closing the dispatch from the Chinese authorities — they were asked
whether they were Communists, and they denied it. I think that
appears in one of my dispatches. I noticed that yesterday as we went
through.
Mr. Tavenner. You reported to the State Department that Granich
had denied that he was a member of the Communist Party, and denied
any Communist Party affiliation on the part of his wife.
Mr. Gauss. I think so. I don't recall the exact report there, but it
was made based upon inquiries we made. Of course, these inquiries
were made largely by a member of my staff, Consul Pilcher, who was
a very able man — a younger man, but he handled this and other eases
very well.
Naturally, I was always in constant touch with him and he consulted
me and he followed my instructions.
Mr. Tavenner. I will ask you to read from your dispatch of April
25, the paragraph on page 5, beginning with the words "Mr. Granich."
Mr. Gauss (reading) :
Mr. Granich, when questioned at the consulate general, denied emphatically
any Communist affiliations. He also denied any knowledge of a Miss Schmidt.
He stated that his wife assists him in his enterprise and that neither he nor she
is a Communist. He also denied that he is preparing to publish any book.
Mr. Tavenner. I think, Mr. Chairman, that covers all that 1 had in
mind asking Mr. Gauss.
Mr. Wood. Do you have any questions, Mr. Velde ?
Mr. Velde. No; except I would like to thank Mr. Gauss for his
very direct and useful testimony, and make this remark : That if the
American authorities operating in foreign countries, apparently dip-
lomats, do not have any legal way of stopping the circulation of sub-
versive material, I think it is high time that the Congress made avail-
able some way to our American diplomats operating in foreign coun-
tries to do just that.
Mr. Gauss. Ordinarily, of course, Mr. Velde, the local authorities
and local law governs. This was only in this extraterritorial jurisdic-
tion where you have American control over Americans that the diffi-
culty arose.
Now, throughout the world, generally, with the exception, I believe,
of Morocco and, I believe, perhaps, Mascat, Onan, or some place like
that, we have given up extraterritorial jurisdiction.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2157
Mr. Velde. As a matter of fact, Mr. Gauss, the regulations now
governing and those that you abided by, required that you not only
allow the circulation of it, but if any of the foreign countries stopped
circulation on this type of material you had to get it back for Amer-
ican citizens?
Mr. Gauss. Well, it wasn't much use to them when we got it back.
They couldn't circulate it.
It is true, it would have been desirable, if we could have had some-
thing in the way of legislation at that time, Congressman.
But, you know, I think that the Members of Congress would be
very wary about interfering with complete freedom of the press, and
so on.
Mr. Velde. Certainly we believe in freedom of the press. We be-
lieve that that freedom should be protected above the right of the
freedom to circulate subversive material. I think there are two rights
and two freedoms to be considered. The higher one is the freedom of
the press to circulate American material and not subversive material.
Mr. Gauss. That is right. I don't think you find the American press
represented abroad complaining of any suppressive activities on the
part of our American Foreign Service. As a matter of fact, they
have been helpful to us and we have been helpful to them.
Mr. Wood. We appreciate your courtesy and we hope that your
presence here has not inconvenienced you.
Did you have a question, Mr. Counsel?
Mr. Tavexxer. Yes ; I have another question.
I want to make certain that I understand the distinctions that you
made with regard to your practice there and the practice directed by
the instructions.
If I have understood your testimony correctly, it means that you
were required to object to any seizure of American property; that is,
property of American citizens?
Mr. Gauss. Yes.
Mr. Tavenxer. Or the arrest of an American national?
Mr. Gauss. Oh, yes.
Mr. Tavexner. But that you were not required to interpose any
objection as to the suppressing of circulation by persons other than
American nationals; is that correct?
Mi-. Gauss. That is quite correct. I was not instructed to interpose
any objection to circulation, or the suppression of the circulation by
others. It was only this physical property that I was told not to
allow to remain in the hands of the people who seized it. But re-
member, there was always, as I maintain in dispute of the State De-
partment, a legal remedy that these people had.
In the first place, they could have gone into the Chinese courts
when the first seizure took place, and there interposed and said, "This
is our property. We want it back."
And if they had been denied justice then, then they were entitled to
appeal for diplomatic intervention. The French police, when they
seized any copies, if fchey had retained them and refused to give them
back, they could have gone into the French court. They had a legal
remedy.
My action in refusing to support them didn't bar them from any
legal remedy. If they were seized by the international municipal
2158 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
police they could have gone into the court of consuls — I was president
of that court, by the way — and could have brought an action against
the municipal consul to retain possession of those documents. They
were not denied any legal means.
It was only after they had pursued their legal remedies that they
might have had a claim to diplomatic intervention.
And would our diplomatic representatives have wanted to repre-
sent themselves to Chinese courts or Chinese authorities as giving face
and countenance to this publication?
I said, "No," the Department said "Yes." You ought to try to get
these back without having- — in other words, without their having to
pursue these legal remedies.
And in 99 cases out of 100, in assisting American citizens, Ave would
try to do something for them to avoid the necessity of their proceed-
ings in the courts. •
Mr. Tavenner. That is all.
Mr. Wood. Very well, if there are no further questions, the witness
may be excused.
Mr. Tavenner. Is Mr. John Carter Vincent present?
Mr. Wood. Mr. Vincent, will you raise your right hand, please, sir?
Do you solemnly swear the evidence you will give this subcommittee
shall be the truth, the whole truth and* nothing but the truth, so help
you God?
Mr. Vincent. I do.
Mr. Wood. Have a seat.
TESTIMONY OF JOHN CARTER VINCENT
Mr. Tavenner. You are Mr. John Carter Vincent?
Mr. Vincent. I am, sir.
Mr. Tavenner. Mr. Vincent, a subpena duces tecum was served on
the State Department for the production of certain records before the
Committee on Un-American Activities, at a meeting of the committee
to be held on November 27.
On November 26, the chairman advised the State Department that
the hearing would be continued until January 8, and in his letter he
made the following request:
It will be appreciated if, in the production of the records, you —
meaning the Secretary of State —
have the person appearing be one qualified to explain the documents produced
under the subpena.
I have been notified that you have been selected to appear here for
that purpose.
Mr. Vincent. Yes, sir.
May I say, Mr. Tavenner, that I am not a lawyer, so where you get
down to fine legal points I have been authorized to say on a fine legal
point the Legal Division will be glad to send somebody down on that.
It is the document that you have there, the drafting ?
Mr. Tavenner. Yes.
What is your profession \
Mr. Vincent. Diplomatic agent in Tangiers, Morocco.
Mr. Tavenner. Will you state briefly for the committee what your
position is and what your assignments have been when in the State
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2159
Department beginning with your first coming into the State Depart-
ment J
Mr. Vincent. Yes. I entered the Foreign Service in L924 and ser-
ved the next 10 years in China at various places, Hankow. Manchuria,
and various places. Peking.
In 1!>.">.~> I came home. I was in the Department of State until 1939
which is the period covered by this particular case here.
Mr. Velde. Between 1932 and 1930 were you in
Mr. Vincent. No, 1935. Going back to the Searchlight case, I was
not in the Department when the Searchlight case took place, but dur-
ing this particular case here. There is a date, 1932, that comes in,
because the Voice of China case goes back for support to the Search-
light casein 1932.
In 1939 I went to Geneva as consul and went back again to China
in 1941 where I served in Chungking from 1941 until 1943 under Mr.
( ia uss, who has just testified here, as Ambassador.
In 1943 I came back to the Department of State, stayed there until
1947. when I was appointed American Minister to Switzerland, where
I stayed until the past year when I went to Tangiers.
Mr. Tavenner. Mr. Vincent, I hand you Owens exhibit No. 3, which
is a report by Detective Sergeant Pitts, special branch, Shanghai
municipal police, under date of September 2, 1937, of an interview
with J. B. Pilcher, vice consul at Shanghai, on the subject Voice of
China.
Will you please examine it? [Handing document to the witness.]
Mr. Vincent. Yes.
Mr. Tavenner. Have you had an opportunity?
Mr. Vincent. I have not seen this particular document. I have
had an opportunity to look through the others, but I have not seen
this one.
Mr. Tavexxer. This document came from the Shanghai police files.
Mr. Vixcext. Yes.
Mr. Tavexxer. You have not seen it?
Mr. Vixcext. Not to my recollection.
Mr. Tavexxer. Were you familiar at the time of the writing of
that report with the activity regarding the Granich case?
Mr. Vixcext. I was.
Mr. Tavexxer. I call your attention particularly to the second
paragraph in the Pitts' report, which reads as follows:
Mi-. Pilcher stated that at the moment the American consulate general in
Shanghai was in an invidious. position, since the Department of Stnte in Wash-
ington has recently reprimanded him tor continually harassing the activities
of Max Granich, editor and owner of the publication in question.
This was brought about, it would appear, by a protest made to Washington by
high-placed Communist circles in the United States regarding the treatment
accorded Granich by the American authorities in Shanghai.
Would you please explain to the committee what reprimand, if
any. the consul general was given by the State Department regarding
his method of handling the Granich case?
Mr. Vincent. Yes, sir.
First, I will say that I don't think that anybody in the Foreign
Service office which was the drafting place ever thought this was a
reprimand to Mr. Gauss. Xo one in the State Department, in the Far
Eastern Division, would have considered the dispatch which we have
already had read here as a reprimand to Mr. Gauss.
2160 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
I would say further that probably there was no more highly re-
spected man in the field than Mr. Gauss, and I have every reason to
know that first hand.
Therefore, what it comes down to is this : That the dispatch, which
you will recall when reading it, supported Mr. Gauss in the can-
cellation of the registration and went probably a little further than
he was, in even suggesting that he could tell the Chinese that they
could take measures to deny this magazine circulation, but on the
technical point of when under extraterritorial treaty rights you were
bound to consider those seized magazines as American property, even
though they were in the post office, and enter a protest to get them
back.
It was just on that narrow point that you come to a difference of
opinion, if even it could be called a difference of opinion, on interpre-
tation of a man's treaty rights.
So, I would like to add that — and I don't think that Mr. Gauss him-
self considered it a reprimand — it was a difference of opinion on a
legal point.
Mr. Tavenner. Was there any expression of opinion conveyed by
the State Department or any employee in it from Washington, to
your knowledge, either directly or indirectly, to Mr. Gauss or any
member of the consulate general's office in Shanghai, that would in-
dicate a desire or a purpose on the part of the State Department to
go easy with the Graniches ?
Mr. Vincent. Not to my knowledge. Not to my certain knowledge,
and I cannot account for the fact that people might have had cor-
respondence, but I know of no one who would have written Mr. Gauss
from the State Department who would — I gather you mean might
have said "Play this one easy on Granich," because of what I see here —
that there was probably some trouble kicked up in America over the
treatment of Granich, I mean, from your police report.
Mr. Tavenner. Was there any trouble kicked up here in the United
States over the treatment that Granich is alleged to have received by
Mr. Gauss?
Mr. Vincent. I only assume that from this report I have just seen
here. I didn't know it at the time. I don't recall that there was any
pressure brought to bear, or any other thing, but I gather from this
police report, if it was true, that there had been some complaints
reaching Shanghai on a personal basis, unofficial basis.
Mr. Tavenner. You have examined the State Department files ?
Mr. Vincent. Yes.
Mr. Tavenner. Apparently before coming here ?
Mr. Vincent. Yes. I didn't have too much time, but I have ex-
amined them sufficiently carefully, I think, to testify.
Mr. Tavenner. Did you find any records of any character in the
State Department files that would indicate that any person within the
State Department had been solicited or interviewed by any outside
person in behalf of the Graniches ?
Mr. Vincent. No, sir.
Mr. Wood. Exclusive of what the records show, do you have any
independent recollection ?
Mr. Vincent. No ; I have none at all.
Mr. Wood. Can you give us any idea as to what the Shanghai police
had in mind when they made the statement in that report?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2161
Mr. Vincent. No; I cannot, except that I can surmise that there
may have been people in New York or someplace else who had written
out to China, not in the State Department.
Mr. Wood. I do not want you to "surmise." I asked you if you
know.
Mr. Vincent. No.
Mr. Wood. Prior to reading that report, have you ever heard of
such a thing?
Mr. Vincent. No.
Mr. Tavenner. I wish you would examine Gauss exhibit Nos. 1 and
3, and state whether or not the appearance of your initials at the
bottom of the report indicate that those reports were drafted by you.
Mr. Vincent (after examining document). Yes, sir; they were
drafted by me.
Mr. Tavenner. They are not reports. They are messages.
Mr. Vincent. No ; but 1 was the drafting officer. 1 might explain.
Do you wish for me to explain my position then ?
Mr. Tavenner. Yes; I would like for you to explain your position
then and the purpose of the drafting of first, the telegram of May 1,
1937, which is Gauss Exhibit No. 1.
Mr. Vincent. Well, first, as to my position. My position was then
what we would call assistant desk officer to the China desk officer
in the Department. I had been back in the Department a matter
of a year. Various and sundry assignments were given to the junior
officers. That was one of my assignments. Whenever anything came
in on the Eastern Publishing case, it was something that I was sup-
posed to initiate action on.
This drafting of this telegram was drafted in connection with the
whole group of people you find on the initials here. Primarily, how-
ever, I might say, in connection with consultation with the Legal
Division, where I see here the initials of Mr. Francis Xavier Ward.
That is the origin of this.
The origin, or what called for it, was Mr. Gauss's first report that
the seizure had been made of, what is it, 400 or 4,000 copies of the
Voice of China, in the post office. That was sent out to get a clarifi-
cation from him of just what had happened.
Mr. Tavenner. May I see that a moment?
Now. the specific request made by the Department in this telegram
is, reading from the document, Gauss Exhibit 1 :
The Department would appreciate receiving from the consulate general an
explanatory statement of the ground upon which the consulate general has
declined to intercede on behalf of the Eastern Publishing Co. in an endeavor
to obtain the return to the company of the copies and volumes of the Voice
of China seized by the Chinese postal authorities.
Well, actually, Mr. Vincent, there had been very full reports —
had there not ? — from the early part of 1936 on up to 1937, made by
Mr. Gauss explaining what the whole situation was there with respect
to Granich? Then, why was it you felt it necessary to point out to
him in this telegram that he should furnish you with the grounds
of the examination if his reports were reasonably full regarding his
action?
Mr. Vincent. I think you will find that this was only the second
case that had come to our attention of seizing magazine?. I don't
recall the file too well, but I think you will find that I wrote a memo-
2162 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
randum on that particular thing. Anyway, we took the attitude that
Gauss, in this matter of telling the fellow he could seek legal remedies,
was more or less to be supported and could be supported as the proper
attitude.
Mr. Velde, And you say that you have no idea what the background
of this request by telegram was, who made the complaint to the State
Department ?
Mr. Vincent. That I don't know, Mr. Velde. If somebody made
the complaint, I don't know the sequence there, whether he had it.
I don't know the file well enough now, whether we had had notice
from Gauss, and action had been taken in a telegram, or whether we
were notified from someplace else.
Mr. Velde. Did you not just recently review the files?
Mr. Vincent. Yes.
Mr. Velde. How was this case in the file?
Mr. Vincent. How did we get knowledge?
Mr. Velde. What was the heading of the case ?
Mr. Vincent. Of the case?
Mr. Velde. Yes.
Mr. Vincent. The case was called Eastern Publishing Co.
Mr. Velde. And you went through all of those files before selecting
these documents to bring over to the committee?
Mr. Vincent. No, sir; I didn't bring these documents over here.
Mr. Velde. But you did go through the files?
Mr. Vincent. Yes ; I went through the files.
Mr. Wood. In order to clarify that, Mr. Velde, and others who may
be interested, the entire file is here, and at my request the Department
has selected Mr. Vincent to appear, because, having been connected
with it. he was thought to be in a better position to explain any ques-
tions we desire to ask about it.
Mr. Velde. I see. It is difficult for me, Mr. Chairman, to see why
there is nothing in the file, and that Mr. Vincent has no recollection
of who made the complaint about this Eastern Publishing Co.'s Voice
of China being seized.
Mr. Vincent. Well, I don't know, Mr. Tavenner may be able to
find that there was a preliminary report from Gauss that the thing
had been seized. There may be one small document there that there
had been an attempt to seize these magazines in the post office, or it
may have been through the press.
Mr. Tavenner. Mr. Chairman, I interrogated Mr. Gauss regard-
ing his dispatch to the Department of March 20, 1936, I recall, in
which he recited the fact of seizure of 350 or more copies of the first,
second, third, and fourth issues of the magazine.
Mr. Vincent. Mr. Tavenner, may I interrupt? That telegram
you just showed me probably has a reference at the top; does it not?
Mr. Tavenner. Yes; it does [handing document to the witness].
Mr. Vincent. And I think if it has a reference it must be in our
file. It has reference to dispatch 665, March 12, 1937. I think you
will find that there we had probably made an initial report on the
action.
Mr. Tavenner. Mr. Chairman, I have already made mention of the
dispatch of March 20, 1936, reporting the seizure of copies. Now I
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2163
refer to the March 12 dispatch, March 12, 1937, in which Mr. Gauss
advised :
There is enclosed herewith in this connection a copy of a letter dated March 9,
together witD a copy of its enclosure, addressed to the consulate general by Mr.
Granich in regard to the detention by the local postal authorities of 1,500 copies
of the February 15, 1937, issue of the magazine, together with two bound volumes
thereof, including issues i through P.*. inclusive.
A copy of the February 15, 1!»:',7. issue was forwarded to the Emhassy and an
enclosure to dispatch No. ecu of February 25, 1937, above referred to.
The United Slates dispatch from Singapore dated February 27, 1937, stated
that the Voice of China, published at Shanghai, had been harmed at Singapore
from that date, and that the magazine was said to have violated the seditious-
publications orders.
So. that is the report March 12, 1037, showing the seizure at that
time by postal authorities, and the complaint by Mr. Granich. So,
those are two instances, prior to your telegram of May 13, of com-
plaints by Granich.
Mr. Vincent. Yes. I may say that I don't know whether it is ger-
mane to the point, but Mr. Gauss made the point that the 1936 seizure
was purely an informal one.
Granich came in and complained, but did nothing about it. But
in this case he made a written complaint on it. I don't know whether
it is of any great importance, but there was the informal one he made
the first time, and the formal written letter.
Mr. Wood. Gould you explain to me why it was deemed less im-
portant when the first seizure was made in 1936 by the police than
when the second seizure was made in 1937 by the post office I
Mr. Vincent. I am afraid, Mr. Chairman, 1 cannot. It has some-
what puzzled me: but I think the documents there will show that on
the first seizure Mr. Gauss simply told him that he could seek his legal
remedies when he came in on an informal basis, and in the second case
the argument was that they had ceased, I think there, to have an
American character, by being entrusted to the post office.
I am trying to state a legal point of view without any legal back-
ground at all. But apparently the legal division in the State De-
partment did see a difference.
Mr. Wood. If the first seizure in 1936 was reported to the State
Department, it seems they took no action at all.
Mr. Vincent. That is right.
Mr. Wood. That seizure was made by the police. A year later, when
;i seizure was made by postal officials, then the State Department
took action.
What I am puzzled about it. What is the difference ?
Mr. Vincent. As I say, 1 am equally puzzled, to a certain extent;
except in the first case, the man did not come in and make a written
protest. I am searching for a reason for it.
Mr. Wood. And that fact, coupled with the statement to the effect
that Communist source- complained to the State Department, im-
mediately after which, the State Department did take it up, was what
prompted me to ask you if you knew, or if you had any information
about it.
Mr. Vincent. Yes. I have no knowledge of Communist sources
complaining to the State Department on the Granich case.
2164 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
I think, Mr. Tavenner, you will find also a memo in there which does
mildly answer the chairman's question there, on the 1936 attitude, as
one drafted by me, in which we stated we supported the Gauss attitude
because he did have some reason, since he had made no formal protest.
It is a memo — a general summarization of the case as it was then in
1936.
Mr. Tavenner. Now, in that connection, we have discovered several
departmental communications, interdepartmental communications,
from which it appears that the State Department disagreed with Mr.
Gauss, and others in the Far East regarding the subversive character
of this magazine.
But I believe, at the same time, that you do take the position of
justifying his action generally; is that a correct statement?
Mr. Vincent. If I recall what you are referring to, I think you
will find a memo which I wrote, in which it is stated that the examin-
ation of the Voice of China did not show that it was carrying out
Communist propaganda; that it was anti- Japanese and that it was
stirring up trouble, but it was not — is that not the reference ?
Mr. Tavenner. Yes; your memorandum of June 12, 1936. -
Mr. Vincent. Yes ; I think you will find that is
Mr. Tavenner. It seems to carry that out, and I refer you to the
last paragraph on page 2 and ask you to read it [handing document
to the witness].
Mr. Vincent (reading) :
An examination of the copies of the Voice of China sent to the Department
by the consul general discloses that the magazine contains a large amount
of anti-Japanese material and material calculated to appeal to students and
radicals. The examination does not disclose that the magazine is disseminating
Communist propaganda or that it is engaged in subversive propaganda directed
against the Chinese Government.
Mr. Wood. That is your memorandum ; is it not ?
Mr. Vincent. Yes, sir.
Mr. Wood. At the time you formulated that, had you familiarized
yourselves with the contents of this publication? Had you read
it?
Mr. Vincent. I don't recall whether I read it or somebody else
read it in the Far Eastern Office.
Mr. Wood. You were familiar with it? I will ask you that.
Mr. Vincent. Yes.
Mr. Wood. Was it your opinion, then, that it was not a periodical
disseminating Communist propaganda ?
Mr. Vincent. That was my opinion.
Mr. Wood. Is it still your opinion ?
Mr. Vincent. I haven't read these things since then, but at that
time it was my opinion and Mr. Gauss' opinion.
Mr. Wood. I am not asking you to commit Mr. Gauss, but I want
you to commit yourself, if you will.
Mr. Vincent. I am just referring to Mr. Gauss' dispatch just pre-
ceding this, which makes exactly the same statement.
Mr. Wood. I want to know categorically, if I may, if, at the time
you dictated that dispatch, you were familiar with the contents of
this document being published over there, known as the Voice of
China.
Mr. Vincent. Yes.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2165
Mr. Wood. And this represents your evaluation of it? It still
does^
Mr. Vincent. I haven't reread them since I came back to Amer-
ica. But I would like to find, Mr. Chairman, if I can, Mr. Gauss'
statement, where he makes exactly the same statement.
Mr. Tavenner. We haven't found any such statement as that.
Mr. Vincent. It is in one of the documents.
Mr. Tavenner. In fact, we have introduced in evidence here his
statements from several dispatches as showing just the contrary view.
But I would like to find it, too, if you say it is in there.
Mr. Vincent. I know where it is. I can find it very quickly.
Mr. Owens. That is the complete file.
Mr. Tavenner. Are you referring to dispatches in which Mr. Gauss
concluded that it was detrimental to the good order of the Inter-
national Settlement?
Mr. Vincent. Yes; I won't hold you up more than a moment. I
think it is right here.
Mr. Tavenner. All right. We know what you are speaking of,
if that is what you are referring to.
Mr. Vincent. Here it is, Mr. Tavenner, in his enclosure to his dis-
patch of April 25, 1 think it is. And it is a letter of his to this judge,
or president, of the second branch of the Kaingsu High Court. It is
an enclosure to what would be document CO/2.
Mr. Tavenner. Now, will 3Tou read it, please ?
Mr. Vincent. Yes, sir ; this is replying to this judge.
The consulate general has obtained and examined a copy of the Voice of China
published by Granich under date of March 15, 1936. It has been unable to ascer-
tain that any further issue of this magazine has been published, and it has, so
far, been unable to ascertain that Granich has been engaged in any other publica-
tion activities. No evidence can be found by this consulate general that Granich
is a representative of the Third Internationale in China ; nor does an examina-
tion of the Voice of China seem to bear out the allegation that Granich is engaged
in the propagation of communism. Nothing is known at the consulate general
concerning a Miss Schmidt. * * *
Mr. Tavenner. That was based on an examination of the first issue?
Mr. Vincent. That is right. I think you will find that is about the
only issue we had at that time. We may have had one more issue. By
the time I wrote my memo, yes. By the time I wrote my memo, we had
one more issue, as I can see by these files. Or maybe it is the same
issue. No ; we had one more issue, presumably.
Mr. Tavenner. Were you present in the hearing room when Mr.
Gauss read the last paragraph of his reply of May 19, which is Gauss
Exhibit No. 2?
In any event, I would like you to examine that paragraph, read it
and examine it, and state whether or not the views expressed there of
Mr. Gauss are contrary to the views that the Department has regard-
ing the subversive character of the magazine.
Mr. Vincent. None whatsoever on my part. I mean, I can't vouch
for what the attitude of everybody in the State Department was at
that time. In other words, the difference of opinion, as I have said,
was whether, in the exercise of what were our duties to protect the
treaty rights of Americans, you had to protect the property. The
State Department decided that you had to protect Granich's property
as an American citizen in an extraterritorial company.
2166 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
I think you will find a reading of our dispatch almost supports that
thing right clown the line, exept for the one item of whether at least a
pro forma attempt should be made to extend to him his extraterritorial
rights.
Mr. Velde. Who was your immediate superior in the State Depart-
ment during 19oC and '37?
Mr. Vincent. The Chief of the Division, Mr. Velde, was Stanley
Hornbeck.
Mr. Velde. And was he directly under Sumner Welles?
Mr. Vincent. I suppost you would say so. There may have been
a political Assistant Secretary in between him and Welles. When I
say "direct," let me say that the chain of command was much more
than that.
I was assistant desk officer. Mr. Miles was desk officer. And Mr.
Hamilton was Assistant Chief. And everything went through that
line, as you will see from the initialing of all these documents.
Mr. Velde. Did you personally have knowledge of letter written by
Sumner Welles, or at least signed by him, directed to Mr. Gauss, in
which the State Department took the attitude that this was subversive
propaganda or was Communist propaganda, and agreed with Mr.
Gauss on that ? Did you have anything to do with that letter ?
Mr. Vincent. When you see the letter — I am not being technical
You mean the dispatch we have already had here as exhibit No. 5?
Mr. Velde. Yes.
Mr. Vincent. I assisted in the drafting of that. Mr. Ward of the
legal office and I drafted that. So you ask if I had knowledge of
that ; yes.
Mr. Velde. You disagreed then with the contents, when you said
that the Voice of China was not Communist propaganda ?
Mr. Vincent. There is a difference in what he says in this docu-
ment, that now we have lost again. Mr. Gauss never said it was
Communist propaganda, but that it was carrying on activities that
were —
calculated to foment discord and to disseminate propaganda prejudicial to peace
and good order and to friendly relations between peoples and governments with
which the American Government and people are at peace.
Mr. Velde. But to get your position clear on that, you agreed with
that point of view — that there was that type of activity?
Mr. A^incent. It was an activity which was prejudicial to our
interest in China at that time,' because we were supporting the Na-
tionalist Government of China, and this magazine was in a rather
indirect way embarrassing the Chinese Government by its anti-Japa-
nese attacks. Lord knows many of us were ant i- Japanese, but it wasn't
a very good idea to have this magazine, an American magazine,
fomenting trouble, when what we were trying to do was to keep things
as quiet as possible.
As you may recall, the Japanese had just within a fewT months before
evacuated Shanghai after a rather prolonged occupation of Shanghai
following the Manchurian incident,
No, I am thinking of 19)>2 now, when I was in Manchuria. They had
just covered North China, That was it. The Japanese were occupy-
ing North China,
Mr. Wood. Most of the police in the International Settlement were
British ?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2167
Mr. Vincent. British; yes.
Mr. Wood. You were cognizant of the fact that the British police
were complaining that this periodical, the Voice of China, was a Com-
munist organization \
Mr. Vincent. We were cognizant of it through Mr. Gauss' report.
Mr. Wood. Were you not cognizant of it through the complaints of
the police i
Mr. Vincent. Well, Mr. Chairman, you are asking something
there — Mr. Gauss was making the reports, and it was up to him to
take the action.
We were cognizant; yes.
Mr. Wood. 1 am getting back to the question I asked you a while
ago, as to whether you considered this publication a document dis-
seminating Communist propaganda.
You said you did not.
Mr. Vixcext. That's what I said.
Mr. Wood. I am now asking you if you did not know that the
Shanghai police were officered and largely composed of British citi-
zens, and that they were complaining of that.
Mr. Vixcext. That is right. They were complaining to Mr. Gauss..
Mr. Tavexxer. I hand you an interoffice memorandum bearing; date
May 24. 1 i>:>7, a year later than the time you placed your first appraisal
upon the Voice of China, and 1 will ask you to examine it and to state
whether or not you prepared that memorandum.
Mr. Vixcext. Yes. sir.
Mr. Tavexxer. Then I will ask you to read the paragraph on page
•2, beginning with the words "'An examination. "
Mr. Vixcext (reading) :
An examination of the Voice of China in the Department disclosed that the
magazine contained a large amount of anti-Japanese, material and material cal-
culated to appeal to students and radicals. The examination did not disclose that
the magazine was disseminating Communist propaganda or that it was engaged
in subversive propaganda directed against the Chinese Government.
Mr. Tavenner. That means, then, that a year later you still had
the same opinion with regard to the subversive character of the
magazine.
Mr. Vixcext. Xo. This starts out, Mr. Tavenner (reading) :
It is believed that a brief resume of the Eastern Publishing Co. case will be of
assistance to the consideration of Shanghai's telegram number so and so.
And this is going back to every step that was taken in the case, March
1-'), 1936, when the registration was canceled, and it goes right on down
to May 20.
And this could be a quote out of the earlier memorandum, and it is
all cast in the past, if you understand that.
Mr. Tavexxer. Well, but wasn't a subsequent examination made
oi the other documents that had come in in the meantime, in order
for your memorandum to have any value for the purposes of handling
the Granich case \
Mr. Vixcext. That I cannot say. But what I am saying is that in
my position my job was to review what had happened so far in the
Eastern Publishing case, and that is exactly what the purpose of this
memorandum is.
Mr. Tavexxer. But you King it up to the current date.
2168 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Vincent. I do ; the date of July the 2d. And it brings it right
up to March 9, as a purely factual review of the case and the file as
it existed at that time.
Mr. Tavenner. Well, making your estimate of the character of the
magazine, did you take into consideration the issues that had been
forwarded to the Department since the receipt of the first one, which
you have already testified about?
Mr. Vincent. The first two?
Mr. Tavenner. The first two.
Mr. Vincent. That I cannot say. I didn't take it into consideration
in this, because this was a review of the whole case as it existed as a
file.
Mr. Tavenner. That seems to me to be a very uncertain type of
practice. Because examining that resume would not give the person
any additional information to what he would have had by going back
and looking at the old file, the old report.
Mr. Vincent. Well, you have got to understand that in the position
I was in, I was told to review the files in the Granich case up to
elate.
Mr. Tavenner. As a file, rather than to review additional evidence.
Mr. Vincent. That is exactly right. And this contains no addi-
tional evidence and wasn't intended to, according to my memory.
Mr. Tavenner. You have already identified Gauss exhibit No. 3
as having been prepared by you. Those are the instructions of July
12, which I think you have before you.
Mr. Vincent. I have identified them, sir, as being drafted by me
and by Mr. Francis Xavier Ward, of the Legal Division.
Mr. Tavenner. Mr. Ward is now deceased, is he not ?
Mr. Vincent. He is now deceased ; yes, sir.
But I was so familiar with them that I can recognize his initials
anywhere.
Mr. Tavenner. Have you any comment to make regarding the pur-
pose in issuing those instructions ?
Mr. Vincent. The purpose in issuing these instructions was — and
I am now commenting more from the legal point of view, and I am
probably not on very safe grounds — was in not endeavoring at least
to give protection to this American property, irrespective of its owner-
ship ; that we were not extending to this person his full rights under
the extraterritorial treaty. And on that, as I say, we go back and
find that short of that one technicality — this may even go a little be-
yond what Mr. Gauss would have expected in the suggestion that
lie might tell the Chinese they might look for means for suppressing
this magazine.
Mr. Tavenner. Can you give the committee the reason for wait-
ing practically 15 months after the first seizure before giving instruc-
tions on July 12?
Mr. Vincent. I can't give you the reasons, other than that if you
will, I think, examine the file, in the first case I, myself, indicated
we thought Mr. Gauss was within his rights in not responding to this
informal request.
And in the second case, I would say, just quoting from memory,
the Legal Division decided that something had to be done in this case,
not so much for Granich as that it was establishing a precedent of
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2169
declining to give protection to the property of an American citizen,
which was entitled — as Mr. Gauss brought out very clearly — he was
not entitled to diplomatic protection, but he was entitled to the pro-
tection of his property under the extraterritorial treaties.
Mr. Tavennf.r. Now, you have referred in your telegram of May
13, Gauss exhibit 1, to instructions issued in the Searchlight case.
Mr. Vincent. Yes.
Mr. Tavenner. Do you consider that the instructions issued in this
case are in all respects within the meaning of the instructions in the
Searchlight case?
Mr. Vincent. I would say that they were certainly, as far as my
memory serves me, supposed to be on all fours with that case.
The Searchlight case was probably a little broader case. I think it
was a fellow named Isaacs. And in the Searchlight case the same
rule was laid down, that diplomatic protection could not be claimed,
nor registration, but that the property of an American and his person
is subject to protection by the American authorities, because of his
treaty rights under extraterritoriality. And I think the Searchlight
rase even laid down this other point, which doesn't necessarily follow
in this slightly anomalous situation in Shanghai, where you couldn't
take action against the magazine itself in your own court, as the judge
of the United States court had said, but nevertheless the Chinese
could take such action as denying postal — nobody was going to object
if the Chinese denied postal facilities. That was also, I think, indi-
cated in the Searchlight case.
I think you will find that Mr. Ward was more concerned, and we
all were, because there was no sympathy, or I don't think anything
shows any sympathy, for this particular person, Granich, in not es-
tablishing a precedent here of denying protection to American prop-
erty, irrespective of the man.
Mr. Tavenner. If I understand your testimony correctly, you are
taking the position that the instructions given were based purely on
legal grounds.
Mr. Vincent. As far as I know, that was the only ground it was
based on.
Mr. Tavenner. "Was the Department of State influenced directly or
indirectly in any manner to issue these instructions at this late date,
1 5 months after the first complaint had been made ?
Mr. Vincent. I think I have already testified I would have no
knowledge if they had. I mean, I haven't got a stupendous memory,
but I certainly would have thought that the action taken was purely
one within the Department, not subject to pressure from abroad, from
outside.
I would be surprised if it were.
Mr. Tavenner. Well, referring again to Gauss exhibit No. 1, the
telegram of May 13, where you requested him to supply the Depart-
ment with the grounds upon which he had acted, do you not think
that after all the time had elapsed since the seizure of those magazines,
the sending of that telegram at that time requesting him to state the
grounds for his action, when actually he had reported everything
very fully, was in itself intended as a warning sign to Mr. Gauss, or
an indication that there was some unusual interest being shown bv the
State Department in the handling of the Granich matter?
2170 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Vincent. I certainly wouldn't have thought so at the time and
don't think so now, on the basis of what information I have.
1 would say that, as I have tried to explain before, the difference —
I am not speaking as a lawyer now — it was the first case. He had just
come in and explained about the procedures of magazines. And as I
said before, there was a memorandum by me indicating that Gauss
seemed to have gone as far as necessary by telling me.
The second case came in, and Mr. Gauss had declined to take action
in this case, where the magazines were in the post office.
Mr. Wood. Was he not inclined to take action in the first instance?
Mr. Vincent. Yes ; he said to seek his legal remedy.
Mr. Wood. He still had that legal remedy in the second instance,
did he not?
Mr. Vincent. I suppose he did.
Mr. Wood. Are there any further questions by counsel ?
Mr. Tavenner. No, sir.
Mr. Wood. Mr. Velde, do you have any further questions ?
Mr. Velde. In your connection with the State Department, Mr.
Vincent, did you have any knowledge that there were American Com-
munists operating in China at any time during the time you were
connected in that section of the State Department \
Mr. Vincent. I probably did, Mr. Velde, but I probably couldn't
recall who they were or what their names were. I wouldn't be sur-
prised if we didn't have reports that there were Communists but I
wouldn't know who they were now, at this late date.
Mr. Velde. You do not have any idea of any prominent American
Communists that were operating in China?
Mr. Vincent. Well, I was in America at the time, I suppose
Anna Louise Strong has been identified as a Communist, and I sup-
pose she was in China at the time.
Mr. Velde. Did you know her?
Mr. Vincent. No.
Mr. Velde. Did you know that Earl Browder was over there: he
and his wife?
Mr. Vincent. Earl Browder was over there at some period during
this time. He made a trip to China at some time, but I don't recall
the circumstances of his going over.
Mr. Velde. Did you know that Eugene Dennis was over in China?
Mr. Vincent. I don't know the name Dennis. I know Browder's
name, of course, but I don't know Dennis' name.
Mr. Velde. Well, Eugene Dennis was the head of the Communist
Party in the United States, and was recently prosecuted.
Mr. Vincent. Well, as I say, I have to testify honestly that when
you ask me about Dennis, I haven't kept up with the Communist Party,
in spite of a great many things that have been said, and I am just
ignorant of the name of Eugene Dennis.
Mr. Velde. Did you know Agnes Smedley?
Mr. Vincent. I didn't know her. I knew she was somewhere in
China, but I didn't hear her identified at that time as a Communist. I
never knew her.
Mr. Velde. Did you have any idea of what kind of work these Amer-
ican Communists were carrying on in China ?
Mr. Vincent. I did not ; no, sir.
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2171
Mr. Vki.de. Did you ever make it your business to Hud out?
Mr. Vincent. It wasn't my business; as 1 said, I was a minor
desk officer, and there were other agencies of the Government inter-
ested, I suppose, in following Chinese Communists and American
Communists in China. But it was not one of my assigned duties or one
of my interests at the time to follow subversive activities in China.
I had just come back from Manchuria, where I had been stationed for
four years.
Mr. Velde. Did you have any knowledge of American Communists
in Manchuria while you were stationed there, I believe you said as
assistant to the Ambassador?
Mr. Vincent. No: 1 was in Chungking as his assistant in 1943-45.
Mr. Velde. What was your position in Manchuria?
Mr. Vincent. In Manchuria, I was vice consul in Mukden for a
while when the Japanese took over Manchuria, and I was later consul
in Dairen for a while.
Mr. Velde. Did you have any knowledge of the activity of American
Communists in Manchuria?
Mr. Vincent. No ; I don't recall any American Communists in Man-
churia at that time. I never met any, if they were operating.
Mr. Wood. Very well.
Is there any reason why Mr. Vincent should not be excused from
further questioning at this time?
Mr. Tavenner. No, sir.
Mr. Wood. All right, Mr. Vincent. Subject to call, you may be
excused.
The committee will stand in recess until 2 o'clock tomorrow after-
noon.
(Whereupon, at 4: 30 p. m., Wednesday, January 9, 1952, the hear-
ing was recessed to reconvene Thursday, January 10, 1952, at 2 p. m.)
!!.-.s::n
THE ROLE OF THE COMMUNIST PRESS IN THE
COMMUNIST CONSPIRACY
THURSDAY, JANUARY 10, 1952
United States House of Representatives,
Subcommittee or the Committee on Un-American Activities,
Washington, D. G.
PUBLIC HEARING
A subcommittee of the Committee on Un-American Activities met
pursuant to adjournment at 2 p. m., in room 226, Old House Office
Building, Hon. John S. Wood (chairman), presiding.
Committee members present : Representatives John S. Wood, Clyde
Doyle, and Harold H. Velde.
Staff members present: Frank S. Tavenner, Jr., counsel; Thomas
W. Beale, Sr., assistant counsel; Courtney E. Owens, investigator;
John W. Carrinirton, clerk ; and A. S. Poore, editor.
Mr. Wood. The committee will be in order.
]\Ir. Tavenner. Mr. Chairman, I call as to witness today Mr. Mor-
ris L. Appelman.
]\Ir. Wood. Mr. Appelman, yould you stand and be sworn, please ?
Do you solemnly swear that the evidence you give this subcommittee
shall be the truth, the whole truth, and nothing but the truth, so help
you God ?
Air. Appelman. I do.
Mr. Wood. Have a seat, sir.
Let the record show that the chairman has set up a subcommittee
for this hearing composed of Messrs. Doyle, Velde, and Wood, who are
all present.
Mr. Tavenner. Mr. Chairman, it developed that the witness's knowl-
edge and experience within the Communist Party is very, very broad,
and I think the only logical way to present his testimony is in chron-
ological order.
Many of the things which the witness will be interrogated about
have nothing to do with the particular matter in China. Some of
them, however, lead up to it.
So with your permission, I am just going to cover the field of ex-
perience of this witness.
Mr. Appelman, will you state your full name, please?
TESTIMONY OF MORRIS L. APPELMAN
Mr. Appelman. Morris L. Appelman.
Mr. Tavenner. When and where were you born ?
Mr. Appelman. New York City, in September of 1904.
2173
2174 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Tavenner. Will you please outline briefly your educational
background ?
Mr. Apfelman. I was educated in grammar school in New York and
went to evening high school in Brooklyn and subsequently attended
the courses of various kinds at NYU and the School for Social Re-
search, and took a course at Wood's Business College.
After that, after I became a member of the Communist Party, I had
some courses at the Workers' School of the Communist Party. Yes;
and I might also mention that later along the line 1 took a course at
L'Ecole du Louvre — that is French for the School of the Louvre Acad-
emy— on the history of modern art, at Paris; and attended also a se-
mester at the Hochschul Fur Politik. That, translated roughly, is the
Institute of Political Science: in Germany, in Berlin. Just one se-
mester in each of those two foreign places.
Mr. Tavenner. Now, will you state briefly and in a very general
way where you have been and what business you have been engaged in
since the time you completed your education in this country ?
Mr. Appelman. Well, do you want me to go back to the time I was
13, when I got my first job ?
Mr. Tavenner. No.
Mr. Appelman. About where would you like me to start, then?
Mr. Tavenner. Well, I should say about the time of your first trip
abroad.
Mr. Appelman. That was in about 1025 or 1926. At that time, I was
already a Communist. I worked on a ship and went through the
Baltic first, and then I got off the ship in Poland, spent some time in
Germany, and in those days was particularly interested in art, met a
lot of artists in Germany, and traveled with them, particularly with
one artist, through different countries of Europe. And I would say
in those days I was essentially, if you can call it that, a free lance
student, interested in art essentially, although interested in politics
as a secondary matter, but not engaged in any organized political
activity.
You may wonder how I earned a living. My father sent me a little
money, and I wrote an occasional article for different German maga-
zines.
I remember in those days they particulary wanted articles on Al
Capone. So I went to the American library there and read the news-
papers about Al Capone and fictionalized them somewhat and wrote
articles along those lines for German magazines.
I am trying to be helpful. I really don't know exactly what you
want at this point.
Mr. Tavenner. When did you leave Germany?
Mr. Appelman. That first time, I must have come back to America
about 1927. I spent about a year in Europe at that time, a little over
a year possibly.
Mr. Tavenner. And how long were you in the United States before
going abroad the second time (
Mr. ArPELMAN. Probably a little over 2 years. I think I went back
about 1930 or 1931. Maybe 3 years. And then I went back again.
Mr. Tavenner. How long were you in Europe the second time?
Mr. Appelman. From 1931 — I must have been in Europe 2 years,
and then went on to Russia in 1933 ; from there, on to China, and came
COMMUNIST PRESS IN THE COMiMUNIST CONSPIRACY 2175
back to America in 11)35. So thai would be a 4-year period. But
somehow my memory tolls me I must have come back in between for
at least one trip back to the States, and yet I can't recall at this moment
just when that took place.
.Mi-. Tavbnner. And did you return to China again after 1935?
Mr. Appelman. Yes, I did. In 1937, I was on my way to China
when the war broke out in Shanghai, and our ship wasn't allowed to
disembark passengers. I went on down to Manila, lived there until
the end of l'.KV.l, and on the way back from Manila stopped oil in China,
in Shanghai, for several weeks, and back to America.
Mr. Tavenner. Now, I would like to begin now with your induction
into the Communist Party.
Will you tell the committee where you became a member and the
circumstances under which you joined the party?
Mi-. Appelman. I joined the party, roughly, in 1925, in the city of
New York.
At that time I was under the influence of a voting man whom I had
met previously in New Orleans. His name was George Brodsky. And
I learned a good deal about Communist work and its ideals and osten-
sible purposes, and, in the conviction that it was everything the book
said it was, I joined the party at that time. That was 1925, or it might
have been the end of 1924.
Mr. Tavenner. Where did that take place?
Mr. Appelman. In New York.
Mr. Tavenner. Well, what work were you assigned to in the Com-
munist Party, if any, and what was your experience immediately upon
joining the Communist Party?
Mr. Appelmax. Well, at the very outset, I studied a great deal,
studied Communist doctrine and teachings and went through the
Workers' School as a student and was assigned to a unit. I believe it
was a general unit, the type that did street work, propaganda, selling
Daily Workers, and going from house to house at election time and
holding street-corner rallies, that sort of thing.
But it seems to me within a matter of months, I expressed a prefer-
ence for working in the seaman's unit among seamen. Part of that
was because the party itself thought it was important to work in key
industries and with key industrial groups, and that was a pretty stra-
tegic group, and partly because I felt it would afford me a chance to get
a job on a boat and get abroad and get to seeing different parts of the
world.
It was an interesting kind of work, and I expressed an interest in
it and did get into that kind of work, as I say, within a matter of
months after joining the party.
Mr. Tavenner. Tell the committee what that led to.
Mr. Appelman. Well, as 1 recollect, the first thing it led to was my
actually getting a job on a ship and doing propaganda work as a
member of the ( Jommunist trade-union. I am not sure if at that time
it was called the Marine Workers' Union or another name. There
Mas a change of names right in there. But I actually did propagandize
seamen and try to get them, and 1 think with some succe>s, to join the
Communist seamen's union.
The ship that I got aboard, by choice, was a ship run by the Moore-
McCormack company. I think it was called the American Scantic
Lines. I think that is what it is called today. And I wanted to work
2176 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
on that line because one of the ports that their freighters touched on
the Baltic run was Leningrad, and that gave me an opportunity to
get to see Leningrad, which I did.
When we reached that port, the ship was visited by delegates from
the International Seamen's Club, and the crew was invited to come
to the club headquarters in Leningrad, and we were given a cordial
reception, with the usual mixture of social activity and propaganda.
And if you want a personal observation, I might say that that was
simultaneously my first real blow or disillusionment, when I saw with
my own eyes what had hitherto been merely a matter of propaganda —
actual living and working conditions of the people inside the Soviet
Union.
I remember saying to myself at the time that if I were a correspond-
ent for the Hearst newspapers, I could certainly make a wonderful
story about the dreadful hardships, the hunger, and many other ugly
aspects of life in Russia, that naturally we didn't get when we studied
Communist propaganda or read the Daily Worker ; because for ex-
ample, when the ship left New York some of the sailors had gone to
Woolworth's to buy cheap bottles, bits of jewelry, and stockings and
rayon underwear, and when I asked them why they did that, after I
got to know them, they said they used those things in Russia with
an offer of a bit of jewelry or some stockings or something along those
lines so that they could get a Russian girl to go to bed with them.
And actually that is M7hat they did. They waited outside the factories
with that stuff and apparently succeeded to get those girls to go to
bed with them for trinkets of that kind.
That, however, I kept strictly to myself, my disappointment; be-
cause the overriding thought at that time was that Russia was sacri-
ficing enormously in order to obtain the money with which to buy
machinery to make good the first 5-year plan. And as I recollect,
the ship I worked on delivered the first Ford tractors and other such
equipment to Russia, that was necessary to put the first 5-year in-
dustrialization plan of the Soviet Union on wheels.
From Leningrad, the ship proceeded back along the Baltic, but I
got ptomaine poisoning and couldn't get medical attention while the
ship was in Gdynia, so I jumped ship in Gdynia and went on to Berlin,
where I spent several weeks in bed getting rid of that ptomaine
poisoning.
And while in bed, I happened to read a statement by Lozovsky, who
was then the head of the Profintern.
Mr. Tavenner. Will you spell the name, please?
Mr. Apfelman. L-o-z-o-v-s-k-y, to the best of my recollection. He
was the head then of the Profintern, which is the Communist trade
union international.
In that statement, he lamented the fact that there wasn't enough
good literature that would appeal to people in promoting Communist
trade-union activities, and so forth.
That gave me the idea of writing a novel that would deal with Com-
munist trade-union organization and help along the lines indicated
by Lozovsky in that article. And shortly thereafter, I set to work
and wrote a novel dealing with the life and Communist activity and
organizational work aboard American steamers and freighters. The
novel came to be known as S. S. Utah, and was published in a number
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2177
of countries, including the United States, where it ran as a serial
in the Daily Worker.
Mr. Velde. Were you acquainted with Joe Curran at that time?
Mr. Appelman. No; I don't think I ever met him. I don't know
whether he subsequently became head of the Communist union. I
don't think so. But he wasn't in the picture at that time. A fellow
named Harry Hines and a fellow named George Mink were heads of
the union at that time.
Mr. Tavenner. Did you engage in any Communist Party activi-^
ties while in Berlin other than the production of the novel that you
spoke of ?
Mr. Appelman. No. Actually, I applied — I thought I should have
a book, a party book, in Germany, but I was told they do not issue
books to American party members. Now, Mr. Counsel, for the record,
it seems to me now that I am talking about my second trip to Germany
rather than my first. Did I say that that was my first trip to Ger-
man v ?
Mr first trip was dedicated largely to activities along art lines, in
my general education. This that I am now talking about, was my
second trip in Germany, and I am afraid I am a little ahead of myself
chronologically, and I would like to get the record straight on that.
Mr. Tavenner. Now, at the time you wrote the book S. S. Utah,
was that your second trip to Germany ?
Mr. Appelman. Yes.
Mr. Tavenner. Very well. On your first trip, did you engage in
anv Communist Party activities while in Berlin?
Mr. Appelman. No.
Mr. Tavenner. Then you returned from Berlin to the United
States about when ?
Mr. Appelman. We are talking now about what trip ?
Mr. Tavenner. The first trip.
Mr. Appelman. Well, I went about 1926 and stayed about a year.
T must have returned in 1927.
Mr. Tavenner. Did you reaffiliate or renew your activities in the
Communist Party on your return to the United States?
Mr. Appelman. Well, after my first trip — that was a continuation —
I then must have reported to my cell and resumed my activity as a
Communist, without any special assignment.
Shortly thereafter, however, I was sent to another school by the
party, and that was a school for functionaries. In order to go to that
school, one had to take an oath to dedicate one's entire life to the party,
to be subject entirely to party call and accept a commission in any part
of the world.
I took that oath and was thereupon entered in that school, the school
for functionaries.
Mr. Velde. Would you identify the date you took this oath ?
Mr. Appelman. I wish I could. It must have been somewhere
around 1928.
Mr. Tavenner. What was the name of the school ?
Mr. Appelman. I know it and recollect it as a school for func-
tionaries. The classes were held in the party building at 35 East
Twelfth Street.
Mr. Tavenner. After completing your training in that school, were
you assigned a job as a functionary of the Communist Party?
2178 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Appelman. Yes, I was. I was assigned the job of organizing,
along with another chap, the "hunger march to Albany," which must
have taken place the winter of 1929, after the beginning of the de-
pression.
Mr. Tavenner. Tell the committee briefly what your experience
was in that undertaking. »
Mr. Appelman. We were assigned the task of going from city to
city on the way between New York and Albany, setting up committees
that would hand out soup and food and otherwise rally the people in
those cities, when the hunger march, which was visualized as some-
thing that would involve some hundreds or thousands of men and
women who would march on Albany demanding that things that were
then on the program of the Communist Party, employment relief,
and such things — when that hunger march was organized. And this
other fellow had been a fellow student at the same school, and he and I
went in his car. He had a car. We went places.
The first town I remember was Tarrytown, where, for example, I
tried to hire a hall and did hire a hall and proceeded to distribute
leaflets.
There were some plants, I think a Chevrolet factory, on the out-
skirts of Tarrytown, and one or two other plants. And I remember
that when I got to the hall, a half hour before the meeting was to have
opened, I was told that the police, the Chief of Police in Tarrytown,
wouldn't allowT the meeting to open.
So I went to police headquarters to remonstrate with the chief of
police, because I had already publicly announced the meeting would
take place. And I remember that before I could count 10, 1 was given
a black eye and tossed out in the gutter, and the meeting did not take
place. And then I was run out of town, in Tarrytown.
That was all the type of thing we did before the hunger march.
From there we went to other places, like Big Steel in Poughkeepsie,
and tried to get groups together to be ready for the date set for the
hunger march itself, and then we went up to Albany, where we also
organized groups, and as you will probably recollect, the hunger
march did take place and resulted in quite a row in the State capitol
in Albany, and there was quite a lot of altercation, and so forth.
Subsequent to that, I was made the section organizer.
Mr. Tavenner. Just a moment. Who was your associate?
Mr. Appelman. I have been trying to recollect his name. His name
was something like Wakefield. I remember he came from the west
coast. His father had been in the salmon cannery business, I believe,
apparently a prosperous person, because he had a car and he had
apparently adequate means to get along with. Something like Wake-
field was his name. I can't remember his first name, but I am quite
sure that his name was along those lines.
And he and I worked together up to that point. After that he pre-
ferred to go into journalistic work for the Communist Party, and I
whs made section organizer for the cities of Albany, Troy, Schenect-
ady, with instructions to set up an unemployment council and other
such activities in that area.
Mr. Tavenner. From whom did you receive the appointment?
Mr. Appelman. I don't remember specifically, but I would assume
it was from the organizer of the New York State party, the party
that was organized along state lines. And that is my assumption.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2179
MY. Tavenner. Was there an organized party in Albany at th it
time?
Mr. Appelman. No. When I got there, we just had possibly three
or four individuals whose names were given me as being people who
could be recruited into the party, and they were, but there had been no
regular party organization either in Albany, Troy, or Schenectady, at
the time.
Mr. Tavenner. Prior to that time, or up until that time, had you
met Grace Maul?
Mr. Appelman. No; up until that time, as nearly as I can recollect,
I had not met her.
Mr. Tavenner. How long were you engaged in organizational work
at Albany?
Mr. Appelman. Oh, I should say for (i or S months. It must have
been all of that, maybe a little longer; during which time we had
what I believe the party considered excellent success. We organized
several hundred people in the Unemployment Council, which was
engaged in stopping the evictions and distributing Daily Workers
and getting the workers educated along Communist lines.
We also set up several units of the party in Albany; I believe also
a unit in Troy and in Schenectady. We increased the sale of the
Daily Worker to where at one time I believe it was several hundred
copies a day. And when strikes broke out, as they did — I remember
one strike in a metal plant in Troy and one strike in a paint plant
nearby — we intervened and assisted the strikers to the extent we
could.
So that there was very considerable activity during that period. In
fact, we even organized a little workers* school of our own up there
and had instructors sent up from New York to help indoctrinate peo-
ple in Marxist theory.
Mr. Tavenner. How long did you continue your work at Albany?
Mr. Appelman. For about 6, 8, or 10 months, after which I wanted
some relief, it had been a very intensive period of work. I wanted
to get away from it for a while.
I might mention that there was another reason. I had some dif-
ferences with some of the Communist visitors who came up to Albany,
one lady from the Friends of the Soviet Union in particular, who had
made a statement that in the cafeterias of the workers' restaurants in
Russia after each meal the bread that was left over was fed to the pigs.
And having seen something of life in Russia. I told her privately
that I thought it was wrong to make such exaggerated statements to
workers in this country, because sooner or later the truth would catch
up with the party, and it wasn't necessary to paint such a glowing
picture.
But I was told that I didn't have the right party spirit, that I was
a petit bourgeois intellectual with too much regard for that sort of
thing.
Also, on one occasion when the party sent a representative up to
collect some money for the striking coal miners in Pennsylvania, I
made a public statement that I hoped that this time the party wouldn't
repeat the mistakes it had made before.
And for several such statements I received criticisms from repre-
sentatives of the party in New York : and although I made no outward
expression of my discontent, I was nonetheless unhappy about this,
2180 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
and for this and other reasons I wanted to get away. And I applied
for a leave of absence, which was denied me, and I thereupon took the
initiative and left Albany and came down to New York in order to
once again insist on getting a leave of absence, which was again de-
nied me, whereupon I left, even though I realized at the time it would
mean expulsion.
Mr. Velde. What was the date of that ?
Mr. Appelman. That was in 1931, I believe. It must have been
early 1931.
Mr. Tavenner. Who was the person from the Friends of the Soviet
Union who made the address that you took exception to ?
Mr. ArPELMAN. It was a woman speaker, whose name I really do
not remember. Some lady ; I don't remember her name at all. She
wasn't a very well known figure at all, in the sense of having an inter-
national reputation.
Mr. Tavenner. Well, on your return to New York, what did you do ?
Mr. Appelman. Well, I went to the party. I suppose it might have
been to Mr. Amter, who, at that time I believe, was the head of. the
New York State party. At any rate, it was my superior in the party,
and I said that I wanted to go back to Europe and get a leave of
absence for 3 or 4 months, and it was again denied me.
I was offered a post, again as a section organizer, near New York
City.
This person apparently felt that what I wanted was to be closer to
New York City, closer to home ; which wasn't the case. I refused to
accept that, and I proceeded on my own.
I got a job on a boat again and went off to Europe, but this time
knowing that it would mean severe disciplining by the party, and I
was subsequently told that I was expelled ; although I never did see
a public announcement to that effect.
Mr. Tavenner. And it was while you were on this second trip to
Germany that you wrote the book, S. S. Utah, which you described
awhile ago?
Mr. Appelman. Yes.
Mr. Tavenner. Well, while you were in Germany on this second
trip, did you engage in any Communist Party activities, other than
to engage in this type of journalistc work ?
Mr. Appelman. No. The party apparently had received a report
on my expulsion and my lack of discipline, and I was not put in touch
with or contacted by any of the party people proper.
However, I was permitted to work in the trade-union organization,
specifically in Hamburg, as a propagandist for the International of
Seamen and Harbor Workers, where my function was to go aboard
English-speaking vessels, that is, vessels with English-speaking crews,
that touched at the port of Hamburg, and propagandize them into
joining the respectve sections of the Internatonal Seamen and Har-
bor Workers.
Mr. Tavenner. The book to which you referred, S. S. Utah, I be-
lieve you said was carried as a serial in the Daily Worker in the
United States?
Mr. Appelman. That is correct.
Mr. Tavenner. Was it published in other countries?
Mr. Appelman. Yes ; it was published first of all in Germany, and
subsequently I saw copies that appeared in France, in the Soviet
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2181
Union, in Holland, in one of the Scandinavian countries; oh, I guess
in half a dozen different countries.
Mr. Tavenner. And it was printed in this country by publications
other than the Daily Worker; was it?
Mr. Appelman. It was also published in book form by the Inter-
national Publishers, I believe.
Air. Tavenner. Do you know who was responsible for the publica-
tion of the book in Russia and these other countries?
Mr. Appelman. I would say that pretty generally, since the book
had the endorsement of Albert Walters, who was the head of the In-
ternational Seamen and Harbor Workers at that time, that he must
have promoted the publication of the book wherever possible.
Mr. Tavenner. How long were you in Germany on this occasion?
Mr. Appelman. Oh. I should say a little over a year. I left Ger-
many just before Hitler came into power, early in 1933.
Mr. Tavenner. What were the circumstances under which you
left Germany?
Mr. Appelman. There was an international congress being called
of the International Red Aid in Moscow, and the delegate who had
been appointed to go from the ISH in Hamburg had been detained,
in fact I understand he was arrested, in Spain, and he couldn't show
up, couldn't get back to Hamburg, in time to proceed to Moscow, and
I was sent as his substitute.
Mr. Tavenner. The International Red Aid was a Communist or-
ganization ?
Mr. Appelman. Yes.
Mr. Tavenner. Centered in Moscow; was it not?
Mr. Appelman. Yes ; that's right.
Mr. Tavenner. How long were you in Russia as a delegate to that
conference ?
Mr. Apfelmax. Well, I believe the sessions lasted a week or so, and
after the sessions I stayed on in Moscow. I wrote a series of articles.
One was published as a novelette. These were articles dealing with
seamen. This was at the suggestion of the International Seamen and
Harbor Workers. One was called Six Seamen. It was six short
stories or episodes, three of which described the working conditions
on capitalistic vessels, and three of which described working condi-
tions on Soviet vessels.
Prior to writing that, I made a trip on the Volga River on a Soviet
ship in order to gather impressions, and that must have taken 3 or 4
weeks : and on returning to Moscow, I wrote this little booklet, which
appeared, I believe, in quite a few countries, in the Communist press
generally, and appeared in this country published by International
Publishers, and arrangements for publication were made through the
publishing house in Moscow.
Mr. Tavenner. How long did you remain in Russia?
Mr. Appelman. Altogether? Well, I must have spent some 6
months, I should say, in Moscow itself, in this literary activity ; and I
then wanted to go to the Far East — this was a personal wish on my
part — and managed to make the acquaintance of an American engi-
neer named Barney Koten, who had been working for one of these
Soviet trusts, and whose contract was expiring about that time, and
since he was to get all his pay in rubles he thought he would have
enough rubles left over to pay for my transportation as well as his
2182 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
to Vladivostok, which he did. We both traveled on the Siberian Rail-
road to Vladivostok, and that must have been toward the end of 1933.
So that would be a period of about 5 or 6 months. I guess, that I
was in Moscow.
When we reached Vladivostok, I was met by a representative of the
International of Seamen and Harbor Workers, or the Seamen's Club
there, who instructed me to proceed immediately to the club, without
even having a chance to say "good bye" to this young American with
whom I traveled, who incidentally was not, to my knowledge, a Com-
munist; and in Vladivostok, I was invited to serve again as a propa-
gandist at the club, this time interviewing English-speaking seamen
who arrived at the port of Vladivostok ; and most of those were not on
American vessels, but British vessels that were coming into Vladivos-
tok in fairly consistent numbers at that time.
So I spent, oh, possibly a month to 6 weeks in Vladivostok doing
that type of work.
Mr. Tavenner. Did you have any particular experience on your
trip across Siberia that the committee would be interested in?
Mr. Appelman. Well, both Barney Koten and I had wanted to go
across Siberia into Vladivostok over the Manchurian territory, but
there had been some fighting, and there was some fighting going on
between the Japanese and the Russians over the Chinese Eastern
Railroad at the time. So there are two ways of going, one via the
southern route through Manchurian territory and one via the north-
ern route, via Khabarovsk, and down to Vladivostok.
But we got a ticket to go via the southern route.
However, when the train reached the last stop in Siberia, from
which these railroads spread out in two different directions, we were
told by the conductor we would have to get off and change trains and
go by another route. We refused to do that, but when we reached that
particular station, two representatives of the GPU came aboard, and
anyone who has lived in the Soviet Union knows that when you are
approached by those gentlemen you don't argue, and we didn't. We
promptly took our bags and got off the train and spent the night in
that little town, and the next morning proceeded to Vladivostok on
the train they wanted us to take, over that other route, the northern
route.
Mr. Tavenner. How long did you remain at Vladivostok?
Mr. Appelman. As I say, it was a period of about a month.
When we arrived there, there was an extreme hunger, so much so
that there was talk of actual practice of cannibalism.
And as dreadful as that sounds, if one saw the hunger with one's
own eyes, the real famine there, one could lend credence to the possi-
bility that such a practice existed.
I went to the markets and saw that there was absolutely nothing for
sale but some withered apples and a few onions and bits of garlic.
I was given a food ticket to eat with the workers in the seamen's clubs
at one of the restaurants there, and the food was really a very thin
sort of soup that had scarcely any taste to it ; and the condition was
really one as close to famine as I have ever gotten, and I actually saw
dead people. Certainly I remember one dead Chinese who was lying
on the street when I got there. And it was a daily spectacle to see
hundreds of people being herded through the streets, with soldiers
with drawn bayonets and rifles who were apparently forcing them to
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2183
do some kind of forced labor, and whenever these people were paraded
through the streets everybody else had to back up and make room for
them.
Hut it was a very dreadful thing to live through and to experience.
The people were waiting desperately for some ships to arrive from the
Black Sea area, 1 believe, in order to provide them with some salt.
There was a great salt hunger and a great meat hunger.
And I remember when this fellow with whom I worked as a propa-
gandist got his first ration of meat, which was in frozen condition,
raw meat, he actually ate it raw without stopping to cook it, he was
that desperately hungry for some meat.
That was my general impresion of Vladivostok at that time.
My work was the daily practice of socializing and fraternizing
with British sailors or American sailors on these ships, and as soon as
I could, I got an assignment to get out of Vladivostok and go on my
way, and I got a job as a fireman or an assistant fireman on a Soviet
vessel that left from Vladivostok and took me down to Shanghai a
month or 6 weeks after I got to Vladivostok.
Mr. Tavexxer. When was it that you arrived in Shanghai ? Ap-
proximately what date?
Mr. Appelmax. It was in the spring. I think. It was either the be-
ginning of 1984 or the end of 11)33.
The beginning of 1934 it must have been.
Mr. Tavexxer. Had you met the Granichs at that time?
Mr. Appelmax. No.
Mr. Tavexxer. What was your purpose in going to Shanghai?
Mr. Appelmax. Frankly, I was naturally curious. I wanted to see
something more of the world. It didn't cost me anything to get from
Moscow to Shanghai. I made the trip; thought 1 would like to see
what China looked like. I didn't have any political objectives. I was
given no party instructions.
As I said, I was not a member of the party at the time. I wanted
to see what China looked like.
Mr. Velde. Where did you derive your income at that time J
Mr. Appelmax. While in Russia, I lived off the rubles I got as fees
for the writing that I did, and the little bit of royalty of the S. S.
Utah, and they paid me for the other writing I did.
While I worked at the seamen's clubs, naturally, my room was
assigned to me. and I didn't have to pay for food, and 1 actually got
a few rubles for expenses.
And I arrived at Shanghai with 5 or 0 rubles in my pocket and pro-
ceeded to try to get a job. There is a .Jewish school in Shanghai,
where 1 met an American teacher and asked how I could find some
work. Because I was intrigued with life in China, Chinese civiliza-
tion, Chinese culture; and through this school teacher I met a dentist,
who in turn introduced rne to an insurance man. who said lie would
-take me to advances on commissions against the chance I might make
good as an insurance agent.
So I got a job with an insurance company on that basis, and after
beginning to make a little bit of a living. I started to write poems,
did some free-lance writing on my impressions of China.
Mr. Tavexxer. How long did you stay in China '.
Mr. Appelmax. Pretty close to *2 years, as I recollect. And in the
course of that time, still being very loyal to Communist ideas and
2184 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
having great faith in the Soviet Union, I got to know a book store
there that sold Communist literature, and I met some people there.
Mr. Tavenner. What was the name of the book store, if you recall ?
Mr. Appelman. I think it was called the American Book Shop. I
think it was on Yangtze Road, or in any event it was on one of the main
streets in downtown Shanghai. And along the line somewhere there,
I met Agnes Smedley, and I met some of the American boys who were
working for the newspapers, in the China press and the Shanghai
evening — I think it was called the Mercury. I don't remember any
more. And through them I met others, and I eventually met fellows
like Frank Glass, who was a well known Trotzkyite, and Alice Buch-
man, who was a Trotzkyite, and I got to know quite a few people. I
met Rewi Alley through Agnes Smedley, a man later known very
much for his connections with the Chinese industrial cooperatives.
And I was doing considerable writing on my own.
Mr. Tavenner. Let me interrupt you a moment.
Will you give us the spelling of the name of the person that you
said you met at Agnes Smedley's ?
Mr. Appelman. R-e-w-i A-1-l-e-y. I believe that is how he spells
his name.
After I had been in China possibly a year, I was told by a friend of
mine, who was an assistant manager of MGM, that the group that was
sent out to film the background for The Good Earth, a troop of camera-
men and technicians, were having difficulty about getting into the
interior of China, because the Chinese authorities were not cooperat-
ing. They seemed to resent how Chinese were usually depicted in
Hollywood films. And they couldn't proceed with their work, because
the main office in Hollywood would not allow them to get into the
interior until they had obtained insurance protection for their lives
and for their equipment.
And since I was in the insurance business, this friend of mine who
worked for MGM — his name was Barry Greenburg — asked me if I
could help to locate a company that would insure them.
I thought that was a pretty interesting kind of a proposition, so I
went around among a lot of insurance companies, but no one would
take it on, until I finally prevailed upon a British company, the Em-
ployers Liability Assurance Co., with headquarters in London, to
cable to Lloyds that if they would take the risk I would personally
go along with this troop to the interior of China and engage an ambu-
lance in every city, with nurses and doctors, contact the police, and
see that maximum protection was afforded, so that the insurance risk
would be minimized.
This deal was accepted by Lloyds of London, and I got the assign-
ment to travel with this group.
The business manager was a man named Frank Messenger. The
director was a man named George Hill, who subseqently committed
suicide. And I don't know that you would care for the details of this,
but as a result of this experience, which lasted 7 or 8 weeks and netted
me several thousand dollars and netted me a reputation as a pioneer
in a new form of movie insurance, as a result of that I had some money
with which to go to Japan for a while and write a book on Japan,
which was one of my ambitions.
Mr. Tavenner. Were you assisted in any way by Agnes Smedley
in the writing of that book ?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2185
Mr. Appelman. No. I went to Japan and Korea and gathered the
raw material for the book on my own, but later, when I reached the
chapter dealing with the fracas between the Japanese and the Russians
in Manchuria, I felt I needed some more material, and then I spoke
to Agues Smedley about it, and she got me some interesting data.
Part of it I think she told me she got from the Tass representative in
Shanghai.
Mr. Tavkxxei;. What was the occasion for your meeting Agnes
Smedley I
Mr. Appelman. Why, I don't remember how I first contacted her,
who brought us together, but I do know that she was very much inter-
ested in my writings. She had read S. S. Utah, and when she read
the poems that I wrote on Shanghai, she wrote to the editors of the
New Republic and the Nation, I believe, and Asia magazine, recom-
mending that they use those poems. That was the extent at the out-
set, at any rate, of her interest in me. She seemed to like the kind of
writing I was doing.
Mr. Tavenner. You referred to having attended meetings at her
home. What kind of meetings were these?
Mr. Appelman. Well, the meetings at first were social in nature. I
met Rewi Alley there, and later on I met a Chinese girl there, whose
name I don't remember. I met a German — it was a good deal later —
a German girl, there, with whom I later traveled back to Russia on
a Russian boat.
Mr. Tavenner. What was her name?
Mr. Appelman. That I really don't recollect, but it was a German
name. She was a heavy set girl, and I believe a professional Com-
munist, probably doing carrier work or international work of some
sort.
Mr. Tavenner. Do you recall meeting a person by the name of Irene
Weidemeyer ?
Mr. Appelman. It may be that that is the person whom I met there.
And just to complete your question, I also met Madame Sun-Yat-
sen in Agnes Smedley's home. In fact, I escorted Madame Sun-Yat-
sen from her own home to Agnes Smedley's home, together with a
young American doctor named Hatam, Dr. Hatam.
Mr. Velde. Did you ever meet Richard Sorge ?
Mr. Appelman. No, not that I know of.
Mr. Tavenner. Did you meet any of the Japanese associates of
Sorge, such as Ozaki (
Mr. Appelman. If I did, I wasn't conscious of the relationship.
Because the name, Sorge, as nearly as I can recollect, never came up
in those days.
Mr. Tavenner. What was the purpose of the meetings at the home
of Agnes Smedley, when you were there and Madame Sun-Yat-sen
was there?
Mr. Appelman. The meetings generally had no particular purpose.
I didn't know then whether Agnes Smedley was a member of the
Communist Party, and I don't know to this day whether she was.
But it was social in character, or literary, when I went there, to talk
to her about my book.
And the occasion for meeting with Madame Sun-Yat-sen was, as
I recollect — it was on a November 7. We were celebrating the anni-
2186 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
versary of the Russian Revolution with a little dance and party at
Agnes Smedley's home.
Mr. Tavenner. And you returned to the United States when?
Mr. Appelman. It must have been the spring of 1935. Then I
have got my dates wrong somewhere, haven't I ?
No, I don't think I have. Am I jumbled on the dates there?
The spring of 1935 ?
Mr. Owens. That's right.
Mr. Appelman. I must have left there about April of 1935 or
March.
Mr. Tavenner. Prior to your return to the United States, did you
have experience of any kind in Shanghai with publications of Ameri-
can firms in Shanghai, which were in any sense supported by the
Communist Party ?
Mr. Appelman. No.
Mr. Tavenner. Did you have knowledge of any such publications?
Mr. Appelman. No. I had met Harold Isaacs, who had, prior to
my coming to China, edited some such publication, which I believe
was suppressed.
In any event, he rejected the Communist position and became a
Trotzkyite. But as far as I know, while I was in China at that time,
there was no English language publication sponsored by the Ameri-
can Communist Party.
Mr. Tavenner. Do you recall the name of the publication of Isaacs
which had been suppressed?
Mr. Appelman. Well, recently I think I ran across the name of the
Searchlight. It might have been that name, or the Voice of China.
I don't know. I can't specifically remember the name of the specific
publication.
Mr. Tavenner. Now, on your return to the United States, did
you have occasion to meet Grace Maul ?
Mr. Appelman. Yes. Very shortly after I returned, which was in
1935, I received a communication from the Communist Party. I had
made no effort to contact the party, because my mind was made up
but I was not good party material. I received a communication, and
I believe it was from her, as nearly as I can recollect, and I was asked
why I didn't contact the party more, and I said I didn't feel I was
going to rejoin the party, or should rejoin the party, since I didn't
have what it takes along the lines of discipline and obedience to a
party line.
Mr. Tavenner. Well, was that all by correspondence, or was that
by personal interview?
Mi-. Appelman. No. The letter that I received merely asked me
to call, and when I called this took place in the form of personal
talk.
Mr. Tavenner. With whom?
Mr. Appelman. As I say, I am quite sure it was Grace Maul. I
had been in touch with another woman who was a Communist, and
her name was Esther something, and it might have been either one
or the other, but I do think this talk was with Grace Maul. Because
I was urged to rejoin the party on condition that I would not be
expected to do the routine work that is normally done by party work-
ers in cells, but merely to work in Chinese activity, because of my
experience in China.
COMMIXIST PRESS IN THE COMMUNIST CONSPIRACY 2187
Mr. Tayknnkk. Well, where did this conversation take place?
Mr. Appelman. As nearly as I can recall, in party headquarters,
in one of the rooms of that building, on 35 East Twelfth Street.
Mr. Tayknnkk. New York City?
Mr. Appelman. Yes.
Mr. Tayknnkk. "Well, had yon known Grace Maul prior to this
time \
Mr. Appelman. Xo, not that I can recall.
Mr. Tayknnkk. Do you know whether or not she is the same person
as Grace Granich \
Mr. Appelman. I am quite sure she is, yes. I am quite sure she
is the very same person.
Mr. Tavenner. Well, let's go ahead from there.
What occurred after that conversation?
Mr. Appelman. Well, I was assigned to work in — I think it was
called the American Friends of the Chinese People, or the Friends
of China. It had offices on West Twenty-third Street. And I re-
memher teaching-, giving a series of lectures there, on China, and
helping organize meetings, and I think I contributed occasionally to
i he magazine that was put out by that group. China Today, I think
it was called then.
Mr. Ykkdk. Before you go ahead, may 1 ask you this question:
How do you know that this Grace Granich was one and the same
person as Grace Maul (
Mr. Appelman. Well, for one reason, when 1 first met her, she was
known as Grace Maul, and subsequently I met Max Granich through
Grace Maul, and got to know that he was the brother of Mike Gold,
and subsequently got to meet them both quite frequently in connec-
tion with my work in that organization, the Friends of the Chinese
People ; and so there is no question in my mind that it is one and the
same person.
Mr. Tavexxer. When you became active in the work of the organi-
zation to which you referred, who were some of the other persons
interested in the work of that organization?
Mr. Appklmax~. I met Philip Jaffe at that time, and his wife. They
are very much interested in that organization. There was a general.
1 forget his name. He was a Russian general. He used to lecture
frequently.
He was interested in that organization. There was a man named
Loeb, who used to make the maps for that organization, an elderly
gentleman.
Mr. Tayexnkk. Do you know his first name \
Mr. Appelman. Xo, I can't recollect his first name, but I am pretty
sure his name was Loeb. There was another man there, a very thin
little man who was highly intellectual and did a lot of the writing. I
think he was the editor of the paper. 1 can't recollect his name.
Mi-. Tavenner. Well, referring back to Philip Jaffe, how well did
you become acquainted with Philip Jaffe?
Mr. Appelman. Quite well. We socialized a great deal. He is a
man with a ready sense of humor, a smile, and we were invited out,
my wife and I were invited out, to his home several times. I think
we played some tennis out to his country place in Connecticut and
got to know him pretty well.
95830 — 52 5
2188 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Tavenner. Was Philip Jaffe a member of the Communist
Party, to your knowledge?
Mr. Affelman. Well, he attended the meetings of the fraction that
worked in that group, the Communist Party meetings, but he did not
hold a book, as nearly as I can remember. He was not an organized
party member. And as I recollect, one of the reasons why was that
the party did not wish him to be an organized member of the party,
because in his printing plant he did not employ union labor.
Mr. Tavenner. Why was it the Communist Party didn't want him
to be a member of the party ?
Mr. Appelman. Well, it would be somewhat ludicrous for a Com-
munist Party member not to have union labor in his own factory or his
own plant.
Mr. Tavenner. Well, was any explanation ever made as to why Jaffe
did not employ union labor?
Mr. Apfelman. Well, these things are not, of course, treated in
written papers, or no one makes any official talk about it, but my
assumption had always been that if he employed union labor he
probably wouldn't have enough money left over to subsidize these
other activities he was "angelizing" so to speak, partly because he
made that much extra profit on his printing business.
Mr. Tavenner. What organizations were being subsidized by him,
to your knowledge ?
Mr. Apfelman. As far as I know, apart from the fact that he must
have made some contributions to the party proper, I think mainly he
was relied upon to take care of the deficit of China Today and prob-
ably other activities. This is an assumption. I have no proof of
this. And probably other activities of the organization known as the
Friends of the Chinese People.
Mr. Tavenner. If I understood you correctly', you had reaffiliated
with the Communist Party.
Mr. Appelman. Yes ; I carried a book in that period.
Mr. Tavenner. Yes ; before you engaged in this new work in con-
nection with the American Friends of the Chinese People. That is
correct, isn't it?
Mr. Appelman. Yes ; that is correct, sir.
Mr. Velde. I would like to question him a little further, Mr. Counsel,
if I might.
You said that Philip Jaffe attended fraction meetings, Communist
fraction meetings. How do you know that?
Mr. Appelman. Well, I was there. I just stated that I was a party
member, and I seemed to have a recollection of some of those meetings
taking place — they took place, as I recall, in different places. But at
least several of them, it seems to me, unless I am wrong, took place in a
little restaurant near the Twenty-third Street headquarters of this
organization; and Mr. Jaffe participated in the discussions at those
meetings, certainly at some of them. And I remember either raising
the question myself, or the information having been given me, that
the reason he was not a book-carrying member was because of this
nonunion situation in his plant.
Mr. Velde. About how many meetings did you sit in with Jaffe I
Mr. Appelman. With him? That is really very vague. I know
there were several at the very least, I assume that we used to meet
every wTeek or 10 days. My association went on for some months. It
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2189
must have been several meetings, maybe quite a few, but my memory
is not just that vivid that I could name the number of such meetings.
Mr. Velde. Well, approximately.
Mr. Appelman. It would be very difficult for me to give you with
any accuracy a figure, and I wouldn't want to.
Mr. Velde. You are absolutely certain, however, that you did attend
a Communist Party meeting or Communist Party meetings with
Philip Jaffe?
Mr. Appelman. You must bear in mind that our party fraction in
that organization could not have consisted of more than possibly 6 or
8 or 10 people. It wasn't a large group, that ran this organization, as
far as party membership was concerned. It was a rather intimate
affair. And therefore meetings did take place very informally, be-
cause we were a small group.
Mr. Velde. If you will answer my question directly, please, you are
absolutelv certain vou did sit in Communist Party meetings with.
Philip Jaffe?
Mr. Appelman. Yes.
Mr. Doyle. When you use the term "several meetings," you have in
mind at least six?
Mr. Appelman. You see, I am trying very hard to be accurate within
the limits of a memory that is not very good.
Mr. Doyle. "Several" is rather indefinite. Do you have in mind at
least three meetings?
Mr. Appelman. I would say three, and it might have been as many
as six and maybe more. But I would say definitely it was at least three
meetings.
Mr. Tavenner. Were you acquainted with Henry Vanderbilt Field?
Mr. Appelman. No.
Mr. Tavexner. You said you were connected with this organization
for about 7 or 8 months, as I understood you to say.
Mr. Appelman. It must have been that length of time.
Mr. Tavenner. After that period of time, what did you do? In
what work were you engaged?
Mr. Appelman. Well, along in that period, I was called in to party
headquarters and interviewed by Mr. Earl Browder.
Mr. Tavexner. Just before you begin with that, do you know
whether the magazine Amerasia had been organized before this time ?
Mr. Appelman. There had been some little talk about another maga-
zine, and Philip Jaffe was the one who talked about it. He felt the
need for a broader magazine, which would contain less of a Communist
character, by having a greater diversity of articles. There had been
talk about a successor magazine, but it was not yet in existence then.
.Mr. Tavenner. And Philip Jaffe is the person who indicated an
interest in the establishment of that broader magazine?
Mr. Appelman. Yes.
Mr. Tavenner. All right. Now. proceed with your description of
what happened in headquarters.
Mr. Appelmax. Along there, toward the end of this 6 or 8 month
period. I was called in to see Mr. Browder, who told me that the
Granichs were having some difficulty in Shanghai with continuing
with running the magazine out there, and that they had sent a request
to him that I be sent out to take over and continue with that job. He
2190 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
went on to say that it' I did accept that assignment, I wonld have to
support myself entirely. I would have to sever my formal connection
with the party. The party would not be responsible if anything hap-
pened to me. And I would more or less be in that sense completely on
my own.
Mr. Tavenner. Were you informed at that time of what the nature
of the difficulty was that Mr. and Mrs. Granich were having ?
Mr. Appelman. I can't say honestly that I recall what particulars
may have been told me. My general impression is that it was a tough
assignment under oppressive conditions, under a great deal of police
surveillance, and so forth, and I must have taken for granted that
after 6 months or a year a fellow wants to be relieved of a hot spot of
that kind.
I don't think I was told that there were any financial difficulties or
anything; merely that the Granichs wanted to be relieved of that as-
signment and had indicated or suggested that I be sent out to replace
them.
Mr. Tavenner. Now, will you fix the approximate time of the year
when that conference took place ? And the year in which it took place ?
Mr. Appelman. I would say the middle of 1936, just about the
middle of 1936. I proceeded to save some money to pay for trans-
portation, and so forth, and just about at the end of October or early
November, I got another call asking whether I Mas ready to go, and
I said I was short about $60 or $70, and that was provided me by the
party, and I thereupon proceeded to go to the west coast, from where
I was to take a ship to China.
Mr. Tavenner. Now, did Earl Browder make any provision for the
financing of the operations in China with you, prior to your leaving?
Mr. Appelman. He offered to make none, and I asked for none.
Mr. Tavenner. Did he explain to you what the editorial policy of
the magazine should be when you took over ?
Mr. Appelman. No. I took that for granted.
Mr. Tavenner. How were 3^011 to get the receipts of instructions as
to the details of carrying on the business ?
Mr. Appelman. I was told that the Granichs were waiting impa-
tiently for me to get there and when I got there they would turn
everything over to me, and I assumed that would include instructions
as to how to carry on, and all the connections and contacts they had
made, and so forth.
Mr. Tavenner. Very well. You left New York City for the west
coast in November or December of 1936 ?
Mr. Appelman. Yes ; the latter part of November.
Mr. Tavenner. All right. Tell us what occurred on your arrival
in California.
Mr. Appelman. When I got there, it wTas about Christmas. I found
there was a seamen's strike going on. And, of course, I didn't want
to travel on a ship that was manned by a scab labor, so I waited on until
the strike should end. It turned out to be a prolonged sort of strike,
and after a couple of weeks, I realized I would have to find a job. And
I got a job distributing party literature and doing some work helpful
to the party activity in Hollywood.
Shortly afterward, a matter of a few weeks or a month or two, V.
J. Jerome arrived and he gave me some work to do assisting him with
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2191
the distribution of party literature and helping to set up the organiza-
tion that he was setting up in Hollywood for the party at that time.
Mr. Tavenner. Did yon meet persons in Hollywood through V. J.
Jerome?
Mr. Appelman. Yes: I met John Howard Lawson, who was a king-
pin in party activity at that time. I met a man named Page.
Mr. Tavenner. Do you recall the first name?
Mr. Appelman. Charles and Polly. His wife was Polly, and he was
Charles Page.
I believe he had formerly been in American governmental service
abroad.
I met Herbert Biberman. the wife of Sidney Buchman, and also
J. Edward Bromberg and his wife, Sam Ornitz, Mrs. Frank Tuttle.
Mr. Tavenner. The wife of the director?
Mr. Appelman. The wife of the director. And Gale Sondergaard,
the wife of Herbert Biberman. and probably some other such people,
who are engaged, some of them, in direct party work, and part of
them with the Motion Picture Artists Committee, which at that time
was raising money for Loyalist Spain.
Mr. Tavenner. Was any proposition made to you to remain in
Hollywood and assist in the work of the Communist Party there?
Mi-. Appelman. Yes. As a result of helping V. J. Jerome, John
Howard Lawson thought I ought to be permitted to stay on in Holly-
wood. They were just setting up a new section up there. And he
told me he would phone Earl Browder for permission, because when
he asked me how I felt about it, I said I would just as soon stay there
as go on to China if that is what the party wanted.
Incidentally, I was no longer a technical party member, because
I had been instructed to tear up my party book when I left New
York on this assignment.
A day or two later. Lawson said he had talked to Browder, but
Browder had said I must proceed with my China assignment. And
a very few days after that 1 went to San Francisco and got my boat
for China.
Mr. Tavenner. Tell us what occurred after leaving California.
Mr. Appelman. When the ship reached Honolulu, we got a cable-
gram aboard the vessel that the war had spread down to Shanghai.
There was a good deal of commotion on the ship. We proceeded to
Shanghai.
But when we reached the port of Shanghai, the Yangtze River,
Admiral Yarnell. in command of American warships outside of Shang-
hai Harbor, instructed our ship to drop anchor and not to proceed,
not to disembark passengers. The only passenger permitted to dis-
embark was a representative of Fox New- Reels, who was taken off
on a tug. The rest stayed aboard, and I got a message from the head
of the insurance firm that I was going to go out to work with again,
the same firm I had worked with before, from Mr. Hekking
Mi-. Tavenner. All right. Let me stop you there.
You stated you were given no funds with which to pay your own
expenses, other than the small sum that was given you when you left-
New York City.
Mr. Appelman. That's right.
Mr. Tavenner. Now, did you propose to earn your own way per-
son all v?
2192 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Appelman. Well, immediately after that first interview with
Mr. Browder, I wrote to this insurance firm in Shanghai, Mr. Hek-
king, telling him I would like to come back to China and if I could
have my job back, and he promptly wrote that he would be glad to
have me come back and work for him again. With that, I knew
there would be a job waiting for me when I got to Shanghai.. But
then I got this message, in which he said obviously it would be foolish
to try to do any work in Shanghai with the war right there. Mr.
Hekking told me he had cabled Bill Burrell, whom I had known as
the sales manager for the insurance company in my previous stay in
Shanghai, for whom I had sold some insurance, but who at that time
was the head of the Manila branch, and that Bill Burrell had cabled
back that he would be glad to have me work for him in Manila.
I sent a message to Mr. Granich with a newspaper correspondent
who came aboard, telling him, explaining him that message, in just
a few words, saying I was not able to disembark and must proceed
to Manila.
That evening we took aboard several hundred Chinese refugees and
proceeded to Manila via Hong Kong. When the ship reached Hong
Kong, I found a message from Bill Burrell that he had paid my
steamship there from Hong Kong to Manila, and that of my wife,
and also was sending along $50 or $100 as an advance for some money
in case I needed cash.
And the ship proceeded to Manila, and the day after I got there
I started working under Bill Burrell for the United States Life In-
surance Co.
Mr. Tavenner. Did you engage in Communist Party activities
while in the Philippines ?
Mr. Appelman. Not as such. I had no assignment. I had no in-
structions. I received no messages or communications whatsoever
from either Granich or Browder or anybody else in the American
party. But I naturally gravitated into Communist activity, in the
sense that I went to meetings where there was public interest, and I
organized some book reviews shortly after I got there, and the YWCA
had some discussion forums, and I soon found myself taking leader'
ship in those forums, and met some Filipino intellectuals, presidents
of the universities, and so forth, and soon met some who had Com-
munist leanings, and some who I found to be members of the party.
I did not become a formal member of that Philippine party, but I
was invited once or twice to sit in on meetings of the group of pro-
fessors who had a cell, a Communist cell, in the University of the
Philippines, but sat there generally, as I say, possibly two or three
times, as a guest.
, And I contributed in a small way toward Communist activity in
the Philippines.
Mr. Tavenner. Did you have occasion to meet Edgar Snow while
in the Philippines ?
Mr. Appelman. Yes. After I had been there about a year, I would
say, maybe a little less, Edgar Snow arrived. He had a letter of
introduction to me from a Chinese editor of a Chinese paper that was
published in Hong Kong. And he told me that he wanted to organ-
ize in the Philippines a branch of the Chinese industrial cooperatives.
Subsequently, and only after we had met several times, I told him
about my party background, that my name had been Mike Pell, and
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2193
so forth; unci he then told me he had heard about me from Agnes
Smedley, but at the time he didn't know the two were the same person,
and I proceeded to help him organize the Chinese industrial coopera-
tives in Manila.
Mr. Tavenner. What did you state your party name was ?
Mr. Appelman. Mike Pell, P-e-1-1.
Mr. Tavenner. Michael Pell?
Mr. Appelman. M-i-k-e, Mike Pell.
Mr. Tavenner. Did you sit in a Communist Party meeting at any
time with Mr. Snow?
Mr. Appelman. No. No, not with Mr. Snow. I don't know now
and didn't know then whether he had ever been an organized Com-
munist.
Mr. Tavenner. Did you discuss with him your own situation with
relation to the Communist Party?
Mr. Appelman. Yes. I told him that I was unhappy about a lot
of the things I had seen in Russia, the terroristic method of govern-
ment, the hunger, the falsehoods that emanated from Soviet publi-
cations.
And just about that time the Russians invaded Finland, and I told
him how unhappy I was about that. I told him I thought it was an
injustice and it was presented with a great deal of defeat to the wTorld
at large.
He tried, at least in a moderate way, to defend or explain the Soviet
actions. We disagreed on that. But he was not violent in his dis-
agreement. He seemed possibly to have at least inwardly some agree-
ment with me. But his wife, whose literary name is Nym Wales, was
quite violent and jumped all over me, saying that I was betraying
the working class and the working class movement, and all that, and
I didn't have any right to say the things that I did, and to break with
the party ideologically and every other way. She criticized me se-
verely for it. But he was much more moderate in his reactions.
Mr. Tavenner. Did you on other occasions express your disagree-
ment with many things originating in Russia?
Mr. Appelman. Well, I was quite active in the weekly forum dis-
cussions at the YWCA, which attracted a lot of intellectuals, leftists
and pinks and so forth, and also, I suppose, a lot of other people. And
whenever Russia was discussed at those meetings, I either abstained
from any participation or indicated my critical attitude toward Sta-
lin's policies and the policies of the Comintern. And that was noticed
and commented upon, as I subsequently discovered, when James Allen
called to see me toward the end of 1938 in Manila. ^
Mr. Tavenner. What is James Allen's middle initial ?
Mi-. Appelman. As nearly as I can recollect, it is James S. Allen.
He is noted for his book on the Negro situation in this country, and I
think was a specialist for the Communist Party on Negro and other
minority problems.
Mi-. Tavenner. Was he connected in any way with the Daily Work-
er at any time?
Mr. Appelman. It seems to me he was. I am not entirely sure, but
I think at one time he was either an editor or one of the editors of the
Daily Worker.
Mr. Tavenner. Was he a member of the Communist Party, to your
knowledge ?
2194 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Appelman. I never worked with him as a Communist, but I
always took it for granted that he was an organized Communist.
Mr. Tavenner. What was the purpose of his interview with you?
Or rather, would you just tell the committee what the interview con-
sisted of?
Mr. Appelman. He came to my home to tell me that he had heard
reports from Filipino Communists that 1 was critical particularly of
Russia, of the Soviet policy and the Comintern policy, the Kremlin
policy if you want to put it that way. And I told him that I was.
He said he had heard that I had made critical observations or was
notably silent when Russia was under discussions at these forums, and
I told him that that was true. I told him the reasons. I also told him
how unhappy I was at Russia's failure to take Jewish refugees from
Nazi Germany into Biro-Bidjian.
Mr. Tavenner. Will you spell Biro-Bidjian, please?
Mr. Appelman. Biro — B-i-d-j-i-a-n. I believe it is described as an
autonomous republic within the group of Soviet republics, this one
set up for the Jewish people, in a part of Siberia. And I had felt that
during those long years from 1933 to 1939, when the Jews suffered such
severe persecution under the Nazis, and many of them were seeking
desperately for places to flee to, the Soviet Union should have opened
its gates and allowed those refugees to come in, instead of so many
of them having to perish inside Nazi Germany or desperately flee for
other places of refuge.
Well, I was told by Mr. Allen that there were many things that a
good Communist had to take on faith; that even the Communist lead-
ership in the United States didn't always know the answer to all the
questions, but that they just took them on faith; to which I remember
replying that, "One reason I joined the Communist Party was that
it wasn't necessary to take things on faith; that as a Communist I
didn't believe in being a mystic; that I thought that a Communist
should have the answer; that he should have definite knowledge and
proceed with definite understanding and not have to resort to mysti-
cism or faith in leadership."
Mr. Tavenner. After that interview or during the course of that
interview, did you make known to Mr. Allen what you proposed to
do about it ?
Mr. Appelman. Mr. Allen strongly urged that I immediately return
to the United States, because he felt that my backsliding from ortho-
dox Communist faith was due to petit bourgeois influences.
Mr. Tavenner. Just a moment. Did he express it that way, or are
you just giving that term?
Mr. Appelman. I remember distinctly the words "petit bourgeois."
That was a favorite Communist term for people who were beginning
to depart from the orthodox Communist line. And, of course, I was
earning a fairly good living then and was, I suppose, you could say, a
member of the middle class, and so superficially it was a logical thing
to assume. I wasn't a laboring man. I was a life-insurance agent.
And I remember he used that term, "Petit bourgeois," and he thought
if I got back to the United States and to New York and got in the
Communist environment once more, I could lie straightened out.
Mr. Velde. During this time, did you have any idea where the
Communist Party line originated?
Mr. Appelman. Where it originated?
COMMUNIST PHESS IN THE COMMUNIST CONSPIRACY 2195
Mr. Tavenner. Yes.
Mr. Ai'I'klman. I don't think there was ever any question in my
mind, since the international congresses or plenums of the Communist
Party were in Moscow, and the directives emanated from, were origi-
nated at, those international conferences of the Comintern. We all
got that literature.
Mr. Tavenner. Did you have a pretty good knowledge of the
Comintern organization \
Mr. Appelmax. Well, 1 am by nature a student and given to reading
:i great deal, and a person who reads a great deal naturally — as I men-
tioned, I went to 2 Communist Party schools. You get a pretty fair
understanding of these things, particularly the ideological things. I
diil a good deal of reading in Marx and Engels and Lenin and Stalin.
I did a great deal of reading. The party encourages people to do a
great deal of reading along those lines.
Mr. Tavenner, After this complaint was made or the suggestion was
made by Mr. Allen that you return to the United States, what did you
advise him '.
Mr. Appki max. Well, I told him that I didn't think I would, and
1 wrote a letter to Earl Browder telling Earl Browder that Allen
had called upon me. That was the first contact I really had officially
with the Communist Party of the United States. And so I told him
what I had told Allen, and what Allen had told me, and I said that
even though I was aware this would likely mean my expulsion offi-
cially ami publicly from the party, I did not feel I was being an
enemy of the working class, as Allen put it; that as far as I was con-
cerned, I would certainly remain friendly to liberal causes, but that
1 could not any longer subscribe to the doctrine.
I wrote Browder along those lines, right after my interview with
Allen in 1938. I never received a reply to that letter, and that dates
the final break with the Communists, and since then I have had no
real relationship with the Communists, although I did have some
activity in liberal organizations.
Mr. Wood. We will take a recess for 5 minutes.
( Short recess. )
Mr. Wood. We will proceed.
Mr. Tavenner. After the writing of the letter you referred to, to
Earl Browder, did you consider that your connection with the Com-
munist Party had been severed?
Mr. AppelmAN. Finally and forever.
Mr. Tavenner. Was any effort made at any time to interest you
again in affiliating with the Communist Party?
Mi-. Aim'fi.max. Xo; not on any official level.
Quite by chance, after 1 came back to this country, early in 1940,
1 was silting at my typewriter facing the street, and Mr. Martell
passed by on the sidewalk. He had been a teacher of mine at the
party school. And he came into the apartment. It was in the London
Terrace Apartment Building in New York City. And he queried
me about why I had broken, and I told him substantially the things
I told Allen, and he got the impression from the firmness in my atti-
tude that there would be very little chance of changing my mind.
And that was really the only contact that I had after breaking with
the party and the only thing that could be described as any effort to
get me to change my mind.
2196 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Tavenner. What was Mr. Martell's first name ?
Mr. Appelman. I don't remember.
Mr. Tavenner. Do you recall, going back now to your testimony
regarding your conversation with Earl Browder when you were
engaged to go to China to take over the publication there that was
being operated by the Granichs, what connection there was, if any,
with the publication being made there of the Voice of China with
the paper known as the Searchlight, which had been suppressed, back
in 1932; or whether there was any connection?
Mr. Appelman. Well, my impression all along was that when Harold
Isaacs deviated from the Communist line and gave up serving as editor
of that publication, that was a bad blow to the prestige of the American
Communist leadership, certainly in the eyes of Moscow, and that the
Granichs were sent out to resume publication of that magazine or
periodical.
This time apparently the party was a hundred percent sure that it
had editors who would hew strictly to the orthodox Communist line.
And it was my understanding and feeling that the American Commu-
nist Party was particularly eager to make a good showing in its work
in China, partly to make up for the defection of Harold Isaacs and
partly because China was such an important program in the Comin-
tern work in that period.
You may remember — those who watched May Day parades in that
period will remember — the placards and slogans and emphasis given
to China in that period, which indicated that the Communist Party
paid an awful lot of attention to China. The fact that such an influ-
ential party functionary as Lawson couldn't succeed in getting me to
remain in Hollywood, as important as Hollywood must have been to
the American party, and the fact that Browder thought China more
important in terms of getting someone to take over for the Granichs,
is indicative of the importance placed on work in China.
Mr. Tavenner. It was one of the party slogans at that time, was it
not, or, that is, a Communist Party slogan in the United States, to
"keep hands off of China"?
Mr. Appelman. Yes. "Hands off China."
Mr. Tavenner. There were committees known as the hands-off-
China committees?
Mr. Appelman. I imagine the committees were organized somewhat
later, but "Hands off China" was a popular slogan in those days ; and
also something to the effect that instead of spending money on battle-
ships we ought to put it into education. "Not battleships, but books,"
or something to mean that the American Navy was maintaining a
fleet in China and the money for that would have been better used
building schools in this country. There was a slogan along these
lines, as I recall.
Mr. Tavenner. Is there any other information you have to indicate
the Communist control of this magazine, the Voice of China, other than
what you have already told us?
Mr. Appelman. That seems to be about it.
I never did get to China to take on that assignment, and never did
get to see the mailing list or get to know any of the workings of the
thing.
Mr. Tavenner. Was the American Friends of China still operating
at the time you left that organization to go to China ?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2197
Mr. Appelman. I believe it operated for some time after that, a
couple of years probably, at least.
Mr. Tavenner. The organization to which I referred was the Amer:
ican Friends of the Chinese People.
Mr. Appelman. Well, I think it was called that when I was con-
nected with it. Prior to that it had been called by a shorter name, just
The Friends of China. Then it was changed to the American Friends
of the Chinese People. .
Mr. Tavenner. Have you ever publicly announced your break with
the Communist Party \
Mr. Appelman. Well, right after returning to this country, which
was the end of 1939, 1 set about to write a book on my experiences and
submitted a manuscript to Houghton Mifflin and subsequently to
Simon & Schuster. But Valtin's book, Jan Valtin's Out of the
Night, appeared just about that time, and in that book he mentions
me rather conspicuously; and incorrectly also, I might add.
The result was that the publishers felt that my book was some-
what identical with his, and there wouldn't be a ready market for it.
I did send a letter and a wire to the editors of Life Magazine, in which
I pointed out the inaccuracies in Valtin's book as far as I was con-
cerned, and they published, early in 1941, I think in the March issue,
one of the March issues, my letter, in which I stated the inaccuracies
in Valtin's book as far as I was concerned, and also stated that I
had left the party, and was no longer connected with it. I made that
quite clear.
Shortly after that, I wrote an article along the same lines for Look
magazine. And in addition to Life magazine making a public declar-
ation, in Life magazine, it was also published in Look magazine early
in 1911. Those were the printed statements, as far as public printed
statements of my position were concerned.
Mr. Tavenner. Have you made a full statement to investigators of
various Government agencies regarding your knowledge of Com-
munist Party matters prior to today ?
Mr. Appelman. Yes. Whenever I was called upon to state my posi-
tion to any Government individual or agency, I stated it just as
frankly and unequivocally as I am doing today.
In 1941, the latter part of 1941, a representative of the Rapp-
Coudert committee called on me while I was engaged in writing this
book I just spoke about. Subsequently, when I went to Mexico, about,
I think, 1945, I was stopped at the border by — I don't know what
branch of the Government he was with, but he gave me quite a
thorough drilling on my background, and I answered his questions
just as fully as in the case of this other person.
A few years later, about 1948, I was called in by the FBI, and I
gave them a full statement of my political career and my personal
life, whatever they wanted to know.
And then subsequently I was contacted by a representative of your
committee, Mr. Owens, and I gave him as much information as I
could.
Mr. Tavenner. That was in March of this year, I take it?
Mr. Appelman. Last year.
Mr. Tavenner. March of last vear.
2198 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
You have told us that the severance of your connection is complete.
Do you have any statement that you would like to make regarding
your severance from the party?
Mr. Afpelman. Yes. I did write out a statement that I would like
to either read or submit, or read in part.
If you would like, I would like to read it, and if you find it boring
you can stop me, and I can give you the rest in written form, if I have
your permission to do so.
Mr. Wood. I must leave. I have an engagement. I am going to
turn the committee over to Mr. Doyle, as chairman, and Mr. Velde.
And before I go, I would like to convey to you the very sincere thanks
of the committee for your presence here and this very valuable con-
tribution that you have made, not only to the work of this committee
but to the American people as well. I am cognizant of the fact that
it has not been without some sacrifice on your part that you have come
here to publicly give this testimony, and for that contribution to us
and to the people of America you have the committee's very profound
thanks.
Mr. Appelman. Thank you.
Mr. Wodd. I will now turn the committee over to Mr. Doyle.
Mr. Doyle (presiding) . We will be very glad to have you proceed to
read that statement.
Mr. Appelman. I broke with the Communists, finally and forever,
in 19-'>8. I had broken with the Communist Party once before, in
1932, but upon the urging of party members rejoined in 1935. My
final break was based upon complete disillusionment with the actions
of the Moscow leadership. For some years prior, the conviction had
grown upon me, through personal observation, that Moscow was re-
sorting to brute terror to maintain itself in power : and that its pattern
of tyranny and ruthlessness was being copied, and would be applied,
by Communists in every other country. I could no longer subscribe
to the theory that every means were justified to accomplish the Com-
munist end. Indeed, 1 became convinced that deceptive and immoral
means could only corrupt the end itself.
After breaking with the Communists, I took another look at de-
mocracy— at capitalist democracy. I came to the conclusion that
capitalist democracy, particularly American capitalist democracy,
despite all its limitations, affords infinitely better living conditions
for the present, and hopes for the future of all its citizens, than
communism.
This conclusion has grown increasingly upon me during these past
13 years, during which period the purchasing power of the masses
in the United States, and the living conditions of the Negroes and
other minority groups, have continually improved, while the living
and working conditions of the masses in Russia, and in all the Moscow-
dominated satellites, have gone from bad to worse, with growing
suppressions of individual and political freedom.
I do not know of a single political or economic system anywhere in
the world now or at any time in the past, that offers the great
majority ot xvs peoples as much as does the democratic system under
which we live in these United States. I refer to economic oppor-
tunities and to cultural facilities; to educational and health facili-
ties; to political security and religious freedom; to the jealously
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2199
guarded traditions of free press and fair trials; to the inducements
and incentives provided by an exciting and adventurous competitive
system. Above all, 1 refer to the security of life in a country that is
pervaded by a spirit of tolerance, fair play, and fellowship.
Another phenomenon I have noticed since taking "a second look,"
at our democracy is the unprecedented spectacle of a prosperous
people voluntarily sharing substantial portions of its wealth. Any-
one traveling across America must be struck by the great number
of universities, hospitals, libraries, museums, playgrounds, parks,
churches, and other institutions for public use that have been built
and endowed by wealthy individuals. See the tens of millions of
dollars given annually for medical research, for rehabilitation, for
community chests, Red Cross, and So forth. See the hundreds of mil-
lions of dollars that charitable Americans send overseas to the peoples
of less fortunate countries each year, in addition to their tax share
of the billions that our Government donates. Such generosity is
unprecedented in human history, and it springs not only from
biblical precepts of charity but from a feeling of gratitude toward a
country that makes it possible to share one's means with a feeling of
security.
If this seems too glowing a commentary on capitalist democracy,
I can only say that nowadays when this democracy is constantly
being criticized, libeled, and attacked by Communist propaganda, it
is important that its assets, virtues, and strength be described and
affirmed in justifiably enthusiastic terms.
I suppose, that, in the final analysis, every political or economic
>ystem is good or bad only in relation to some other system. In
comparison, then, with the system that has developed in Soviet Russia,
or in any of the Soviet satellites, the foregoing description of the
American system is fully accurate and fully preserved.
Mr. Doyle. Thank you very much for that fine statement.
Counsel, do you have any further questions?
Mr. Tavexxer. No further questions.
Mr. Doyee. Mr. Velde?
Mr. Velde. No, I have no further questions, but I do want to thank
you for that very fine statement.
As you know, a lot of former Communists are criticized for coming
out into the open and admitting all of their past maneuvers and past
associations and all : and, of course, you wTill be criticized, too.
I would like to ask you this one question. Are you really sincere
now in your belief that the American capitalistic system is superior
to any other system which has yet been devised '.
Mr. Ai'I'F.lman. Let me answer it in this way.
A- nearly as I recollect, John Stuart Mill, in his definition of a
democracy, said thai a true democracy is that system which provides
the greatest good for- the greatest number of people.
I am not only sincere but absolutely convinced, from a great deal
of personal observation of both systems, t hat in this country today the
greatest number of people enjoy the greatest good.
Now. this is all comparative. You have other countries where
people enjoy a great deal of good. And I believe that in no system,
in no country at any time in recorded history, have the great mass
of people enjoyed — and I speak both on the material and in the
2200 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Spiritual sense — the good that is enjoyed in this country today and
has been enjoyed for the past years. It has never been seen before.
And what I regret, and I have stated this to many friends recently,
is that we do not have a sufficient advocacy, a sufficient championship,
of the wonderful assets and developments and contributions of this
country.
If we had the eloquence that the Communists have been able to
attract by their system or by the theoretical aspects of their system —
if we had that, then I think we would have the most important thing
that we need, and that is a proper espousal of the good that has been
done by the American capitalistic system.
Now, I stress the word "capitalistic," because today, thanks in large
part to Communist propaganda over the years, the word "capitalistic"
has been discredited. But I feel that it is high time that the word were
put in proper focus and high time that we had spokesmen who would
know how to explain to our youth and to the rest of our country the
wonderful thing this is in terms of the tremendous progress that it
has brought about. Because if you are a student of economics you
will see that in Communist Russia they try to borrow those very aspects
of capitalism which lead to this great incentive. They try to adopt a
form of competition there, a form of incentive method. I don't think
they will succeed. But I say we have it here, and it is high time that
people arose who see this system with all its great virtues.
Forgive me for becoming a propagandist now for the capitalistic
system. I just wanted to complete my thinking.
Mr. Velde. Were you in Russia at the time the Dneiper Dam was
built?
Mr. Appelman. Yes, I believe I was there when it was under con-
struction.
Mr. Velde. What kind of construction, in general, would you say
went into the building of it ?
Mr. Appelman. I never visited the site itself. I remember an
American engineer was engaged to head it up, head up the construc-
tion. And I knew that in those early days, at any rate, they had not
yet developed the Stakhanovite system and these other competitive
systems of labor in order to get greater production. But to me it is
ironical that this whole Soviet system, which is competing with the
capitalistic system, leans upon and borrows and steals or otherwise
obtains the fruits of capitalist thinking and machinery and materials
in order to build this other system which is going to destroy this one.
Now, I wouldn't defend the capitalistic system without democracy and
all those institutions which are inherent in the American system and
which the best elements in this country are trying to preserve and
extend.
That is why in my statement I combine "capitalist" and "democ-
racy." But actually
Mr. Velde. I think I know what you mean by that. We know the
capitalist system has great flaws.
Mr. Appelman. Of course, there are other countries where the
masses don't get the benefit of it. But in this country to an extent
never hitherto seen, they are receiving a large share of the fruits of
their own labor, a larger share than anywhere else I have heard of.
Mr. DorLE. May I be privileged to ask you just two or three
questions?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2201
I noticed that in your fine statement there you referred to the minor-
ities ; the minority groups. What is your expert opinion, and I ask
you in that way because if you are not an expert in communism after
all your contacts with it I do not know who would be, on the question
of whether the Communist Party in America actually fights for the
best interests of the minority groups?
Mr. Appelman. I used to think so. I don't any more.
Mr. Doyle. I am asking you for your present opinion.
Mr. Appelman. I think that every single Communist action is sub-
jected to and subordinated to the prior consideration of what is best
for Moscow.
Mr. Doyle. Then your answer leads me to ask you the question I
was going to ask. I will ask it.
Do I understand that your present opinion, then, to us and through
us to the American people, publicly made, is that the program of the
Communist Party in America is directed still from Moscow ?
Mr. Appelman. Yes.
Mr. Doyle. What makes you so sure of that ?
Mr. Appelman. Because with the background that I have in that
movement, I cannot conceive that there could be any other allegiance,
the Comintern being set up as it is, but a direct and primary allegiance
to Moscow.
Mr. Doyle. This committee is charged by action of Congress with
investigating subversive activities that originate both domestically
and from foreign countries; also with making recommendations to
Congress in terms of legislation.
Have you any recommendation to this committee in the field of
legislation ?
Mr. Appelman. I have read some of your pamphlets, and I know
that in at least some of them it was suggested that we need more strin-
gent laws governing espionage and closing the loopholes by which
Communists who have been called before this and other bodies to testi-
fy refused to do so or failed to do so by resorting to privileges under,
I think, article V of the Constitution. I subscribe to the feeling of this
committee that more laws are necessary in order to more effectively
obtain the information required. And it is ironical but nonetheless a
fact that the Communist is the first one to take advantage of those
provisions for the security of the individual and the freedom of the
individual in order to conceal or evade what his work and purposes
are.
M r. Doyle. Have you any suggestion, then, to the committee, as to
how far we can go in that field without ourselves getting into the field
of knowingly or unknowingly violating our own Constitution in the
matter of individual rights?
Mr. Appelman. That is really, I think, a problem for a legal mind.
I wouldn't know. I know how important it is not to victimize the
innocent. I know how important it is to retain the fine apparatus for
personal freedom that we do have in our Constitution and Bill of
Eights. But nonetheless we mustn't through that be made victims
of a situation which is as dangerous as the Communist situation is
today.
Mr. Doyle. Observing that you have come voluntarily to cooperate
with the functioning of this committee, have you any suggestion of
ways and means by which this committee might undertake to make
2202 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
it more apparent than we have, if that is possible, to former Commu-
nists that they may also come and help inform the American people
on the clanger of communism, by coming and cooperating with this
committee especially?
Mr. Appelman. Well, my feeling is that there must be very many
other former Communists who, like myself, joined the Communist
movement out of a sincere idealism, after personal experiences became
disillusioned, left that movement, and who increasingly realize that
they owe it to this country and the institutions of this country to at
least make partial amends by publicly stating their position. And
it seems to me that personal contacts of the sort that were made in my
case, where you had somebody come out and visit me and contact
me and ask me to do this, should be productive. And they didn't
have to ask me too hard, because I responded that I had come to ad-
mire the work of this committee and feel that it is a very important
Avork and that I would cooperate, because I feel the work you are
doing to defend the American system is very important.
I should think there would be a lot of other such people, and you
ought to make an effort, by contacting them, to see how they react.
Mr. Doyle. May I ask you one further question ? It rather intrigued
me when you stated that back in 1928. as I recall it, you took the
oatli at the school of functionaries. I understood the oath at that
time to be, from your brief comment about it, that you would pledge
your life to service in communism. Do you remember enough about
the text of that oath to give us the wording of it? I believe I have
never heard that oath to which you refer.
Mr. Appelman. I think the essence of it is contained in one of the
writings of Lenin in a book on Leninism, in which Lenin speaks of
the need for developing, the need for the Communist Party everywhere
to develop full-time professional revolutionaries, whose every waking
movement, whose every thought, whose every act, would be dedicated
to furthering the revolution. That was a doctrine of complete dedica-
tion. And that is rather widely published. I have seen it just re-
cently referred to. And this oath was really just implementing that
kind of an attitude.
In this school they wanted only people who had already been
screened and whose actions in the party had indicated they were good
material, that they were prepared, that they weren't committed in any
direction, that they were people who didn't have a family or children.
and that they were people who could single-mindedly devote them-
selves to the purposes of the Communist revolution.
Now, each of us before we were entered in that school had to take
that oath. And I am sure that each of us did, as I did, take it with
full sincerity and full conviction, and in our subsequent actions, I
know in mine, we were subjected to positions of danger and hardship
and privation, and so forth, and. cheerfully accepted those assignments.
I know I am going in a circuitous way in answering your question,
but I really cannot give you any more verbatim details, except that it
was an oath in which you promised complete dedication to the service
of the party.
Mr. Doyle. Have you any suggestion as to where we might find the
text of that ? Has it ever been printed in public ?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2203
Mr. Ajppelman. I have never seen it printed. This is a highly selec-
tive business, being in that tiehl, and I wouldn't know where you would
find that, unless you subpenaed the records of the Communist Party.
.Mr. Doyle. May I ask you one further question? Your answer
that there is no question in your mind hut that the functioning of the
Communist Party in America is directed by Moscow at this time leads
me to ask you this question.
Do I understand, then, that you are telling us in effect that there is
an international conspiracy directed from Moscow to overthrow the
capitalistic and democratic form of government, as you have related
in your statement '.
Mr. Appeemax. Mr. Doyle, forgive me for smiling, but I cannot
associate in my mind the term "conspiracy" witli anything that is as
open as the whole Communist program. A conspiracy means or infers
or implies something rather secret and secretive. My lord, the Com-
munists make no secret, and never did since the Communist Manifesto,
of their intention to overthrow capitalist systems all over the world.
I don't see that you can term it a conspiracy. It is an apparatus, a
program. It is set up. It is pretty plain. I don't know that any re-
sponsible Communist leader has ever denied it. So there is nothing
( onspiratorial about it as far as I am concerned.
Mr. Doyle. "Well, thanks for that explanation. Do I understand,
though, that it is an open advocacy of a revolution by force if need be?
Mr. Appelmax. Of course. That is stated openly, too, in the writ-
ings of Marx and Lenin and Engels.
Mi'. Doyle. And when I say "by force," I mean by force of arms.
Mi". Appelman. By force of arms.
Mr. Doyle. And is that program, in your judgment, today being
advocated and distributed direct from Moscow toward the United
States of America?
Mr. Appelman. I would say this, that in pursuing that program,
the Communists — and here again, this was stated openly as a precept
of Lenin — use different kinds of means suited to different countries,
different institutions, different situations. If, temporarily, before
they have adequate force, they use democratic means, they use the
ballot, they get themselves elected — yes, in different countries they
will do that. But these are all preparatory stages. These are all
in order to mobilize enough power in order to use force. And any
adult Communist knows that everything else is juvenile. You can-
not take over a government without force, in the final analysis.
Mr. Doyle. By '"force," you mean guns and ammunition?
Mi-. Appelman. I mean guns and ammunition. I mean insurrection
and revolution.
Mr. Doyle. Have you any other questions. Mr. Velde?
Mr. Velde. No, I think not.
Mr. Doyle. T wish also to thank you for coming and giving us
the benefit of this very enlightening talk.
Is there anything else, Counsel?
Mr. Tavexxer. No, sir.
Mr. Doyle. Are we to meet tomorrow?
95830—52-
2204 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Tavenner. No, sir. On Tuesday.
Mr. Doyle. Then the committee will recess until Tuesday morn-
ing, next, at 10 : 30, in this room.
(Whereupon, at 4: 20 p. m., Thursday, January 10, 1952, the hear-
ing was recessed to reconvene at 10 : 30 a. m., Tuesday, January 15,
1952.)
THE ROLE OF THE COMMUNIST PRESS IN THE
COMMUNIST CONSPIRACY
TUESDAY, JANUARY 15, 1952
United States House of Representatives,
Subcommittee of the Committee on
Un-American Activities,
Washington, I). (!.
PUBLIC HEARING
A subcommittee of the Committee on Un-American Activities met
pursuant to adjournment at 10 : 45 a. m., in room 226, Old House Office
Building, Hon. Clyde Doyle, presiding.
Committee members present: Representatives Clyde Doyle, Ber-
nard W. Kearney, and Charles E. Potter.
Staff members present: Frank S. Tavenner, Jr., counsel; Thomas
W. Beale, Sr., assistant counsel; Courtney E. Owens, investigator;
John W. Carrington, clerk ; and A. S. Poore, editor.
Mr. Doyle. Let the record show that a subcommittee has been ap-
pointed for this hearing this morning consisting of Doyle, chairman,
Kearney, and Potter.
Are you ready, Counsel ?
Mr. Tavenner. Yes, sir.
Miss Elizabeth Bentley, please.
Mr. Doyle. Please rise and be sworn.
Do you solemnly swear that the testimony you give in this matter
will be the truth, the whole truth, and nothing but the truth, so help
you God '.
Miss Bentley. I do.
Mr. Tavenner. Please state your full name, Miss Bentley.
TESTIMONY OF ELIZABETH T. BENTLEY
Miss Bentley. Elizabeth T. Bentley.
Mr. Tavenner. Miss Bentley, you have testified before the commit-
tee on previous occasions in respect to your participation in the
Communist Party activities and the Communist Party underground.
That is correct, isn't it ?
Miss Bentley. Yes, that is correct.
Mr. Tavenner. For whom did you work in your underground ex-
periences in the Communist Party?
Miss Bentley. Well, I worked for Russian Intelligence, first under
Mr. Jacob Golos, and then under various subsequent Soviet agents,
including two unidentified ones, and Mr. Anatole Gromov, who was
then first secretary of the Russian Embassy.
2205
2206 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Tavenner. How was this association with the underground
work headed by Mr. Golos formed \
Miss Bentley. You mean how did I get into it originally?
Mr. Tavenner. Yes.
Miss Benteey. Originally through my own efforts I obtained a
position doing research work with the Italian Library of Information
in New York, and that was the American branch of the Propaganda
Ministry. And because of that, headquarters of the Communist Party
told me I should go underground and that instead of going to a
Communist meeting, a group meeting, I should be attached to just one
man. The one man I was introduced to was Mr. Jacob Golos.
Mr. Tavenner. Well, what was Mr. Jacob Golos' function in the
Communist underground ?
Miss Bentley. Mr. Jacob Golos was a higher-up in the Russian
Intelligence Service. He was in contact with the Embassy and con-
sulate people and in turn in touch with the higher-ups in the Com-
munist Party, such as Earl Browder, and he also was in touch with
various agents who were used to infiltrate the United States Govern-
ment, factories, and that sort of thing.
Mr. Tavenner. When did your connection with that work begin
and end?
Miss Bentley. Well, actually, my connection with infiltrating the
United States Government began in 1941, but my connection with
other of these underground activities began in 1938, in the fall.
Mr. Tavenner. I meant particularly with reference to your work
under Mr. Jacob Golos.
Miss Bentley. Oh, in October 1938.
Mr. Tavennhr. And ended when?
Miss Bentley. At his desk, which was November 25, 1943.
Mr. Tavenner. Did you remain in the service of the apparatus after
the death of Mr. Golos?
Miss Benteey. Yes, I did. I was picked up by a subsequent Soviet
contact named Bill — that was his code name — and continued on until
August of 1945, when I went to the FBI, and then, under the instruc-
tions of the FBI, I continued on for some time after that.
Mr. Tavenner. In the performance of your work in the apparatus
conducted by Mr. Jacob Golos, did you have occasion to meet a person
by the name of Helen Tenney ?
Miss Bentley. Yes, I did.
Mr. Tavenner. Will you state just what Helen Tenney's connection
was with the underground apparatus conducted by Mr. Golos?
Mr. Doyle. I wish to state to the photographers that any shots
that are to be taken should be taken as the witness begins, and then
the pictures should be discontinued, so that there will be no interrup-
tion. It would seem, however, that if you did not take the pictures in
the beginning, we could have them taken now and have that part over
with. That only refers to the movies.
Mr. Tavenner. Will you read the pending question, Mr. Reporter?
(The reporter reads, as requested.)
Miss Bentley. Helen Tenney was an agent who was planted in the
OSS in order to give information to Soviet Intelligence.
Mr. Tavenner. How long, approximately, did she engage in that
work ? And can you tell us more of the character of that work con-
ducted by her?
COMMUNIST PRESS IN" THE COMMUNIST CONSPIRACY 2207
Mi>> Bexteey. Originally, she was a member of the Communist
Party in a unit, that is, in the ordinary set-up of the Communist
Party, and had done quite a great deal of work during the Spanish
war. for example. And then she became connected with an organiza-
tion which was subsidized by the OSS in New York City. The
organization existed for the purpose of picking up men who would
be useful for undercover work abroad for the OSS. At that point,
she was in contact with Grace Granich, who was then head of lnter-
continent News. And Grace Granich, who was working with Mr.
Golos. came to him and told him that she would be useful for the
underground.
So she was told to sever her connections with the open party and
to report only to him. Then she was told to go to Washington and
get a job with the OSS, which she did.
On Mr. Golos" death, I took her over, checked up the whole story
and the background she had told me, and continued to use her until
the end of 1944. and I know from talking to her subsequently that
she continued on through 1945, at which point I believe she lost her
contacts.
Mr. Tavexxer. Now, where was Miss Tenney placed in the Govern-
ment service '.
Miss Bextley. Well, she actually placed herself.
We had sent her in with the idea that she would end up in the Latin
American Division of the OSS. We had some one in there. Instead
of which, she turned out to be so valuable that the OSS put her in their
hush-hush Spanish Division, where she functioned until the OSS split
up ; and then, when the OSS split up, a part of it was turned over to the
War Department, and she went with that section of the War Depart-
ment. She is now out of Government, has been for 8 years.
Mr. Kearxey. I did not hear that last.
Miss Bentley. She is now out of the Government service. I have
forgotten the exact date when she left her job. I believe it was in
1946 sometime, early.
Mr. Tavexxer. Are you personaly acquainted with Grace Granich \
Miss Bextley. I don't think I have ever met her, no.
Mr. Tavexxer. Mr. Chairman. I have no further questions to ask of
Miss Bentley now. except that I would like to call her before an execu-
tive session of the committee to ask her for some lead information
relating to matters. But I have no further question to ask her about
this.
Mr. Kearney. Do you know what Miss Tenney is doing at the
present time?
Miss Bextley. No, I don't. I know that she had intended to get
back into private industry, but 1 have lost track of her in the last 2
years.
Mr. Kearney. Do you know where she lives '.
Miss Bentley. The last I heard of her. she was living in New York
City. I imagine she is still there.
Mr. Potter. Miss Bentley, you stated that you had a person in the
Latin section who would place Miss Tenney. Who was that person?
Miss Bextley. It was the head of the Research and Analysis Divi-
sion, Latin American Branch. That was Mr. Maurice Halperin.
Mr. Potter. Is he still in Government, do von know?
2208 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Miss Bentley. No, I believe he went out, too, in about 1946, possibly-
earlier. I am not sure of the date of that.
Mr. Potter. Was he a contact for you, or did he serve the purpose
of placing persons that you were interested in having placed ?
Miss Bentley. Well, his main function was in obtaining informa-
tion for us, but secondarily if he could get some one in, of course,
we would use him for that.
Mr. Potter. Do you know where he is located now or what his
occupation might be ?
Miss Bentley. Someone told me, I believe, he was connected with
some social work organization, but I am not sure of the title of it.
In New York City, I believe.
Mr. Potter. That is a private organization ?
Miss Bentley. I understand so, but I am not sure.
Mr. Potter. And located in New York ?
Miss Bentley. In New York City, I believe.
Mr. Potter. I have no further questions, Mr. Chairman.
Mr. Doyle. May I ask you this, Miss Bentley : Do you know under
what conditions this woman and the man were separated from the
Government employment? Was it at their own request, or the Gov-
ernment's request ?
Miss Bentley. No, I understand that the Government requested
that they be removed.
Mr. Doyle. Counsel, when do you wish the executive questioning?
Mr. Tavenner. I believe just before we go to lunch this morning
would be the best time.
Miss Bentley. Yes, that would be best, Mr. Chairman.
Mr. Tavenner. Mr. Louis Budenz, please. .
Mr. Doyle. Mr. Budenz, will you be sworn, please?
Do you solemnly swear that the testimony you give in this matter
will be the truth, the whole truth, and nothing but the truth, so help
you God ?
Mr. Budenz. I do.
Mr. Doyle. Be seated, please.
Mr. Tavenner. Will you state your name, please, sir?
TESTIMONY OF LOUIS FRANCIS BUDENZ
Mr. Budenz. Louis Francis Budenz.
Mr. Tavenner. How are you now employed, Mr. Budenz?
Mr. Budenz. I am a professor at Fordham University.
Mr. Tavenner. You were formerly a member of the Communist
Party and renounced your membership in the Communist Party, I
think?
Mr. Budenz. That is right. I renounced it in 1945.
Mr. Tavenner. And you have testified before this and other com-
mittees on the general subject of communism and in regard to partic-
ular matters that you have been asked about?
Mr. Budenz. Yes, sir, I have.
Mr. Tavenner. Mr. Budenz, you are aware of the hearings, I sup-
pose, which we have been conducting here for several days, relating
to the activities of Max Granich and Grace Granich in China ?
Mr. Budenz. Yes, sir. I know that those took place.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2209
Mr. Tavenner. Have you ever been acquainted with either of those
persons ?
Mr. Budenz. I knew them both. I knew them both as members of
the Communist Party and as functionaries of the Communist Party.
Mr. Tavenner. How did you first become acquainted with Max
Granich ?
Mr. Budenz. Max Granich, I became acquainted with in 1940, ap-
proximately, when he came to me to get a credential from the Daily
Worker. He said he wished to use it in underground work; that is
to say, under the guise of being a newspaper correspondent, he was to
get information that would be helpful to the Soviet or Communist
underground.
Mr. Tavenner. When did you first become acquainted with Grace
Maul Granich ?
Mr. Budenz. I first met Grace Granich as Grace Maul, in the fall
of 1935, almost immediately after I joined the Communist Party.
She was then located on the ninth floor, that is, the headquarters of
the Communist Party. She was the assistant to' J. Peters.
Mr. Tavenner. Who was J. Peters ?
Mr. Budenz. J. Peters, as I testified in his deportation proceedings,
confronting him as a witness, was the liaison officer between the Com-
munist International apparatus in this country and the Soviet Secret
Police operating here. He stated that to me himself, and I knew
enough of his activities to know that that was correct.
Mr. Tavenner. Was he deported as a result of the hearings before
the Immigration and Naturalization Service?
Mr. Budenz. He agreed to leave the country, although the deporta-
tion was clearly to be ordered.
Mr. Tavenner. Now, you have stated that Grace Maul was an
assistant to J. Peters. Do you know of your own personal knowledge
of the character of the work that she performed as his assistant?
Mr. Budenz. Not in detail. I wouldn't know of that.
The only thing I know is that in the early fall of 1935, immediately
after I joined the Communist Party, I had to make many reports
to J. Peters in regard to the Trotzkyite organization. At his request,
I had established contacts within that organization, and they were
reporting to me, giving to me the proceedings of the national com-
mittee of the Trotzkyites, their various important meetings, and the
like.
These I relayed to Peters, but had to deliver them personally.
In the course of doing that, the first contact, as a rule, was with
Grace Maul, with whom I arranged a meeting with Peters. Some-
times I didn't have to do that, but very frequently that was the case.
Mr .Tavenner. Were any of your conferences with P. Jeters con-
ducted in her presence, in the presence of Grace Maul?
Mr. Budenz. No ; not that I can recall.
Mr. Tavenner. What was the next occasion of vour meeting Grace
Maul, if you can recall?
Mr. Budenz. During this period that I mentioned, I met her a
number of times, of course, because I had to see her frequently in order
to see Peters. But then I did meet her at a national committee meet-
ing of the Communist Party in early 1936, or maybe it was the latter
part of 1935. And as a matter of fact, Herbert Benjamin, his wife,
2210 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Grace Maul, and I came down together — we lived in the same neigh-
borhood in New York — after the meeting.
Mr. Tavenner. What do you mean by "came down??
Mr. Budenz. Came down on the elevated together, or subway.
At that time, she told me she was going abroad for the Communist
Party ; that is, that she had an assignment to go abroad.
Mr. Tavenner. Did she discuss that assignment with you %
Mr. Budenz. No; except to say that it was a Communist assign-
ment : that she had been assigned this by the party.
Mr. Tavenner. Now, that conversation was, did you say, in the
last part of '35 or early part of '36 ?
Mr. Budenz. Yes, sir. I think the last part of '35, by the way.
I was in Washington in the early part of '36, at least from the last
part of January on. It could have been, though, in the early part
of January 1936. I am not quite certain. It was in that period.
Mr. Tavenner. Did vou see Grace Maul after her return from
China?
Mr. Budenz. Yes, sir. In 1939, in the fall or winter, I returned
from Chicago for conferences in regard to the protection of the Com-
munist press during the Hitler-Stalin pact period. In one conference,
Grace Maul and Earl Browder and Joseph Brodsky were present with
others. I can remember them. They discussed the possibility of
forming the Intercontinent News Corp.
Then again, immediately after my return from Chicago, when I
returned to the Daily Worker, in February 1940 or March 1940, I
also was present at a conference with Grace Granich, as now she calls
herself, on the same subject.
Mr. Tavenner. And that subject was what?
Mr. Budenz. The possibility of protecting the Communist press
in this country during the Hitler-Stalin pact period, by the forma-
tion of the Intercontinent News Corp.
Mr. Tavenner. Now. before we get into a discussion of the Inter-
continent News Corp. and its activities. I think it would be well for
us to develop information relating to the operations of the Daily
Worker at about that time and the effect of the Foreign Agents Regis-
tration Act of 1938, as a basis for further discussion of the work done
by the Intercontinent News..
Mr. Budenz. The Daily Worker had for years, and was so doing
when I became a member of its editorial board, received hundreds of
thousands of words by cable and wireless from Moscow through the
Runag News Agency, Rundschau. This was completely without
charge to the Daily Worker, including the English translations in
Moscow. These communications consisted of the wiring or cabling,
wirelessing or cabling, of entire articles from Pravda, statements by
Stalin, and articles written in other Soviet publications. They were
translated, as I say, into English in Moscow, sometimes relayed
through London and other cities, but they came directly to the Daily
Worker.
There were a great number of machines there to receive them.
Sometimes we had to have three or four extra operators to receive
these communications from abroad.
And that was the situation at the time we were having these dis-
cussions.
COMMl'XIST PRESS IX THE COMMCNIST CONSPIRACY 2211
For example^ during the period of the Trotskyite-Buldiarinist
trials, the purge trials, we received almost word for word the testi-
mony by wireless, with the exception of a preposition being left out,
or a few things like that; and they were published largely word for
word, the questions of Yishinsky and the answers of the defendants,
in the Daily Worker at that time. This all came by wireless or cable
to the Daily Worker.
Mr. Tavenner. Were the transmission charges prepaid1?
Mr. Budenz. They were all prepaid; yes. sir. The Daily Worker
had to bear no expense whatsoever on this material.
Mr. Tavenner. Will you tell the committee just what RuUag was.
what type of an organization it was and to whom it was responsible?
Mr. Budenz. Runag is the name, abbreviated, for the Russian Xews
Agency in English. It had various names in various languages, of
course, all meaning Russian Xews Agency. It was directly under the
control of the Soviet commissariat of communications and was its
creature. Therefore, it was an agency and creature of the Soviet
Government completely. It collected material from all over the world,
including China and other places. These were cabled in to the center,
and then they were selected and sent back to the various countries.
The Daily Worker received them direct, as I say, on machines right
in the Daily Worker office on the eighth floor of 35 East Twelfth
Street. Xew York.
Mr. Tavenner. What was the importance to the Daily Worker and
to the Communist Party of the receipt of these messages from Runag?
Mr. Budenz. First of all, it was the propaganda they needed; but
-i condly, and above all, each one of these articles contained directives.
This is the method by which Communist directives are given, and why
they are so successful in concealing their presentation of the line.
The Communists read each article that they receive. And I know
this certainly by experience. I had to pore with the midnight oil over
these documents. The Communists read every article to find the direc-
tive. It may be a minor directive or a major directive. These contain
directives. They modified the line or interpreted the line or explained
the Communist conditions in various countries.
Immediately, the Daily Worker not only published a great number
of these communications but adjusted its editorial policy and its work-
ing accordingly. That is. the editorials of the Daily Worker or special
articles by its staff writers reflected these communications.
Mr. Tavenner. Then you would say that the rendering of that serv-
ice was extremely important and vital to the functioning of the Com-
munist Party in the United States?
Mr. Budenz. It was one of the most vital functions for the Com-
munist Party not only in the United States but throughout the world.
Put specifically here, since the Communist Party day by day based its
viewpoint and" the message that it got out through the Communist
which was then its theoretical organ, and then through the Daily
Worker, and then on out further, on these communications.
In addition to that, there were, the oral and brief communications
from the repi'esentatives of the Communist Internationale, but they
necessarily had to be quite in political shorthand, if I may put it that
way. That is. they had to be brief, because they were oral.
Put these were the extensive directives in order to be able to know
what phrases to use, what attitudes to take, and how to push forward
2212 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
the cause of the Communists in various countries, here in the United
States.
Mr. Potter. Did any other publication in the United States receive
this service?
Mr. Budenz. No, sir. Well, only Communist publications. The
Freiheit also availed itself of it, and it did through the Daily Worker
go out to the various foreign-language papers that the Communist
Party had. I doubt, though, that any other paper received it. In
fact, I can say definitely no one else received it but the Daily Worker,
since the Freiheit got an extra copy and it was off the Daily Worker's
machine.
Mr. Potter. And I assume it was your responsibility to transmit
that to other, as you say, foreign-language papers that might be Com-
munist-controlled. I don't know whether you had any at that time.
Mr. Budenz. Oh, yes. Quite a few. In fact, very many foreign-
language papers.
Mr. Potter. Was that a responsibility of yours, to see that they got
it? Or did they receive it direct, the same as you?
Mr. Budenz. No ; the Daily Worker was the only one that received
it direct, and then the Freiheit, it being in the same building and it
being a large paper also, comparatively, within the Communist ranks,
received one copy. The rest of them took their information generally
from the Daily Worker itself.
Mr. Kearney. There was some reference made by Mr. Potter to
foreign language newspapers. You mean Communist controlled?
You do not want the impression to go out that all foreign language
newspapers
Mr. Budenz. No, I mean those that were Communist, like El Elore,
the Hungarian paper, and many others I could mention if I just had
time to think them over. There were Polish papers in Detroit and a
Rumanian paper in Detroit, and a Lithuanian paper in New York,
and the like. These were specifically the Communist papers; par-
ticularly in the Hungarian field. I mentioned El Elore. Solaridad
was certainly not Communist at all. The majority of foreign lan-
guage papers were not. But I am specifically referring to those that
were. Just as the Daily Worker, of course, was the English language
daily.
Mr. Tavenner. Were the directives which you received through
this source discussed with the heads of the Communist Party?
Mr. Budenz. Yes, sir. In fact, they were deeply interested. I for-
got to tell you that a copy was also sent up to the ninth floor.
Mr. Tavenner. By "ninth floor," what do you mean ?
Mr. Budenz. The ninth floor was at that time so well known as the
national headquarters of the Communist Party that you referred to
it mechanically ; it was "the ninth floor." The Daily Worker editorial
offices were on the eighth floor. That is, of 35 East Twelfth Street,
New York City, or 50 East Thirteenth Street ; it was a building that
ran through between the two streets.
Mr. Tavenner. Now, what effect did the Foreign Agents' Regis-
tration Act have upon this activity which was being engaged in be-
tween the Daily Worker and the Communist Party through Runag?
Mr. Budenz. Well, it had an immediately injurious effect, in the
sense that this material had to be labeled propaganda, for one thing;
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2213
and also, registration was required. And that would have admitted
that the Communist Party and its activities were those of a foreign
principal.
This the Communist Party did not want to acknowledge. And
that, of course, presented problems, not only to the Daily Worker
specifically, which was then the organ of the Communist Party, but
to the Communist Party, which at that time was affiliated openly with
the Communist International. I am speaking of this first stage, when
Kunag was being used.
Mi-. Tavenner. Yes. Well, now, as a result of the problem which
you have described, did the Daily Publishing Co., Inc., which pub-
lished the Daily Worker go through the form of endeavoring to
register under the Foreign Agents' Registration Act?
Mr. Budenz. Yes, sir, it did. At that time, I was not yet managing
editor of the Daily Worker nor president of the corporation, but the
legal arrangements were in the process, and I was in on most of the
discussions in that connection. It decided to register but to deny
that it was a foreign agent; nevertheless to register with the names
of those agencies from which it received its information.
Mr. Tavenner. Mr. Chairman, I would like to introduce in evi-
dence registration statement of March 30, 1910, made by Daily Pub-
lishing Co., Inc., and ask that it be marked "Budenz Exhibit No. 1."
Mr. Doyle. It will be accepted and so marked.
(The registration statement of March 30, 1940, made by Daily Pub-
lishing Co., Inc., was marked "Budenz Exhibit No. 1," and is filed
herewith.)
Mr. Kearney. I note, under question 8, a statement made that :
Keeping in mind the answer to question 7, to the effect that we do not con-
sider those with whom we do business abroad as our principals, we herewith
set forth the addresses with whom we do business, as above indicated.
Is that statement correct?
Mr. Budenz. That statement was utterly false, since the principals
were footing the bill completely, and it was a tremendous bill, for these
services. In addition to that, the Daily Worker was completely fol-
lowing the instructions of the principals and the directives given in
these various articles.
So, from a twofold viewpoint, it was incorrect.
Mr. Kearney. In other words, the answers to most of the questions
on this registration statement were either double talk or absolutely
false. Is that not so ?
Mr. Budenz. That is correct, completely correct.
Mr. Tavenner. I had intended to ask you to read question 7. I
guess we might as well do it. It is partly answered already.
Mr. Budenz. Question 7?
Mr. Tavenner. Yes ; which explains a little more fully the matter
which was just brought out by the Congressman.
Mr. Budenz. This is a fine example of how the Communists tried
to mix things up :
Name the foreign principal, or principals if more than one, for which registrant
is acting as agent.
Mr. Tavenner. That is the question ?
Mr. Budenz. That is the question. The answer is :
We do not act as agent for any foreign principal. We herewith set forth
the source of foreign cable news which we receive: (1) United Press.
2214 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
That, of course, as I say, is obviously au effort to mix up the situa-
tion, because that was not involved in this question of registration.
United Press is a commercial news agency, and the Daily Worker
mere]}7 purchased its news from them on a commercial basis. It had
nothing to do with this matter.
(b) Bundshau, Delta Verlag, in Berlin.
(c) Agence France-Monde.
That was the French agency corresponding to Runag and was the
Communist agency. But the effort to bring in the United Press, I
think, is a very typical Communist example of trying to confuse the
issue.
Mr. Kearney. After that statement was filed, was there any at-
tempt made by the agency with whom the statement was filed to
clarify the answer to that particular question, question 7?
Mr. Budenz. Well, there were considerable steps in this matter,
Congressman. The discussions went over a long period of time. The
Daily Worker constantly, by new devices, as we shall see, I believe, as
we go forward, was trying to evade this issue and to discover new
legal contraptions, if I may use that term, to confuse the issue.
Mr. Kearney. Would you mind giving the name of the counsel to
the paper at this time ?
I will withdraw that question.
Mr. Tavenner. Now, the registration which was just handed you,
of March 30, 1940, sets forth that the contractual arrangements were
made through an oral agreement between Earl Browder and these
various services, such as Runag.
Do you have any knowledge with respect to the development of that
matter ?
Mr. Budkxz. Yes, sir. That was put forward solely in order to
present the Daily Worker as becoming or already divorced from the
Communist Party.
There were two stages in this effort to protect the Daily Worker
and the Communist Party as foreign agents.
The first of these was to assure the Daily Worker of being pro-
tected, so that under the cry of "freedom of the press," which you
will note finally became the name of the corporation controlling the
Daily Worker, they would be able to have solid grounds for con-
tinuing the publication, which was actually a telegraph agency of
directives to the Communists throughout the country.
Now, the first step therefore taken in the discussion was to endeavor
to establish legally the independence of the Daily Worker from the
Communist Party. This was one effort, that is, the statement by
Browder, that he had made all the arrangements in regard to these
agencies, and that he had done it on his own initiative, and that the
Daily Worker merely accepted what he had done, but that the Daily
Worker in no way was bound by his actions.
Mr. Tavenner. Mr. Budenz, T would like to show you a copy of the
letter from the Secretary of State to the Daily Publishing Co. under
date of April 3, 1940, which requests the Daily Publishing Co. to
furnish the details on the contractual arrangement between these
various news agencies through Mr. Browder.
Mr. Budenz. Yes, sir.
Mr. Tavenner. I desire to offer it in evidence and ask that it be
marked "Budenz Exhibit No. 2."
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2215
Mr. Doyi.e. It may be filed and so marked.
(The letter above referred to, marked "Budenz Exhibit No. 2," is
tiled herewith.)
Mr. Tavenner. 1 think it may be well to read the letter.
Your registration statement, submitted, pursuant to the terms of Section 2
of the Act of June 8, 1938, as amended by the Act (Public, No. 319, 76th Congress)
approved of August 7, 1939, requiring that the registration of agents of foreign
principals, lias been accepted and tiled under the number 417 and date March
30. 1940.
Although it is noted that, under paragraph 7, you state, "We do not act as
agent for any foreign principal," it is assumed that, inasmuch as you have
subndtted a registration statement in conformity with the provisions of law re-
ferred to above, your activities are of such a character as to come within the
scope of the Act of June 8, 1938, as amended. Should this be the case, it would
appear that your registration statement is incomplete in this respect, and it is
suggested, therefore, that you will wish to submit further information in this
regard in order that your registration statement may be complete in all necessary
particulars.
It is noted that you have not furnished, in compliance with the instructions
under paragraph 12 of the registration statement, a full statement of the terms
and conditions of the oral agreement made on your behalf by Mr. Earl Browder
with Kunag (Rundshau, Delta Verlag) and Agence France-Monde. You are
requested to transmit this information at once, in order that your statement may
be completed in this respect. Your attention is invited, in this connection to
chapter IV, paragraph (5) of the regulations issued pursuant to the Act of
June 8. 1938, as amended, a copy of which is enclosed.
This is a photostatic copy of a letter which says :
For the Secretary of State: Charles W. Yost, Assistant Chief, Division of
Controls.
Now, what was done in response to that request, which was made
on April 3 '. Do you recall \
Mr. Budenz. Yes, sir. We had a discussion of that matter with
Mr. Edward Kuntz, who was counsel for the Daily Worker, and as
a result there was a communication sent in to the State Department,
allegedly giving an explanation of Browder's arrangements.
Mr. Tavenner. I hand you a photostatic copy of the covering letter
of Edward Kuntz of June 28, 1040, enclosing a letter from Earl
Browder. I desire to offer it in evidence and ask that it be marked
"Budenz Exhibit No. 3."
Does that letter represent the result of the decisions reached re-
lating to this matter?
Mr. Budenz. Yes, sir ; that does.
Mr. Doyle. Let it be marked and tiled as an exhibit.
(The material above referred to was marked "Budenz Exhibit No.
•">." and is filed herewith.)
Mr. Tavenner. I would like to ask you a number of questions re-
lating to the covering letter, but, first, with reference to the enclosure
of Earl Browder : This letter purports to show the circumstances under
which Earl Browder, acting in his allegedly private capacity, entered
into verbal arrangements with these various news agencies prior to
the existence of a publishing company which was then registering,
the Daily Worker Publishing Co. Can you tell the committee
anything about that, as to what the practice was, and what the real
purpose was in Browder giving this letter?
Mr. Budenz. The real purpose of Browder giving that letter was
in order to cut off the Daily Worker from the onus of being a foreign
agent ; and by Browder's having made this arrangement, it was con-
2216 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
sidered that it would be a private transaction, legally, and therefore
that the Daily Worker could not be held to registration as a foreign
agent for acts which were done in its behalf, the benefits of which it
accepted, but which actually it had not either engineered nor agreed
to.
Mr. Tavenner. I would like to read the covering letter from Mr.
Edward Kuntz. But before doing so, who was Mr. Edward Kuntz ?
Mr. Budenz. Mr. Edward Kuntz was attorney for the Daily Work-
er. It is true that the Communist Party had its attorneys, and some-
times they stepped into the picture, but Edward Kuntz was techni-
cally the attorney for the Daily Worker itself.
Mr. Doyle. May I ask you this question, right there ? As a matter
of fact, was it not generally agreed to that this process should be
taken? And by "agreed to," I mean by the officials and attorneys
for the Daily Worker, with Earl Browder.
Mr. Budenz. Oh, yes. It was agreed that this would be done in
order to evade the Foreign Agents' Registration Act.
Mr. Doyle. When you say it was agreed, my question is directed
to whether or not it was agreed to by the officials of the Daily Worker
and their legal counsel also.
Mr. Budenz. That is correct. I have been in conferences where
this was discussed.
Mr. Kearney. Is Kuntz a member of the Communist Party?
Mr. Budenz. Yes, sir.
Mr. Kearney. He is ?
Mr. Budenz. Yes, sir. I know Mr. Kuntz very well. I have been
in his office very often, he has been in my office very often, and he is
a member of the Communist Party.
Mr. Tavenner. The date of this covering letter is June 28, practi-
cally 3 months after the inquiry sent by the State Department.
Mr. Budenz. When I say "he is" I mean, of course, he was during
all the period that I was in the party. I have no knowledge today
of his affiliations.
Mr. Tavenner. Mr. Chairman, I would like to read this letter.
The letter is addressed to the Department of State :
Gentlemen : In reply to your letter of April 3rd, 1940, re the above entitled
matter, I am authorized on behalf of my client, Daily Publishing Company, to
state the following : My client does not act as an agent for any foreign prin-
cipal by reason of its agreement with the news agencies mentioned. Its reason
for giving the information contained in the questionnaire is simple enough :
that it was given to understand that the Government desired the information
and it received the questionnaire implying that there might be a question of
legal interpretation, and my client had no reason to make an issue of the matter.
The facts were therefore given and they speak for themselves. My client feels
that under the disturbing conditions of this particular time, if the Government
wishes to know of matters of connections or lack of connections with foreign
concerns, anybody ought to be glad to cooperate in giving the information.
In line with that position, we are enclosing herewith a photostat of a letter
requested by us from Mr. Earl Browder and trust that the filing of the same
will answer the request contained in the latter part of your letter.
You will please note that the agreement referred to by Mr. Browder was made
prior to the existence of the corporation which now publishes the Daily Worker ;
however, my client requests me to inform you that it has continued the arrange-
ment.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2217
I want to read again one sentence and call it particularly to your
attention :
My client feels that under the disturbing conditions of this particular time,
if the Government wishes to know of matters of connections or lack of connec-
tions with foreign concerns, anybody ought to be glad to cooperate in giving
the information.
Now, does that sentence correctly reflect the attitude of the Com-
munist Party in 1940, and that of the Daily Worker?
.Mr. Budenz. It certainly does not.
At that time Browder officially was declaring President Roosevelt
to be another Hitler and was engaged in declaring that any aid given
to Great Britain or any effort by us to strengthen our national security
was imperialist and Fascist. And, of course, you need only refer to
the columns of the Daily Worker and to the proceedings of the Com-
munist convention of that year to know the intention was an attack
on the United States Government and its head, Mr. Eoosevelt; I
mean, as head of the Government.
Now, in addition to that, it was at that convention of that year
that the Communist Party gave a particular pledge of loyalty to
Joseph V. Stalin, saying they were proud of their association with
him. '
So you see, this was scarcely in line with their pronounced senti-
ments— and attitudes too, by the way.
Mr. Tavexner. And, as a matter of fact, Mr. Budenz was not the
Communist Party and the Daily Worker, at the very time of the
writing of this letter, on June 28, 1940, engaged in the work of con-
triving a plan which would conceal from the United States Govern-
ment the very information that the Government was seeking to ob-
tain here with regard to its connection with foreign powers?
Mr. Bcdexz. Yes, sir. They were engaged in at least three plans
to that effect : that is, I mean, three full plans all working in the same
direction. They were engaged in trying to find a way to get this
source of directives from Moscow without coming under the Foreign
Agents' Act. and therefore concealing from the United States Govern-
ment the true character of their principal and the source of their di-
rectives and information and the method in which it was financed.
It was completely financed by Moscow. And secondly, they were
also preparing a way to divorce the Daily Worker itself from the Com-
munist Party technically, and that was just being achieved at that
time.
And thirdly, they were about to separate the Communist Part}'
technically from the Communist Internationale, purely a legal ma-
neuver for the same purpose.
Mr. Tavexxer. Now. you spoke of a plan being made by the Com-
munist Party to divorce the Daily Worker from the Communist Party
technically. What did you mean by that?
Will you elaborate?
Mr. Budenz. Yes. sir. It finally was worked out, through the es-
tablishment of a new corporation. I used to say we had more corpo-
rations down there in the Communist Party headquarters than they
have on Wall Street. But they appear every so often.
2218 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Now, there had been the Contra Daily Publishing Co.; then the
Daily Publishing Co. And all this was coming about during this
period. And then there came about the Freedom of the Press Co.,
Inc., of which I became the president. That, if you will notice the
change in masthead, shows that it is uo longer the organ of the Com-
munist Party — though actually it was. Therefore, it was to be my
position, along with that of Benjamin .) . Davis, who was one of the
officers, to make the assertion, should it ever be necessary, that we were
not actually an organ of the Communist Party, and indeed were only
connected with it in the sense that we advocated certain views which
coincided with those of the Communist Party.
Mr. Tavenner. In other words, that was part of the strategic plan,
to set aside the Daily Worker as a separate organization to act pub-
licly.
Mr. Budenz. Yes, sir. At that time the Communist Party began
to go underground completely, with its leadership. Bittehnan disap-
peared. Stachel disappeared. There were only four national lead-
ers left on the ninth floor. I mean, by degrees, this took place. Den-
nis disappeared. They all went underground. And the idea back of
this whole thing — I mean, this was progressive. The climax finally
developed in 1041. But this process was going on.
And the idea back of it all was that in the final eventuality the Daily
Worker could be preserved as the place from where directives could
be issued, and that it would be appearing under the phrase "The Free-
dom of the Press,'1 that being a popular phrase which it was felt would
be able to support them in that contention, and the Daily Worker was
to be set aside as though it were not the organ of the Communist
Party and as a matter of fact as though it were only following a cer-
tain Communist viewpoint but was not organically connected with the
Communist Party.
Mr. Tavenner. Then I understand there was a strategic plan by
which the Communist Party would remain above ground, so to speak ;
but even as to it there should be no connection openly with the Com-
munist Party ?
Mr. Budenz. The Daily Worker, you mean?
Mr. Tavenner. I meant to say the Daily Worker.
Mr. Budenz. That is correct.
Mr. Tavenner. In other words, the connection of the Daily Worker
with the Communist Party and the Communist Internationale should
be a secret matter?
Mr. Budenz. That is right. Legally at least; so that we could con-
tend legally that that was the case.
Mr. Tavenner. But covertly the same relations were to continue ?
Mr. Budenz. Exactly the same relations. William Z. Foster con-
tinued to be the representative of the Politburo, meeting with the
editorial board, and we continued to receive directives from the Polit-
buro, and we continued to receive directives from Moscow, exactly the
same as had taken place before.
Mr. Kearney. As a matter of fact, any decision made by the Com-
munist Party in this country was dictated by Moscow, was it not?
Mr. Budenz. Absolutely. There could be no deviation from what
Moscow ordered.
Mr. Tavenner. Now, to carry out the point that you have made in
regard to this dual capacity of the Daily Worker and this change of
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2219
the situation on its face, I hand you photostatic copies of the Daily
Worker for July 31, 1940, and the following day, August 1, 1940, and
ask first that t hey be marked "Budenz Exhibits 4 and 5."
Mr. Doyle. They may be so marked.
(The copies of the Daily Worker referred to, marked "Budenz Ex-
hibits 4 and 5," are filed herewith.)
Mr. Tavenner. And I will ask you to examine the mastheads and
ask von what significant change appears there.
Mr. Budenz. The masthead of Wednesday, July 31, 1940, contains
the sickle and the hammer, that is, the official insignia of Soviet Rus-
sia, right between the words "Daily" and "Worker." It also says,
below that, "Central organ, Communist Party, U. S. A., affiliated with
Communist Internationale, published daily except Sunday by the
Daily Publishing Company, Incorporated, 50 East 13th Street, New
York. New York."
Then it gives a list of the officers, the telephone number, and other
information of that character.
On the next day, Thursday, August 1, 1940, the Daily Worker has
dropped the sickle and hammer, and it is merely "The Daily Worker,
published daily except Sunday by the Freedom of the Press Com-
pany, Incorporated, 50 East 13th Street, New York, New York."
Then it gives the list of officers, who are all changed, with myself as
president. It is to be noted that "central organ of the Communist
Party" has been dropped, "affiliated with the Communist Interna-
tionale" has been dropped, but the address remains the same, the tele-
phone number remains the same, the cable address remains the same,
and everything else except the names of the officers remains the same.
Mr. Tavenner. I hand you now the registration for the year 1940
under the name of Freedom of the Press, Inc.
Mr. Doyle. First, may I ask: Did you want to have the exhibits
that were previously marked accepted?
Mr. Tavenner. Yes. I thought they had been received.
Mr. Doyle. Those documents may be filed.
Mr. Tavenner. I desire to offer this registration, that is, the
registration of Freedom of the Press, Inc., in evidence, and ask that
it be marked Budenz Exhibit 6.
Mr. Doyle. It is so ordered.
(The document. referred to was marked "Budenz Exhibit 6," and
filed herewith.)
Mr. Budenz. Yes. sir: I am familiar with this.
Mr. Tavenner. I notice that your name appears as president of
the corporation.
Mr. Budenz. Yes, sir.
Mr. Tavenner. I believe you testified a moment ago as to that fact.
Mr. Budenz. Yes, sir.
Mr. Tavenner. This was the new corporation formed for the pur-
pose of carrying out this strategic plan that you had mentioned a few
moments ago ?
Mr. Budenz. That is correct, Freedom of the Press Co., Inc.
Mr. Tavenner. Will you look again at question 7 in this regis-
tration and state whether or not the answer given there is the same as
was given by the Daily Publishing Co. in its registration of March
1940?
95830—52 7
2220 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Budenz. Yes, sir. It is substantially. Through the business
of stating, "We do not act as agents for any foreign principal," and
then going on to say that they had purchased the assets of the Daily
Publishing Co. and has made arrangements with Runag to continue
their service.
Mr. Tavenner. Will you look at two cablegrams attached at the
very back of the registration statement . ?
Mr. Budenz. Yes, sir.
Mr. Tavenner. Will you state what they are, please, and what
their significance is ?
Mr. Budenz. One is a cable dated August 2. That is the date
after this announcement; August 2, 1940. It is from Runag, stating
that they have been informed that the ownership of the paper has
changed, and wishing to know if they wanted to continue on the
same terms. And the cable back from the Daily Worker says that
• • •
the new management proposes present service provisionally until
it can send a representative to negotiate on a permanent basis.
Mr. Tavenner. I notice that that had its origin in the cable from
Runag.
Mr. Budenz. Yes, sir.
Mr. Tavenner. Actually, was that whole thing arranged ahead of
time, so that Runag would cable you with regard to that matter?
Mr. Budenz. Yes, sir; it was.
Mr. Tavenner. And what was the purpose of that exchange of cable-
grams ?
Mr. Budenz. That purpose was in order to place on the record these
cablegrams to make it appear as though Runag was dealing in an
independent or commercial way with the Daily Worker and was in-
quiring as to whether this new corporation, which Runag was sur-
prised to find in existence apparently, would want to do business with
it as the other corporation had done business with it.
Mr. Tavenner. But all having its origin here in the United States.
Mr. Chairman, this is a convenient break in the testimony, I believe,
if we are going to have an executive session before lunch.
Mr. Doyle. The committee will resolve itself into executive session
and will hear Miss Bentley's testimony in executive session. That
means that all visitors are excused from the room. And Mr. Budenz
will take up his testimony at 2 : 30.
Will that be satisfactory, Mr. Budenz?
Mr. Budenz. Yes. That will enable me to get away today, Mr.
Chairman ?
Mr. Doyue. Yes.
Mr. Budenz. Thank you very much.
(Thereupon, at 11:55 a. m., the public hearing was recessed until
2 : 30 ]>. m., and the committee resumed in executive session.)
AFTERNOON SESSION
(The hearing reconvened at 2: 35 p. m., upon the expiration of the
recess. Representatives Francis E. Walter (appearance noted in rec-
ord), Harold H. Yelde (appearance noted in record), Bernard W.
Kearney (appearance noted in record), and Donald L. Jackson being
present, Mr. Doyle, presiding.)
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2221
Mr. Tavenner. Mr. Budenz, will you occupy the witness chair,
please (
Mr. Doyle. This morning when we recessed, we recessed until this
hour. Let the record show that a subcommittee was set up to continue
this hearing consisting of Mr. Jackson, Mr. Kearney, and Mr. Doyle,
Messrs. Jackson and Doyle being present at this minute, and Mr.
Kearney will come in.
TESTIMONY OF LOUIS F. BUDENZ— Resumed
Mr. Tavenner. Mr. Budenz. in our morning session we had devel-
oped two main points, I take it, from your testimony; the first the
strategy that the Communist Party resorted to in its effort to conceal
the Communist affiliation of the Daily Worker with the Communist
Party, beginning at a specific date in 1945.
Mr. Budenz. That is right; that part of it is correct.
Mr. Tavenner. And also a second strategy, that of continuing the
transmission helt of information and directives from Moscow to the
Daily Worker and the Communist Party.
Those two main strategies we had developed in the course of your
testimony.
Mr. Budenz. Yes, sir. That was what was the objective, and that
was what at least temporarily was attained.
Mr. Tavenner. Now, we would like to know the extent to which
Grace Granich participated in both of those strategies. But before
asking you specifically regarding Grace Granich, I desire to introduce
in evidence a letter from Mr. Edward Kuntz, attorney, to the State
Department, under date of April 10, 1941, and ask that it be marked
Budenz Exhibit No. 7.
(Representative Bernard W. Kearney entered the hearing room
at this point.)
Mr. Doyle. That will be so marked and filed with the committee.
(The document above referred to was marked ,kBudenz Exhibit
No. 7" and filed herewith.)
Mr. Doyle. May the record at this point show that Mr. Kearney
has taken his seat on the committee.
Mr. Tavenner. I will read the paragraphs in this letter which are
pertinent to the Graniches:
In March of this year a contract was entered into between my client and Grace
Granich doing business as the Intercontinent News whereby all foreign news
and cable service was and is to be furnished by that company. The contract
became effective on April 1, 1941. Since April 1 my client has discontinued all
relationship with any other foreign news services, and the only news services
with which it now does business are the United Press and the Intercontinent
News, both American firms. All other direct or indirect relationships with any
foreign principal has been discontinued as of that date.
I am writing this communication to you to acquaint you with those facts,
since I believe that it is no longer necessary for my client to register under the
laws and regulations governing the registration of agents of foreign principals.
I believe you will see the legal correctness of this, but I wanted you to be fully
informed so that no misunderstanding might occur. Since the last registration
period has really expired, or is about to expire, I do not think it necessary to
make application to withdraw the present registration. However, if your de-
partment should prefer that method, it will be very pleased to comply with any
suggestions you may have on that score.
That shows that a contract was entered into between the Freedom
of the Press, Inc., of which you were then president ?
2222 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Budenz. Yes, sir; I signed the contract with Grace Granich.
Mr. Tavenner. And Grace Granich?
Mr. Budenz. Yes.
Mr. Tavenner. Will you tell the committee the circumstances which
led up to the contract with Grace Granich without repeating what
you have already said as to the reasons for the action taken ?
Mr. Budenz. Well, before this there had been formed this cor-
poration known as the Intercontinent News Corp. That was in the
spring of 1940.
Grace Granich was already active in it. However, this corporation,
which was supposed to do what she finally did here — that is to serve
as a buffer or cover, rather, for the transmission of the directives from
Moscow — did not get fully functioning for several reasons.
The first of these reasons was that it was found difficult by the
counsel for the Communist Party and the Daily Worker to devise a
means which would explain this tremendous expenditure and the
small amount of money that either the Daily Worker or the Freiheit —
which was mentioned here before — could pay for such service.
A second reason was that one of the directors of this Intercontinent
News Corp., Alexander Trachtenberg, had been before the House Com-
mittee on Un-American Activities around the latter part of 1939
and there was a fear that he would be recalled before this committee.
And there was fear that his interconnection with Moscow would
be so pronounced that it would injure International Publishers, which
is the outstanding Communist publication. Mr. Trachtenberg was
constantly in touch with Moscow on that score. All his books had
to be approved by the Marx-Lenin Institute in Moscow before they
were published here.
And to have him engaged in another interconnection with Moscow
was considered to be dangerous.
As a matter of fact, we were compelled, under instructions from
the Political Bureau not to mention Mr. Trachtenberg any more as
a member of the Central or National Committee.
Now, those were true of several reasons that this corporation did
not get fully into the swing as was expected. Therefore, it was de-
cided after several conferences, which lasted over several months,
that Grace Granich would take over as a private firm or concern or
individual in business, the idea of transmission or reception, rather,
of articles and directives from Moscow, and that this would appear
to be her own private business.
And that is what took place in the spring of 1941. She took over
the whole thing legally, and, therefore, it became her business, so far
as the legal question was concerned.
Mr. Tavenner. Where were her offices maintained when she first
began the work of organizing the Intercontinent News Corp. ?
Mr. Budenz. In the headquarters of the Communist Party at 35
East Twelfth Street, New York. But in the spring of 1951 she moved
over to 799 Broadway.
At the same time, the Daily Worker no longer received transmis-
sions from Runag, and we did not have so many machines in there as
formerly.
Mr. Tavenner. Did she move over there as a result of directions
received from the Communist Party?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2223
Mr. Btjdenz. Oh, yes. As a result of instructions received from
the Political Bureau and, likewise, these numerous discussions with
Earl Browder, Joseph Brodsky, Mr. Kuntz, and other leading Com-
munists.
Mr. Tavenner. What was the purpose in requiring her to move
her office out of the Communist headquarters?
Mr. Btjdenz. In order to make this appear to be her own private
business, independent from either the Communist Party or the Daily
Worker. That is. selling services to the Daily Worker rather than
being an arm of the Daily Worker and the Communist Party.
Mr. Tavenner. In other words, to perfect the cover which it was
intended to establish?
Mi'. Btjdenz. That is correct.
M r. Taven ner. Did you have occasion to confer with Grace Granich
about the type of service that was to be given by her trading as the
Intercontinent News?
Mr. Btjdenz. Yes. sir. I had many conference* with her — a num-
ber before this accomplishment in the spring of 1941, and then constant
conferences with her. onee a week, on the service itself.
Mr. Tavenner. Yes. Now. before going into the conferences which
occurred after the service had begun, I want at this time to introduce
in evidence a registration statement of October 1, 1942. made by Grace
Maul Granich, and ask that it be marked "Budenz Exhibit No. 8."
Mr. Doyle. It will be so marked and accepted by the committee.
( The document above referred to, marked '"Budenz Exhibit No. 8,"
is filed herewith.)
Mr. Tavenner. Mr. Budenz, it appears that by this date, October
1, 1942, the administration of the Foreign! Registration Act has been
turned over from the State Department to the Department of Justice.
Mr. Budenz. That is^ correct.
Mi'. Tavenner. Therefore, she was required, that is, Grace Maul
Granich was required at that time, the time of the transfer of these
matters to the Department of Justice, to reexecute her registration,
or to refile.
Xow. this registration form is slightly different from the one which
has been used by the State Department, but I want to refer to several
questions asked her and replies made by her.
On page 2, section c, this question is asked :
Name and principal business address of each foreign principal on whose behalf
or in whose interest registrant performs any activity requiring registration.
And the answer is:
Universal Press Service. SI Gorki Street, Moscow, TJ. S. S. R. ; cable address,
SUPPRESS. Moscow, and TJFFA and Runag. Moscow.
Xow, in the previous registration that had been made by the Daily
Publishing Co.. and Freedom of the Press, Inc.. in each instance it
had bees stated in answer to a similar question that there was no
representation of a foreign agency.
But Grace Granich represents that she is the agent of a foreign
principal.
Mr. Budenz. Yes, sir: she does, and that was because now she had
separated herself technically, or legally, from the Daily Worker,
and it was felt that at least that part of the realities had to be faced.
A.S a matter of fact. Earl Browder said that this might have to be
2224 COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY
only a delaying action until we could find other ways to obtain the
directives. Some of our own comrades down here in Washington
had stated, those who were in positions where they might be consulted,
that it was obviously a foreign agency since so much of the money was
paid by Moscow, and that if they were asked by any governmental
department what their opinion was in order to protect themselves for
other work, they would have to say that this wouldn't stand up.
That is what Browder told us.
Mr. Tavexxer. And that was back during the days that the Daily
Publishing Co. and Freedom of the Press, Inc., were endeavoring to
register ?
Mr. Budexz. That is correct.
Mr. Tavexxer. If pinned down, your own leaders would have to
admit that they were representing a foreign principal '.
Mr. Budenz. Well, at least leading Communists in Washington,
who were not known as Communists, but who might be asked.
If I might mention a representative's name, Lee Pressman. They
might be asked by a governmental department with whom they were
in contact what they thought of this thing, and they said it was so
obviously a foreign agency that in order to protect themselves in other
activities they would have to say that it was.
Mr. Tavexxer. When you mention Lee Pressman, did you intend
to state that he was one person who had made such a statement?
Mr. Budexz. No; I did not. But he was one of our Communists
in Washington. Xo names can be remembered by me at the moment.
Mr. Tavexxer. That is the point. You cannot recall the names of
any specific individuals in Washington who gave you that advice?
Mi'. Budexz. No; I cannot.
Mr. Tavexxer. The result was that Grace Granich was instructed
to register and admit in her registration that she was the agent of a
foreign principal?
Mr. Budexz. That is correct.
Mr. Tavexxer. Now, the foreign principal is stated a little bit
differently in this registration than in the former one. The foreign
principal is stated to be Universal Press Service.
What was the Universal Press Service?
Mr. Budexz. That was just a Runag made over again. So far as
our information went, the process continued just the same way, and
the articles were just the same, and we were advised it was the same,
except it had a different name.
The committee is appreciative by now that that is a Communist
method, changing the name of organizations, but letting them remain
substantially the same.
Mr. Tavexxer. The cable address was also the same?
Mr. Budexz. Yes.
Mr. Tavexxer. Now. was it also under the direction and control
and also owned by the People's Commissariat of Communications as
Runag was?
Mr. Budexz. That is correct. It was the creature and in possession
of the People's Commissariat of Communications.
Mr. Tavexxer. Was the People's Commissariat of Communica-
tions a branch of the government of the U. S. S. R. ?
Mr. Budexz. Yes. sir; it was an important branch of the Govern-
ment of the Soviet Union. It controlled all communications within
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2225
t lu> Soviet Union, and those that went from the Soviet Union out-
side, which were at all Communist in character.
Mr. Tavenner. There is another section in this registration form
which I would like to read to you on page 3, section g, of item 2 :
Question, the name, address, and a brief description of the functions of every
organization in the United States or elsewhere of which registrant is or has been
a member during the 2 years preceding filing of this registration statement,
stating as accurately as possible the dates of such memberships.
Answer. International Workers Ordei for past 7 or 8 years, fraternal
insurance.
And then another item:
Until January 1, 1941, Communist Party, U. S. A., political party.
Now, was that a truthful statement as to Grace Granich when she
said that until January 1, 1941, she was a member of the Communist
Party ?
Mr. Budenz. No, sir; unfortunately it was not. She perjured her-
self there. She was a member of the Communist Party up until I left
the Communist Party. She attended national committee meetings
where only Communist Party members were admitted, and the leading
ones at that.
She also conferred with me repeatedly in the Daily Worker in
person, as a member of the Communist Party.
Mr. Kearney. What date is that ?
Mr. Tavenner. The date of registration is October 14, 1942.
Mr. Kearney. The statute of limitations has run on that.
Air. Tavenner. Yes.
In conjunction with the activities of the Daily Worker, or, I should
say, of the Communist Party, with regard to the Daily Worker, keep-
ing concealed the fact of its Communist affiliation, did the Communist
Party of the United States near the same time take action to conceal
its connection with the Communist International?
Mr. Budenz. Yes, sir. It withdrew from the Communist Interna-
tional after the passage of the Voorhis amendment to the Foreign
Agents' Registration Act. That is approximately in the fall of 1940,
toward the winter of 1940.
At that time Browder stated to the national committee — I being
present — that this was purely for legal purposes, and, indeed, he stated
that in print, now, either in the Communist, or in the Daily Worker,
it is in print to the effect that this was a legal maneuver.
Mr. Tavenner. And as far as actual facts are concerned, it was a
mere subterfuge?
Mr. Budenz. That is correct; it was purely for the purpose of evad-
ing the Voorhis amendment to the Foreign Agents' Registration Act.
Mr. Tavenner. Now, did the Intercontinent NewTs as organized by
Grace Granich also furnish directives to the Communist Party as
distinguished from the Daily Worker through the services of the
Intercontinent News?
Mr. Budenz. Well, the chief purpose of these services was to give
directives to the ( Communist Party, which would express them through
the Daily Worker, first by printing the great number of them, that is,
publishing them, and, secondly, by having them affect the editorial
policy and the writings of the staff members of the Daily Worker.
They were used to extend the line.
2226 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
This is the way, in large part, the line of the party was learned
from Moscow. Just as today it is learned through the Cominform.
But this method was necessaiw to carry on the Communist con-
spiracy in accord with whatever Moscow would decide.
Therefore, in addition to some articles which were published, on
all copies of ever}T article which was received, a duplicate was sent
immediately to the ninth floor for their information, and in order that
they would have the latest directives at their disposal.
On the basis of that, the ninth floor, to my knowledge, in addition
to using the Daily Worker as its telegraph agency to the Communists
throughout the country, at the same time would also issue occasionally
directives to the district leaders through the country in regard to the
formation of a Communist front, for example, that was called for
by the Moscow directives or for another group called for by these
directives.
Mr. Tavexxee. The function then played by Intercontinent News,
operated by Grace Granich, was indispensable to the operation of the
party as it was then organized ?
Mr. Budexz. Yes, sir; it was an indispensable method of getting
directives. Of course, as I say, not only Browder, but Joseph Brodsky,
the late Joseph Brodsky, and even Grace Granich herself eventually
did say that we had looked upon this probably as a delaying action
until other methods of getting directives could be obtained.
But it was a very fruitful method because it came in every clay and
came in in thousands of words.
Mr. Tavexner. Now, how was this service paid for?
Mr. Budexz. This service was not paid for in the United States.
It was paid for in Moscow. The agency responsible for it was the
People's Commissariat of Communications. I have not seen the bills,
because Grace Granich handled the billing, but on several occasions
when we discussed the overwhelming amount of money that was paid
by Moscow and the small amount that was paid by the Daily Worker —
after this arrangement — it was said that the People's Commissariat of
Communications was responsible.
I am, therefore, inclined to say they paid the bills, although they
did eventually pay them, but whether they paid them directly or in-
directly, would have to be checked up by this committee.
They, however, paid the bills in the sense that they were responsible
for them, that their agency paid the bills whenever the Commissariat
did not directly do so.
Mr. Tavexxer. In other words, it would be accurate to state that
this important function was subsidized from a foreign principal ?
Mr. Budexz. It was subsidized by the Soviet Government.
Mr. Doyle. At this point, Mr. Counsel, may I ask what percentage
of it was paid by the Soviet Government as compared with the per-
centage paid by the Daily Worker?
Mr. Budexz. Originally, under the Eunag arrangement, 100 per-
cent was paid by Moscow. In the effort to establish this independent
agency in a legal sense, the Daily Worker originally paid, I think,
$600 a month, and then reduced it to $500.
The Freiheit paid several hundred ; I should say about $300 a month.
That is all that was paid.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2227
Now, the bill in itself ran into hundreds of thousands of dollars. I
cannot give it to you. Some years it was larger, and some years it was
smaller. But it was infinitestimal, the amount paid by the Daily
Worker and the Freiheit.
Mr. Tavenner. Was that a matter of concern to the leadership of
the Communist Party as to what answer might be given if the source
of income should be questioned \
Mr. Budenz. That is correct. That was the reason for all of these
discussions which went over a period of several years, and even con-
tinued after the Intercontinent News was in existence.
As a matter of fact, not only were these discussions, official discus-
sions from time to time, but very frequently Grace Granich told me of
her concern on the matter. And, therefore, the effort to get the ap-
pearance of being an independent agency by getting certain indi-
viduals to subscribe to Intercontinent News Service was made. She
admitted to me she couldn't get enough to make it look very reasonable.
Mr. Tavexxer. How often did you have occasion to confer with
Grace Granich while the Intercontinent News was being used by the
Daily Worker?
Mr. Budenz. Every week. Now, sometimes these conferences would
be on the telephone, but very frequently they were in person. That
is, Grace Granich coming over to the Daily Worker to see me on a cer-
tain day of the week.
Sometimes because of the pressure of work, or something of that
sort, she would call me up and we would have a conversation, or several
conversations about the coverage. So that I should say I conferred
with her, on an average of, well, there were even conferences in addi-
tion to these. I should say that I conferred with her specifically about
this coverage in person 3 times a month for several years.
Mr. Tavexxer. You have told us in a general way of the importance
of this service in making available to the Daily Worker and the Com-
munist Party directives emanating from the Communist Interna-
tional.
Mr. Budenz. Yes, sir.
Mr. Tavexner. Now, can you be more specific by recalling any par-
ticular instances in which directives were received during the period
of time that Grace Granich operated the Intercontinent News, and
the circumstances which recall them to your mind?
Mr. Budexz. There are a great number of cases. The difficulty is I
have not had an opportunity to check up on the files of the Daily
Worker to refresh my memory. But a couple do stand out without
having done that.
There is the case of the formation of the American Slav Congress.
This was ordered directly by Moscow in the method they use.
That is to say. by popularizing and publicizing the formation of
these Slav congresses in Moscow, and the proposal they be formed else-
where. That was definitely regarded by the ninth floor as a directive
by Moscow, and was such. When I say the ninth floor, I mean the
political bureau of the party.
I was present at a discussion on the matter in addition to a number
of what we might call unofficial discussions. And the American
Slav Congress was formed on orders from Moscow received through
the directive obtained from the Intercontinent News Service.
2228 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Another case is the prewarning which the Communist Party re-
ceived in May 1941 that there was to be a new line in regard to Hitler.
This was a month before Hitler's attack on Stalin.
Of course, we could not tell how drastic the change in the new line
was to be, but two communications through Intercontinent News ad-
vised us definitely that we should prepare for a change in line. These
were expressed in the form of the first criticisms of Hitlerite conquest
on any sharp scale coming out of Moscow.
That is to say, t hey represented the struggles in Yugoslavia and
Greece as more or less liberation struggles against Hitler. Previous
to that, Moscow's main effort had been to applaud Hitler as a peace-
maker whenever they mentioned him. First they did say it was im-
perialist, but they softened on him and now they sharpened.
One of these communications was considered of greatest importance.
So much so that flack Stachel, who was then under cover, completely
under cover, sent word to me through William Z. Foster, who was the
political bureau representative to the editorial board, that we had not
played this up sufficiently, although we gave it a good place. This
was a communication from Moscow for May Day, signed by F. King.
Immediately, there was an analysis of it, and Trachtenberg, who
had been partly under cover, even came around to the Daily Worker
to inform me that this was a very important communication; that it
actually came from George Dimitrov, the Secretary of the Communist
International.
How did he know that '. Because this phrase "F. Ring" was an ab-
breviation of an address in Berlin which had formerly been used by
the Communist Intel-national apparatus in Berlin — that is, that sec-
tion of it in Berlin.
Mr. Tavenner. We have endeavored to find the article to which you
referred.
Mr. Budenz. It was a substitute, if 1 may state. Mr. Tavenner, for
the formal May Day message which we received from the Secretary
of the Communist International. It was immediately interpreted
that was sent in this fashion to use under the name of F. Ring in order
not to prematurely arouse the anger of Hitler.
Mr. Tavenner. But it was the tip-off to the Communist Party of
the U. S. A. that there was about to be a drastic change in the party
line? * '
Mr. Budenz. That is correct. There was to be a change in the party
line that there were differences arising between Stalin and Hitler,
though, of course, we had no idea of what form it would take.
Mr. Tavenner. But the rank and file of the Conununist Party
learned nothing about that until virtually the day of the attack of
Hitler upon Poland; is that true?
( At this point Representative Francis E. Walter entered the hearing
room.)
Mr. Budenz. Except for the fact that this did indicate, among
those that were alert through the party leadership through the coun-
try, that there was a change. There was a change in emphasis in both
these articles.
But specifically, the importance of this one that I mention, F. Ring,
which appears in the Daily Worker of April -It. 1941, the May Day
Sunday edition, was that it came from the Communist International,
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2229
and was the substitute for the normal Communist International May
Day greetings.
Ami in this Hitler is severely critized for his attack on Yugoslavia
and Greece. There is a greater review which also showed a certain
animosity against Hitler which was not evident before.
The week before that, on April 22, there appeared the first warn-
ing on this matter, and that was an article which we continued to
play up, incidentally, with the same slogan we were using, "Peace,
Peace, Peace," which is, of course, the same Soviet slogan today in
this period, and saying, "Antiwar resentment rising in Balkan mid-
European nations,"' but when you read it you see it is an attack upon
Hitler. It quotes the German Communists as distributing secret
pamphlets against Hitler.
This came without a name attached to it at all to the Interconti-
nent News.
"When the communication came from F. Ring, and we recognized it
as the substitute for the normal May Day greetings through the Com-
munist Internationale, its importance was, of course, the matter of
great discussion, and it was understood there would be a change in
line.
As a matter of fact, I know about this very vividly because Jack
Stachel, from his hideout, sent instructions that I had not appreciated
that sufficiently enough politically and had not played- it up in large
enough measure. Although I thought I gave it quite a large play.
He felt it should go in a huge document right across the full page
of the paper, as Communists generally do when they have something
that comes officially from the Communist International.
Mr. Tavenner. There was no effort to pass that information on to
any Government agency in the United States, I suppose?
Mr. Budenz. Not to my knowledge.
Mr. Tavenner. Referring back to the American Slav Congress — or
the directive to establish American Slav Congresses in the United
States, did that turn out to be one of the principal front organizations
of the Communist Party?
Mr. Budenz. Yes, sir; it proved to be one of the principal and most
productive fronts of the Communist Party. It would enable the
Communists in these various Slav groups to extend their influence,
in the first place, and to divert all the attention that they could toward
loyalty to Moscow.
Mr. Tavenner. This committee made a very full report on the
American Slav Congress and associated organizations in 1940. I
suppose you are acquainted wTith that report?
Mr. Budenz. Yes, sir. It is a very thorough report,
Mr. Tavenner, In this report issued by the committee appears the
statement :
Although there is no visible record of any Communist-inspired national libera-
tion movement among Slavic nationals of German-occupied territory prior to
June 21. I!t41. a far-reaching network of organizations was established subse-
quently for such agitation. On August 10 and 11. 1941. an all-Slav conference
was held in Moscow.
And then also contained in this report is the following statement:
The All American-Slav Congress was formed in Detroit on April 2">-2<>. 1942.
in response to the appeal of the All-Slav Congress previously held in Moscow.
2230 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Budenz. That is correct. It is to that I am directing your at-
tention. That appeal came through these services from Moscow, and
also the knowledge of the organization, the fact that the plan was to
form the Slav Congresses in various countries.
Mr. Walter. The American Slav Congress was in existence before
that time, was it not, Mr. Budenz ?
Mr. Budenz. It may have been in existence in a primitive form,
or temporary form, but it came into the permanent form in 1942.
Mr. Walter. And from its inception it was a Communist front ?
Mr. Budenz. Oh, absolutely ; it was always a Communist front. In
fact, I know this fellow in connection with it very well indeed, Boles-
law Gebert. He was not only a Communist, but a Communist espio-
nage agent. He had been district organizer in the Communist Party
in Chicago for years and assigned to infiltration of the automobile and
steel industries in Detroit and now is head of the trade department
of the Soviet-controlled World Federation of Trade Unions.
You know that just recently they made a statement in regard to
upsetting the economies of the democratic nations, and Gebert has a
great deal of responsibility in that respect, because he is the head of
what they call their Trade Commission.
That is that commission which has to do with raising the question of
wages and hours, and things of that sort.
And then I- also know Mr. Leo Krzycki. I have known him for
years. He is the president of the American Slav Congress. While
he was not a Communist — that is, so far as I know definitely, and I
have known him for many years — he did state to me that he had
thrown his lot in with Moscow, and that that was where every man
would have to turn who really wanted to serve the truth. I have had
other discussions along the same line.
Mr. Walter. Where is he now, Krzycki ?
Mr. Budenz. I do not know. He formerly was vice president of the
Amalgamated Coal Workers.
Mr. Walter. Is he not connected with some labor movement in the
State of Pennsylvania at the present time ?
Mr. Budenz. That I would not be able to say. There are others
whom I know here, too, that are Communists in that picture there.
There are quite a few Communists showing their faces, and the whole
movement was engineered by the Communists. In fact, so much so,
that I think you will find that some non-Communists had to get out
finally.
At any rate, the fact is that the whole thing was organized, initi-
ated, and made permanent by the Communists.
Mr. Walter. Its original officers were fellow travelers, at least,
were they not ?
Mr. Budenz. Fellow travelers, but quite a few were Communists.
And the moving spirit behind it all was Gebert. Boleslaw Gebert.
Mr. Tavenner. Do you know how Gebert left this country ?
Mr. Budenz. He left it on the commutation ship the Batory, the
ship that Gerhart Eisler left on, and several other people.
Mr. Tavenner. Can you recall any instances in which the Com-
munist Party was taken to task by the Communist International
through the Intercontinent News for any action it had taken or failed
to take?
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2231
Mr. Budenz. Well, there were such occasions, biil I cannot recall
them, Mr. Tavenner.
One occasion where we may have been taken to task may have oc-
curred through the Runag News Agency. At least, it was connected
with communications of the Runag News Agency. And that was in
the case of the beginning of the Communist courtship of John L.
Lewis. At that time, a very sharply worded statement was issued
under the name of "K" which meant Communist International rep-
resentative, which criticized the Communist Party and the Daily
Worker for too easily establishing friendly relations with John L.
Lewris.
Mr. Tavenner. Mr. Budenz. our investigation revealed that in
February of 1943 the Daily Worker, of which you were then the
editor, requested Grace Granich to furnish it with the Stalin order.
Just what was the Stalin order?
(Representative Harold H. Velde entered the hearing room at this
point.)
Mr. Budenz. Well, that was actually a public document. It was
Stalin's order of the day which, from time to time, he issued to the
Red Army. But it was a rule imposed upon us from Mosrow that
we should not rely upon the capitalist press or press agencies for any
official statement of the Communist leadership, and particularly of
Stalin. Therefore, our request was to get the full and complete
English translation as authorized by Moscow of Stalin's order of the
day, which we received. This, by the way. was why they used the
procedure to get any report of a leading Communist in Moscow com-
plete, that is, the whole speech, or report, which we would print.
And we did not rely on the capitalist news agencies, as we called
them, for these reports. We had to get the authorized English trans-
lation from Moscow.
Mr. Tavenner. The authorized English translation was received
through the Intercontinent News?
Mr. Budenz. Yes, sir. Not only this one, but many other such
statements of Communist leaders, such as Molotov and others. Each
one of these, of course, again contained a directive, and that is to
say, the particular propaganda that would be gotten out, the particular
objective that the Communist Party would work for, just as today
the Communist Party has a Cominform organ coming in here every
week and giving the directives likewise which you will find echoed
in Political Affairs, the official organ, and then the same phrases,
almost, echoed in the Daily Worker.
Mr. Walter. How did this Cominform periodical come? How is it
delivered ?
Mr. Budenz. It comes in, as far as I know, just by regular processes,
and can be obtained at certain places. It is called, ironically enough,
"For a Lasting Peace for a People's Democracy." The other present
agency of instructions is the New Times coming direct from Moscow
in the form of a supplement to the magazine Trud. It comes in here
every week, likewise, the New Times. It is the successor to the War
and Working Class and that in turn is the successor to the Communist
International Magazine. They had to change these names, as the
cases may require.
2232 COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY
These two publications, if you read them regularly, you will find the
same thing emphasized, not merely in argument, but also in insisting
that certain things be done in Political Affairs, which is the successor
to The Communist here, and then in the Daily Worker.
Mr. Jackson. May I ask a question ?
Where does the U. S. S. R. Information Bulletin fit into the Com-
munist propaganda scheme of things ?
Mr. Budenz. Of the Soviet embassy ?
Mr. Jackson. Yes.
Mr. Budenz. It plays its part, too. As a matter of fact, there was
a sort of ad interim there or inter-regnum where we were in difficulties.
Finally, because of the pressure of the Department of Justice, the
Intercontinent News had to cease existence. That was actually to
protect the Daily Worker, because if the Intercontinent News was a
foreign agent it was certain that further examination, as I have said
our discussion showed, would disclose the Daily Worker as the bene-
ficiary and ally of a foreign agent, and therefore it would affect the
Daily Worker. That finally ceased existence, therefore.
There we were in difficulties for awhile having to rely on reading
what appeared in the capitalist press in regard to what Pravda said in
Izvestia, and the like.
We established a correspondent in Moscow and arranged for through
Moscow, paying him something, but not very much, the supposition
being that Moscow would take care of him, but that did not give us
this coverage of the world that formerly we had. Because both the
Runag and Intercontinent News gave us material from China, as I
have stated, and from Poland and from Germany and from all other
countries; this flowing into Moscow first and then flowing back to us.
Therefore, the Politburo ordered us to make more use of the In-
formation Bulletin of the Soviet Embassy insofar as we could, and
that was done for some time, not so much in adhering to it, but using
it as a guide to editorials and articles, and the like.
Mr. Jackson. The Information Bulletin is a propaganda organ of
the Communist Party and carries nothing but the Communist Party
line?
Mr. Budenz. Everything that comes out of Soviet Russia, or has
to do with Soviet Russia, is for a political purpose, even where they
form some innocent looking organization or promote some innocent
looking activity, it is all designed to promote the Communist Party
and the Communist causes.
Mr. Jackson. The reason I brought this up, Mr. Chairman, is be-
cause I have had a protest this week from the Los Angeles Board of
Education regarding the Information Bulletin, which propaganda
medium is being delivered through the United States mails to various
universities and schools in southern California. Your statement, Mr.
Budenz, should put an end to any academic discussion as to whether
the U. S. S. R. Information Bulletin is an objective publication or an
organ of Communist propaganda.
Thank you very much.
Mr. Tavenner. I might add, Mr. Chairman, in that connection
that the staff of the committee has been receiving the same kind of
complaints for more than a year.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2233
In each instance letters have been written to the superintendents
of schools of the States involved, giving them in substance the same
kind of information as to where they emanate from.
Mr. Walter. Does that not indicate to this committee that we
ought to pay some attention to the advisability of enacting some kind
of legislation to deal with this situation ?
Of course, a person can get on very thin ice when you have to
regulate the dissemination of information through the mails. Hut we
are not deceived any longer by what this information is.
It certainly is not news. I do not know how the freedom of speech
or freedom of the press could possibly be impaired if we attempted
to do something about the distribution of this kind of propaganda—
;md propaganda it is and nothing else.
Would you agree with that. Mr. Budenz?
Mr. Budenz. Yes; I do. They are all Communist articles and
publications containing directives. That is the way the Communist
gets his directives. That is the way you know what to do. And you
must be very exact about it at that time. And one of the greatest
proofs you could find for this that I have stated, is if any one examines,
for example, the organ of the Cominform as the best example and
leads it a couple of weeks, in a week or two you will see exactly the
^une argument, and particularly these are not arguments, these are
directives to do things, like the recognition of Red China. I give that
example, or something like that. It will appear first in very strong
articles or reports in the Cominform organ, and then it will be taken
up by Political Affairs, the theoretical organ of the Communist
Party, and it will appear then in the Daily Worker, which goes out.
When the Daily Worker goes out to every district leader, the first
thing he must do is open that Daily Worker and examine what it
contains for him that day. And that is done as a method of pro-
cedure. It is just like receiving a telegram of directions. He exam-
ines it. Of course, he is supposed to have some political maturity,
as Communists call it, and is able to discover what is the main point
from the editorials and the like. He immediately calls in his staff,
and from the Daily Worker's directions of that day he advised them
what they should do in the trade unions, in the cultural organizations,
in whatever group they are assigned to cover, and to infiltrate.
That goes on every day. That is in my experience. I was out in
Chicago for quite a time and saw that done every day in the Chicago
district. I know that it is done in all other districts.
Mr. Walter. You said something about the pressures from the De-
partment of Justice interfering with the Intercontinent News. What
were those pressures ?
Mr. Budenz. Well, the pressure to label the Intercontinent News
material propaganda, which was contained in the act, political pro-
paganda, and also the fact that the Department, by this demand for
registration and the like, was looking more and more into the Inter-
continent News. And, as I have stated to you, both Grace Granich
and Earl Browder repeatedly said, and we all recognized that if there
were ever a thorough investigation the lopsidedness of the financial
standing of the business would certainly show it was a foreign agency,
and therefore that would reflect on the Daily Worker. It w^ould be seen
to be purely a mechanical set-up which was arranged in order to
endeavor to evade the law.
2234 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Kearney. Following the thoughts of the gentleman from Penn-
sylvania, Mr. Walter, as I recollect your testimony this morning it
was to the effect that not only to the party but to the Daily Worker
everything contained therein was directed from Moscow.
Mr. Budenz. That is correct. That is to say — of course, when you
come to American measures, they take the directives received from
Moscow on the line, and then have to attempt to execute them in the
American scene. Not every Communist front is created by Moscow,
but the chief ones are, just as I mentioned the American Slav Congress.
But also recently we have seen this in the World Congress of the In-
tellectuals for Peace formed in Moscow. Everyone knew immediately
that was going to be followed by these intellectual conferences on
peace all over the world. And we had the Waldorf Astoria confer-
ence, and the Stockholm Peace Appeal. Things go on in that fashion.
When it comes to the problem of the directives given in regard to
this or that specific union, well, that becomes a matter for the American
Politburo in the execution of Moscow directives.
Mr. Kearney. Knowing what you do about the situation, and know-
ing just exactly how the Daily Worker runs as to its directives from
Moscow as to the party line, do you see any real reason or any reason
at all for continuance of that newspaper in this country?
Mr. Budenz. I think the Daily Worker should be suppressed ; not
because it is a newspaper expressing an opinion, but because it is, as I
said, a telegraph agency of directives to a conspiracy.
Mr. Kearney. In other words, it is an agent of a foreign govern-
ment?
Mr. Budenz. It is more than that ; it is an agent of a foreign govern-
ment giving orders to do things — not merely to think things, but to do
things. And that has been very convenient, because it has the cover-
age of freedom of the press.
I mean to say that is why it has been devised. If, for example,
Moscow would wire or cable over here, "The American Communist
Party must do so and so," although, if you examine some of the Com-
munist literature, it amounts almost to that — I mean it is that sharp —
but if that were the continuous process, and if in turn the Politburo
here were to wire through the country orders, well, it would soon be
known what sort of a business was afoot. But when it is concealed
under a newspaper, which has a very restricted circulation, and with
very few people who should be criticizing Communists, then it be-
comes, of course, a means of covering up the actual character of what
is being done.
The Daily Worker is not a newspaper in the normal sense of the
word. How can it be? Its circulation was never more than 30,000
a day, perhaps 40,000. It has been as low as 8,000, and yet it goes
on just the same as ever. The reason is, it is not a newspaper; it is
a telegraph agency of instructions.
Mr. Walter. How is its publication financed?
Mr. Budenz. Its publication is financed by drives, financial drives
made by the Communist Party, largely raised in the vicinity of New
York City, although the rest of the country makes some contribution
to it. That covers the deficits.
Mr. Walter. Are there any large contributors?
Mr. Budenz. There are large contributors, but they are concealed.
Now, in addition to that
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2235
Mr. Walter. Do you know who, Mr. Budenz ?
Mr. Budenz. I couldn't give you a list today, but I could with a
little recollection.
Mr. Walter. I think it would be very helpful if you would furnish
us, or furnish this committee with a list of the people who have made
significant contributions to the maintenance of that propaganda
sheet.
Mr. Brnrxz. Yes, sir ; I would be glad to do that,
I would have to have a little time in a responsible manner to check
my memory.
Mr. Walter. Yes.
Mr. Budenz. I know that sometimes when we were in difficulties,
urgent difficulties, we went to A. A. Heller to get $10,000 or $15,000 or
$20,000. Mr. Heller was in the business of dealing with Russia. That
is, he was an importer and exporter. We also
Mr. Walter. Where is he located?
Mr. Budenz. Well, he is located in New York City. We also went
in emergencies to the International Workers' Order. As a matter
of fact, the various trade unions controlled by the Communist Party
had made loans in cash.
The Daily Worker did one of the biggest cash businesses in the
world. While the amounts were not so great, I don't want to give that
conception, the fact that they were in cash was the consideration.
What happened was whenever it was necessary between these drives
to get some money, money was borrowed in cash from the trade unions
or the International Workers' Order, or other groups like that, and
then was returned in cash.
In order to provide for that, there was a special account called "Wil-
liam Browder Business Manager" while I was there. He had the right
under the motion of the board of directors of the Daily Worker to
cash these checks and pay them out in cash.
Now, however, I would like to add this one final thing on this ques-
tion of finances, just in my present memory : that is, from time to
time, however, in this New York drive, there is not any doubt that
money came from the conspiratorial fund of the party.
Mr. Walter. Where was that sum deposited ?
Mr. Budenz. That fund, I don't know where it was deposited, that
fund Avas under the control of Robert William Weiner, aided by
Lemuel Upham Harris, and then a third person who varied in per-
sonnel, that is, Charles Krumbein was that man, but he is dead now.
I don't know whether Werner and Harris are now in control. This
was while I was in the party.
Now, the reason that I know that is once in a while is these drives —
on one occasion in particular, I think it was around 1943 or 1914 — we
bad great difficulty in getting hold of about $50,000. Weiner had it
and he didn't know how to get it over to us and distributed it suffi-
ciently through the sections to make ii look although it were a section
collection. For some time we were in the embarrassing position of
needing money and not being able to get our hands on this money.
Finally, an arrangement was made whereby it came through.
But the difficulty there was we did not want any big lump sum like
that coming in. So it had to be distributed through the sections as
though it were collections made by the section-.
95830—52 8
2236 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Walter. Did you have reasons to believe that those large sums
were advanced by Russia to these individuals?
Mr. Budenz. I have no proof of it specifically, but I have reason
to believe so, because on several occasions, and notably once, when we
needed money for the Midwest Daily Record, which was a Communist
controlled paper that I was editor of in Chicago for a while, I came
in here with Morris Childs to see Werner about it. He said that it was
very difficult to give us very much money at that moment. And then
Childs said to him, "What about money from abroad ?" .
He said, "Well, we have been getting it, but our channels of com-
munication in regard to money have broken down recently and have
to be reestablished."
It was very clear they were discussing Moscow. That also occurred
on one or two other occasions that I remember specifically. And I even
remember the restaurant on University Place in New York where the
conversation took place.
Mr. Walter. I think these people whose names have been men-
tioned in connection with the providing of funds ought to be sub-
penaed to testify in connection with this particular phase of our
hearings.
Mr. Velde. 1 would like to ask Mr. Budenz about the Lem Harris
you mentioned.
Mr. Budenz. Yes.
Mr. Yelde. Would you identify him further for the committee? I
think we had him before this committee.
Mr. Tavenner. That is right.
Mr. Budexz. Lem Harris is someone whom I know rather well — in
fact, quite well. He is connected with a well-known family in New
York, which is no reflection on the family. And, as a matter of fact,
he told me that he gets a certain amount of allotment every month,
maybe out of an estate, from his family, and that is the means by
which he devotes his full energies to the Communist Party.
Mr. "Velde. You say he is a contributor or was a contributor to the
Daily Worker?
Mr. Budenz. No. I say he was the assistant to Weiner on the secret
fund that I now call the conspiratorial fund, because that is what it
was. That is a fund of money handed out in cash.
For example, suppose a comrade wished to go to Latin America on a
false passport. That cannot be entered on the records of the Com-
munist Party. He was given cash for the trip. This also applied,
incidentally, to extra help for Communists! That is, if a Communist
needed a vacation, a leading Communist needed a vacation, well, he
got cash from Weiner, or for those emergencies.
In addition to that, the fund was used for many other purposes.
But it must be understood that Weiner — though I understand he is
somewhat ill now — that Weiner at the time I was there was in com-
plete control of Jill finances of the Communist Party. The Daily
Worker finances, the International Publisher finances, every bit of
the finances of the Communist Party, including those of the Com-
munist Party itself were under the control of Weiner and this com-
mittee.
The chief acting member of that committee was Lem U. Harris.
And 1 have discussed with him many times the work he was doing,
although, of course, it was confidential work.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2237
Mr. Vkidk. Would it not be fair to assume, if he was on this com-
mittee, that he probably did contribute some of his own money, or
money that he got from his estate or relatives?
Mr. Budenz. That would be very possible. I might state this,
though, if I might, to show the extent of this financial control, cen-
tralized financial control: That also Harris was engaged in aiding
the financing of the Joint Anti-Fascist Eefugee Committee. That
whole financing was subject to Weiner's and Harris* scrutiny, and
Harris was engaged in assisting in bringing to this country a number
of leading Communists, including Gerhart Eisler. In other words,
the work of this financial committee was very extensive.
Mr. Velde. Your mention of Gerhart Eisler brings to my mind the
name of Louise Bransten. Do you happen to know her?
Mr. Budenz. Yes, sir.
Mr. Velde. Do you know whether she has contributed any money to
the New York "Conspiratorial Fund,'' as you called it?
Mr. Bcdenz. Yes, sir; she has.
Mr. Velde. I know that in 104:) or 1944 she was quite a heavy con-
tributor to the People's World out on the west coast.
Mr. Budenz. She has contributed to Weiner's fund I know.
Mr. Tavenner. I might say, Mr. Chairman, that Mr. Harris re-
fused to answer questions relating to his own contributions to various
front organizations, and to the Communist Party on the ground that
to do so might tend to incriminate him when he appeared before
this committee.
With reference to this question of contributions. Mi-. Budenz, testi-
mony only recently introduced in our investigation of communism
in Hollywood showed the contribution of tremendous sums of money
to the Communist Party.
Do you have any knowledge of participation by the Daily Worker
in the contributions made from that source?
Mr. Budenz. Yes, in this way : Originally these funds were handled
very haphazardly. I mean to say, a great deal of them went to the
California district. But, finally, — I cannot place the year right now,
but it was in the latter thirties or early forties — V. J. Jerome made
a trip out to Hollywood for the Cultural Commission and the Polit-
ical Bureau of the Communist Party, and there he placed in a more
orderly fashion this whole business of financing.
It was then organized so that the finances went into New York
first and then were distributed to the party through the country.
These finances in Hollywood reached a very high figure. You under-
stand that every Communist is supposed to give 10 percent of his in-
come to the party. That varied, from time to time, but that was the
general idea.
Mr. Kearney. Pardon me for interrupting, but does that go down
even to the working man, or the laborer member of the party?
Mr. Budenz. Well, I was about to state there were variations from
time to time. For example, housewives of the working class had to
pay 10 cents a month.
Mr. Kearney. The reason 1 asked that was
Mr. Budenz. There were other variations from time to time, a
dollar a month, those were changed from time to time. But the big
source of funds for the party did not come from these people.
2238 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Kearney. The reason I asked you that question is we have had
testimony here, I believe, of somebody who said that they paid 25
cents a month.
Mr. Budenz. That is possible, it could have been. But when it gets
to people earning, let us say, $50 and $60 a week and up or certainly,
we will say, $100 a Aveek, the expectation was 10 percent of their
income.
I have sat in committees, on the State Committee of New York,
where these assessments were levied, and the approximate income of
the individual was examined.
Mr. Doyle. You mentioned that the Hollywood sum was very
substantial. Do you now recall whether you ever saw any figure
that represented the total contributions during a given period from
Hollywood ?
Mr. Budenz. No, sir. There are no genuine financial figures ever
given by the Communist Party. The only way you get to know that,
even as a leading official of the party, is by discussions in the Politburo.
Never was the national committee ever given a true financial picture
of the Communist Party. I haven't time to go into that in detail
now without more information at my disposal than I could bring
out of my memory, but the fact of the matter is that the reports of the
national committee were not true pictures of the financial condition
of the Communist Party.
First of all, this whole fund that Weiner controlled was not at all
visible. And then many other sources of income were not visible.
That was the reason why the Politburo had this highly centralized
financial control in the hands of Weiner and his committee. Which
I say was composed of Lem Harris and Charles Krumbein while I
was in the Communist Party, the latter part of the time that I was
in the Communist Party.
Mr. Doyle. Would you say that generally speaking the financial
condition of the party was good ? I mean, was it a strong financial
position or were they poor part of the time?
Mr. Budenz. I should say both. They were rich compared to the
number of members they had, and also able to draw on resources
more than would be expected. They were poor in the sense that they
did, in many instances, maintain functionaries at, I should say, a
reasonable remuneration, to say the least. But this was partly false
also, because it was accompanied by additional gifts from the Weiner
fund and by other remunerative efforts. Therefore, the party always
has had enough money to get defense funds, to carry on its work,
and at the same time, it keeps the appearance of poverty, enough so
that it can constantly make appeals. This is true, as I learned from dis-
cussions with Weiner, that Moscow insists that its fifth columns stay
on a semi-self-supporting basis. They don't want any one taking
advantage of the fact that there is some money coming in here. They
don't want that to become a disease, in other words. Consequently,
they stimulate the Communist Parties everywhere to raise their own
funds as much as possible.
Mr. Doyle. I take it, then, that the Weiner fund was not banked,
that is, it was handled in cash. They did not issue checks against it
or have any bank record of it, as far as you know ?
Mr. Budenz. Not to my knowledge. Of course, there were special
funds. Weiner did have a large bank account at one time, and so did
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2239
William Browder, but I don't think that this comprised the Weiner
fund.
Mr. TaveNNer. Golos also had an account, did he not?
Mr. Budenz. Yes, Golos had a special account. He had a special
account, and of course that is where I spoke about the other sources,
which arc quite numerous, more or less.
Let us take people working for the Soviet Secret Police here, the
MVD. I have seen the MVD hand out $300, $500, to agents, not so
much for remuneration, as to get them properly clothed, or to get
them certain expenses for trips, which would have to be taken in con-
nection with the work.
But there are many sources of private — if I may use that word, pri-
vate, in connection with the Communist Party — private money trans-
fers that take place within the Communist Party.
Mr. Tavenner. Mr. Budenz, you have described very graphically
the part that is played by news services and by Communist organs, in
publicity in promoting and disseminating the Communist directives.
It was partly our interest in that subject which led to our investigation
in China of the Voice of China, the magazine headed by Max Granich
and Grace Granich.
The testimony has shown here that the possibility of successful finan-
cial operation of that publication was almost out of the question, that
the}' were disseminating that paper through many areas, the South
Sea islands, remote sections — not remote sections, but distant sections
of China — even as far as Hong Kong and Canton, and they were
sending that publication to areas in the United States where young
( 'hinese students would be able to read these papers.
You have told us that Grace Garnich, prior to leaving on her trip
abroad, told you that she was going on a mission for the Communist
Party. Can you tell the committee what the possibilities are in the
handling of a magazine such as the Voice of China was, in carrying
out this same general plan with regard to dissemination of Com-
munist information and directives?
Mr. Budenz. Well, the Voice of China was clearly a publication to
gather together in the English speaking colony of China, and among
the English speaking people of China, friends for the Communist
cause. It was to perform a function somewhat like the Amerasia
magazine established here later on. And then, as far as possible,
likewise, to give directives to the English speaking Communists in
China. In other words, it was a Communist publication for the
purpose of throwing around the English speaking Communists in
China as much strength and influence and thereby, of course, play
a part in the Chinese scene, insofar as was possible, and also, of
course, in the international scene insofar as that was possible.
Mr. Walter. It was just propaganda, that is all I
Mr. Budenz. Propaganda, and in a few cases, there were directives
in it. Its effort was, of course, to draw also certain non-Communists
toward the Communists in China, English non-Communists, or Eng-
lish speaking non-Communists.
Mr. Jackson. Was any liaison maintained, to the best of your
knowledge, between the Voice of China and any Communist publi-
cations in this country?
(Representative Bernard W. Kearney left the hearing room at this
point.)
2240 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Budenz. That, I don't know.
Mr. Velde. Mr. Budenz, what is the source of your information
in calling the Voice of China a Communist propaganda organ ?
Mr. Budenz. First of all, the fact that Grace Granich stated she
was leaving for abroad on a mission for the Communist Party ; and,
second, reference is made to Granich himself, upon his return to the
Politburo, of the services performed to the Communist cause in China
through the Voice of China.
Mr. Velde. Where did those conversations and references take
place ?
Mr. Budenz. They took place in the headquarters of the Communist
Party in New York, at the Politburo meetings around 1940 or 1941
in regard to the assignment of work of Max Granich, who was con-
sidered to be a very valuable man in certain operations.
In that connection, it was definitely stated that he had performed
a service for the Communist cause in China with the publication.
Mr. Velde. Do you remember by whom it was stated ?
Mr. Budenz. By Earl Browder, for one, and Earl Browder gen-
erally was the man who made the report on questions connected with
China. And by Jack Stachel, and several others.
Mr. Velde. I want to call another name to your attention, Isaac
Folkoff , Pop Folkoff. Do you happen to know him ?
Mr. Budenz. Who is this ?
Mr. Veede. Isaac Folkoff. They all call him Pop Folkoff. He had
a similar position to Mr. Weiner out on the west coast, handling the
funds for the party.
Mr. Budenz. Offhand, I do not recognize him ; no.
I might by some thought on the matter. Just for the moment, I
don't.
Mr. Tavenner. Do you recall that the Attorney General's office
finally required Grace Granich to label the material which she was
bringing into the country through her foreign principal as propa-
ganda ?
Mr. Budenz. That is what was the straw that broke the camel's
back. That is what she couldn't do. They did insist upon that,
Mr. Tavenner. After insisting upon that, do yon know whether
or not Grace Granich discontinued the service ?
Mr. Budenz. She discontinued it; yes, sir.
Mr. Tavenner. I desire to offer in evidence a letter, or a copy
of a letter, written by Grace Granich to the Attorney General, bear-
ing the date of June 23, 1944, and ask that that be marked "Budenz
Exhibit No. 9."
Mr. Doyle. That may be filed.
(The letter above referred to, marked "Budenz Exhibit No. 9," is
filed herewith.)
Mr. Tavenner. I will read it. However, before reading that letter.
I desire to introduce in evidence another letter from the Attorney
General's office to Miss Grace Granich bearing date of December 12,
1942, and ask that be marked "Exhibit No. 10."
Mr. Doyle. That will be so marked and filed.
Mr. Tavenner. I will read Budenz exhibit No. 10 first.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2241
This is a letter from Mr. Lawrence M. C. Smith, chief, Special War
Policies Unit. "War Division, to Miss Grace Granich, Inter Continent
News :
DBAB Miss GBANICH : This is to supplement my letter of November 28. 1042.
Inasmuch as you were subject to registration under the Act on the effective date
thereof, namely, June 28, 1942. I believe it would be appropriate if you would
submit, insofar as possible, copies of all the bulletins issued from June 28, 1942,
to October 1. so that our files in this matter will be complete. You will recall
that you sent as copies of each of the bulletins issued during the month of
October, and since that time you have been sending us the daily bulletins
regularly. I assume you will commence labeling the material as suggested in
my previous letter promptly and will arrange to effect prompt compliance with
the other requirements outlined.
Now. I will read exhibit No. 9, which is a letter by Grace Granich
to the Attorney General bearing date of June 24, 1944 :
Dear Sir : Please be advised that as of June 17, 1943 —
Mr. Chairman, I think this is a misprint, the 194:3, in composing
the letter, because the correspondence would rather indicate that 1914
was meant —
my status as agent of a foreign principal under which I registered with your
Department under the Foreign Agents Registration Act of 1938, and the rules
and regulations thereunder, has ended. And I wish to terminate this registra-
tion. This change in status is due to the fact that my former principal, the
Universal Press Service. SUPPRESS, Moscow, U. S. S. R., has terminated its
business as of the above-mentioned date. If there are any new forms which
the law requires must be filled out in connection with the termination of registra-
tion, or if there is any further information which I am able to supply you,
please advise me.
Yours very truly.
(The letter above referred to, marked "Budenz Exhibit No. Id."
i> tiled herewith.)
Mr. Tavexxkk. What action, if any, was taken by the Communist
Party with regard to the sending of that notice of termination? I
mean by that, was it the result, as stated in that letter, of the principal
ceasing to do business', or was it because of the difficulties that the
Intercontinent News had in complying with the registration provi-
sions as enforced by the Department of Justice?
Mr. Buoenz. It was the latter.
The Intercontinent News was the subject of many discussions in
the Politburo and, as I said before, also unofficial discussions. And
it was agreed that it would be impossible to continue it under the
conditions laid down by the Department of Justice.
This was not only in regard to the demand that it be labeled propa-
ganda, but in addition to that, that if beyond that the Department
of Justice would begin to examine its financial structure, it could
not stand up. Therefore, it was decided that it would be discontinued.
I had quite a conference with Grace Granich as this decision was
taken, in addition to the other conferences, and we explored whether
this action, which had already been decided upon, could have been
anything else, and we agreed that it could not have been.
It was then that she repeated Browder's phrase that this, after all.
had been a delaying action, to some degree, and that we would have
to look around rapidly for other sources of receiving the material.
Mr. Tavenner. And vou have already described those other sources
in your answer to questions by members of the committees
2242 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Budenz. That is correct.
Mr. Tavenner. Did you have any other contact with Max Granich
or Grace Granich which you have not told the committee?
Mr. Budenz. Well, I have had other contacts with them, but they
don't come readily to my mind. They weren't of such sharp importance
that I would recall them offhand.
These are the important relationships that I had.
I have met Max Granich, for example, more than I have stated
here, but I don't recall all the circumstances connected with it. He
was a brother of Mike Gold and was up at the Daily Worker every
once in a while, not only for the purpose of business, but also to see his
brother occasionally. Therefore, I have met him quite frequently,
more than would be indicated by this testimony.
However, nothing standing out as of particular striking importance.
Mr. Tavenner. I have no further questions, Mr. Chairman.
Mr. Doyle. Mr. Walter?
Mr. Walter. No questions.
Mr. Doyle. Mr. Jackson?
Mr. Jackson. I have several questions, Mr. Chairman.
If I may depart from this particular phase of the inquiry, I have
some corollary questions which deal with another aspect of the com-
mittee hearings, and not knowing when we will have the pleasure of
having Mr. Budenz here again, I would like to ask him at this time.
During the course of the hearings in the Senate Subcommittee on
Internal Security, hearings dealing with the Institute of Pacific Ke-
lations, I believe you were a witness ?
Mr. Budenz. Yes, sir.
Mr. Jackson. I would like to direct your attention to page 582 of
the published hearings, when the matter of Col. Evans F. Carlson's
book, The Big Yankee was under discussion. There was a quotation
given from that book, and you were asked as to whether or not, in your
opinion, this quotation represented Communist propaganda. Your
answer to that, as quoted in the record was :
Yes, I also would recognize the author of General Carlson's biography as a
Communist — Michael Blankfort. He is well known to myself as a Communist.
He had many consultations with me as such.
Insasmuch as Michael Blankfort's name has occurred before in con-
nection with the committee's hearings in the Hollywood matter, I
should like to ask several questions about this particular individual.
When did you first meet Mr. Michael Blankfort?
Mr. Budenz. In 1935 at the Daily Worker.
Mr. Jackson. Do you recall the occasion of the meeting, or what
brought it about, or in what connection you met him I
Mr. Budenz. Yes. He was then writing for the Daily Worker.
That is, I wouldn't say he was a regular member of the stan, although
in a way he was. He wrote reviews, and other articles, for the Daily
Worker.
Mr. Jackson. Over how long a period of time did your association
with Mr. Michael Blankfort continue ?
Mr. Budenz. Well, it continued, I cannot tell you the exact year at
the moment, but until he went out to Hollywood.
In the first place, when he came to me and had a 3-hour conference
with me in regard to how to penetrate the ranks of the Catholics on
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2243
the west coast, he told me he had received instructions from the Polit-
buro to endeavor to look into that -while he was on the west coast. He
was driving through, by the way, and came to see me before he left.
Mr. Jackson. You say ''efforts to pentrate the Catholics." Do you
mean on behalf of and for the Communist Party?
Mr. Budenz. That is correct.
Mr. Jackson. Did you know Mr. Michael Blankfort — and I say
"Michael Blankfort" because there is also a Henry Blankfort who testi-
fied or refused to testify before the committee during the course of the
Hollywood hearings — did you know Mr. Michael Blankfort to be a
member of the Communist Party?
Mr. Budenz. Yes, sir. He came to me as such.
Mr. Jackson. And the consultations that, you had with Mr. Blank-
fort took place in the offices of the Daily Worker ?
Mr. Budexz. Yes. sir.
Mr. Jackson. Did you ever see Mr. Michael Blankfort in a Com-
munist Party meeting or Communist Party function where those pres-
ent would have to be presumed to be Communists?
Mr. Budexz. Oh, yes. I have seen him, not in a branch meeting or
anything of that sort, but I have seen him in the Daily Worker.
Mr. Jackson. Was Mr. Michael Blankfort an open member of the
party, or was he a concealed member ?
Mr. Budexz. Well, I should say he was a concealed member, al-
though he did not conceal it very much while he was around the party.
Mr. Jackson. He did not conceal it to you?
Mr. Budexz. No; he did not.
Mr. Jacksox. What was Mr. Michael Blankfort's profession, do you
know ?
Mr. Budenz. Well, he was a writer. He wrote for the Daily
Worker at that time, and was going to Hollywood also to get in some
writing.
Mr. Jackson. When did you last see Mr. Blankfort ?
Mr. Budenz. That is the last time I saw him, when he went out to
Hollywood.
Mr. Jacksox. Do you know where he was going in Hollywood, or
what employment he was going to undertake in Hollywood?
M r. Budexz. He discussed it with me at that time, but I do not recall
for the moment.
Mr. Jackson. Was it connected with the moving-picture industry?
Mr. Budexz. Yes, sir; in my remembrance it was.
Mr. Jackson. Do you have any subsequent information as to
Michael Blankfort's activities?
Mr. Budexz. Not from him as such. That is, I haven't met him
personally as such since he went to the west coast.
But I have had unofficial, or rather, official, references to him as a
Communist in connection with the Hollywood scene on several occa-
sions.
Mr. Jackson. Were his activities the subsequent subject of discus-
sion among Communists on the Daily Worker, or was there any men-
tion made of the work he was doing?
Mr. Budenz. It was made in regard to Cultural Commission meet-
ings, and also once or twice in the Political Bureau.
Mr. Jacksox. Do you know where Mr. Blankfort is presently em-
ployed, Mr. Budenz?
2244 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Budenz. I do not, no.
Mr. Jackson. I have no further questions, Mr. Chairman.
Mr. Doyle. Mr. Budenz, I presume you are acquainted with the
Institute of Pacific Relations on the west coast, are you ?
Mr. Budenz. The Institute of Pacific Relations on the west coast?
Mr. Doyle. Yes.
Mr. Budenz. Do you mean its branch out there i
Mr. Doyle. Yes.
Mr. Budenz. I know of it, yes.
Mr. Doyle. And do you know of any of the writers for that organ-
ization who are not Communists?
I will put the question the other way.
Mr. Budenz. Well, I would have to check up on that, Mr. Chairman.
I know Mr. Benjamin Kizer, but not personally, and know that he was
several times mentioned as a Communist.
Mr. Doyle. Do you know of any others that are?
Mr. Budenz. Not offhand, although I would have to check on that,
because I am not certain at the moment, since I haven't the list before
me, and haven't been thinking about the question..
Mr. Doyle. Could you check on that and give our counsel the answer
to the question as best you may?
Mr. Budenz. Oh, yes. I will be glad to oblige.
Mr. Tavenner. Will you spell Benjamin Kizer?
Mi1. Budenz. K-i-z-e-r. He is a well known and I think a rather
distinguished lawyer in the State of Washington.
Mr. Doyle. I know you are probably familiar. Mr. Budenz, with
our Public Law 601 under which this committee operates, and our
assignment by Congress as to what we shall look into.
For instance, I refer you to the section of the statute under which
we operate which charges us with investigating subversive con luct,
the extent and character and objects of un-American propaganda in
the United States, whether it originates in the United States or from
outside, and then we are also charged with looking into any questions
that would enable us to recommend to the United States Congress
remedial legislation.
Now, it is in that particular Held that I hope you can help us by giv-
ing any recommendations or suggestions you have as to what you
have in mind, if anything, with reference to remedial legislation.
You have testified now at length here. You have been very helpful
as to the conditions that you have personal knowledge of.
You know what the present law is. Have you any suggestions to us
as a committee of the Congress in the field of legislation?
Mr. Budenz. It would be presumptuous on my part to try to draw
up a legislative program. But I do think consideration should be
given to whether the present Foreign Agents' Act is adequate to cover
the situation.
I am not passing judgment on it, but it does seem to me that the
method to outlaw the Communist Party and to get rid of its chief
dangerous activity is by branding it thoroughly and legally as a for-
eign agent, which it is.
This stands out in so many different phases of the Communist Party,
that it is quite obvious. That is one thing I would like to leave for
your consideration.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2245
Now, as to the details of that, I am not prepared to make any recom-
mendation today.
Mr. Doyle. Are yon prepared to make a recommendation as to any
portion of any important details that yon may have in mind?
Mr. Budenz. Xo; I have not. I didn't have that on my mind today.
And I do think, however, that the quicker that we can find some means
through the Foreign Agents' Act to deal with the Communist Party
so as to outlaw it and the Daily AVorker as foreign agents, that that
is a very important measure for the present moment.
It would also have another effect, it would clearly make it evident
that it is the Communists — or the objective of their efforts is a Com-
munist conspiracy, so that they cannot confuse the issue as they con-
stantly do, by saying that every move against the Communist Party
is going to injure all Americans. It has not, as a matter of fact, but
that is a good deal of their contention.
Mr. Doyle. Why do you call it a Communist conspiracy?
Do they not deal in the open and aboveboard, or do they really
conceal their activities?
The reason I ask you the question in that form is that a witness
before this committee just within the last few days said that he would
not call it a conspiracy because they dealt in the open. They were not
ashamed of what they are doing, nor were they trying to hide what
they were doing.
Your testimony today is just completely the reverse.
Mr. Budenz. Well, of course, that would take some time to go into
in detail. But the Communist conspiracy is a conspiracy. The Com-
munist Party is not in the open. It is in the open in the sense that it is
endeavoring to function legally in order that its subterranean activi-
ties may be strong.
I think J. Peters indicated this very well when he said to me, "Do
you know the Communist Party?"
I said, "Yes, I think I do."
He said, "No; you don't."
That is when I first joined the party.
He said. "You know that part of the party which appears above
the surface. The Communist Party is like a submerged submarine.
The periscope is the open party looking around, and the submerged
part is 95 percent of the party which is underground," and that is
true.
Let us take all of the Communist-front members mentioned in this,
committee's very fine report of April 1, 1051. Well, a great number of
I hem are Communists. The fact that they have been members of 50,
00, and 80 Communist fronts is an indication of their loyalties, with-
out charging them with being such specifically, and yet these people
will even get on the witness stand, or in any other place, and deny
their Communist allegiance.
The Communist Party i> exclusively an espionage and infiltration
agency to destroy the United States Government.
For example, we do know now, and this committee is conscious of it,
of the considerable amount of espionage carried on, and that is certainly
a great service to expose that. And the infiltration, in many ways, is
even more deadly, because it is a means of penetrating the sources of
opinion, and the like, which influence others, and all of this is done by
way of concealment.
2246 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Doyle. How would the Communist conspiracy undertake to
destroy the United States Government, as you just said? What do
you mean by that phrase? How would the Communist conspiracy
undertake to destroy the United States Government ?
Mr. Budenz. It is attempting to do it right now with these Com-
munist "peace crusades," as this committee has said, "to disarm and
defeat America." That is the immediate purpose of these various
peace crusades. And then, of course, by having people, wherever pos-
sible, infiltrate into government, and infiltrate into other agencies
and affect American actions and public opinion.
Beyond that, then, of course, we have the existence of the Soviet
Union today, which the Communists declare to be the citadel of peace,
but which certainly is engaged in aggression.
Its policy clearly is to carry this periphery warfare under Stalin's
dictum.
In our day, wars are not declared, they are made.
And in 1945 I stated, when I left the Communist Party, that there
was about to be across the world a creeping blitzkrieg, as I called it,
designed to conquer the continents of Asia and Europe and hurl them
into the United States. And that is Stalin's design. The Cominform
itself, in its organ, hailed Stalin as a leader and teacher of the working
people of the world, and constantly has kept alive that idea of a wTorld
octopus. In order to do that by infiltration on the one hand, espionage
accompanying it, and on the other hand the outward pressure of this
periphery warfare, the effort is to destroy the United States to bring
about the Soviet dictatorship to which all Communists are committed.
Mr. Doyle. Is the objective and determination of the Communist
Party directed from Moscow to arrive at the point, if needs be, of
using forced arms and ammunition in revolution?
Mr. Budenz. Yes. They have set that all down in the program of
the Communist International adopted at the Sixth World Congress
in 1948, and reaffirmed at the Seventh World Congress in 1949. And
then, of course, it is the basic conception of the Communists as set
down by Lenin in State and Revolution, that all non-Soviet states
shall be' smashed by violence — I mean their government — and Stalin
has repeated this in The Foundations of Leninism, that all non-Soviet
states shall be smashed by violence.
In order that there be some understanding on that, both of them
asked the question : Does this apply to the United States and Great
Britain ? And they replied in the affirmative, that it does apply to the
United States.
Mr. Doyi^e. Was that in print, their reply?
Mr. Budenz. That is in State and Revolution by V. I. Lenin, and
The Foundations of Leninism by Joseph V. Stalin. Both of these
have been published by the Communist Party in hundreds of thou-
sands of copies.
That is, particularly, they have been issued in popular form in the
Little Lenin Library edition which is still possible to obtain.
Mr. Doyle. Thank you. Do you have any other questions, Mr.
Walter?
Mr. Walter. No.
Mr. Doyle. Mr. Jackson?
Mr. Jackson. Just one more brief question.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2247
You said, Mr. Budenz, that 5 percent of the Communist Party is
aboveground like the periscope of a submarine, and that 95 percent
of the conspiracy is underground. Would it be factual to say that
the party is so well compartmented that 90 percent of those who are
underground still know nothing about what the 5 percent who are
actually doing the ground work and the active espionage work
Mr. Budenz. Oh, no. Excuse me. May I interrupt you?
Mr. Jackson. Yes, of course.
Mr. Budenz. These people that are underground are really activists
in many ways. I mean, you have two undergrounds. One is the
underground of the Communist agents, illegal aliens, Gerhart Eisler,
J. Peters, and others, and who are the real channels that communicate
with Moscow and the real rulers of the party.
And Alexander Bittelman, who is the chief theoretician of the
party, a Soviet subject, and who never has become a citizen.
Then you have the other underground, if I may call it such, those
men and women who pose as non-Communists but who are actually
Communists. A man like Harry Bridges, for example, we could
mention today very definitely, whom I knew as a member of the
national committee of the Communist Party. He posed for many
years as a non-Communist rather successfully.
Those two are very active groups. The open party is necessary in
order to keep these groups in touch with each other, and in order to
give the appearance of an open political legal party to the whole
operation.
Mr. Jackson. The point that I made was: Of this estimated 95
percent who are in the underground, how many knew, for instance,
that Alger Hiss was a courier?
Mr. Budenz. Oh, well, I should say very few knew it within the
open party or the underground.
Mr. Jackson. That was the point I intended to make. There is
still a select channel, is there not, that is even unknown to most of the
people in the underground? What is the membership figure today
of the Communist Party in the United States?
Mr. Budenz. We cannot go by those figures. Those figures are
those given out by the party at national conventions, and they also
tend to play down their numbers. But we will say 55,000 to 70,000.
But around them are gathered, I should say, several hundred thousand
Communists under discipline who are members of the party just the
same as I was.
Mr. Walter. And many of these people do not realize that they are
aiding and abetting in the forwarding of this conspiracy, do they?
Mr. Budenz. They couldn't realize the full vividness of it, although
they do have warning and notice, because the Communist instruction
down in the branches, is along the lines of Marxism and Leninism.
That is, along the lines of such works as I have talked to you about,
which give the Communist a grounding in what his purpose is.
Mr. Walter. No, Mr. Budenz, you did not understand me. I prob-
ably did not make myself clear. But you talked about this large num-
ber of people who were members of numerous Communist-front or-
ganizations.
Mr. Budenz. Yes.
2248 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Walter. Many of those people do not realize that the}- are aid-
ing and abetting in the furtherance of this conspiracy because they
believe that they are doing something in furtherance of the betterment
of their fellow man and are dupes. So that that would increase that
200,000 immeasurably.
Mr. Budenz. Yes. There are quite a few that are dupes. Also there
are quite a few consciously aware. After all, these are intelligent
people. That is, they have obtained positions in universities and
scientific positions, and are intelligent people. And they certainly
are aware today that there is some foundation for some of the dis-
closures that have been made.
Mr. Walter. But the point I am trying to make is just this; Mr.
Jackson and I have talked about this. While the number looks small,
50,000 to 70,000, nevertheless there are literally hundreds of thousands
of people who are so closely connected with the conspiracy that to all
intents and purposes they are aiding and abetting in the furtherance
of the conspiracy.
Mr. Budenz. Well, this can be said : 1 think that is roughly correct,
but this can be said: that the Communist measures his strength not in
his own numbers. They don't want large numbers, because they are
the vanguard of the masses. That is their phrase for themselves all
the time. They want disciplined members who will penetrate key
positions. So that one Communist — so often we were reminded of
this — must be able to move thousands of non-Communists into action.
An excellent example of this is the United Electrical Radio and Ma-
chine Workers Union, where you have a leadership which is over-
whelmingly Communist, and a rank and file which is overwhelmingly
non-Communist. Yet they have moved them into action in the reso-
lutions at their conventions in accord with the line of the party.
Now, that is the Communist technique of penetrating into leading
positions and then moving thousands, literally thousands of non-
Communists who have no idea of forwarding the Communist Party
line, but who are doing it in the name of other things.
This is just as Lenin brought forward the cry "Bread and Peace !"
and "Land to the Peasants !" and gave them something which took
their land away.
So these immediate cries of "Peace, everybody wants peace!" and
ihese pacts of peace, that naturally moves a great number of people
who have not analyzed it, and do not see that in the pacts of peace
they are smuggling in recognition of Red China and many other things
directly opposed to the interests of the United States. That is the
common method of procedure.
The Communist, where he is, forms a cell around him, and then
moves thousands of others by the argument of a line, not of com-
munism, but the argument of the line into that position which will
help the line go forward.
Mi-. Jackson. I should like to refer back to my last question. I
am afraid I did not make my point quite clear.
The testimony of Mary Stalcup Markward painted a very vivid
picture of the compartmentation of the party, a compartmentation
perfected to the extent that the average member of the Communist
Party, Ave will say, in District 4, the District of Columbia and Mary-
land] even though underground, still had no knowledge of this elite
corps which was operating the Washington-New York courier service.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2249
Mr. Budenz. Oli, they had no knowledge of what they are called.
Mr. Jackson. That is the point I wanted to make. Although 5)5
percent of the party may 1k> underground, there are activities of 1 or
'2 percent which will never be known in the normal course of events
to that membership of the Communist Party.
Mr. Budenz. Right. They wouldn't discuss this thing openly.
Mr. Jackson. That is the point.
Mr. Budenz. As a matter of fact, I sat in branch meetings where
someone 1 believed to be a courier was sitting and everybody else in
the branch were noncouriers though that courier was sitting there the
same as another branch member, although engaged in courier work.
Frequently, the directors or couriers were drawn out of the party
completely.
It is true that — 1 won't give percentages — but a considerable sec-
tion of the Communist Party membership is not aware of the details
of this work. However, this must be said: That they are all given
this Communist literature, and of course it is phrased in the Marxist-
Leninist language, and therefore presented what they call a scientific
basis, and what you might call the philosophy that the victory of so-
cialism is inevitable, and that the Soviet Union is presented in its
brightest colors, necessarily. That offsets a great deal of this, but
at the same time the normal Communist is instructed in two things:
One, into some knowledge of the Marxist-Leninist classics as to what
the objective of the party is, and. two, in the necessity of — while it is
not put in that form, that is what it amounts to — following orders
under the discipline of the party.
Mr. .Jackson. In other words, they know what is being done, they
approve of it. without necessarily being privy to it '.
Mr. Budenz. That is right. In fact, the whole secret of its suc-
cess lies in that fact.
Mr. Doyle. Do you have anything else. Mr. Counsel ?
Mr. Tavenner. No. sir.
Mr. Walter. May I ask one more question: Do you know Marcel
Scherer?
Mr. Budenz. I know him quite well. yes. He is, if I may go into
family affairs, a brother-in-law of Howard Boldt, who was one of
my fellow officers on the Daily Worker. I have known Marcel Scher-
er before that. That is when I first came into the party, I met Marcel
Scherer. T know his wife also.
Mr. Walter. Is Marcel Scherer a Communist '.
Mr. Budenz. Very decidedly.
Mr. Walter. How could a man like that find his way into a country
community in the United States where he would be negotiating a
contract for the United Electrical Workers Union \
Mr. Budenz. Well, that is because of this misapprehension of so
many people of how a Communist looks, acts, and does. That is,
they do not expect a person like Scherer who is alert and presentable
to be able to be a Communist. And he, of < ourse, will disguise any
Communist traces except when the time conies to present some phase
of the line, if he gets his voice heard.
Mr. Walter. In order to find himself in that position, it would indi-
cate that there would be somebody in that labor group who perhaps
was a Communist?
2250 COMMUNIST PRESS EST THE COMMUNIST CONSPIRACY
Mr. Budenz. Oh, undoubtedly, he was drawn in there because of
that.
People in the Communist cells always call for a leading Commu-
nist to come to their help, someone who is secretly a Communist in
that group.
Mr. Walter. Then to all intents and purposes, in the furtherance
of this Communist conspiracy, all of the people in that labor group
who were willing to permit that man to lead them would be unwitting
tools, would they not?
Mr. Budenz. That is right.
That is one of the successes of the Communists, and one of the rea-
sons they keep coming back and coming back after exposure.
Of course, accompanying that, you understand, is a tremendous
campaign on their part of vilification of their opponents, of distor-
tion of the issues, of charges of red-baiting, of such a kicking up of
the dust that many people who cannot think the thing through are
deceived, and when they see a man like Scherer who is quick on his
feet and an able man, he impresses them, and naturally he obtains
some success among them.
Mr. Walter. Mr. Budenz, I have heard it said that there are cer-
tain companies who prefer to have the UE as the bargaining agent,
because it is in such bad repute that it would not make the demand
that would be made by another organization that perhaps was in
better graces. Do you think there is anything to that ?
Mr. Budenz. I think there probably is something to that in some
quarters. We must understand that when the Communists want to,
they can give terms to the manufacturers that are company union
terms. And I could, if we had time here, cite some instances. Though
that is a very dangerous thing for the manufacturers because when
the time comes when they will have to follow the party line in an-
other direction, they will follow it with the same zeal and zest that
they can in this other method.
The situation in the electrical industry, gentlemen, in my opinion,
is one of the most dangerous in the country. And it is too late now to
revoke that, but it is a serious situation. Not because the United
Electrical Radio and Machine Workers Union is over the whole in-
dustry any more, but because it is, after all, the expose and expulsion
from the CIO and everything else, in a position where it still retains
such a hold in such key positions that it does. It has gained some
elections in the last year.
Mr. Walter. What would you advise us to do to make these well-
meaning, fine, patriotic American workers aware of what they are
doing when they permit the United Electrical Workers Union to be
selected as their bargaining agents?
Mr. Budenz. Well, you have the same situation not only among the
workers but you have it in part in the educational field, too. I mean,
I am not trying to belabor any of these different fields, but it exists.
The thing is that the only thing I can see is for this committee to
continue in its work of bringing forward the facts, having them widely
disseminated, and leaving it to the good sense of the American people
to understand what this is all about.
Mr. Walter. If we would criticize you educators because you were
so critical of our system, then perhaps we will be criticized, as we were
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2251
when we attempted to look into some of Hie publications that are being
used in schools. I have often been disturbed at the lectures that
certain college professors give, all of which point to the imperfections
in our system, and all of which have a very decided socialistic slant.
And I think that you educators ought to put your house in order.
Mr. Budenz. I am only one, of course.
Mr. Walter. Yes, of course.
Mr. Budenz. And I think you appreciate, Mr. Walter, that some of
the few times that I have appeared under subpena I have been rather
soundly belabored for such service that I have sought to give the Gov-
ernment. I have given that under subpena, too, by the way. So that
the limitations of one who has been a Communist, exists. And to hurl
the name "ex-Communist" at one has got to be sort of a fashionable
undertaking- on the part of certain people, which has been very bene-
ficial to the Communists, because it is only the ex-Communists who
are endeavoring to make some amends for what they did who get this
belaboring. And those who like Earl Browder sneak over in the
corner and don't serve the United States, they are treated with kid
glOves. Therefore, there are limitations to what a person can do.
Mr. Jackson. I should like to say for one, Mr. Budenz, that I think
that of the sum total of the knowledge that the American people of
today have of the menace of the Communist conspiracy, a great part
is due to you, and great credit is due you and your testimony before
the several committees of the Congress. It stands to your lasting
credit, and certainly merits the thanks of the people of this country.
Mr. Budenz. I appreciate that.
Mr. Walter. That is a great understatement, Mr. Jackson.
Mr. Brnrxz. I appreciate that. Because I assure you every time
1 go on the witness stand it is not with any exhilaration, even to a
hearing of this sort.
I feel meticulously under tension to state exactly things as I know
them. And, in addition to that, of course, it becomes rather tiresome
to go from place to place and constantly testify.
At any rate, I do believe that this committee has performed a very
valuable task in regard to this report of April 1, for example, 1951,
which has been widely used throughout the country. And that is a
source of information to the people that I think is beginning to regis-
ter. It is going to have some effect, that report on the peace crusade.
That is just thrown out for whatever value it has.
Mr. Doyle. If there is nothing further, the committee will stand in
recess until 10 : 30 tomorrow morning.
Thank you, Mr. Budenz.
( Whereupon, at 4 : 45 p. m., the committee was recessed, to be recon-
vened at 10 : 30 a. m., Wednesday, January 1G, 1952.)
95830—52-
THE ROLE OF THE COMMUNIST PKESS IN THE
COMMUNIST CONSPIEACY
WEDNESDAY, JANUARY 16, 1952
United States House of Representatives,
Subcommittee of the Committee on Un-American Activities.
Washington, D. C.
PUBLIC HEARING
A subcommittee of the Committee on Un-American Activities met
pursuant to adjournment at 10 : 45 a. m., in room 226, Old House Office
Building, Hon. Clvde Doyle, presiding.
Committee members present : Representatives Clyde Doyle, Harold
H. Velde, Bernard W. Kearney, and Donald L. Jackson.
Staff members present: Frank S. Tavenner, Jr., counsel; Thomas
W. Beale, Sr., assistant counsel; Courtney E. Owens, investigator;
Raphael I. Nixon, director of research; John W. Carrington, clerk;
and Rosella Purely, secretary to counsel.
Mr. Doyle. For the purpose of the record, I will announce that the
chairman of the committee has appointed for the purpose of this
hearing as a subcommittee, committee members Velde, Jackson, and
Doyle. Present also at this time is committee member Kearney. The
subcommittee named is all present.
AIr. Tavenner. Mr. Chairman, the first witness this morning is Mr.
Max Granich.
Will you come forward, please, Mr. Granich?
Mr. Doyle. Mr. Granich, will you please raise your right hand and
be sworn ?
Do you solemnly swear that the testimony you will give this morning
in this matter will be the truth, the whole truth, and nothing but the
truth, so help you God ?
Mr. Granich. I do.
Mr. Tavenner. Will you state your full name, please, sir?
TESTIMONY OF MAX GRANICH, ACCOMPANIED BY HIS COUNSEL,
DAVID REIN
Mr. Granich. Max Granich.
Mr. Tavenner. Are you represented by counsel ?
Mr. Granich. Yes.
Mr. Tavenner. Will counsel please identify himself for the record?
Mr. Rein. David Rein, R-e-i-n, 711 Fourteenth Street NW.
Mr. Tavenner. What is your present address, Mr. Granich?
Mr. Granich. Wilmington, Vt.
Mr. Tavenner. Will you give us your full name, please?
2253
2254 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Granich. Max Granich.
Mr. Tavenner. When and where were vou born?
Mr. Granich. New York City, March 19, 1806.
Mr. Tavenner. Will you please outline for the committee, briefly,
your educational background?
Mr. Granich. New York public schools; a graduate. Evening
high schools ; didn't graduate. And then self-education.
Mr. Tavenner. What is your profession or trade?
Mr. Granich. Well, I have had many jobs. I haven't limited my-
self to one thing.
Mr. Tavenner. Will you please speak a little louder ?
Mr. Granich. I have had many jobs, many trades.
Mr. Tavenner. Will you outline for the committee, briefly please,
how you have been employed?
Mr. Granich. Well, going back a long way, I was oflice boy, cow-
puncher, ranch hand, orange picker, railroad section hand, newspaper
reporter.
Mr. Tavenner. When did you become a newspaper reporter ?
Mr. Granich. Early 1916, 1917, 1918, 1919, some period in there.
I worked as a sales engineer. I worked as a carpenter. I worked
as a shipyard worker, a farmer.
Mr. Tavenner. How are you employed now ?
Mr. Granich. Self-employed.
Mr. Tavenner. In what business ?
Mr. Granich. Operating a children's camp, and a farm; a work
camp, a farm camp.
Mr. Tavenner. Where?
Mr. Granich. In Wilmington, Vt.
Mr. Doyle. Will you speak up just a little louder, Mr. Granich,
please ?
Mr. Granich. I will try.
Mr. Doyee. Thank you for trying.
Mr. Tavenner. How long have you been engaged in that work in
Wilmington j
Mr. Granich. The last 6 years or 7 years. In fact, I believe we
bought the farm in 1944.
Mr. Tavenner. In 1944. How were you employed between 1944 and
1946?
Mr. Granich. Well, in between there, I worked in the shipyards.
That was at the time I went to the camp. I worked in the shipyards
from 1941 to the end of the war.
Mr. Tavenner. What shipyards?
Mr. Granich. Two or three of them around New York City.
Mr. Tavenner. Will you give us the nrtmes of them?
Mr. Granich. Certainly. Todd's Shipyards, Hoboken, N. J. ; At-
lantic Basin in Brooklyn.
Mr. Tavenner. Will you speak a little louder, please ? It is a little
difficult to hear you.
Prior to 1941, how were you employed ?
Mr. Granich. I was editing a magazine in New York City.
Mr. Tavenner., What was the name of the magazine?
Mr. Granich. China Today.
Mr. Tavenner. Whom did you succeed as editor ?
Mr. Granich. I just don't remember his name. I just don't.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2255
Mr. Tavenner. Who were some of the editors of that magazine
prior to the time that you became its editor?
Mr. Granich. Gentlemen. I am going to refuse to answer that ques-
tion, and claim my constitutional privilege; self-incrimination.
Mr. Tavenner. Was Philip Jaffe the first editor of that magazine?
Mr. Granich. On the same grounds, gentlemen, of self-incrimina-
tion, I refuse.
Mr. Tavenner. Were von acquainted with Philip Jaffe?
Mr. Granich. On the same grounds, gentlemen
Mr. Tavenner. Were you an employee of Philip Jaffe at one period
of time?
Mr. Granich. On the same grounds; I claim the fifth amendment.
Mr. Tavenner. Prior to the time that you — let me ask you this first.
When did you first become employed as editor of that magazine?
Mr. Granich. When I came back from China.
Mr. Tayexxer. What date was that, approximately?
Mr. Graxich. '38.
Mr. Tavenner. 1938. "Well, prior to your going to China, how were
you employed?
Mr. Granich. I am trying to get dates exactly. It is difficult think-
ing back. But I worked as a sales engineer there for a period of time.
1 had three or four jobs as sales engineer. I was unemployed some
periods of that time. I can't sa}7 exactly what I did prior to that
time, by date.
Mr. Tavenner. Mr. Granich. you were identified in testimony be-
fore this committee yesterday and last week as a member of the
Communist Party. Do you desire to comment on that?
Mr. Graxich. Not a bit.
Mr. Tayexxer. Were you a member of the Communist Party?
Mr. Graxich. I will claim my constitutional privilege on that.
Mr. Tayexxer. Are you now a member of the Communist Party?
Mr. Graxich. I still will refuse.
Mr. Tayexxer. Now, when you state you refuse to answer on the
ground of your constitutional privilege, what do you mean?
Mr. Graxich. That it might be incriminating, self -incriminating.
Mr. Tayexxer. That to answer that question might tend to subject
you to criminal prosecution?
Mr. Graxich. Eight.
Mr. Tavenner. Are you acquainted with Mr. Louis F. Budenz?
Mr. Graxtch. I still will claim the privilege, gentlemen.
Mr. Tavenner. Mr. Granich, I hand you a photostatic copy of a
passport application in the name of Max Granich, executed October
22, 1931.
I will first offer this passport in evidence and ask that it be marked
"Granich Exhibit No. 1."
Mr. Dotee. It will be accepted and so marked.
(The passport referred to, marked "Granich Exhibit No. 1," is
filed herewith.)
Mr. Tayexxer. Will you examine the passport and look at page
2 and state whether or not that is your signature? It is at the top of
page 2.
Mr. Graxich. Yes, sir, I will identify this.
Mr. Tayexxer. Is that also your photograph appearing at the
bottom of the same page ?
2256 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Granich. Yes.
Mr, Tavenner. On this passport application, in answer to the
question as to what countries you intended to visit, you stated :
"England, France, and Germany."
The reason given for visiting these countries, you will note, is
"business and pleasure."
What business did you conduct abroad while using that passport?
Mr. Granich. Will you restate your question ?
Mr. Tavenner. My question is: What business did you conduct
abroad while using that passport?
Mr. Granich. I got a job in the Soviet Union.
Mr. Tavenner. And what was the nature of the job ?
Mr. Granich. Construction engineer.
Mr. Tavenner. How long were you in Russia on that particular
occasion ?
Mr. Granich. About 2 years.
Mr. Tavenner. It is noticed that you stated that the purpose of
your trip was to travel in England, France, and Germany; but it
seems your real purpose was to go to Russia. Is that correct?
Mr. Granich. Yes and no.
Mr. Tavenner. Well, answer the question first from the stand-
point of "yes."
Mr. Granich. I had never seen England. I went to England. I
had never seen. France. I went to France. My ultimate route took
me to the Soviet Union.
Mr. Tavenner. And you knew when you left the United States
that you were going to Russia to obtain employment?
Mr. Granich. For a job.
Mr. Tavenner. Why didn't you state that on your application for
your passport?
Mr. Granich. Because at the time I thought it might prejudice
my getting a passport.
Mr. Tavenner. So, in other words, you determined that you would
not give the State Department the true facts with regard to your
proposed travel abroad?
Mr. Granich. They were true. I might not have gotten the job.
Mr. Tavenner. Yes, but you knew ahead of time that the real
purpose of your trip was to go to Russia, as you have just stated; and
yet you concealed that fact from the State Department, as I under-
stand, for the purpose of adding to your chances of getting a passport
to go abroad.
Mr. Granich. Yes.
Mr. Tavenner. Then how did you manage to get to Russia, when
using the passport to travel in England, France, and Germany?
Mr. Granich. I don't understand. How did I use it?
Mr. Tavenner. When your passport gave you the authority to
travel in the countries mentioned in your application, namely, Eng-
land, France, and German}^, how did you manage to work your way
to Russia ?
Mr. Granich. Just that way, by working my way.
Mr. Tavenner. All right. Tell us how you did it. (Mr. Granich
consults with his counsel.)
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2257
Mr. Granich. 1 would like to say this, that in putting down the
two or three countries that I migKt see, I might have added all of
them. I didn't. The passport had no limitations.
Mr. Tavenner. You have already stated your reason for that. Now,
I am asking you how you were able to get into Russia by the use of
this passport, just what you did in order to get there.
Mr. Granich. Gentlemen, I can't give you those details, because I
just fail to remember. I suppose I went to the normal port authori-
ties, or to the Soviet consulate in New York, or through the routines.
Mr. Tavenner. Then you obtained your visa in this country before
sailing?
Mr. Graxich. I suppose I did.
Mr. Tavenner. For your entry into Russia?
Mr. Granich. I suppose I did.
Mr. Tavenner. Well, you must know where you obtained your
visa.
Mr. Granich. Probably New York.
Mr. Tavenner. Who directed you as to the method to pursue in
getting to Russia by using a passport which mentioned only France,
Germany, and England, without mentioning Russia? Who advised
you to do that ?
Mr. Granich. You needed no advice on this. You could go to any
steamship company any place in the city and get their advice on how
to go.
Mr. Tavexxer. Well, who gave you advice?
Mr. Granich. I talked to a circle of friends, all kinds of people,
steamship companies, people who had been there and come back.
Mr. Tavexxer. And who advised you to use three countries only,
when your real purpose was to visit a fourth country?
Mr. Graxich. Probably nobody did.
Mr. Tavenner. Now, will you look again at your exhibit, Granich
Xo. 1. You will see there the names of identifying witnesses at the
bottom of page -2. What are those names, please? Or the one name;
I believe there is only one identifying witness.
Mr. Graxich. The name is Batterhan.
Mr. Tavexxer. Will you spell it, please?
Mr. Graxich. B-a-t-t-e-r-h-a-n.
Mr. Tavenner. What is the first name?
Mr. Graxich. William.
Mr. Tavenner. How lonjr had vou know that gentleman?
Mr. Granich. Oh, probably 5 or 6 years.
Mi-. Tavenner. In what business was he engaged?
Mr. Granioh. At that time he was engaged in sales of different
items, household items, and such things.
Mi*. Tavenner. By whom was he employed?
Mi'. Granich. Self-employed. It was his own business.
Mr. Tavexxer. Mr. Granich. you mentioned the fact a moment
ago that you were in China. I believe the evidence here shows that
you arrived in China on January the 10th. 1936. When were you first
approached with regard to making this trip to China?
Mr. Graxich. I refuse to answer that, gentlemen.
Mr. Tavexxer. You just refuse to answer the question ?
2258 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Granich. Claiming the privilege.
Mr. Tavenner. What privilege?
Mr. Granich. My fifth amendment constitutional rights, against
self-incrimination.
Mr. Doyle. May I ask this? Do you mean that giving the date
on which you were first approached about going to China would in-
criminate you ? Is that what I understand ?
Mr. Granich. I will still claim my privilege, gentlemen.
Mr. Tavenner. Were you approached as early as the latter part of
1934, or the very first part of 1935, with regard to a proposed trip
to China ?
Mr. Granich. I will still claim my privilege, gentlemen.
Mr. Velde. Is that the privilege under the United States Constitu-
tion, or the Soviet constitution, Mr. Granich ?
Mr. Granich. I think there is a United States Constitution that
has a fifth amendment.
Mr. Velde. Well, is that the one ?
Mr. Granich. Yes; that is the one we are talking about.
Mr. Tavenner. Mr. Granich, I hand you now a photostatic copy
of a passport application bearing date April 26, 1935.
I desire to offer it in evidence and ask that it be marked "Granich
Exhibit No. 2."
Will you examine the signature appearing on the second page and
state whether or not it is your signature ?
Mr. Doyle. The document will be so marked and accepted.
(The document referred to, marked "Granich Exhibit No. 2," is
filed herewith.)
Mr. Granich. Yes ; that is my signature.
Mr. Tavenner. Is that your photograph appearing there ?
Mr. Granich. Yes.
Mr. Tavenner. Now, it was under that passport that you went to
China, was it not?
Mr. Granich. Yes.
Mr. Tavenner. I direct your attention to the provision as to the
purpose for obtaining a passport. In your application you state that
you intended to go abroad for 1 year, for the purpose of a pleasure
trip around the world.
Do you see that?
Mr. Granich. Yes.
Mr. Tavenner. Did you make that statement on your application ?
Mr. Granich. Yes.
Mr. Tavenner. Was it true?
Mr. Granich. Yes.
Mr. Tavenner. Notwithstanding that, testimony has been intro-
duced here showing that you went to China, using this passport, and
that you remained there for a period of 2 years, and that you finally
returned to the United States by way of Marseille, France. Is that
correct ?
Mr. Granich. Yes.
Mr. Tavenner. The evidence also shows that you were constantly
engaged in business in Shanghai from a few weeks after your arrival
there until the very time of your departure. Is that correct ?
Mr. Granich. Gentlemen, that opens up an area of questioning that
I will have to claim the privilege on.
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2259
Mi*. Tavenner. You mean you refuse to answer on the ground that
to do so might tend to incriminate you?
Mr. Granich. Yes.
Mr. T.wKxxr.R. You are referring now to my question relating to
the business which you conducted in China?
Mr. Granich. That's right.
Mr. Tavenner. Well, aside from that, you did engage in a business
in China, did you not, virtually from the time of your arrival until
your departure in December of 1937?
Mr. Granich. I will have to claim the privilege, on the same
grounds as before.
Mr. Tavenner. Yon did remain in Shanghai from the time of your
arrival there in January 1936, until December of 1937, did you not?
Mr. Granich. I will still claim the privilege, gentlemen.
Mr. Kearney. How did you live in China ? If you had no means of
employment, how did you live in China ?
Mr. Granich. I will claim the privilege, gentlemen, on that question.
Mr. Tavenner. Now, you had determined, or it had been deter-
mined, what your purpose in going to China was prior to the issuance
of this passport ?
Mr. Granich. I will claim the privilege, gentlemen.
Mr. Tavenner. Then when you prepared your passport stating that
won were going on a pleasure trip around the world, that was false,
wasn't it?
Mr. Granich. No, sir.
Mr. Tavknner. Well, did you intend, when you obtained this pass-
port, to go to China for a period of years to conduct operation of a
magazine or a publication?
Mr. Granich. I will claim the privilege, gentlemen. That still
opens up that area of questioning.
Mr. Tavenner. Well, tell us more about this pleasure trip that you
desired to go on. You say it was true. Tell us about your plans for
your pleasure trip.
( Mr. Granich consults with his counsel.)
Mr. Granich. I would like that last question repeated.
Mr. Doyle. Read the question, Mr. Reporter.
(The reporter reads, as requested.)
Mr. Granich. It is still a pleasure trip, gentlemen.
Mr. Tavenner. In other words, you state that your stay of nearly 2
years in Shanghai was a pleasure trip. Is that what you would have
the committee believe?
I Mr. Granich consults with his counsel.)
Mr. Granich. No. I don't want the committee to fully believe that.
But I will still claim my privilege on that question.
Mi-. Tavenner. And yon didn't want the State Department to un-
derstand that either, when you made your application to travel to a
foreign country. You didn't want it to understand what business you
proposed to conduct in Shanghai. Isiv't that true?
(Mr. Granich consults with his counsel.)
Mr. Granich. I will claim my privilege, gentlemen.
Mr. Tavenner. Actually, the reference in your application to a
pleasure trip was another deceit which you practiced upon the State
Department in regard to the purposes of your traveling abroad, just
2260 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
as in the case of your first trip to Russia in 1931, was it not ? Was
it not?
Mr. Granich. I am going to claim the privilege, gentlemen.
Mr. Tavenner. You refuse to answer. Whom did you confer with
about your proposed trip to China ?
Mr. Granich. I claim the privilege on that one.
Mr. Tavenner. Who paid the expenses of your trip to China ?
Mr. Granich. I am going to claim the privilege on that, gentle-
men.
Mr. Tavenner. The investigation by the committee staff indicates
that you were assisted in making your arrangements for your travel
to China by World Tourists, Inc. Is that true ?
Mr. Granich. I claim the privilege, gentlemen.
Mr. Tavenner. Do you know who was the head of World Tourist?
Mr. Granich. I claim the privilege on that.
Mr. Tavenner. Is it not true that World Tourists obtained the
Chinese visas for you and your wife at the Chinese consulate in New
York to make this trip ?
Mr. Granich. I claim the privilege, gentlemen.
Mr. Tavenner. And did you pay the $6.50 cost for the visa, or
was it paid by World Tourists?
Mr. Granich. I claim the privilege on that.
Mr. Tavenner. Where did you pick up your tickets for your travel
to China?
Mr. Granich. I will still claim the privilege.
Mr. Tavenner. Do you know whether World Tourists arranged
such transportation at the instance of and in behalf of the Communist
Party ?
Mr. Granich. I claim the privilege on that one.
Mr. Tavenner. Did you pay any part of your expense, the expense
of your travel to China ?
Mr. Granich. I claim the privilege on that one.
Mr. Tavenner. The testimony introduced before the committee has
shown that you arrived in China on January 10, 1936. Is that corract,
according to your recollection?
Mr. Granich. I will have to claim the privilege, gentlemen.
Mr. Tavenner. Before you went to China, were you acquainted
with a person by the name of Ed Scott ?
Mr. Granich. I haven't the slightest knowledge of a man by the
name of Ed Scott.
Mr. Tavenner. Did you ever know a person who used the name
Ed Scott?
Mr. Granich. No, sir.
Mr. Tavenner. As a pseudonym ?
Mr. Granich. No, sir.
Mr. Tavenner. I have before me a report of the Shanghai military
police, the municipal police, section 2 of the special branch of that
organization, under date of April 7, 1936. I would like to read
you a paragraph or two of that report, which may refresh your
recollection regarding Ed Scott, or at least the incident referred to
here. /
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2261
I find this statement :
It is of interest to note that on February 19, 1935, a Communist base was
raided by tlie French police, and among the documents seized was a letter in
English over the name "Ed Scott,'' in which the writer stated that the American
Communist Party was sending a well-known writer, an American of Russian
origin, to assist the publication of a paper in Shanghai. Of particular interest
in this letter are certain items contained in the general outline of the policy
to be followed by the editor of the paper.
Now, does that refresh your recollection in any way as to the
identity of Ed Scott?
Mr. Granich. No, sir, it doesn't.
Mr. Tavenner. Were you the person referred to in the letter over
the signature of Ed Scott, as being the American who was being
sent to China for the purpose of publishing a paper in Shanghai?
Mr. Granich. I haven't the slightest knowledge of this letter or
person.
Mr. Tavenner. Now, there is a little more information contained in
the letter of Ed Scott with regard to the policy of the paper which was
to be established. In paragraph 7 of this letter appears the following
language, indicating at least part of the policy of this paper which
was to be published. It appears in the following language :
The exposure of everything possible of Nanking's secret negotiations and
agreements with Japanese and other foreign imperialisms, exposures of their
plans against the Chinese Soviets.
Did you engage in the publication of any paper which had as part
of its policy those matters which I have just referred to?
Mr. Granich. I will claim the privilege there, gentlemen.
Mr. Tavenner. There also appears in this letter over the signature
of Ed Scott, in paragraph 2, a notation to the effect that the Chinese
leaders of the publication were to be encouraged to write for the
paper; and upon examination of the second issue of the Voice of
China, allegedly published by you, on page 12, there appears the
following language :
The Voice of China solicits manuscripts dealing with all phases of Chinese
life. We also welcome correspondence and pictures for publication.
Now, that advertisement in the Voice of China seems to be in
entire keeping with the policy and the purposes outlined in the Ed
Scott letter. Does that refresh your recollection in any manner ?
Mr. Granich. I will claim the privilege, gentlemen, on that.
Mr. Tavenner. It is true, is it not, that you did that very thing,
solicit contributions from the Chinese, to be published in the Voice of
China?
Mr. Granich. I will claim the privilege, gentlemen.
Mr. Keabney. Were you the editor of the Voice of China \
Mr. ( rRANiCH. I will still claim that privilege.
Mr. Kearney. Did you work for the Voice of China ?
Mr. Granich. I will still claim the privilege there.
Mr. Kearney. And this was while you were on a pleasure trip
throughout the world?
Mr. Granich. I will still claim the privilege.
Mr. Tavenner. Mr. Granich, Mr. Clarence E. Gauss, former United
States Ambassador to China and the American consul general in
Shanghai while you were there in 1936 and 1937, when appearing be-
2262 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
fore this committee last week as a witness, identified his dispatch to
the State Department of April 25, 1936, and in it referred to a report
that he made regarding a complaint by the Chinese Government re-
garding the publication by you of the Voice of China. In the course
of this document, he read the following statement from his dispatch :
Mr. Granich when questioned at the consulate general denied emphatically any
Communist affiliation. He stated that his wife assists him in his enterprise and
that neither her nor she is a Communist.
Now, were you questioned at the consulate general regarding your
alleged Communist affiliation and that of your wife ?
Mr. Granich. I will claim the privilege, gentlemen.
Mr. Tavenner. At the time of the alleged questioning, were you
affiliated with the Communist Party?
Mr. Granich. I will claim the privilege, gentlemen.
Mr. Tavenner. The testimony introduced here shows that the pub-
lication of the Voice of China started out with a circulation of 2,000.
The highest circulation it had was 7,500. And at times it was between
four and five thousand. It was quite apparent that a publication
limited to that circulation could not have been financially self-
sustaining.
Will you tell the committee what your source of revenue was in
addition to the sale of the magazine ?
Mr. Granich. I will claim my privileges there, gentlemen.
Mr. Tavenner. You refuse to answer ?
Mr. Granich. I refuse to answer.
Mr. Tavenner. On the ground that to do so might tend to incrim-
inate you ?
Mr. Granich. Yes.
Mr. Tavenner. Mr. Granich, I now show you a photostatic copy of
an application for registration dated February 27, 1936, in Shanghai,
China. This form is described as for the use of United States citizens
who were residing in the Shanghai consulate district at that time.
You state on this registration that you desire the registration to in-
clude the following members of your family. And then there is, "My
wife, Grace Maul Granich." Do you see that?
I merely ask you the question as to whether or not your registration
does not show that you desired your registration to include the follow-
ing members of your family, and that there it is stated, "my wife,
Grace Maul Granich." Is that correct?
Mr. Granich. Yes. That is correct.
Mr. Tavenner. You also state on the registration form, do you not,
that you and Grace Maul Granich were married about June 1934?
That appears there, does it not?
Mr. Granich. Yes.
Mr. Tavenner. Was that correct?
Mr. Granich. Yes.
Mr. Tavenner. Eeferring again to your passport application
marked "Granich Exhibit No. 2," there appears in the first paragraph
the date of your marriage, in which it is stated that the date of your
marriage was April 26, 1935.
It is stated there :
I, Max Granich, a native citizen of the United States, do hereby apply to the
Department of State at Washington for a passport. I solemnly swear I was born
in New York City, New York, on March 19, 1896, that I was married on April
26, 1935—
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2263
which was just the day before the filing, or I believe the same day as
the filing of your application for your passport.
Mr. Granich. I didn't hear that question.
M p. T.wexner. I was pointing out to you the difference in the dates
that you have given of your marriage with Grace Maul Granich.
Now, can you explain the'reason for this rather large discrepancy?
Mr. Granich. Yes. I probably had the record there, and didn't
then.
Mr. Tavenner. What is that?
Mr. Granich. I probably had the record when I applied for pass-
port, and didn't have the record here.
Mr. Kearney. What record ?
Mr. Granich. Of my marriage.
Mr. Kearney. Did you not know what date you were married before
you had the record ?
Mr. Granich. I am sorry, gentlemen. My memory does play me
tricks.
Mr. Tavenner. Well, it was less than 1 year later when you made
your application for registration in China.
And during that period of time, do you mean to indicate that you
had forgotten the date of your marriage?
Mr. Granich. I forgot dates. Yes.
Mr. Tavenner. You were not married, then, on the date on which
you made your application for your passport? Is that what you were
telling us?
Mr. Granich. Sorry, gentlemen. I can't answer these questions
honestly.
Mr. Tavenner. Well, were you married on the day you filed your
application to travel abroad
Mr. Granich. The same answer, I cannot answer you.
Mr. Velde. Do you remember when }rou were married, now, at this
time?
Mr. Granich. Do I what?
Mr. Velde. Remember when you were married, at this time?
Mr. Granich. It is the same question.
Mr. Velde. Well, answer it again, if you will, please, if you think
it is the same question.
Do you recall the date of your wedding ?
Mr. Granich. No; I do not.
Mr. Jackson. You do not recall the date of your wedding anni-
versary ?
Mr. Granich. No ; I do not.
Mi-. Jackson. You must be in hot water most of the time.
Mr. Tavenner. Let me ask y< >u i his question : Were 3^011 married on
the date indicated in your applicat ion for your passport, which states
it was April 26, 1935, which was the very clay on which you signed
your applical ion for your passport? In other words, on your wedding
day, did you apply for a passport to travel on a pleasure trip abroad?
Mr. Granich. I just can't answer, gentlemen.
Mr. Tavenner. You don't know that '.
Mr. Granich. I don't know that.
Mr. Tavenner. Well, if you made your application for a passport
on the 25th of April or 2Gth of April, you must have contemplated for
some period of time before that, that you wTere going to take this trip.
2264 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Isn't that logical ? How long ahead of the actual filing of this pass-
port application was it that you decided you were going to make the
application ?
Mr. Granich. Gentlemen, I can't remember, to answer those ques-
tions.
Mr. Tavenner. Well, were you married when you first came to the
decision that you were going to apply for this passport ?
Mr. Granich. That is still the same question. I can't answer.
Mr. Tavenner. The point that I am asking you to tell this com-
mittee is whether or not you were married at the time arrangements
were made for you to go to Shanghai, or whether you and Mrs. Gran-
ich were married after those arrangements were made.
Mr. Granich. I just simply cannot answer that question.
Mr. Tavenner. Why.
Mr. Granich. Because I have no recollection whatever of that.
Mr. Tavenner. Of the incident of being married ?
Mr. Granich. Of my marriage ; yes.
The date — if you ask the time, I cannot give it to you.
Mr. Kearney. When were you born ? What date ?
Mr. Granich. March 19, 1896.
Mr. Kearney. That is a good many years before your wedding or
your marriage.
Mr. Granich. It happens to be a date that I remember.
Mr. Tavenner. Did you discuss this trip to China with Grace
Maul Granich prior to your marriage ?
Mr. Granich. I want to claim my privilege on that.
Mr. Tavenner. There has been testimony presented here, Mr.
Granich, that you were a brother of Mike Gold, who was connected
with the Daily Worker for quite a period of time. Is that correct?
Mr. Granich. Yes ; that is correct.
Mr. Tavenner. What was his given name ?
Mr. Granich. Granich.
Mr. Tavenner. Was it Michael Granich or Mike Granich or what?
Mr. Granich. Irwin Granich.
Mr. Tavenner. Irwin Granich.
Mr. Jackson. Is that Irvin or Irwin ?
Mr. Granich. Irwin.
Mr. Tavenner. Did you have any other brothers ?
Mr. Granich. Another brother ; yes ; George.
Mr. Tavenner. Was your brother, Irwin Granich, born in this
country ?
Mr. Granich. Yes.
Mr. Tavenner. And your brother, George, also ?
Mr. Granich. Yes.
Mr. Tavenner. Eeferring back to your trip to China, when did
you leave China for return to the United States ?
Mr. Granich. I claim the privilege again, gentlemen.
Mr. Tavenner. When you returned to the United States, did you
return by way of Marseille, France?
Mr. Granich. I claim the privilege again, gentlemen.
Mr. Tavenner. Upon your return to this country, did you become
acquainted with Jacob Golos ?
Mr. Granich. I claim the privilege there, gentlemen.
Mr. Tavenner. Were you acquainted with J. Peters ?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2265
Mr. Granich. I claim the privilege there.
Mr. Tavenner. Did you have a conference with Louis F. Budenz
with regard to obtaining credentials for yourself as a reporter or
representative of the Daily Worker?
Mr. Granich. I claim the privilege there, gentlemen.
Mr. Tavenner. Were you acquainted at any time with Frederick
Vanderbilt Field?
Mr. Granich. I claim the privilege there, gentlemen.
Mr. Tavenner. Are you acquainted with or were you at any time
acquainted with John Stewart Service?
(Mr. Granich confers with counsel.)
Mr. Granich. No, sir.
Mr. Tavenner. You were not acquainted with him. Have you ever
had occasion to correspond with him?
Mr. Granich. No, sir.
Mr. Tavenner. Have you at any time received any correspondence
from him originating with him, and intended for other persons ?
Mr. Granich. No, sir.
Mr. Tavenner. Are you acquainted with Philip Jaffe?
Mr. Granich. I claim the privilege there, gentlemen.
Mr. Tavenner. Did you at any time receive from Philip Jaffe any
correspondence, reports, or communications of any character originat-
ing with Mr. John Stewart Service and intended for another person?
Mr. Granich. No, sir.
Mr. Tavenner. Have you ever been acquainted with Vassili M.
Znbilin?
(Representative Donald L. Jackson left hearing room.)
Mr. Granich. No, sir.
Mr. Tavenner. Do you know who Vassili M. Zubilin was ?
Mr. Granich. I haven't the slightest idea.
Mr. TaVenner. In a report issued by this committee of December 30,
1951, entitled, "The Shameful Years," a section is devoted to Mr.
Vassili M. Zubilin. I will read you only a few lines of it in order to
acquaint you with him.
According to the report it is said :
His first official arrival in the United States was in January 1944, when he
assumed the position of third secretary of the Soviet Embassy, in Washington,
D. C. He later was elevated to the rank of second secretary. He remained in the
United States until August 27, 1944. * * *
While in the United States Zubilin was the head of administration of the NKVD
Foreign Information Service, and as such had complete charge of the movement
of Soviet espionage agency into and out of the United States.
Now, I think I should call to your attention at this time the testimony
of Mr. Larry Kerley on September 15, 1049, before a Subcommittee on
Immigration and Naturalization of the Committee of the Judiciary of
the United States Senate. In this testimony Mr. Larry Kerley made
this statement :
Vassili M. Zubilin was bead of the NKVD Foreign Information Service from
1942 to 1944 in charge of illegal movement of aliens in and out of this country.
Then he proceeds to give the names of persons working with the
Zubilin apparatus in this country. And after naming a number of
persons, Mr. Kerley, in his testimony, refers to you in this language :
Max (Jranirb, associated with Philip Jaffe, was a mail drop for Communists
operating in the Orient. He was told to get latest news from the Orient from
John Stewart Service, returning from the Orient in the spring of 1945.
2266 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Now, I would like to have your comment on that testimony.
Mr. Granich. Gentlemen, I don't know who Kerley is, and I don't
know who Vassili, whoever he is, is, and I cannot account for the imag-
inations of a Mr. Kerley.
Mr. Kearney. Did you ever collect any information for the Soviet
Union and turn it over to the Communist Party ?
Mr. Granich. No, sir.
(Representative Donald L. Jackson returned to the hearing room
at this point.)
Mr. Velde. Do you know what a mail drop is ?
Mr. Granich. I do not.
Mr. Velde. For your information, that is a case where a party re-
ceives mail to be delivered to somebody else personally. I think that
generally is the definition.
Have you ever received any mail which was to be delivered to some-
one else other than yourself or your wife ?
Mr. Granich. I have not.
Mr. Velde. Did you have a post office box in New York City ?
Mr. Granich. I did not.
Mr. Velde. Did you live at the same place in New York City all
during your stay in New York City ?
Mr. Granich. No, I varied residences there. I lived in Staten
Island for a period ; I lived two or three different places in New York
City.
Mr. Velde. I want you to recall, did either you or your wife, to yout
knowledge, ever receive an}7 mail destined for somebody else?
Mr. Granich. No, sir.
Mr. Velde. To be delivered by either you or your wife ?
Mr. Granich. No, sir.
Mr. Velde. Or an}7 message of any kind ?
Mr. Granich. No, sir.
Mr. Vflde. That is all I have.
Mr. Kearney. And you still refuse to state as to who paid your
expenses while in China ?
Mr. Granich. I will claim the privilege on that, yes, gentlemen.
(Representative Bernard W. Kearney left the hearing room at this
point.)
Mr. Tavenner. Mr. Chairman, I would like to make as an exhibit
the application for registration by Mr. Granich which was presented
to him in the course of his testimony, and I would like for it to be
marked "Granich Exhibit No. 3."
Mr. Doyle. It will be received and filed and so numbered.
(The application for registration referred to, marked "Granich
Exhibit No. 3," is filed herewith.)
Mr. Tavenner. Mr. Granich, I next call your attention to the pass-
port application executed on April 11, 1946, and accompanied by a
letter from you to the State Department.
I desire first to offer the photostatic copy of the passport applica-
tion in evidence, and ask that it be marked "Granich Exhibit No. 4."
Mr. Doyle. It will be received and filed and so numbered.
(The copy of passport application above referred to, marked
"Granich Exhibit No. 4," is filed herewith.)
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2267
Mr. Tavenner. Would you examine the exhibit, please, Mr. Granich,
and state whether or not your signature and photograph appear on
page '1'. v _ , . . .
Mr. Granich (after consulting document). Yes, this is my signa-
ture.
Mr. Tavenner. Will you hand it back now, please?
Mr. Chairman, I desire to read in evidence the attached letter dated
April 11, 1946, to Mrs. Ruth D. Shipley, chief, Passport Division,
State Department, Washington, D. C.
Dear .Mrs. Shipley:
My wife and I have been invited by Madame Sun Yat-sen to come to Shanghai
to assist her in her work in the field of public relations, administration, and
publicity. We have today applied for passports and are asking that you give
favorable consideration to these applications so that we can make arrangements
to leave as soon as possible.
Thanking you, I am
Yours very truly,
Max Granich.
Will you state, Mr. Granich. what work you were specifically to en-
gage in in China for Madame Sun Yat-sen?
Mr. Granich. I think I will claim the privilege there, gentlemen.
You are opening up an area of discussion that I would rather not
follow.
Mr. Tavenner. How long did you intend to remain in the employ-
ment of Madame Sun Yat-sen ?
Mr. Granich. The same, I will claim the privilege there, gentlemen.
Mr. Tavenner. Will you examine the application for passport
again, please, and state who was the identifying witness who signed
it?
(The witness conferred with his counsel while examining the
document.
Mr. Tavenner. Have you identified the signature of the person
appearing there?
Mr. Granich. Yes.
Mr. Tavenner. Who is it, please ?
Mr. Granich. Bella Dodd.
Mr. Tavenner. Bella Dodd ?
Mr. Granich. Yes.
Mi-. Tavenxer. How long have you known Bella Dodd ?
Mr. Granich. I am going to claim the privilege there, gentlemen.
Mi'. Tavenner. What were the circumstances under which Bella
Dodd became your identifying witness on this passport application?
Mr. Granich (after conferring with counsel). I am going to claim
the privilege there, gentlemen.
Mr. Tw enner. Did she have anything to do with the request from
Madame Sun Yat-sen, that you be sent to China?
Mr. Granich. I am going to claim the privilege.
Mr. Tavenner. You know who Bella Dodd is. do you not?
Mr. Granich. I am going to claim the privilege, gentlemen.
Mr. Tavexxer. You will not have anything to say about Bella
Dodd. will you?
Mr. Grantch. No, sir.
Mr. Tavenner. Bella Dodd is a person known to you to be a mem-
ber of the Communist Party, is she not?
058.°.n— 52 10
2268 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Granich. I claim the privilege, gentlemen.
Mr. Tavenner. She was at one time a candidate for attorney gen-
eral for the State of New York on the Communist Party ticket, was
she not ?
Mr. Granich. I claim the privilege, gentlemen.
Mr. Velde. Why is it that you can identify her signature and give
us that information and claim the privilege on your acquaintanceship
with her?
Mr. Granich. It opens up an area of discussion that, in my opinion,
is self-incriminating. I can identify a signature here, yes.
Mr. Veede. As being the signature of Bella Dodd ?
Mr. Granich. That, I — yes.
Mr. Velde. Does that not open up the same area that you are re-
ferring to? You say that the question regarding your acquaintance-
ship with Bella Dodd opens up an area which might incriminate you.
In other words, I cannot see the distinction between identifying her
signature and refusing to say that you know anything about her
whatsoever.
Mr. Granich (after conferring with counsel). I will have to claim
the privilege, gentlemen.
Mr. Doyle. Mr. Jackson?
Mr. Jackson. Do you know Mrs. Lillian Gerber ?
Mr. Granich. I will claim the privilege, gentlemen.
Mr. Jackson. Mrs. Lillian Gerber was the identifying officer on the
second application for the passport.
Mr. Tavenner. Are you acquainted with John Carter Vincent ?
Mr. Granich. No, sir, I am not.
Mr. Tavenner. Have you ever corresponded with him on any sub-
ject?
Mr. Granich. Xo, sir, I never have.
Mr. Tavenner. There was a statement contained in the files of the
Shanghai Municipal Police reporting a conversation with Mr. Pilcher,
who was vice consul at Shanghai, the substance of which was that the
State Department had brought pressure to bear on the local American
authorities in China reprimanding them for continual harassment of
you. That was the language of the report.
And it was stated by this member of the Shanghai Municipal Police
that it appeared that some influence had been brought upon the State
Department by some one placed in the high Communist circles to go
light with you in China.
Did you address any communication directly or indirectly, by letter
or by word of mouth, designed to influence the State Department in
connection with the difficulties you were having in China?
Mr. Granich. No, sir, I never did. I knew nobody in the State
Department to write to.
Mr. Tavenner. Did you solicit the aid of any person to perform
that function?
Mr. Granich. I did not.
Mr. Tavenner. Did any one solicit that aid for you, to your know-
ledge ?
Mi-. Granich. Xot to my knowledge.
Mr. Tavenner. Well, did you have any reason to believe that such
a course of action was being pursued in your behalf?
Mr. Granich. No, sir.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2269
Mr. Tavenner. Did you, while in China, complain to any one in
the United States, directly or indirectly, regarding the treatment that
you were receiving in China {
Mr. Granicii. 1 will claim the privilege there, gentlemen.
Mr. Tavenner. You are acquainted with Mr. Morris Appelman,
are you not?
Air. Granich. I will claim the privilege there.
Mr. Tavenner. Mr. Morris L. Appelman testified before this com-
mittee that he was called to Communist headquarters by Earl Browder
and was advised by him that the Graniches were having difficulty
with the publication in China, and that t hey had requested that he,
Morris Appelman, be sent out there to take over the publication.
Do you have any comment to make upon that testimony?
Mr. Granicii. No comments.
Mr. Tavenner. Well, was it based upon facts?
Mr. Granich ( after conferring wTith his counsel). I claim the privi-
lege, gentlemen, on that.
Mr. Vklde. Mr. Granich, was anything that you sent through the
mail in Shanghai ever confiscated, to your knowledge?
Mr. Granich. I will claim the privilege on that, gentlemen.
Mr. Tavenner. May I ask one more question, Mr. Chairman?
Mr. Doyle. Yes.
Mr. Tavenner. Referring again to my line of questioning relating
to an alleged acquaintanceship that 3011 had with John Stewart
Service, were you advised that John Stewart Service was returning
to the United States from China, and that he would bring with him
any information or news regarding the Orient (
Mr. Graxich. No, sir.
Mr. Tavenner. Did you participate in any manner, directly or in-
directly, in the receipt or transmission of any information having its
origin with John Stewart Service ?
Mr. Graxich. No, sir.
Mr. Tavenner. Or did you see any information
Mr. Granich. No, sir.
Mr. Tavenner. Having its origin with John Stewart Service?
Mr. Graxich. No, sir.
Mr. Tavenner. Or did you see any information having its origin
with any other employee of the United States Government, whether
located at the time in China or in the United States?
Mr. Granich. No, sir.
Mr. Tavenner. Mr. Chairman, thai i> all for the present.
Mr. DoTLE. The committee will stand in recess until 2 o'clock.
Mr. Granich, you are directed to return at 2 o'clock today to the
same room.
Mrs. Granich, 1 see you are here. I know you have been subpenaed,
and you are directed to return at 2 o'clock here today in this room.
(Whereupon, at 12: 10 p. m.. a recess was taken until 2 p. m., this
same da}'.)
AFTERNOON SESSTON
(The committee reconvened at 2:4a p. m.. Representatives Walter,
Velde, Kearney, and Jackson being present, Mr. Doyle presiding.)
Mr. Doyle. Are you ready to proceed. Counsel '.
Mr. Tavenner. Yes, sir. •
2270 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Granich, I was asking you about your passport application of
April 11, 1946. I believe your passport was issued, was it not?
TESTIMONY OF MAX GRANICH, ACCOMPANIED BY HIS COUNSEL,
DAVID REIN— Resumed
Mr. Granich. I claim privilege on that, gentlemen, under the Fifth
amendment.
Mr. Tavenner. It shows on its face that it was issued on November
18, 1946. Did you use the passport in foreign travel ?
Mr. Granich. I claim privilege, gentlemen, on that.
Mr. Tavenner. Although you wrote the State Department stating
that you desired a passport because you had been requested by Madame
Sun Yat-sen to come to China, you refused to state whether or not
you went to China on that passport ?
Mr. Granich. I still claim the privilege; yes, sir.
Mr. Tavenner. Where were you in November 1946 ?
Mr. Granich. Wilmington, Vt,, to the best of my knowledge.
Mr. Tavenner. In what business were you then engaged ?
Mr. Granich. I can't remember, gentlemen.
Mr. Tavenner. Have you continued to live there, at that address,
since that time, November 1946?
Mr. Granich. Yes, sir.
Mr. Tavenner. Then you have not used this passport in foreign
travel, if you have remained in Vermont since 1946. Isn't that true ?
Mr. Granich. I will claim my privilege there, gentlemen.
Mr. Tavenner. Have you engaged in foreign travel any place since
November 1946 ?
(Mr. Granich consults with his counsel.)
Mr. Granich. What was that question, again ?
Mr. Tavenner. Will you read it to him, Mr. Reporter ?
(The reporter reads, as requested.)
Mr. Granich. No, sir.
Mr. Tavenner. Then you have not used this passport in foreign
travel since its issuance on November IS, 1946?
Mr. Granich. No, sir.
Mr. Tavenner. Has anyone else used it ?
Mr. Granich. No, sir.
Mr. Tavenner. You received it in November 1946 ; did you not ?
Mr. Granich. I received it. I can't say as to the date.
Mr. Tavenner. What use was made of it ?
Mr. Granich. None.
Mr. Tavenner. What did you do with it ?
Mr. Granich. I have it.
Mr. Tavenner. What is that ? '
Mr. Granich. I probably have it some place.
Mr. Tavenner. Why didn't you go to China in conformity with
your letter, in which you stated that you desired the passport immedi-
ately, so that you could make arrangements to leave as soon as possible
for China?
Mr. Granich. I will claim my privilege there, gentlemen.
Mr. Tavenner. Did you apply at a later date for a renewal of this
passport?
Mr. Granich. No, sir.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2271
Mr. Tavenner. What is that?
Mr. < rRANlCH. Not to my knowledge; no, sir.
Mr. Tavenner. I offer in evidence a photostatic copy of passport
renewal application of December 12, 1949, which was effective until
November 1950. It was a renewal of the 1946 passport, No. 154867,
which has been introduced in evidence as Granich exhibit No. 4.
I wish you would examine this application, please ; which I desire to
have offered in evidence and marked "Granich Exhibit No. 5."
Mr. Doyle. It will be so accepted and so marked.
(The documents referred to, marked "Granich Exhibits 4 and 5,"
are filed herewith.)
Mr. Tavenner. Do you identify your signature to the application ?
Mr. Granich. I have no recollection of this, gentlemen.
Mr. Tavenner. Is that your signature ?
Mr. Granich. That is my signature.
Mr. Tavenner. The application states that you desired to visit your
family, that you desired to depart NewT York on December 20, 1949,
to visit your family in England and France. Do you see that ?
Will you point it out to him, please ?
Do you observe that statement in your application ?
I say : Do you see that statement in your application ?
Mr. Granich. Yes, sir. »
Mr. Tavenner. Will you read it, please ?
Mr. Granich. "Visiting family."
Mr. Tavenner. In England and France ?
Mr. Granich. "In England and France."
Mr. Tavenner. In that in your handwriting?
Mr. Granich. Yes, sir.
Mr. Tavenner. Whom did you propose to visit in your family in
England and France in December of 1949 ?
Mr. Granich. Mv brother lived in France.
Mr. Tavenner. Your brother ?
Mr. Granich. My brother.
Mr. Tavenner. What was your brother's name ?
Mr. Granich. Irwin Granich.
Mr. Tavenner. What is that?
Mr. Granich. Irwin Granich.
Mr. Tavenner. That is Mike Gold ?
Mv. Granich. That is Mike Gold.
Mr. Tavenner. What was his position in France at that time?
Mr. Granich. He was writing a book.
Mv. Tavenner. What was the title of the book? Do you know?
Mr. Granich. I do not.
Mr. Tavenner. Was it published ?
Mv. Granich. No, it has never been published.
Mr. Tavenner. How long was your brother. Mike Gold, in France
at that time?
Mr. Granich. Three years.
Mv. Tavenner. When did he leave France?
Mr. Granich. I do not know.
Mr. Tavenner. What is that?
Mr. Granich. I do not know.
Mr. Tavenner. What relatives did you have in England ?
Mr. Granich. None.
2272 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Tavenner. Well, what was your purpose in stating on your
application that you desired to visit relatives in England, if you had
no relatives in England ?
Mr. Granich. This states definitely, "Purpose of trip, visiting
family. Countries to be visited, England and France." It does not
say anything about family in England.
Mr. Tavenner. What was your purpose in visiting England, if you
did not go there to visit members of your family %
Mr. Granich. Just to visit England ; to see it.
Mr. Tavenner. To see England ?
Mr. Granich. Yes.
Mr. Tavenner. Did you go ?
Mr. Granich. The passport was never used.
Mr. Tavenner. Why ?
Mr. Granich. I will claim my privilege, gentlemen.
Mr. Tavenner. Did you actually intend to visit some country other
than England and France ?
Mr. Granich. I will claim my privilege, gentlemen.
Mr. Tavenner. Did you intend to do the same thing in this instance
that you did in 1931, to give the names of countries that you desired
to visit, when actually you intended to visit an entirely different
country ?
Mr. Granich. I will claim my privilege, gentlemen.
Mr. Tavenner. What became of the passport? The passport was
issued, was it not ?
(Mr. Granich consults with his counsel.)
Mr. Granich. That was a renewal. That was not an issuance of
a passport.
Mr. Tavenner. But you had to have the original 1946 passport in
order to have the proper endorsements of renewal placed upon it,
did you not ?
Mr. Granich. Yes, sir.
Mr. Tavenner. Now, what became of it? That is, your 1946 pass-
port as renewed in 1949.
Mr. Granich. To the best of my recollection, it is around the house
some place.
Mr. Tavenner. You do have it at the present time?
Mr. Granich. I fully believe so, yes.
Mr. Tavenner. Did the Communist Party have any connection
with the proposed trip for which you made your application in 1946 ?
Mr. Granich. I claim my privilege there, gentlemen.
Mr. Tavenner. Did the Communist Party have any connection
with your proposed trip in 1949, when you sought a renewal of your
passport?
Mr. Granich. I claim my privilege there.
Mr. Tavenner. Will you deliver your passport to your counsel, so
that he may submit it to us for our inspection after your return, so
that we may photostat it if we desire to do so?
Mr. Granich. Yes.
Mr. Rein. That is, if he has it.
Mr. Beale. He says he has it.
Mr. Rein. He says he thinks he has it.
Mr. Granich. I believe I have it.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2273
Mr. Tavenner. We asked yon earlier in your testimony regarding
your position with the publication China Today, of which you were
the editor. Now, why did von leave your position as editor of China
Today?
( Mr. Granich consults with his counsel.)
Mr. Tavenner. Will you answer the question, please?
Mr. Granich. I don't remember the question.
Mr. Tavenner. Bead the question, Mr. Reporter.
(The reporter reads, as requested.)
Mr. Granich. Because of Pearl Harbor, gentlemen.
Mr. Tavenner. Explain to the committee how that influenced your
decision.
Mr. Granich. There was no reason for the magazine.
Mr. Tavenner. Will you explain further your reason, the reason
you have in mind, why there would be no need for the further publica-
tion of that paper after Pearl Harbor?
(Mr. Granich consults with his counsel.)
Mr. Granich. Because I wanted to help the war effort, and I went
into the shipyards to work.
Mr. Tavenner. You wanted to help the war effort. Well, did you
change your opinion at that time regarding your desire to be helpful
to the United States?
Mr. Graxich. I didn't change any opinion at all.
Mr. Tavenner. Did the publication continue to exist as a publica-
tion after Pearl Harbor or not?
Mr. Granich. It did not.
Mr. Tavenner. Now, who were the financial supporters of that
magazine while you were editor ?
Mr. Granich. Mr. Chairman, I will claim my privilege.
Mr. Tavenner. Was Philip Jaffe
Mr. Graxich. I will claim my privilege there, gentlemen.
Mr. Taa-enner. Was Philip Jaffe one of them?
Mr. Graxich. I will claim my privilege.
Mr. Tavenner. Was the publication of that magazine sponsored by
an organization known as the American Friends of the Chinese People ?
Mr. Graxich. I will claim my privilege there, gentlemen.
Mr. Tavenner. You are familiar with an organization by that
name; are you not?
Mr. Graxich. I will claim my privilege.
Mr. Tavenner. Were you a member of it?
Mr. Graxich. I will claim my privilege.
Mr. Tavenner. Were you a member at any time of the American
League for Peace and Democracy ?
Mr. Graxich. I will claim my privilege there, gentlemen.
Mr. Tavenner. Were you a member of the International Workers'
Order?
Mr. Graxich. I will claim my privilege there, gentlemen.
Mr. Tavenxer. Were you an instructor at any time in the School
for Democracy?
Mr. Grantch. I will claim my privilege there.
Mr. Tavenner. I have no further questions, Mr. Chairman.
Mr. Doyle. Mr. Velde, any questions?
Mr. Velde. Yes.
2274 COMMUNIST. PRESS IN THE COMMUNIST CONSPIRACY
Mr. Granich, coming back to your living in New York during the
early 1940's, what was your address in New York City ?
Mr. Granich. I can't remember.
Mr. Velde. Well, you had the regular mail delivery service to your
home or apartment or wherever you lived ?
Mr. Granich. Yes.
Mr. Velde. Do you remember what section it was in New York City
where you lived, say, from 1941 to 1946 ?
(Mr. Granich consults with his counsel.)
Mr. Velde. To refresh your recollection, was the place where you
lived 339 East Sixteenth Street?
Mr. Granich. Yes ; we lived there.
Mr. Velde. Was that an apartment building?
Mr. Granich. An apartment house.
Mr. Velde. Did you receive the mail at that address through the
regular mail service?
Mr. Granich. Yes.
Mr. Velde. Did you at any time from 1911 to 1916 apply for a
special mail box?
Mr. Granich. No, sir.
Mr. Velde. Or for a general delivery mail box at the post office or
subpost office?
Mr. Granich. No, sir.
Mr. Velde. Did you at any time during your stay in New York
City or your residence in New York City apply for a special delivery
mail box?
Mr. Granich. No, sir.
Mr. Velde. Of any kind?
Mr. Granich. No, sir.
Mr. Velde. The evidence that was read to you this morning regard-
ing mail drops was given by Larry Kerley. I believe you said you
did not know who he was, and I do not suppose you would, because
he was an FBI agent at that particular time and had something to
do with your particular case, as I understand it.
If there is any question in your mind as to whether you are abso-
lutely certain that you did not forward any mail received by you to
anyone else, I would like to have you think it over and tell us at this
time, if there is any doubt in your mind that you received mail from
someone else to be delivered by you or your wife to someone else.
Mr. Granich. Definitely no.
Mr. Velde. Are you registered to vote in New York City ?
Mr. Granich. I had been.
Mr. Velde. Are you presently registered there?
Mr. Granich. I have not been there for 6 or 7 years.
Mr. Velde. Where are you now registered, now registered to vote?
Mr. Granich. In Wilmington, Vt.
Mr. Velde. You are registered to vote there. Have you ever reg-
istered to vote on the Communist ticket ?
Mr. Granich. I won't answer that question, because I claim priv-
ilege.
Mr. Velde. Do you have any military service ?
(Mr. Granich consults with his counsel.)
Mr. Velde. With the United States Government ?
COMMUNIST PHESS IN THE COMMUNIST CONSPIRACY 2275
Mr. Granich. No ; I haven't.
Mr. Velde. At the present time, if yon were acceptable in the Army,
would yon have any hesitancy in fighting on the side of the United
States Government in the case of its being engaged in a major conflict
with Soviet Russia.
Mr. Granich. That's a hypothetical question.
Mr. Velde. Well, I realize that.
Mr. Granich. Let's put the hypothesis the other way.
Why can't we assume that we might be able to live together, instead
of fighting together?
Mr. Velde. Live together, you say?
Mr. Granich. Live together, in a family.
Mr. Velde. I still insist that you answer my question, if you would
have any hesitancy in fighting on the side of the United States Gov-
ernment in the case of an all-out major war or conflict with the Soviet
Government.
Mr. Granich. I would defend the United States against any ag-
gressor.
Mr. Velde. Then why was there some hesitancy in your mind about
this being a hypothetical question.
Mr. Granich. There is none.
Mr. Velde. Mr. Granich, you have been entirely uncooperative in
answering all of the questions dealing with your connections with
communism or with Soviet Russia, based on your rights as to self-
incrimination, some of which, in my opinion, could not possibly, con-
ceivably, incriminate you.
It is my feeling that if you are willing to fight for the United States
Government, you owe a duty to this committee, to this Congress, to
reveal any connections you may have had with communism or with the
Soviet Government. And I will ask in an executive committee meet-
ing, if the proper time comes, that you be cited for contempt of this
Congress.
Mr. Jackson. Mr. Granich, what was the nature of your employ-
ment in the shipyards ?
Mr. Granich. Machinist.
Air. Jackson. If my recollection serves me correctly, you became
editor of China Today in 1938. Is that correct ?
Mr. Granich. Yes, sir.
Mr. Jacksox. With whom were the negotiations carried on for you
to become editor of China Today.
Mr. Granich. I will claim my privilege there.
Mr. Jackson. You refuse to say who offered you employment as
editor of China Today?
Mr. Granich. I claim privilege.
Mr. Jackson. Have you ever been a visitor in the offices of the
Daily Worker?
Mi-. Granich. I claim privilege, gentlemen.
Mr. Jackson. What was your employment during 1930, Mr.
Granich?
Mr. Granich. I can't remember.
Mr. Jacksox. But you were offered a position as construction engi-
neer in that year, construction engineer for the Soviet Union.
Mr. Granich. After I got there.
Mr. Jackson. After you got to the Soviet Union.
2276 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
What were your qualifications as a construction engineer?
How did your educational background qualify you for that?
Mr. Granich. A knowledge of mathematics and some experience
in this country.
Mr. Jackson. Who made the offer to you on behalf of the Soviet
Union to become a construction engineer?
(Mr. Granich consults with his counsel.)
Mr. Granich. The State Employment Office in Moscow.
Mr. Jackson. Where were the discussions carried on with respect
to your assuming this employment as a construction engineer?
Mr. Granich. In Moscow.
Mr. Jackson. In Moscow. Do I understand that on this trip to
England, France, to the Continent, and to the Soviet Union, you
worked your way ?
Mr. Granich. I claim privilege — no.
(Mr. Granich consults with his counsel.)
Mr. Granich (continuing]. Will you repeat that question, please?
Mr. Jackson. Yes. I believe you said that you worked your way,
and I believe the words are your own, so far as this visit was con-
cerned.
What did you mean by working your way ?
Mr. Granich. That was bad phrasing, working my way. I mean
in the sense that I would visit in one country for a while and then
go on.
Mr. Jackson. But not physically. You were not physically em-
ployed in work during the course of the trip. In other words, you
paid your fare, your transportation, to the Continent and thence to
Moscow ?
Mr. Granich. That was the intention.
Mr. Jackson. Were funds made available to you by any person or
by any group to facilitate your trip to the Continent ?
Mr. Granich. No, sir.
Mr. Jackson. Was this also true of your trip to China ?
Mr. Granich. I will claim the privilege there.
Mr. Jackson. I believe that this question has been asked.
Do you know Louis Budenz ?
Mr. Granich. I will claim privilege there.
Mr. Jackson. Did you know Mrs. Lillian Gerber ?
Mr. Granich. I will claim privilege there.
Mr. Jackson. Do you know Mrs. Grace Hutchins ?
Mr. Granich. I will have to claim privilege.
Mr. Jackson. Do you know Owen Lattimore ?
Mr. Granich. I will have to claim privilege.
Mr. Jackson. Did you know Alger Hiss ?
Mr. Granich. I will have to claim privilege.
Mr. Jackson. Following out the line of Mr. Velde's inquiry, as be-
tween the Constitution of the United States and that of the Soviet
Union, which would you support in case of world conflict ?
Mr. Granich. I will claim privilege on that, gentlemen.
Mr. Jackson. Do you believe that the United States is an aggressor
in Korea ?
Mr. Granich. I will claim my privilege on that.
Mr. Jackson. Do you approve of the United States occupation of
Western Germany ?
COMMUNIST PRESSS IX THE COMMUNIST CONSPIRACY 2277
Mr. Graxich. I will claim my privilege on that.
Mr. Jackson. Do you believe in peace, Mr. Granich?
Mr. Graxich. Very much.
Mr. Jackson. Do you believe that peace can be achieved bewteen
the Soviet Union and the United States at the conference table and
through negotiation?
Mr. Granich. Yes, sir.
Mr. Jackson. Mr. Stalin has said that it is inconceivable that the
United States and Soviet Russia should exist side by side in the same
world. Do you agree with Mr. Stalin or not ?
Mr. Granich. I will claim my privilege there, gentlemen.
Mr. Jackson. No further questions.
Mr. Doyle. I neglected at the beginning of this afternoon's session
to say that the members of the subcommittee were here, Mr. Jackson,
Mr. Velde, and Chairman of the Subcommittee Doyle. We now have
with us Mr. Walter.
I believe, Mr. Granich, you said you were self-employed now.
Mr. Granich. Yes, sir.
Mr. Doyle. And I believe you said you wrere operating a children's
camp, a farm ?
Mr. Granich. Yes, sir.
Mr. Doyle. How old are those children ?
Mr. Granich. I will claim privilege there, gentlemen.
Mr. Doyle. Do I understand that you claim the privilege of the
United States Constitution on the ground that if you stated the age
of the children of the camp you operate it might incriminate you ?
Mr. Granich. No ; but it enters an area of questioning that might
incriminate me.
Mr. Jackson. Mr. Chairman, I would ask that the witness be di-
rected to answer the question.
Mr. Doyle. I will direct you, Mr. Granich, to answer that question.
Mr. Granich. From 6 to 12 years of age.
Mr. Doyle. How many such children?
Mr. Graxich. 20 to 40 children.
Mr. Doyle. How many?
Mr. Graxich. 40.
Mr. Doyle. And what fee do you charge for each child to come to
that camp ? How much do you get paid a month?
Mr. Graxich. We run a summer camp.
Mr. Doyle. Just a summer camp. How much do you get paid for
the summer camp for each child?
Mr. Granich. $300.
Mr. Doyle. Who pays their fee?
Mr. Granich. Each parent.
Mr. Doyle. And who operates the camp with you, just during the
summer?
Mr. Granich. My wife.
Mr. Doyle. Your wife has been here in the hearing room all day
wii li you. That is Grace Granich?
Mr. ( rRANiCH. Yes.
Mr. Doyle. And where is this summer camp?
Mr. Graxich. Wilmington, Vt.
Mr. Doyle. Do the children live in tents, or in houses, during the
summer ?
2278 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Granich. In houses.
Mr. Doyle. In what months of the summer do you have the children
in camp?
Mr. Granich. July and August.
Mr. Doyle. And you get $300 per child?
Mr. Granich. Yes.
Mr. Doyle. Do you have any circulars, any printed advertisements
of this camp ?
Mr. Granich. Yes.
Mr. Doyle. Do you have any with you ?
Mr. Granich. No, sir.
Mr. Doyle. Could I ask that you would perhaps deliver a sample
of each to your counsel, so that we may have it for our information ?
I have operated some of these summer camps myself, so I know that
you always have such advertisements.
You get $300 per child for 2 months. What do you give those chil-
dren during 2 months for $300 ?
Mr. Granich. Anything any normal camp would give them, swim-
ming, fishing, good food, good games.
Mr. Doyle. Do you have any instructors in swimming aside from
yourself and your wife?
Mr. Granich. We have counselors;. yes.
Mr. Doyle. How many counselors do you have ?
Mr. Granich. It depends on the number we can get or the number
of kids we have.
Mr. Doyle. How many kids did you have this last summer ?
Mr. Granich. Forty.
Mr. Doyle. How many instructors did you have of special interests?
Mr. Granich. We have eight counselors.
Mr. Doyle. And where did you get the counselors?
Mr. Granich. By recommendation.
Mr. Doyle. Where do you hire them from ?
Mr. Granich. By mail, by contact, by friends.
Mr. Doyle. And how much do you pay them for the 2 months ?
Mr. Granich. It all varies according to their abilities and what
they contribute.
Mr. Doyle. Well, from minimum to maximum, how much ?
Mr. Granich. From $50 to $125 and $150.
Mr. Doyle. Is your camp, then, on the side of a lake ?
Mr. Granich. A large swimming pool.
Mr. Doyle. How large ?
Mr. Granich. Three hundred or 400 feet by 100.
Mr. Doyle. It is an outdoor swimming pool ?
Mr. Granich. Yes.
Mr. Doyle. Do you or Mrs. Granich or either of you own this
property ?
Mr. Granich. We own this property.
Mr. Doyle. How many acres in this camp ?
Mr. Granich. One hundred thirty.
Mr. Doyle. You own it. How long have you owned it ?
Mr. Granich. Six or 7 years.
Mr. Doyle. You have been operating that camp since 1944, I be-
lieve you said.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2279
Mr. Granich. No, we owned it since then, probably since 1945 or
1946.
Mr. Doyle. Well, what year did you begin operating it ?
Mr. Granich. 1945 or 1946.
Mr. Doyle. From what general geographical area do you draw
these children to your camp?
Mr. Granich. The New England States; the Middle Atlantic
States.
ft I r. Doyle. What is the name of your camp ?
Mr. Doyle. Higley Hill?
Mr. Doyle. Higgly Hill?
Mr. Granich. Yes.
Mr. Doyle. Is that the name of some former owner ?
Mr. Granich. Of the hill ; who lived on the hill.
Mr. Doyle. Now, are there any individuals that endorsed your
camp, that you published the names of as endorsers ?
Mr. Granich. No, sir.
Mr. Doyle. Is it entirely owned by you ?
Mr. Granich. Entirely owned by us.
Mr. Doyle. Are you going to operate it next summer if you can ?
Mr. Granich. Yes, sir.
Mr. Doyle. What do you do with that camp or farm, if anything,
during the winter months ?
Mr. Granich. We live there. It is our home.
Mr. Doyle. Is it an ordinary residence ?
Mr. Granich. It is a large house.
Mr. Doyle. Do you farm it in any way with the children ?
Mr. Granich. Yes.
Mr. Doyle. What do they do ; children from 8 to 12 years of age, on
the farm?
Mr. Granich. They all have farming. They all have chores to do.
Mr. Doyle. Do you have any classes of any kind?
Mr. Granich. No, sir.
Mr. Doyle. No classes?
Mr. Granich. Other than arts and crafts.
Mr. Doyle. What arts and crafts do you teach?
Mr. Granich. Clay, clay work, bead work, leather work.
Mr. Doyle. Do you have any instructions in any kinds of books or
pamphlets?
Mr. Granich. No, sir.
Mr. Doyle. Do you have any blackboard work ?
Mr. Granich. We have a blackboard there as a daily newspaper.
The kids write on it as well as I do, mostly the kids.
Mr. Doyle. Do you have a library?
Mr. Granich. Yes, sir.
Mr. Doyle. What kinds of books or pamphlets do you have in the
library '.
Mr. Granich. We have a library in Brattleboro where we get 40 to
60 books for the summer.
Mr. Doyle. What are the names of some of the pamphlets or books
that you have in the library for these children to read?
Mr. Granich. Louisa Alcott, all the normal kid books, Ivanhoe,
Sir Walter Scott, Tennyson, Black Beauty.
2280 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Doyle. Tennyson and Ivanhoe. And how old are the children ?
Mr. Granich. 6 to 12.
Mr. Doyle. At what point did you enter Soviet Russia ? When you
testified in answer to our counsel when he asked you how you got
there, you said, "By working my way.'1
That, I believe, was your exact answer. At what port of entry, or
what area did you enter Soviet Russia, from France or any other
nation ?
Mr. Granich (after conferring with counsel). I will claim my
privilege there.
Mr. Doyle. You understand my question, do you ?
Mr. Granich. At what port of entry.
Mr. Doyle. Yes. As I understand it, then, you are claiming your
privilege on the ground that it might embarrass or incriminate you
if you tell this committee at what point in Soviet Russia you entered
on this occasion when you went into Russia, without naming Russia
as one of the countries you wanted to visit on your passport. That
was the purport of my question, and that is the port of entry I refer
to. You understood that when you claimed your privilege ?
(Representative Donald L. Jackson left the hearing room at this
point.)
Mr. Granich. Yes.
Mr. Tavenner. I think, Mr. Chairman, he should be directed to
answer that question.
Mr. Doyle. Mr. Granich, as chairman of this committee I direct
you to answer the question.
Mr. Granich. Leningrad.
Mr. Doyle. Did you have a visa that you produced to enter Soviet
Russia when you entered at Leningrad?
(Representative Donald L. Jackson returned to the hearing room
at this point.)
Mr. Granich. Yes, sir.
Mr. Doyle. Where did you get that visa ?
Mr. Granich. I think we went through that this morning gentle-
men.
Mr. Doyle. I do not think we wrent through it at all, as far as this
question is concerned.
Mr. Granich. Because my memory did not serve me well this
morning on that I will say now I cannot remember.
Mr. Doyle. In other words, are you telling me you cannot remem-
ber because you think you answered the same question this morning?
Mr. Granich. No.
Mr. Doyle. Well, you can remember, can you not?
Mr. Granich. On details and dates, I get confused, yes.
Mr. Doyle. How long did you stay in Leningrad, approximately?
Mr. Granich. Oh, a week, maybe, to see the city.
Mr. Doyle. What did you do there during that week ?
Mr. Granich. See the city.
Mr. Doyle. Did you meet anybody or interview anybody?
Mr. Granich. No, sir.
Mr. Doyle. Or go to any offices?
Mr. Granich. No, sir.
Mr. Doyle. You did not meet any citizens of the Soviet Union?
Mr. Granich. No, sir.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2281
(Representative Francis E. Walter entered the hearing room at
this point.)
Mr. Doyle. Where did you live in Leningrad during that week?
Mr. Granich. At a hotel.
Mr. Doyle. What hotel?
Mr. Granich. I don't recall.
Mr. Doyle. See if you can refresh your memory in any way. What
was the name of the hotel you stayed at in Leningrad for a week?
Was your wife with you ?
Mr. Granich:. Xo,sir.
Mr. Doyle. Was she with you on any of these trips to foreign
countries?
Mr. Granich (after conferring with counsel). Will you repeat that
question, please?
Mr. Doyle. Was your wife with you on any of these trips to foreign
countries ?
Mr. Granich. Yes.
Mr. Doyle. That you have admitted taking ?
Mr. Granich. Yes.
Mr. Doyle. What trips ?
Mr. Granich (after conferring with counsel) . To China.
Mr. Doyle. All right, what other trips ?
Mr. Granich. That is all that I can recall.
Mr. Doyle. Well, think a minute, now. Your memory is pretty
good on some points. I mean your memory that you admit having is
pretty good on some points, I think. See if it is not pretty good on
this one now.
What other countries did your wife travel in with you besides China
during the time that you admit that vou were editor of the Voice of
China from about 1938 to 1941 ?
Mr. Granich. Those dates are wrong. Something is wrong there.
Mr. Doyle. I asked you the question unintentionally, Mr. Granich.
I did not mean to ask you a question that was not founded on fact.
Counsel advises me "that the name of one of the papers, or magazines
you were editor of, was China Today, as well as Voice of China. Now,
I ask you again what other countries did your wife travel in with you
besides China, or don't you remember whether she was with you or
not?
(The witness conferred with his counsel.)
Mr. Doyle. Are you ready, Mr. Granich, after consulting with
counsel ?
Mr. Granich. Yes ; I will claim privilege on that, gentlemen.
Mr. Doyle. May 1 have the question read, please, Mr. Reporter, that
J asked Mr. Granich.
(The record was read by the reporter.)
Mr. Doyle. The reason T asked the reporter to read that question,
Mr. Granich, is I realize I asked those questions in such a way that
you might not have been sure which question I wanted you to answer.
It is the question as to whether or not your wife went with you to any
other country than China.
Yon stand on your privilege, do you, and refuse to answer that
question \
Mr. Granich. Yes, sir.
Mr. Doyle. On the grounds thai it might incriminate you ?
2282 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Doyle. Did anyone go from whatever country you went from to
Leningrad besides you ? Did anyone go with you to Leningrad? Did
your wife or did Mike Gold, your brother, Irwin Granieh, go with
you to Leningrad?
Mr. Granich (after conferring with counsel). I will claim my
privilege, gentlemen.
Mr. Velde. I think that is a perfectly legitimate question, Mr.
Chairman. I request you to direct the witness to answer. I do not
see how that possibly, under any conceivable stretch of the imagina-
tion, could incriminate him.
Mr. Doyle. I will direct you to answer that question, Mr. Granich.
(Representative Donald L. Jackson left the hearing room at this
point.)
Mr. Granich (after conferring with counsel). I shall claim my
privilege.
Mr. Doyle. Did you live alone at this hotel in Leningrad, during
the week, or as long as you were there, or did you live with someone
that went with you from whatever country you went from to Lenin-
grad ?
Mr. Granich. I shall claim my privilege, gentlemen.
Mr. Doyle. Where did you go from Leningrad, from Soviet Russia
to what point ?
Mr. Granich (after conferring with counsel) . What was that ques-
tion again?
Mr. Doyle. Please read it, Mr. Reporter.
(The question was read by the reporter.)
Mr. Granich. To Moscow.
Mr. Doyle. How long were you there ?
Mr. Granich. About 2 years.
Mr. Doyle. Did you see anyone there that you had not known
previously, or that you had not met personally previously ?
Did you meet anyone in Moscow during those two years that you
had not previously met before you arrived at Moscow? Anyone from
the United States, for instance, or who visited the United States, ever,
either any American citizen or any Soviet citizen ?
Mr. Granich. I must have, gentlemen, yes.
Mr. Doyle. Well, who ?
Mr. Granich. I cannot recall.
Mr. Doyle. Who, if anyone, you had met in the United States
previous to the time you went to Moscow on this trip did you meet in
Moscow?
Mr. Granich. I can't recall.
Mr. Doyle. But you do recall meeting someone ?
Mr. Granich. I met Americans there, yes.
Mr. Doyle. Did you meet any Soviet citizens in connection with
your work as a construction engineer or otherwise ?
Mr. Granich. Yes; many Soviet citizens.
Mr. Doyle. Did you meet any Soviet citizens in connection :th
your work in China, either contemplated or previous, in connection
with the magazines \
Mr. Granich. Did I meet anybody in Moscow in relation to China?
Mr. Doyle. Yes.
Mr. Granich. No, sir.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2283
Mr. Doyle. Did you meet any Soviet Government officials in Mos-
cow during the 2 years, and if so, who?
Mr. Granich. If I met any Soviet officials I can't recall, as such.
Mr. Doyle. If they were not as such, what were they in the capacity
in which you met them?
Mr. Granich. A :tizens. I could not talk Russian.
Mr. Doyle. Did , >u nave an interpreter when you spoke with them?
Mr.. Granich. My Lands did the talking.
Mr. Doyle. Beg pardon?
Mr. Granich. My hands did the talking.
Mr. Doyle. No;* I realize you cannot talk with your hands, but
that you have interpreters that interpret these conversations between
you and the Soviet officials.
Mr. Graxich. On the first construction job I had an interpreter.
Mr. Doyle. Was your wife with you when you met any of these
Soviet officials, whether they were talking to you officially as such
or not ?
Mr. Granich. I have not met any Soviet officials, because, to the
best of my recollection I did not.
Mr. Doyle. Did you meet any members of the Soviet Communist
Party while you were over there in Moscow or Leningrad, and if so,
who ?
Mr. Grani£H (after conferring with counsel) . I stated I met Soviet
citizens; whether they were Communists or not, I couldn't tell.
Mr. Doyle. Did you meet any member of the Soviet Communist
Party while you were over there, to your knowledge?
Mr. Granich. That is what I said. The last question — the last
answer applies the same way.
Mr. Doyle. Did you attend any Communist meetings while you
were over there, whether you met anyone in the meetings or not. Did
you attend any meetings that you knew to be Communist meetings?
Mr. Graxich. They were all held in Russian. Every meeting in
the Soviet Union is held in Russian, not in English.
Mr. Doyle. Will you please answer my question. I did not ask
you in what language they talked. I asked you whether you attended
any Communist meetings.
Mr. Granich. I did not.
Mr. Doyle. How long did your brother, Mike or Irwin, live in
France before you visited him in France?
Mr. Graxich (after conferring with counsel). I didn't visit my
brother in France.
Mr. Doyle. I thought you testified that you visited your brother,
Mike, in France. Did you visit your brother, Mike, any place in
Europe or in Russia while you were over there ?
. Mr. Granich. He wasn't there ; no, sir.
Mr. Doyle. Did you ever meet Madame Sun Yat-sen herself,
personally ?
dr. Granich (after conferring with counsel). I will claim my
pi i . ilege there.
Mr. Doyle. Did you actually receive an invitation from her to do
what you claimed in your passport was the reason you wanted to go
to China ?
Mr. Granich. I will claim my privilege there.
95830—52 11
2284 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Doyle. Were you the sole owner of the magazine in China that
you were editor of, the Voice of China ?
Mr. Geanich. I will claim my privilege there.
Mr. Doyle. You stated in answer to counsel that there was no longer
any use for the continuation of the magazine when Pearl Harbor
occurred. Did you, as yourself, alone and separately, make that de-
cision so far as the continuation of that magazine was concerned?
Mr. Geanich. Yes, sir.
Mr. Doyle. You made it alone ?
Mr. Geanich. Yes, sir.
Mr. Doyle. You did not have to consult anybody ?
Mr. Geanich. No, sir.
Mr. Doyle. How soon after Pearl Harbor did you stop editing the
magazine, Voice of China, or China Today ?
(Representative Donald L. Jackson entered the hearing room at
this point.)
Mr. Granich. I cannot recall whether it was 1 or 2 months after.
Mr. Doyle. What was the date of the Pearl Harbor catastrophe to
which you refer ?
Mr. Geanich. 1941.
Mr. Doyle. What day of the month and what month ?
Mr. Geanich. I can't tell you.
Mr. Doyle. I think that is all. I have just one other question : Do
you receive any contributions or donations to this summer camp
that you operate from any person or any group of persons'?
Mr. Geanich. No, sir.
Mr. Doyle. Have you ever ?
Mr. Geanich. No, sir.
Mr. Doyle. When it was first established, did you ?
Mr. Granich. No, sir.
Mr. Doyle. Thank you.
Mr. Walter?
Mr. Walter. No questions.
Mr. Velde. I have just one question. Have you ever met Lem U.
Harris ?
Mr. Granich. I claim privilege on that.
Mr. Velde. That is all.
Mr. Doyle. Do you have any other questions, counsel ?
Mr. Tavenneb. You were asked a number of questions regarding
the library that you have at the camp you maintain.
Do you exhibit or have you at any time exhibited in that library
copies of the Daily Worker or any other Communist papers?
Mr. Granich. I will claim privilege on that, gentlemen.
Mr. Tavenner. Has the Communist Party had any connection or
affiliation of any character with the operation of that camp ?
Mr. Granich. I will claim privilege on that.
Mr. Tavenneb. I have no further questions.
However, I would like for it to be plain that we are interested in
seeing the passport and the advertisements which you mentioned, and
I will ask that the witness deliver those to his counsel right away so
that we can have them available by the first of next week.
Mr. Rein. They have to get back to Vermont, and it has to come
down here by mail.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2285
Mr. Tavenner. I understand that. Vermont is not that far away.
Mr. Doyle. May we add to that, please, Mr. Rein, the names and
addresses of publications of any newspapers or magazines or pam-
phlets which have come in to the camp from summer to summer or any
summer since its establishment '.
Mr. Granich. I did not hear that.
Mr. Doyle. Any magazines that come through the mail or pam-
phlets which come through the mail, that is, either by subscriptions
or contributions to the camp from any groups or any publishing house
or any committee. Do you understand what I mean, Mr. Granich?
Mr. Granich. Yes, sir.
Mr. Doyle. Any children's literature, for instance.
Mr. Granich. Yes.
Mr. Doyle. Picture books that are published by any committee or
organization of any sort interested in children's welfare. Is that
clear to you '.
Mr. Graxich. Yes, sir.
Mr. Doyle. Is there any reason why this witness should not be
excused ?
Mr. Jackson. I have one question.
Mr. Doyle. Mi'. Jackson.
Mr. Jackson. I understand the camp is called Higley Hill. Has
it always been called that? Did you give it that name or what?
Mr. Graxich. Yes.
Mi-. Jackson. What was the farm called before you took posses-
sion?
Mr. Granich. The farm was called nothing, just a farm.
Mr. Jacksox. "Who was the previous owner?
Mr. Granich. Hall Brothers.
Mr. Jackson. Hall?
Mr. Granich. H-a-1-1.
Mr. Jacksox. That is the last name?
Mr. Granich. Yes.
Mr. Jackson. I have no further questions.
Mr. Doyle. May the witness be excused, counsel ?
Mr. Tavenner. Yes, sir.
Mr. Doyle. You are excused, then, Mr. Granich.
Mr. Reix. Are you going to call Mrs. Granich ?
Mr. Tavexxt.e. Yes, sir; I think so.
Mr. Doyle. Mrs. Granich, will you please come forward?
Will you please raise your right hand, Mrs. Granich, and be sworn?
Do you solemnly swear that the testimony you will give in this
matter will be the truth, the whole truth, and nothing but the truth,
so help you God \
Mrs. Granich. Yes, sir, I do.
TESTIMONY OF MRS. GRACE MAUL GRANICH, ACCOMPANIED BY
HER COUNSEL, DAVID REIN
Mr. Tavenner. What is your full name?
Mrs. Graxlcii. Grace Maul Granich.
Mr. Tavenner. You are the wife of Mr. Max Granich ?
Mrs.. Granich. That is right.
Mr. Tavenner. You live in Vermont?
2286 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mrs. Granich. Wilmington, Vt. ; yes, sir.
Mr. Tavenner. When and where were yon born, Mrs. Granich ?
Mrs. Granich. Oak Harbor, Ohio, November 30, 1894.
Mr. Tavenner. Will yon advise the committee, please, what your
educational background has been?
Mrs. Granich. I went to public school in Oak Harbor. My family
moved to Bucyrus, at the end of the eight grade for me, and I went to
high school in Bucyrus, Ohio. After I graduated from high school, I
went to work, and I took extension work in Toledo University, and
later in the University of California, and wherever there was a uni-
versity where I lived, I did a little extension work.
Mr. Tavenner. We understand from the testimony of your husband
that you have been engaged in conducting a camp.
Mrs. Granich. That is right.
Mr. Tavenner. Since 1945 or 1946.
Mrs. Granich. My memory for dates is much better than my
husband's.
Mr. Tavenner. Is that correct ?
Mrs. Granich. It isn't exactly correct. We went there to live in
1946 with my husband's brother who was dying of cancer. My
husband's brother had a few, had a children's camp, and we had a
few of those children up there with my sister-in-law and my brother,
and we didn't really have a camp that you could call a camp. We
had a few children living with us from summer to summer until
1946. And one summer we would take mothers and children. We
lived as best we could to make a living, because we had no other
means of income, and we found we couldn't farm up there because
it is a barren countryside, unless you want to be a dairy farmer.
So, in the summertime
Mr. Tavenner. But you bought the farm in 1944, did you not?
Mrs. Granich. I think it was exactly 1943, if you check the records
and the deeds, yes.
Mr. Tavenner. And did you live on the farm from 1943 until
1948?
Mrs. Granich. No; we moved up there, as I told you with this
dying brother-in-law in 1946 in the summertime. And then we stayed
there. My brother-in-law died, and we stayed on there.
Mr. Tavenner. The brother-in-law you spoke of, is that Mr.
George
Mrs. Granich. George Granich.
Mr. Tavenner. Mr. George Granich ?
Mrs. Granich. Yes.
Mr. Tavenner. He was a member of the Communist Party ?
Mrs. Granich. I haven't any idea.
Mr. Tavenner. Then let me refresh your recollection by showing
you an article written by Mike Gold, a brother, dated September 3,
1946, and which was printed in the Daily Worker. And I will point
out to you in this article this statement in black type:
George was a good farmer and a skilled carpenter, builder, and cabinetmaker
as well as a good father and an active hard-working Communist.
You are familiar with that article written by Mr. Gold, his brother,
are vou not [handing document to the witness] ?
Mrs. Granich. I am not familiar with it : no.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2287
Mr. Tavenner. Will you look at it now, please?
Mrs. Granich. Yes : 1 have looked at it.
Mr. Tavenner. And having looked at it, do you still say you do not
know about his being a Communist?
Mrs. Granich. I read it here, that is why I know.
Mr. Tavenner. Is that the only knowledge that you have, what you
see in that paper?
Mrs. Granich. That is my only knowledge as to my brother's mem-
bership in the party or any other organization.
Mr. Tavenner. You have seen that article before, have you not ?
Mrs. Granich. It could be.
Mr. Tavenner. You would know whether you have or not, would
you not ?
Mrs. Granich. I probably did, but I am not certain.
Mr. Tavenner. Did you ?
Mrs. Granich. I am not certain.
Mr. Tavenner. Mrs. Granich, how were you employed prior to the
time that you moved to the farm in Vermont ?
Mrs. Granich. I must refuse to answer that question on the grounds
that it might incriminate me.
Mr. Tavenner. How were you employed in 1945 ?
Mrs. Granich. I must also refuse to answer that on the same
grounds.
Mr. Tavenner. How were you employed in 1935 ?
Mrs. Granich. I refuse to answer that question for the same
grounds.
Mr. Tavenner. And how were you employed in 1930?
Mrs. Granich. On the same grounds.
Mr. Tavenner. You refuse to answer?
Mrs. Granich. That is right.
Mr. Jackson. Will you recite your record of employment, which is
not incriminating or possibly incriminating?
Mrs. Granich. When I finished high school, I had a number of
stenographic jobs. I learned stenography. I worked for. I was the
executive secretary of the Grace Methodist Church in Toledo, Ohio.
Mr. Doyle. Could I ask }Tou to speak louder, please ?
Mrs. Granich. I was executive secretary of the Grace Methodist
Church in Toledo, Ohio.
Mr. Tavenner. When was that?
Mrs. Granich. Let me think. That was around 1916, I suppose.
Then I worked for a steel company. I think it was called the S. M.
Jones Co.. in Toledo, Ohio. I worked for the dean of the College of
Arts and Sciences at Toledo University.
Mr. Tavenner. Was that after you had been secretary of the Meth-
odist Church ?
Mrs. Granich. Yes, that was after. I left the one job and took the
other which I held very briefly, and then I got sick with tuberculosis
and was sick for 5 years.
And then I worked in San Francisco in insurance companies.
Mr. Tavenner. When was that?
Mrs. Granich. Twenty-one, two, three, four, five, six, and seven,
I suppose, something like that. I am not exact ^ibout that, those
years, but about that time.
2288 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Tavenner. That is approximately, then, up until 1927?
Mrs. Granich. About that time, yes.
Mr. Tavenner. And then what was your employment?
Mrs. Granich. Then I took a vacation for
Mr. Tavenner. Where did you spend your vacation?
Mrs. Granich. For a year. I went touring.
Mr. Tavenner. How is that?
Mrs. Granich. I went visiting.
Mr. Tavenner. You went visiting?
Mrs. Granich. Yes.
Mr. Tavenner. Where did you visit? Did you visit neighbors or
some close friends?
Mrs. Granich (after conferring with counsel). No, no, I went ta
Mexico, I went to Germany. I went to France. I was in the Soviet
Union for about 3 weeks, I think, 4 weeks maybe.
Mr. Tavenner. In what year?
Mrs. Granich. In 1927.
Mr. Tavenner. How long did you remain abroad at that time?
Mrs. Granich. Altogether, I left — I hitchhiked with a friend from
San Francisco to El Paso and took a train to Mexico City, and went
from there to France. I don't know how long it was. It was prob-
ably from September to around Christmas time, something like that.
Mr. Tavenner. How long did you remain abroad on this trip?
Mrs. Granich. I told you.
Mr. Tavenner. I didn't understand you.
Mrs. Granich. Altogether, if you count Mexico abroad, in Mexico
I was 6 weeks, I don't know exactly when I left Mexico, and I came
home, I think, right after Christinas.
Mr. Tavexner. Of 1927?
Mrs. Granich. No, that would be 1928.
Mr. Tavenner. Yes.
Mrs. Granich. I think.
Mr. Tavenner. What employment did you have after you returned ?
Mrs. Granich. Then I did free-lance typing of manuscripts where-
ever I could get them for a while.
Mr. Tavenner. Was that connected with any news service or
publication ?
Mrs. Granich. Connected with nothing.
Mr. Tavenner. What was your next employment ?
Mrs. Granich. I did work for Scott Nearing and for various
people I worked at that time, on a free-lance basis.
Mr. Tavenner. What was the nature of the work you did for Scott
Nearing ?
Mrs. Granich. Typing of his books. I don't recall. He needed
some one to type them.
Mr. Tavenner. What was the next employment ?
Mrs. Granich. I refuse to answer this question on the grounds that
it might incriminate me.
Mr. Tavenner. When did your employment with Scott Nearing
cease ?
Mrs. Granich. I forgot, I went from him, I went to Manumit
School, where I was registrar.
Mr. Tavenner. Where is that school located ?
COMMUNIST PRES> l\ THE COMMUNIST CONSPIRACY 2289
Mrs. Graxich. It was then located in Pawley, N. Y. Now I think
it is somewhere in Pennsylvania, but I am not sure. That was my
first experience with children, progressive education.
Mr. Tavexxer. And that was your employment after leaving Scott
Nearing?
Mrs. Graxich. That is right. My work in New York was a very
brief period. I cannot give you the exact dates except I know I was
Manumit School registrar, I was at Manumit School more than a year.
Mr. Tavex'X'er. And then your connection with that school was ter-
minated about when?
Mrs. Graxich. That is right, I suppose, about 19-">< I.
Mr. Tavexxer. About 1930?
Mrs. Graxich. Yes.
Mr. Tavexxer. Why was your work at that school terminated ?
Mrs. Graxich. Because I got tired of living in the country.
Mr. Tavexxter. Then what did you do ?
Mrs. Graxich. Then I came to New York.
Mr. Tavexxer. For what purpose ?
Mrs. Graxich. To find a job.
Mr. Tavex'xer. Did you find one ?
Mrs. Graxich. Yes. I worked for a little while with the Textile
Workers' Union in the office, and I probably had another office job or
two. I have forgotten.
Mr. Tavexxer. That was in 1930?
Mrs. Graxich. Yes : maybe 1929, 1930 — it must have been 1930.
Mr. Tavexxer. After that, what was your next employment \
Mrs. Graxxich. I will not answer that question on the grounds that
it might incriminate me.
Mr. Tavexxer. Was it in the State of New York and in the city of
New York \
Mrs. Graxich. I will claim my privilege under the fifth amendment
and not discuss it at all.
Mr. Tavexxer. What is your reason for refusing to state your
employment in 1930?
Mrs. Graxich. The fifth amendment is my reason.
Mr. Tavex'Xer. You were identified in the course of testimony here
last week by Mr. Louis Budenz as having been employed as an assist-
ant to J. Peters in the Communist Party headquarters in New York
in the year 1935. Is that true or false \
Mrs. Granich. I will claim my privilege under the fifth amend-
ment.
Mr. Tavexxer. Yon refuse to answer it \
Mrs. ( ikaxich. I refuse to answer it ; yes.
Mr. Tavexxer. Were you acquainted with Mr. Louis Budenz?
Mrs. ( iraxich. I refuse to answer that question on the same grounds.
Mr. Tavexxer. Where is Mr. J. Peters now, do you know?
Mrs. Gran hii. I refuse to answer that question on the same grounds.
Mr. Tavexxer. Between L927, when you went abroad, and 1935,
did you go abroad again \
Mrs. Graxich. 1 must claim my privilege under the fifth amend-
ment with regard to that question also.
Mr. Tavexxer. I desire to offer in evidence a photostatic copy of
a passport application bearing the date of March 22, 1932, and ask
that it be marked "Grace Granich Exhibit No. 1."
2290 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Doyle. It will be received and so marked.
(The document referred to, marked "Grace Granich Exhibit No. 1,"
is filed herewith.)
Mr. Tavenner. Will you examine the application, please, and state
whether or not the signature "Grace Maul" on the second page is
your signature?
Mrs. Granich (after examining document). Gentlemen, I cannot
discuss this passport, this passport application, on the grounds that
it may tend to incriminate me.
Mr. Tavenner. My question is whether or not that is your signa-
ture.
Mrs. Granich (after conferring with her counsel). I claim my
privilege under the fifth amendment with regard to this.
Mr. Tavenner. Do you see the photograph at the bottom of that
same page?
Mrs. Granich. Yes.
Mr. Tavenner. Whose photograph is that?
Mrs. Granich. I claim that same privilege.
Mr. Tavenner. This application for passport shows that the pur-
pose of the trip is stated, as allegedly stated by you, was to travel in
Germany, France, Italy, and Spain for pleasure. Is that correct?
Mrs. Granich. I claim my privilege under the fifth amendment.
Mr. Tavenner. If you traveled in those countries for pleasure, how
could there possibly be any incriminating fact regarding that?
Mrs. Granich. My reason for answering this question this way is
because it might tend to lead into an area of questioning which might
incriminate me.
Mr. Tavenner. In other words, you went abroad for an entirely
different purpose than that stated in your application ?
Mrs. Granich. I claim my privilege under the fifth amendment.
Mr. Tavenner. The application shows that the passport was actual-
ly issued March 23, 1932. When did you first meet your present
husband, Mr. Max Granich ?
Mrs. Granich. 1931.
Mr. Tavenner. Where?
Mrs. Granich. Staten Island
Mr. Tavenner. Did you see him in Russia in 1932 ?
Mrs. Granich. I claim my privilege under the fifth amendment.
Mr. Tavenner. I hand you another photostatic copy of a passport
application, and I ask that it be introduced in evidence and marked
"Grace Granich Exhibit No. 2."
Mr. Doyle. It will be received and so marked.
(The document referred to, marked "Grace Granich Exhibit No. 2,"
is filed herewith.)
Mr. Tavenner. This passport application is in the name of Grace
Maul Granich and bears the date April 26, 1935. Were you married
to Mr. Granich on that date, April 26?
Mrs. Granich. Yes.
Mr. Tavenner. 1935 ?
Mrs. Granich. Yes.
Mr. Tavenner. When were you married?
Mrs. Granich. April 26, 1935.
Mr. Tavenner. You were married on the date of the
Mrs. Granich. That is right.
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2291
Mr. Tavkxnkr. Of the filing of this amplication \
Mrs. Graxich. I was married on April 26, VXu>. 1 said nothing
about an application.
Mr. Tavenner. That is the dale upon which you filed this applica-
tion for passport, is it not '.
.Mrs. Granich. I must decline to answer this question on the grounds
that it might incriminate me.
Mr. Tavenner. Will yon examine the passport and state whether
or not that is your signature and your photograph appearing thereon \
| Handing document to witness.]
Mrs. Granich. I decline to answer this question on the grounds
that it may incriminate me.
Mr. Tayenner. Did you engage in travel abroad in 1936?
Mrs. Granich. I decline to answer on the same grounds.
Mr. Tavenner. "What were you doing in 1936 ?
Mrs. Granich. I must decline to answer that question also.
Mr. Tavenner. Were you not in China and engaged with your hus-
band in the editing and publishing of a magazine known as the Voice
of China?
Mrs. Granich. I claim my privilege under the fifth amendment.
Mr. Tavkxnkr. Mrs. Granich, I have before me a report of the
Shanghai municipal police, section 2 of the special branch, dated
May 1. 1036, showing that an investigation had been made regarding
the finances of the Eastern Publishing Co. According to this report,
Mrs. Grace Granich opened an account with a cash deposit of $2,593.50
with the National City Bank of New York. Is that correct?
Mrs. Granich. I decline to answer that question on the grounds of
the fifth amendment.
Mr. Tavkxnkr. The report also shows that from time to time you
transferred sums from that account to Mr. Granich and also to the
Eastern Publishing Co. Is that correct ?
Mrs. ( Jr a x icii. I claim my privilege under the fifth amendment.
Mr. Tavenner. By that I mean, did you transfer
Mrs. Granich. I understood the question.
Mr. Tavenner. Transfer sums of money from your personal bank
account to the Eastern Publishing Co.
Mrs. Graxich. I understood the question, but I am not answering
that on the grounds that it might tend to incriminate me.
Mr. Tavenner. Is it not true that you took funds with you in cash
to be used in the editing and publishing of that paper?
Mrs. Granich. I claim my privilege under the fifth amendment.
Mr. Tavenner. According to the testimony of Mr. Louis Budenz,
you stated to him in the fall of 1935 or the winter of 1935 that you
proposed to go abroad on business for the Communist Party. Now, is
it not a fact that you were handling the funds in China for the pub-
lishing of that magazine, The Voice of China, and that you received
those funds from the ( Joipmunist Party \
Mrs. Granich. 1 claim my privilege under the fifth amendment.
(Representative Donald L. Jackson left the hearing room at thif
point. )
Mr. Doyle. Counsel, it becomes necessary for two of the members,
to leave at this time in order to attend to other official matters that
must be taken care of yet today. So, if there is no objection, we regret
95830—52 12
2292 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
the inconvenience cansed to everyone, but further hearings must go
over until tomorrow morning at 10 :30.
There is just no way we can help it.
Mr. Rein. I do want to make this one observation, and that is
about getting this other material by next week.
I think you can appreciate that you probably will not get it in a
week, but you will get it as promptly as possible.
Mr. Tavenner. Off the record.
(Discussion off the record.)
Mr. Doyle. Counsel, I did not hear you have the record disclosed
at the beginning of Mrs. Granich's questioning that she had worthy
counsel by her side.
Mr. Tavenner. No, I am very sorry.
Mr. Doyle. May the record show that Mr. Rein, who was counsel
for Mr. Granich, throughout the questioning of Mrs. Granich was
counsel and by her side.
Mr. Rein. Yes.
Mr. Tavenner. Off the record.
(Discussion off the record.)
Mr. Doyle. Then, Mrs. Granich, you will return tomorrow at 10 :30,
and the committee stands in recess until that time.
(Thereupon, at 4: 25 p. m., Wednesday, January 16, 1952, the hear-
ing was recessed, to reconvene at 10 : 30 a. m., Thursday, January 17,
1952.)
THE ROLE OF THE COMMUNIST PRESS IN THE
COMMUNIST CONSPIRACY
THURSDAY, JANUARY 17, 1952
United States House of Representatives,
Subcommittee of the Committee on Un-American Activities,
Washington, D. C.
PUBLIC HEARING
A subcommittee of the Committee on Un-American Activities met,
pursuant to adjournment, at 10 : 50 a. m., in room 226, Old House Office
Building, Hon. Clyde Doyle, presiding.
Committee members present : Representatives Clyde Doyle, Mor-
gan M. Moulder, Harold H. Velde, Bernard W. Kearney (appearance
noted in the record) , and Donald L. Jackson.
Staff members present : Frank S. Tavenner, Jr., counsel ; Thomas
W. Beale, Sr„ assistant counsel; Courtney E. Owens, investigator;
Baphael I. Nixon, director of research; John W. Carrington, clerk;
and Rosella Purdy, secretary to counsel.
Mr. Doyle. Counsel, are you ready to proceed ?
Mr. Tavenner. Yes, sir.
Mr. Doyle. May the record show that the full subcommittee here-
tofore officially designated to hear the testimony of Mr. and Mrs.
Granich is here, Messrs. Velde, Jackson, and Doyle. Also present
is committee member Moulder this morning.
Mrs. Granich, are you ready to proceed ?
TESTIMONY OF MRS. GRACE MAUL GRANICH, ACCOMPANIED BY
HER COUNSEL, DAVID REIN— Resumed
Mrs. Granich. Yes.
Mr. Doyle. And is counsel ready ?
Mr. Rein. Yes.
Mr. Tavenner. Mrs. Granich. it was shown in evidence that the
Eastern Publishing Co. and the Voice of China was being established
by your husband, Mr. Max Granich, and there was no reference in
the evidence to your occupying an editorial position with the paper
at the time of its inception in China.
But an examination of the files discloses that beginning with the
issue of February 15, 1937, the editors were reported in the Voice of
China as Max Granich and Grace Granich.
I would like to ask you why it was that your name did not appear
as the co-editor in the preceding issues of the Voice of China.
Mrs. Granich. I decline to answer that question. I am claiming
my constitutional privileges under the fifth amendment.
2293
2294 COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY
Mr. Tavenner. Is it not a fact that your prominence in this enter-
prise was deliberately concealed until well along in the publication
of that magazine ?
Mrs. Granich. I claim my constitutional privilege.
Mr. Tavenner. Will you speak a little louder?
Mrs. Granich. I claim my constitutional privilege there also.
Mr. Tavenner. I would like to return for the moment to the filing of
your application for passport to go to China. The application was
introduced in evidence as Grace Granich exhibit No. 2.
I notice that attached to your application for passport there is an
affidavit bearing date of April 2, 1935, with reference to the passport
which had been issued to you in April of 1932. In this affidavit you
state :
I further solemnly swear that the above-described passport —
that is, the passport of April, 1932 —
is, to the best of my knowledge and belief, not held by any person or persons
not authorized by law to possess it, and that it was lost in the following manner :
I am unable to state the exact circumstances under which the passport was lost.
I had it with a number of papers, letters, and so forth in my writing desk, but
have had no occasion to look for it since my return from Europe in the summer
of 1933. It is my belief that it was either burned in a general housecleaning or
taken by children who play at the house as a desirable plaything, in which event
it would also have been destroyed.
That is signed Grace M. Granich.
Now, is that a correct statement of the facts relating to the passport
of April 1932 ?
Mrs. Granich. I must decline to answer that question on the same
grounds.
Mr. Tavenner. Will you speak a little louder?
Mrs. Granich. I must decline to answer that question on the same
grounds, the fifth amendment.
Mr. Tavenner. Mrs. Granich, may I call your attention to the word-
ing of your answer when you say you must decline to answer.
Mrs. Granich. I decline to answer.
Mr. Doyle. You mustn't do anything, so far as we are concerned.
Mrs. Granich. I correct that statement.
Mr. Tavenner. Have you made any search for your passport since
the signing of this affidavit April 26, 1935 ?
Mrs. Granich. I decline to answer that question on the grounds of
the fifth amendment.
Mi-. Tavenner. Did any other person use that passport ?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment.
Mr. Tavenner. Mrs. Granich, it lias been shown by the testimony
of Louis Budenz that at the direction of the Communist Party, after
consultation with Earl Browder and other officials of the Communist
Party you established an organization known as Intercontinent News
and registered with the United States Government under the pro-
visions of the Foreign Agents" Registration Act.
Did you confer with Earl Browder and others of the Communist
Party relative to the establishment of Intercontinent News?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment.
Mr. Tavenner. And refuse to answer?
COMMUNIST PRESS IX THE COMMUNIST CONSPIRACY 2295
Mrs. < rRANlCH. And refuse to answer.
Mr. Tavenner. Did you and your husband play any pari in the
establishment of the Entercontinent News?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment.
Mr. Tavenner. The Intercontinent Xews had its initial inception as
a corporation, did it not?
Mrs. Granich. I claim my constitutional privileges.
Mr. Tavenner. Mr. Chairman, I offer in evidence a photostatic
eopy of the certificate of incorporation of Intercom inent News, a cor-
poration, certified to by the county clerk of the Supreme Court of
New York Count v, January B, 1952, and ask that it be marked ''Grace
C.ranich Exhibit No. 3."
Mr. Doyle. It will be received and so marked.
(The passport referred to, marked "Grace Granich Exhibit No. 3,"
is filed herewith. )
Mr. Tavenner. This certificate of incorporation was dated the
10th day of January. 1939 and it shows the incorporators to be Max
Granich, Victor J. Hanover, and Sol H. Cohn.
Who was Victor J. Hanover?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment.
Mr. Tavenner. Who was Sol H. Cohn?
Mrs. Granich. I claim my constitutional privileges.
Mr. Tavenner. Did you not know that these individuals, Victor J.
Hanover and Sol II. Cohn, were employees in the office of Joseph
Brodsky, the attorney who drew up the certificate of incorporation?
Mrs. Granich. I claim my constitutional privilege.
Mr. Tavenner. Were you acquainted with Joseph Brodsky?
Mrs. Granich. I claim my constitutional privileges.
Mr. Tavenner. Mrs. Granich, the committee is in possession of in-
formation that Victor J. Hanover and Sol H. Cohn, on the day follow-
ing the incorporation of Intercontinental News, assigned their interests
in the corporation to Grace M. Granich, Alexander Trachtenberg, and
Sam Dom, or, rather Sam Don, D-o-n. though he was sometimes re-
ferred to as Dom. D-o-m. Is that correct \
Mrs. Granich. I claim my constitutional privilege.
Mr. Tavenner. On the day following the incorporation of Inter-
continent News, is it not true that Alexander Trachtenberg was presi-
dent of the Daily Worker Advisory Council as an official of that
publical ion \
Mrs. Granich. I claim my constitutional privileges.
Mr. Tavenner. Is it not also true that Sam Don was a member of
the Daily Worker staff at that time? That is the day after the in-
corporation of Intel-continent News.
Mrs. Granich. I decline to answer that question on the same
grounds.
Mr. Tavenner. The committee is also in possession of information
showing that the corporation of Intercontinent News Corp. was dis-
solved on the 25th day of March, 1941. As evidence of this 1 introduce
in evidence a certificate, a photostatic copy of the original, under the
certificate of the clerk of the Supreme Court of New York County
bearing date January 8, l'.>.">2, and ask that it be marked "Grace Gran-
ich Exhibit No. 4." '
2296 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Doyle. It will be received and filed and numbered as requested.
(The document referred to, marked "Grace Granich Exhibit No.
4," is filed herewith.)
Mr. Doyle. May the record at this point show that committee
member Kearney has taken a seat.
(Representative Bernard W. Kearney entered the hearing room at
this point.)
Mr. Tavenner. Did you have an interest in this corporation as a
stockholder, or as a member prior to its dissolution ?
Mrs. Granich. I claim my constitutional privileges on that ques-
tion also.
Mr. Tavenner. When it was dissolved on March 25, 1941, did In-
tercontinent News continue as an unincorporated business under your
direction and control?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment and refuse to answer that question.
Mr. Tavenner. Was it operated by you, that is, the Intercontinent
News, as an unincorporated business from April 1, 1941, when the
contractual relationship between you and your Russian principal,
Runag, went into effect, and did you continue to operate it until June
17, 1944?
Mrs. Granich. I claim my constitutional privilege.
Mr. Tavenner. I hand you what purports to be a photostatic copy
of a registration statement bearing date of April 3, 1941, in which
the name of the registrant appears as Grace Granich, doing business as
Intercontinent News, purportedly signed by you.
Will you examine it and state whether it is a copy of a registration
certificate or statement signed by you and filed by you ?
(Mrs. Granich consults document.)
Mrs. Granich. I decline to answer. I claim my constitutional
privilege under the fifth amendment.
Mr. Tavenner. I desire to offer the registration statement in evi-
dence and ask that it be marked "Grace Granich Exhibit No. 5."
Mr. Doyle. It may be received and filed.
(The document referred to, marked "Grace Granich Exhibit No.
5," is filed herewith.)
Mr. Moulder. Could you indicate and show her the signature on
the photostatic copy and ask her the question as to whether or not
that is a photostatic copy of her signature ?
(Document handed to the witness and portion indicated by Mr.
Owens.)
Mrs. Granich. I decline to answer that question, claiming my
privilege under the fifth amendment.
Mr. Tavenner. I now refer you to the registration statement in
evidence as Budenz exhibit No. 8, which is a registration statement
filed by you on October 1, 1942, under the name of Grace Maul, mar-
ried name Grace Granich, this registration statement having been
filed with the United States Department of Justice.
In the question appearing under item two as question G you are
asked the name, address, and a brief description of the functions of
every organization in the United States or elsewhere of which the
registrant is or has been a member during the 2 years preceding the
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2297
filing of this registration statement. And in your answer to that
question appears this language:
Until January 1, 1941, Communist Party, U. S. A., political party.
Will you examine Budenz exhibit No. 8 and state whether you made
that reply to the question? [Handing document to the witness.]
Mrs. Gkanich. I decline to answer that question under my con-
stitutional privilege.
Mr. Tavenner. I notice that you made your reply without exam-
ining the exhibit which was handed you.
Mrs. Granich. I heard you read it.
(Mrs. Granich consults document.)
Mrs. Granich. I have examined it.
Mr. Tavenner. Your answer is the same?
Mrs. Granich. My answer is the same. I claim my constitutional
privilege.
Mr. Moulder. Can you tell us, after reading it, what it is? You
just read it Can you tell us now what you read ?
Mrs. Granich. You can read it for yourself. I am not reading it.
I claim my constitutional privilege.
Mr. Tavenxter. Will you examine Budenz exhibit No. 8 and state
whether your name is signed as the registrant ?
(Mrs. Granich consults document.)
Mrs. Granich. I decline to answer that question on the same
grounds.
Mr. Tavenner. Is that a photostatic copy of your signature?
Mrs. Granich. I claim my constitutional privileges.
Mr. Tavenner. If that statement were made by you as shown from
the registration statement, was it true when made ?
Mrs. Granich. I claim my constitutional privileges.
Mr. Tavenner. Well, were you a member of the Communist Party
at any time after January 1, 1941 ?
Mrs. Granich. I claim my constitutional privilege under the fifth
amendment.
Mr. Taven^ner. Mrs. Granich, there was testimony before the com-
mittee by Mr. Louis Budenz that the Intercontinent News, being oper-
ated by you as an unincorporated business, was subsidized from abroad,
and, to be more specific, that it was subsidized by the U. S. S. R. Was
that true?
Mrs. Granich. I claim my constitutional privileges.
Mr. Moulder. She should not be able to claim constitutional privi-
lege
Mrs. Granich. Under the fifth amendment I decline to answer the
question.
Mr. Tavenner. How were the expenses for the transmission of mes-
sages from your Russian principal paid ?
Mrs. Granich. I decline to answer that question on the grounds that
it might tend to incriminate me, claiming my privilege under the fifth
amendment.
Mr. Tavenner. Did von not send messages from the United States
to your Russian principal requesting to be advised regarding various
subjects?
Mis. Granich. I claim my constitutional privileges under the fifth
amendment and decline to answer the quest ion.
2298 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Tavenner. How were the expenses of those messages borne (
Mrs. Granich. I claim my constitutional privileges on the same
grounds.
Mr. Tavenner. Is it not a fact that they were paid by your Rus-
sian principal, the U. S. S. R. ?
Mrs. Granich. I decline to answer that question on the same
grounds.
Mr. Tavenner. Mr. Budenz informed the committee in his testi-
mony that the services rendered by your organization would incur the
annual expense of hundreds of thousands of dollars. In your judg-
ment, is that a fair appraisal of the cost I
Mrs. Granich. I decline to answer that question on the same
grounds.
Mr. Kearney. Was Mr. Budenz lying when he made that state-
ment?
Mrs. Granich. I decline to answer your question, sir, on the same
grounds.
Mr. Tavenner. The method of dissemination of the material which
you received from your Russian principal has been pretty accurately
and fully described by Mr. Budenz, but I want to ask you whether
or not in addition to the service which you rendered in the United
States you also sent copies of the material to persons or organizations
in South America?
Mrs. Granich. I decline to answer that question, claiming my priv-
ilege under the fifth amendment,
Mr. Tavenner. The committee is in possession of information,
Mrs. Granich, that the Intercontinent News, while operated as a cor-
poration, was located in the Communist Party headquarters in New
York City, but that on or about April 1, 1941, you were instructed to
move your place of business to 799 Broadway. Is that correct (
Mrs. Granich. I decline to answer that question on the same
grounds, claiming my privilege under the fifth amendment.
Mr. Tavenner. Did you at any time permit the use of Intercon-
tinent News as a mail drop for the transmission of messages to and
from members of the Communist Party ?
Mrs. Granich. I decline to answer that question, claiming my priv-
ilege under the fifth amendment.
Mr. Tavenner. Did your organization, the Intercontinent News, or,
was your organization, Intercontinent News, ever used as a mail
drop for the receipt of material or information from any person in-
tended for any member of the Communist Party or any official of
theU.S.S.R?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment and decline to answer the question.
( Mrs. Granich consults her counsel.)
Mr. Moulder. Were you ever associated or connected with any news-
paper in any capacity (
Mrs. Granich. I decline to answer that question oh the same
grounds.
Mr. Tavenner. Did you ever engage in a plan by which mail or
material was received or delivered to you for transmission by you to
any member of the Communist Party or to any official of the United
States Government?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2299
Mrs. Granich. I decline to answer that question on the same
grounds.
Mr. Tavenner. Are you acquainted with Philip Jaffe?
Mrs. Granich. I decline to answer that question on the same
ground.
(Representative Morgan M. Moulder left the hearing room at this
point.)
Mr. Tavenner. Are you acquainted with John Stewart Service?
Mrs. Granich. I claim my constitutional privileges.
Mr. Tavenner. Were you in Washington in 1946?
Mrs. Granich. I decline to answer that question on the grounds
that it might tend to incriminate me.
Mr. Tavenner. Is it not a fact that in 1046 you were in the city
of Washington in the company of Tung Pi Wu and three other Chi-
nese Communists?
Mrs. Granich. I decline to answer that question on the same
grounds.
Mr. Tavenner. Is it not a fact that on that occasion you were able
to locate Mr. John Stewart Service and arrange for a conference
Between the Chinese I mentioned and Mr. Service?
Mrs. Granich. I decline to answer that question on the grounds it
might tend to incriminate me.
Mr. Kearney. If that were not true, would you so state ?
Mrs. i rRANiCH. I didn't understand the question.
Mr. Kearney. If that question counsel asked you were not true,
would you so state ?
(Mrs. Granich confers with her counsel.)
Mrs. Granich. I decline to answer that question, too, on the same
grounds.
Mr. Tavenner. Were you acquainted with Jacob Golos \
Mrs. Granich. I decline to answer that question on the same
grounds.
Mr. Tavenner. Were you acquainted with Peter Christopher
Rhode- \
Mrs. Granich. I decline to answer that question on the same
grounds.
Mi-. Tavenner. Did you recommend Helen Tenney as a prospective
member of the underground apparatus of the Communist Party to
Jacob ( rdoS \
Mrs. Granich. I decline to answer that question on the same
grounds.
Mr. Tavenner. Were you acquainted with Helen Tenney?
Mrs. Granich. I decline to answer that question also on the same
grounds.
Mr. Tavenner. Did you make application in 1046 for a passport
to travel to China with your husband on the invitation of Madame
Sun Yat-sen to come to Shanghai and assist her with her adminis-
trative work in connection with her activities \
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment.
Mi-. Tavenner. Are you acquainted with Nathan Gregory Silver-
master?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment.
2300 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Tavenner. William Ludwig Ullmann ?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment.
Mr. Tavenner. Richard Bransten ?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment.
Mr. Tavenner. Ruth McKenney ?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment.
Mr. Tavenner. Owen Lattimore ?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment.
Mr. Tavenner. Robert Hall ?
Mrs. Granich. I claim my constitutional privileges under the fifth
amendment.
Mr. Tavenner. I have no further questions, Mr. Chairman.
Mr. Doyle. Mr.Velde?
Mr. Velde. No ; I do not have any questions. But from the testi-
mony of other witnesses here, Mrs. Granich, and my own personal
knowledge, I know that you and your husband have been extremely
dangerous to the security of this Nation in the past 15 or 20 years.
I am just wondering whether you feel right in your heart claiming
the privilege under our Constitution when you know that you are not
loyal to the United States of America.
Mrs. Granich. You see, Mr. Congressman, I know that I have been
a very loyal citizen of the United States, that I have never engaged
in espionage, that I have never done anything subversive, despite all
the efforts of this committee to believe otherwise. So I have a very
clear conscience.
Mr. Velde. That is all.
Mr. Kearney. If that is so, then why do you refuse to answer the
questions counsel has propounded to you, if you have nothing to fear?
Mrs. Granich. I think I am upholding the Constitution.
Mr. Kearney. In other words, you are hiding behind the fifth
amendment, I know that. I understand that you and your husband
operate a school in Vermont at the present time ?
Mrs. Granich. Not a school ; no, sir.
Mr. Kearney. What is it ?
Mrs. Granich. We have a 2-months' summer recreation camp.
Mr. Kearney. And boys and girls attend that camp ?
Mrs. Granich. That is right.
Mr. Kearney. What are their ages ?
Mrs. Granich. From 6 to 12. Sometimes the boys are 13.
Mr. Kearney. Where is the camp located ?
Mrs. Granich. Wilmington, Vt.
Mr. Kearney. Wilmington, Vt, ?
Mrs. Granich. That is right,
Mr. Kearney. How many boys and girls do you have on an average-
in summer attendance ?
Mrs. Granich. The camp is a new one. It has only been in opera-
tion a few years. We had 20 last year and 40 this year.
Mr. Kearney. Are there any subjects taught at those schools?
Mrs. Granich. No. It is not a school at all. We teach arts and
crafts.
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2301
Mr. Kearney. Those boys and girls, I take it, are members of all
good American families?
Mrs. Granich. As far as I know. I don't ask their
Mr. Kearney. You would know if they were not, would you not ?
Mrs. Granich. They certainly don't do anything up there to indi-
cate that they are not.
Mr. Kearney. That is all.
Mr. Doyle. Mr. Jackson ?
Mr. Jackson. Mr. Budenz has testified that the Intercontinent News
Service, as counsel has pointed out, was used for the purpose of trans-
mitting Communist directives and instructions to the United States
from the Soviet Union and in the other direction as well. Will you
state whether or not the statement by Mr. Budenz is a true statement
or a false statement?
Mrs. Granich. I claim my constitutional privileges again, Mr.
Congressman.
Mr. Jackson. Have you ever committed an act of espionage ?
Mrs. Granich. I have not.
Mr. Jackson. Mr. Budenz in his testimony makes the statement that
the News Service which was headed by yourself and by Mr. Granich
was established and set up, in effect, for the purpose of committing
acts of espionage. Your two statements are entirely inconsistent, the
one that 3011 have never committed an act of sabotage or of disloyalty
to this country and, on the other hand, the statement which is in evi-
dence before this committee that one of the purposes, if not the prime
purpose of the Intercontinent News Service, was to perforin exactly
that function.
(Mrs. Granich confers with her counsel.)
Mr. Jackson. There is an inconsistency which, in justice to your-
self, if you have never committed an act of sabotage or of treason
should be on the record in the form of a statement from you. Is the
statement correct, so far as the allegations against the Intercontinent.
News Service are concerned ?
Mrs. Granich. I decline to answer that question.
Mr. Jackson. Do you personally seek or advocate the overthrow
of the Government of the United States by force and violence ?
Mrs. Granich. I certainly do not.
Mr. Jackson. You do not?
Mrs. Granich. I do not.
Mr. Jackson. Do you approve of that doctrine as found in the
courts of this land and practiced by definition by the Communist
Party '(
Mrs. Granich. That is two questions.
Mr. Jackson. Do you believe that the Communist Party advocates
the overthrow of the Government of the United States by force and
violence ?
( Mrs. Granich confers with her counsel.)
Mrs. Granich. I claim my constitutional privilege there.
Mr. Jackson. But you do not advocate the overthrow of the Gov-
ernment by force and violence?
Mrs. Granich. I do not.
Mr. Jackson. Do you advocate a change in the Government of the
United States.
Mrs. Granich. I do not.
2302 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Jackson. To what nation do yon feel that yon owe your alle-
giance ?
Mrs. Granich. To the United States of America,
Mr. Jackson. In case of a conflict between the United States of
America and the Soviet Union, you would defend to the best of your
ability the interests of the United States ?
Mrs. Granich. If the United States is attacked by any country I
would defend the interests of the United States. If the United States
engages in an unjust war, I would do my best to bring that war to a
conclusion.
Mr. Jackson. Do you believe that the United States is engaged in
an unjust war in Korea ?
Mrs. Granich. I claim my privilege there.
Mr. Jackson. You refuse to answer that question as to whether or
not the United States is engaging in an unjust action in Korea?
(Mrs. Granich confers with her counsel.)
Mrs. Granich. I claim my privilege.
Mr. Jackson. Would you report an act of sabotage observed by you
and committed by a member of the Communist Party to the proper
authorities?
Mrs. Granich. That is a very hypothetical question.
Mr. Jackson. That is not a hypothetical question. If you saw a
Communist blowing up a bridge and you knew him to be a Communist,
would you report it ?
Mrs. Granich. Yes.
Mr. Jackson. You would report it immediately?
Mrs. Granich. It is an impossible question as far as I am concerned.
Mr. Jackson. It is not an impossible question, it is one of the most
fundamental questions with which we are confronted, espionage and
sabotage by those who are determined to overthrow this form of
government.
My personal feeling, Mrs. Granich, is that you have, for many years,
been a member of the Communist Party, that you continue today to be
a member of the Communist Party, and represent a constant and con-
tinuing menace to our institution and to our Government.
That is all, Mr. Chairman.
Mr. Doyle. Are you now a member of the Communist Party?
Mrs. Granich. I claim my constitutional privilege.
Mr. Doyle. Were you ever a member of the Communist Party of
the United States ?
Mrs. Granich. I claim my constitutional privilege under the fifth
amendment and decline to answer the question.
Mr. Doyle. You heard your husband's answer to my question when
I asked him if you had gone with him to any foreign country. He said
you had gone with him to China. Is that true ?
Mrs. Granich. I claim my constitutional privilege.
Mr. Doyle. You heard him state that, did you not ? You were right
here. I saw you within 10 or 12 feet of him. *
Mrs. Granich. I claim my constitutional privilege.
Mr. Doyle. At the time he so testified.
Mrs. Granich. I claim my constitutional privilege.
Mr. Doyle. Did you go with him to anv other foreijm country other
than China ?
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2303
Mrs. Granich. I decline to answer that question on the same
grounds.
Mr. Doyle. Are you and he the parents of any children %
Mr-. Granich. No; I have no children.
Mr. Doyi.k. Are you the mother of any child \
Mrs. Granich. I have no children.
Mr. Doyle. The reason I ask that is— though it seems rather per-
sonal— because you and he have both testified that you are engaged in
operating a children's cam}).
Mrs. Granich. One can love children without having children.
Mr. Dotle. Yes; I recognize that, both as a parent and a grand-
pa rent, which I happen to be.
With reference to the children's camp, I think you heard him testify
yesterday, when you were close to him here in the hearing room, that
you liot $300 from each child for 2 months.
Mrs. Granich. That is right. It varies from $300 to some children
who come for much, much less than that, if they cannot afford it. Some
children pay $310, to be precise.
Mr. Doyle:. Do you take children entirely free on the basis of
charity?
Mrs. Granich. No: not entirely free. My two nephews come up
there and don't pay.
Mr. Doyle. That is quite natural, that you would not charge your
nephews.
Mrs. Granich. Nobody else comes there.
Mr. Doyle. How about a total stranger?
Mis. Granich. Nobody else comes like that free.
Mr. Doyle. No one else conies free except your own immediate
relatives \
Mrs. Granich. That is right.
Mi-. Doyle. Does any person or any organization make any con-
tributions to the support of the school?
Mrs. Granich. Nobody. It isn't a school — I correct you — it is a
camp.
Mr. Doyle. I beg your pardon, it is a camp. But I am sure I heard
your husband state yesterday that you carried a list of instructors.
Mrs. Granich. No.
Mr. Doyi.k. You say "No"?
(Mrs. Granich confers with her counsel.)
Mr. Doyle. You heard his testimony all day yesterday. You were
right here in the room.
Mrs. Granich. If he said a list of instructors, yes, I heard his
testimony. He did not say we had instructors, lie said we had
counselors.
Mr. Doyi.k. Counselors?
Mis. Granich. These are high school kids who help the kids have
a good t ime.
Mr. Doyle. Do you pay the counselors?
Mrs. Granich. Some we pay a little, some a little more, some have
their summer.
Mi-. Doyie. From what high school student bodies have you drawn
any instructors?
Mrs. Granich. I don't know. I have never asked them what high
schools they go to.
2304 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mr. Doyle. Never what?
Mrs. Granich. I don't know what high schools they go to.
Mr. Doyle. What cities do they come from ?
Mrs. Granich. New York, usually.
Mr. Doyle. Tell me definitely the name of one counselor that you
had last summer, and what that counselor counseled in, what subject.
Tell me the name of one person.
(Mrs. Granich confers with her counsel.)
Mrs. Granich. Mr. Congressman, I have a great reluctance to name
the names of any counselors because of the fact that this reaches the
press, and that they smear the reputation of nice boys and girls.
Mr. Doyle. You would not have any hesitancy in giving the names
of your counselors in executive session, would you ?
(Mrs. Granich confers with her counsel.)
Mr. Doyle. You certainly keep a list of the counselors that you had
last summer. I have conducted summer camps, and we certainly used
to do that. We kept the names and their addresses and the salary
they were paid and the subjects they taught. I have conducted camps
of as many as 150 boys, so I know something about the orderly process
of conducting a summer camp.
(Mrs. Granich confers with her counsel.)
Mr. Doyle. I just assume, Mrs. Granich, that nothing possibly
could incriminate you or any of the counselors by reason of the fact
that they have been counselors at the camp.
Mrs. Granich. I decline to answer this question, claiming my
privilege under the fifth amendment.
Mr. Kearney. Can I ask this question, Mr. Chairman \
Mr. Doyle. Yes, Mr. Kearney.
Mr. Kearney. Would you give those names in executive session?
Mrs. Granich. I would still decline to answer.
Mr. Kearney. That is what I thought.
Mr. Jackson. Mr. Chairman ?
Mr. Doyle. Mr. Jackson.
Mr. Jackson. I would offer the suggestion that the committee go
into executive session at this time.
(Mrs. Granich confers with her counsel.')
Mr. Kearney. I would like to ask one more question before that.
I did not get your answer with reference to the question asked you by
Congressman Jackson, concerning your thoughts on the so-called
war in Korea today, or, police action, some people call it.
Mrs. Granich. I claim my constitutional privileges there.
Mr. Kearney. To follow the Congressman's thoughts, if you found
an act of sabotage being committed by a member of the Communist
Party, with particular reference to war material being sent to Korea,
would you report it to the authorities ?
Mrs. Granich. I would report an act of sabotage committed by
anybody.
Mr. Kearney. Even though it was connected with the Korean war,
your thoughts on which you refuse to answer with reference to con-
stitutional rights?
Mrs. Granich. That is right.
Mr. Doyle. Mrs. Granich, a few minutes ago in answering the
Congressman's question, you said you had not engaged in any sub-
COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY 2305
versive conduct. What, in your mind, is the definition of the word
"subversive" conduct * You used it in answer to the question.
Mrs. Granich. Subversive? I would say anything that
Mr. Doyle. I cannot hear you.
Mrs. Granich. I would say that subversive was anything that
undermined the Government of the United States, was subversive.
Mr. Doyle. And what do you have in mind by "anything" ?
Mrs. Granich. I don't have anything in mind. You asked me for
a definition and I gave you a definition. Perhaps it is a poor defini-
tion. It is my definition.
Mr. Doyle. By "undermining the Government of the United
States" can you give us an example or illustrate what you mean by
undermining?
Mrs. Granich. Well, I don't know.
Mr. Doyle. What sort of conduct by a person do you mean ?
Mrs. Granich. I claim my constitutional privilege there. I don't
think I have to spell it out for you what is subversive and what isn't.
Mr. Doyle. I did not mean to be impolite to you in asking you to
define the definition of a word you used voluntarily.
Mrs. Granich. I would accept the standard definition of "sub-
versive" as appears in Webster's Collegiate Dictionary.
Mr. Doyle. What is that definition %
Mrs. Granich. I don't know exactly. I know what
Mr. Doyle. Will you take this paper, please, Mrs. Granich, and
will you please sign your name as you ordinarily sign it on that
paper ?
(Mrs. Granich confers with her counsel and writes on paper.)
Mr. Doyle. Now will you please print your name as you would
print it when you are asked to print it, just Grace Granich.
(Mrs. Granich writes on paper.)
Mr. Doyle. Thank you. Of course, the reason I asked you to do
that was, among other reasons, because you have refused to identify
your own signature on Budenz exhibit 8, on page 8, where it appears
that someone by the name of Grace Granich signed and swore to her
name before a notary public, Fay Siegartel, November 3, 1942.
I would like to offer this signature Mrs. Granich has just made in
open hearing as an exhibit.
Mr. Tavenner. I suggest it be given "Grace Granich exhibit No.
(The document above referred to, marked "Grace Granich ex-
hibit No. 9," is filed herewith.)
Mr. Doyle. I also offer that in connection with her declamation or
her claiming her privilege in relation to the different passport applica-
tions.
Mrs. Granich, do you have a list of the counselors who were at your
camp last summer?
Mrs. Granich. I don't now, sir.
Mr. Doyle. I understand you would not have it with you; but
where is the list ? You have it at the farm, do you not?
Mrs. Granich. Probably.
Mr. Doyle. Do you or don't you ?
Mrs. Granich. Yes.
Mr. Doyle. And payrolls, too, for last summer's counselors?
(Mrs. Granich confers with her counsel.)
2306 COMMUNIST PRESS IN THE COMMUNIST CONSPIRACY
Mrs. Granich. Yes ; I have payrolls.
Mr. Doyle. And the addresses of the counselors are on that list,
of course, so that you can communicate -with them by letter or by
phone ; are they not ?
Mrs. Granich. I don't know whether I have all the addresses or not.
Mr. Doyle. Well, you may not have all, but most of the addresses,
of course ?
Mrs. Gkanich. I think so ; yes.
Mr. Doyle. You know right where that list is now; you keep it in
a definite place, of course, in the records of the camp, do you not \
Mrs. Granich. My records are not such carefully kept records. I
don't know exactly where it is.
Mr. Doyle. Well, it is not where the children could have taken it
or removed it, is it ? *
Mrs. Granich. Probably not.
Mr. Doyle. In fact, you have seen it and had it in your possession
within the last 2 or 3 months, have you not I
(Mrs. Granich confers with her counsel.)
Mr. Doyle. What is your answer, Mrs. Granich ?
Mrs. Granich. I am very sorry, but you will have to repeat the
question.
Mr. Doyle. I think my question was directed to whether or not
you had the list in your possession since the last summer camp.
Mrs. Granich. Yes ; I have the list.
Mr. Doyle. In other words, you know where it is now ?
Mrs. Granich. I think I can find it ; yes.
Mr. Doyle. Then the committee will go into executive session at
this time; and Mrs. Granich, you are directed to remain available,
because we will only be in executive session I think a few minutes,
and we would like for you to be here where we can call you into execu-
tive session, you and your counsel.
Mr. Rein. We will be just outside.
Mr. Doyle. And all visitors and people who are not under subpena
will please leave the room, including Mrs. Granich and counsel,
temporarily.
(Whereupon, at 11 : 40 a. m., the committee proceeded into executive
session.)
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