TABLE II.—Estimated general fund operations—Cash position at end of year-Con. $15,982, 397. 14 1,444, 139. 20 (1) Fiscal year 1939-40. $830,029. 11 1,409, 192.55 Total appropriations set up on books during 1939–40.. Cash surplus over appropriation liabilities June 30, 1940. (2) No fiscal year....... Treasury cash balance June 30, 1940.. 2,853, 331.75 TABLE III.-Cash balances of the insular treasury of Puerto Rico as of June 30, 1943, general fund and trust funds TABLE III.-Cash balances of the insular treasury of Puerto Rico as of June 30, 1943, general fund and trust funds-Continued TABLE III.-Cash balances of the insular treasury of Puerto Rico as of June 30, 1943, general fund and trbst funds-Continued TABLE IV.—Public indebtedness of the insular government of Puerto Rico, 1939–40 On page 208 reference was made to a "Discussion off the record.” Mr. Covo has advised that the following statement is substantially that made in his off-the-record remarks: The significance of Fahy's letter to Thoron on November 20, 1942, shows without any doubt the existence of a plan for the elimination of private merchants. In his frequent references in the letter to the word "we" Fahy undoubtedly refers that Governor Tugwell with whom he lived and Ed Bash of Food Distribution Administration where he had his office, and possibly some other radicals, were in full accord with these undemocratic and totalitarian plans. It is also remarkable how Fahy could be given the title of expert on Puerto Rican affairs by the United States Department of the Interior and how also could he speak about and participate in these radical plans, when in reality the only experience that he had about Puerto Rico was the 3 weeks he spent there before writing the said letter to Thoron. Fahy's spoken words substantiate always his radical writings and in support to this I will state that in a conversation Attorney Miller and Mr. Wayne, both from the Puerto Rican Reconstruction Administration, had with Fahy, he declared to them that he was a dyed-in-the-wool Red. Also Tom Sawyer, formerly with the War Production Board in Puerto Rico and now in the United States Army, told me in the presence of Alberto Bachman of San Juan that he knew Fahy in Bogota, Colombia, when Fahy was employed there by the Coordinator of Inter-American Affairs and then saw him again in Puerto Rico. During their conversations in Colombia and Puerto Rico, Fahy told him on several occasions that not only was he à Communist, but tried to convert Sawyer and other people with whom he associated to his radical ways of thinking. Sawyer's opinion was that Fahy was indeed a Red and also a "back slapper" whenever it would help to promote his radicalism. However, Representative Elmer Ellsworth of Puerto Rico told me that while he knew that Fahy was a Communist he nevertheless considered him a coward, because of Fahy's attempt to cover up the fact that he is a Red when the Dies committee was investigating his activities. Further, Ellsworth stated that he takes pride in declaring himself a Communist without any fear whatsoever. As previously stated in my testimony, the letter of April 19, 1943, from Bash to Major Olmstead, shows that Bash was actively carrying out the same scheme as Fahy. That Bash was infected with the same radical ideas as Fahy and the governorship was shown by remarks he made to me during a heated conversation in his office, wherein he stated that he, having been brought up without shoes for many years, therefore sympathized with the cooperative and other plans that were being carried by the radical element there. To the comments in Bash's letter that the Centro de Detallistas was in favor of his scheme, I can positively state that his was secured by favors and promises from Bash and the governorship and his cohorts to the president of the Centro de Detallistas, Nieves Alicea, and also to his secretary, Betancourt. To substantiate this I will declare that during a picnic given at the Hacienda of Ortiz Rubio during the month of April 1943 where Nieves Alicea, Betancourt, Maurer, Bash, myself and many other Puerto Ricans attended, I overheard a discussion whereby Nieves Alicea stated that he had the full backing and support from the governorship and many insular governmental people, for Senator at the next elections and that when elected Betancourt would be his successor as the president of the Centro de Detallistas. This proves that Nieves and Betancourt are playing hand in hand politics with the governorship and Food Distribution Administration. Two or three weeks before Bash's letter to Major Olmstead was written Nieves Alicea promised to DeHostos, president of the Puerto Rican Chamber of Commerce, full backing to DeHostos' policies of free commercial enterprise which Bash, Fahy, Governor Tugwell, and other radicals are seeking to destroy. For further proof that Bash was very unethical and brazen in his activities, I will refer you to the conversation I had with Mr. Bailey of the United States Department of the Interior, wherein he stated that just before the Chavez committee went to Puerto Rico, Bash approached Governor Harwood of the Virgin Islands for a written statement praising the activities of Food Distribution Administration, which the Governor refused to do as he was dissatisfied with Food Distribution Administration's methods and results. Since Bash was unable to get what he wanted from the Governor, he approached the colored members of the council, who were in no position to deny his request and gave him a document of praise which was in conflict with the true facts. When Governor Harwood visited Washington after the Chavez committee's return from Puerto Rico he was strongly reprimanded by the Under Secretary Fortas, Director Thoron, and Puerto Rican Expert Fahy about his refusal to give Bash the requested letter of praise. In connection with the contents of the cable that Thoron sent me under date of May 11, 1943, advising about the discontinuance of the Office of Supply Officer in Puerto Rico and that I return to Washington with all my belongings, I will state that this abrupt decision is very contradictory to the contents of his suave and supporting letter of April 26. In this he supports and praises my work as well as states that he depends and has full confidence in me and my future work in Puerto Rico. Then how is it possible that a fortnight later he sends me the cable of May 11? In my estimation Mr. Thoron sent me the cable against his will and to prove this I will refer to what Mr. Bailey from the United States Department of the Interior told me. He stated that according to the conversation he had with Thoron, the same advised him that the Under Secretary Abe Fortas gave him orders to liquidate the Office of Supply Officer of Puerto Rico because Governor Tugwell disliked me and could not get along with me. It is true that I could not agree with Governor Tugwell's meglomaniac and surrealistic plans and ideals, but being that I was working for the United States Department of the Interior and not under the orders of Governor Tugwell, I,therefore, respectfully request the insular committee to inquire from Under Secretary Abe Fortas for an explanation why he, a Federal executive, did follow instructions and bow his head to an insular authority, namely Governor Tugwell. In substantiation that Under Secretary Fortas is a disciple of Governor Tugwell I will state that upon my return from Puerto Rico, during a conversation I had with Mr. Kenfield Bailey, office administrator, and Mrs. Ruth Hampton, subdirector, both of the United States Department of the Interior, I was told that they fully agreed to my remarks in the letter of April 20, 1943, to Abe Fortas, and that they and many of the pre-war employees of the United States Department of the Interior were disgusted with Abe Fortas and Jack Fahy's doings and that both Fortas and Fahy, who have not been more than a year in their respective jobs, were backing and working hand in hand with Governor Tugwell and his radical plans. I asked Mrs. Hampton and Mr. Bailey why they didn't complain to Secretary Ickes about these irregularities, to which they said that they were afraid to express their views because they might lose their jobs. I told them that this was incredible in this great democratic country of ours where freedom of speech and freedom of fear were guaranteed by my President to every loyal American. EXHIBIT No. 7 On page 208 reference was made to a list of food commodities to be shipped through commercial channels and handled by the General Supplies Administration. These figures were based upon 1939-40 imports plus 10 percent due to population increase. This list is in the committee files and can be inspected upon presentation of proper authority. EXHIBIT No. 8 On page 218 reference was made to a "Discussion off the record." Mr. Covo has advised that the following statement is substantially that made in his off-the-record remarks: Some months ago I urged the leading clubs-Rotary, Lions, Optimists, Propeller to pass resolutions in support of law and order to fight a small (?) part of the community who did not seem to be cooperating in the war effort. At that time the black market was in its infancy. Now we begin to see the possibility of greater abuses. The worst is certainly yet to come. The Black markets come from disregard of law and order-lack of discipline. only way we can stamp out this evil is for good honest citizens to organize and fight for the right and the best interests of the country as a whole. I suggest that you change the name of your body from spirits to patriots. We spend large amounts of the public's money in policing the community through the Federal Bureau of Investigation agents of the Office of Price Administration plus the regular police force. Why not police ourselves and save much of this needless expense? I suggest that Colonel Smathers appoint a committee of three to draw up a pledge to be signed by every patriot. The form should be simple and I suggest something like the following: PLEDGE OF A PATRIOT The privilege of American citizenship demands that I obey the laws of my country implicitly in this hour of national need. I will go further and obey all the regulations of the Office of Price Administration, Office of Defense Transportation, and other Government directives. Particularly I will obey motor regulations devised to conserve rubber and gasoline. I will have no part in any black market dealings and will report any such traitorous actions by others to the patriots' committee. I will testify against the violators if called upon to do so. |