of Kalvar in order to close the transaction properly and as I said before, there were two or three independent law firms who told them this was entirely appropriate.

Senator STEVENSON. You don't feel any of the other stockholders in SOS had any real interest?

Mr. CASEY. There was no need to make an offer to them. We were prepared to do it if it could be arranged. We were ready to have the hearing but the management subsequently decided that acquiring that additional amount of stock wasn't worth the effort.

Lots of times there is no need for a corporation to decide to acquire all of the shares of another company.

Senator STEVENSON. But the laws are intended to protect all of the stockholders.

Mr. CASEY. The law is intended to protect those shareholders to whom an offer is made.

Senator STEVENSON. That is your view of the California securities law?

Mr. CASEY. I am not an expert on the California securities law. Senator STEVENSON. Would that be your view as chairman of the SEC?

Mr. CASEY. You would have to be more specific.

Senator STEVENSON. Well, let me put it this way. Taking that same hypothetical case, you indicated you saw nothing wrong with the principals getting together to consummate this transaction in New Orleans outside of the jurisdiction of California.

Would you see nothing wrong with it either as chairman of the SEC?

Mr. CASEY. I don't think my view as chairman of the SEC would be any different than that as a lawyer. The California shareholders have whatever rights they may have.

If the principal shareholders are taking a price excessive, in relationship to what they are paying, they have an action against them. That is a difference between the minority and majority stockholders. Senator STEVENSON. Well, my 10 minutes have expired. Maybe we can resume a little later.

Mr. CASEY. Senator, do you want to take some of the other witnesses that I have?

The CHAIRMAN. Well, Senator Packwood, I believe, is next.
Senator PACKWOOD. I have no questions, Mr. Chairman.

The CHAIRMAN. How about you, Senator Brock?

Senator BROCK. Just a couple of points, Mr. Casey.

First, I would like to state for the record that I thought the recitation in the record of losing your-letting Mr. Garfield get under your skin was interesting and somewhat dramatic. I don't think it is really relevant to this hearing.

What I got out of this entire session is both you and the judge have some difficulty of recalling every detail of something that happened 9

years ago.

Mr. CASEY. I think the judge and I would agreed to that.

Senator BROCK. If I could just summarize the situation in the Fields' case, you personally, while you are responsible as any manager of any

to do with, to either condone or participate in any sense whatsoever, any plagiarism at all.

Is that a fair statement?

Mr. CASEY. That is my testimony, Senator, yes.

Senator BROCK. Thank you very much.

The CHAIRMAN. Would you like to bring the other two witnesses

up?

You said two, didn't you?

Mr. CASEY. Two or three.

The CHAIRMAN. Would you like to call them up?

Senator PROXMIRE. I presume this will not complete Mr. Casey's testimony?

The CHAIRMAN. No; I imagine he simply wants to release them. Suppose we take a 10-minute break. The reporter is getting a little weary, I think.

(Recess.)

The CHAIRMAN. Let the committee come to order, please.

Now, have a seat, give your name and occupation for the record; we shall appreciate it.

STATEMENT OF LEO CHERNE, RESEARCH INSTITUTE OF AMERICA

Mr. CHERNE. Thank you, Senator.

I am Leo Cherne. I am executive director of the Research Institute of America, chairman of the board of the International Rescue Committee. In both capacities I have had an opportunity to know Mr. Casey rather extensively. It so happens that the Research Institute of America was the first serious employer of Bill Casey some months or a brief period of time, I don't know precisely at this point whether it was as much as a year after he graduated from law school.

He was added to the staff of the Research Institute as a young tax lawyer. He learned tax law at the Research Institute. Within a brief period of time he developed such a significant understanding of this most complex field of government that his area of responsibility were rapidly enlarged.

By the end of 1938, I, his employer, was deeply involved in assisting the War and Navy Departments, the Army and Navy Munitions Board to be precise, in the completion of the final industrial mobilization plans for World War II. This effort flowed from the fact that we at the Research Institute were persuaded after the Munich Pact that war in Europe was likely.

The Assistant Secretary of War, Louis Johnson, got in touch with us to request our assistance in two things. Assisting them to perform certain tasks in connection with industrial mobilization and especially to make public to the labor and business community particularly for the first time the details of industrial mobilization such as would be needed in the event of a wartime emergency.

As a result of my increasing involvement with the details of industrial mobilization, I am pleased by Bill Casey's very rapid understanding of complex areas of government regulation; I asked him to take over charge of the entire staff of the Research Institute.

Before the end of 1939, Mr. Casey had already participated in a

mental importance to the Senate Finance Committee, a study of pension plans, profit-sharing plans, and incentive taxation in the field of pay plans.

The Senate Finance Committee conducted an investigation of those areas with a view to modifying the Federal tax laws towards adding further incentives. I mention that one because the area that Bill Casey was then involved in, as it turns out, 18 years later with 18 years' further experience, is the area of expertise involved in this multivolume loose-leaf service in which plagiarism had occurred.

Let me say in that connection, I will return briefly to Casey, that the Research Institute has many times the number of subscribers enjoyed by the Institute of Business. I am happy to say that because we are, in fact, in competition with each other. It does, in fact, make this testimony a litle awkward for me because I am in effect testifying on behalf of a competitor.

But in connection with the performance of the kinds of business services that are involved in the Fields case, let me say that the Research Institute has at no point paid for a manuscript of the total size of the Fields manuscript, a sum in excess of $2,500 for the total use of such a manuscript.

Let me also say that it is inconceivable to me, not that plagiarism occurred, but on the question of punitive damages which means the existence of willful misconduct, malice, personal participation, or wanton disregard, it would be most inconceivable to me that one who is one of the country's leading specialists in this particular field of law would, in fact, have the slightest incentive, either himself or to encourage anyone else, to take 211⁄2 or 5 or 15 pages of an obscure manuscript. I refer to Casey.

Now, the work which the Research Institute did in the field of industrial mobilization led very rapidly after the declaration of war in Europe to the institute's preparing a very large loose-leaf service in the entire field of war controls.

William J. Casey was in charge of that operation. The most massive we had ever undertaken. He recruited for that purpose distinguished European experts in the fields of price control and priorities. Price control especially being an area of the United States that had no particular reason ever previously to have contact with.

Europeans regrettably in their post-World War I experience had ample reason a number of times to attempt to control inflation via price controls. I mention this as an indication of the enormous creativity that Casey evidenced at a very early period in his exposure to Government regulation.

As a result of that creativity he began increasingly to be called upon by agencies of the Government, War Production Board, Office of Price Administration, to assist them, consult with them, consult in connection with the preparation, for example, of the extremely complicated controlled materials plan.

By 1943 Bill Casey felt that having played a strong role he did in articulating for the business community, Government, labor, public, generally, the whole field of war controls, he felt that his personal course of conduct obligated him to enlist directly in the war. He did so in 1943 and, not surprisingly, within weeks was selected by General

liaison for David Bruce in contact with the French underground. The CHAIRMAN. That was Wild Bill Donovan?

Mr. CHERNE. That is correct. OSS. As a result of again the very quick mastery of that undertaken, as he had mastered those at the Research Institute that I previously described, within months he was selected by General Donovan to be the director of all European Theater Intelligence operating out of London.

In that connection he again assembled an extraordinary group of specialists. A group including one of the most distinguished authorities presently in the field of international law, Professor Milton Katz, who, I understand, is here and can speak more directly to Casey's operation of that critical office, others like Arthur Schlesinger, others like Lazar Tepper of the International Ladies Garments Union, a most remarkable assembly of bankers, economists, intelligence experts, lawyers.

This in one of the most sensitive of all areas of activity. Incidentally, let me say before he did enlist he had already been employed as chairman of the board of directors of the Research Institute guiding the work of some 40 lawyers all of them specialists in the whole range of generalized regulations affecting business.

On his return from the war he returned to the Research Institute. Some measure, incidentally, of the stature of the role he played for the Research Institute, when he left his successor as chairman of the institute board of eductaors was Leon Henderson, who in accepting that responsibility indicated that he felt, having retired from OPA, this was the most effective way he could further advance the war effort.

When Bill Casey returned to the institute he returned now to take a very substantial part in the institute's work in connection with reconversion of the economy, the new obligations, the needs of the management which had been made sophisticated by the war, but Casey was restless.

He took increasing leaves of absence. I think the leaves of absence are significant. The first one was for the purpose twice of assisting in requests that he participate in the panels which within the Truman administration defined the needs out of which arose America's postwar intelligence apparatus.

The next leave of absence occurred in connection with the request. of Bill Basey that he play a part in shaping the apparatus which administered the Marshall plan. This whole range of Casey's commitment to public service, in my opinion, has not emerged and if the public is in fact to understand both the capacity of the appointment to an office as serious as this as well as the quality of commitment such a man would bring to it, I do think that I am bringing to this distinguished committee details which have far greater consequences, of enormous importance and one which may begin to shed some further light on whether or not the questions which have been raised about certain marginal activities of Bill Casey's are quite as relevant as they very understandably on first blush appear to be.

Let me say, incidentally, that his sensitive concern, especially for those who in any country have been deprived of freedom, in totalitarian countries, Communists and Facists have led me twice to turn to Bill Casey, first for a period of 2 years as a member of the Board

Tf International Rescue Committee and then the International Rescue ommittee participated very actively in Vietnam in 1954 assisting in e resettlement of some of the 900,000 who fled from North Vietnam South Vietnam.

Our programs of assistance were terminated in 1960. At President Ez ohnson's requests made of a number of voluntary activities that they nlarge their activities in Vietnam. We returned in 1964 to find, as you gentlemen know far better than I do, a picture as complex as it is ragic in order to assist in determining what it is that the Internaional Rescue Committee might meaningfully do in that tragic morass, [again turned to Bill Casey in 1965.

He went to Vietnam, intensively studied the needs, the refugees, the orphans, returned to the IRC with his recommendations. Those recommendations led to very substantially more effective and larger programs, humanitarian in nature. Because of his recommendations we requested him to accept the chairmanship of the International Rescue Committee, this last fall he was elected president of the International Rescue Committee.

Again some measure of the nature of the man, I recall very vividly I two episodes. I will take the latter one first and then I will conclude and answer any questions you may have.

Organizations like the International Rescue Committee have always had great difficulty of attracting public support for finance. Their overseas undertakings and others. As a result, we have to choose the things we undertake to do to help people. Something less than a year ago we had an intensive full-day examination of all of our programs and I specifically recall Bill Casey's recommendations to his colleagues that above all else we enlarge the assistance we provide to those fleeing Greece, those fleeing Haiti, and those political refugees fleeing totalitarian countries in Africa.

Again I feel it is relevant in an effort to determine what kind of man is nominated to a public post. Now, the other episode which I would not have thought of bringing to the attention to the Committee except for the heated language that occurred in a room where a deposition was taken that I misheard for the first time today.

I must honestly say, in 33 years of knowing Bill Casey, frankly, I have never heard him so aroused as he was on this occasion. In fact, I know him for quite the opposite. It was on August 22, 1968, 2 days after Soviet tanks moved into Czechoslovakia, within hours of that movement, incidentally, Bill Casey phoned me and asked if he could be of any help to the committee. If so, he was prepared immediately to fly overseas. I indicated I was flying to Vienna and it would be helpful if he flew to Munich; from Vienna I could survey the situation of outcoming refugees across the Czechoslovakia border in Austria; in Munich, Casey was to do the same for the border between Germany and Austria.

Casey spoke to a number of people including Willy Brandt; he said the German border was sealed tight; no function the International Rescue Committee could perform and he said he thought he would join me, which he did. The day after he arrived the news in Austria was that the frontier was open and traffic was in fact proceeding both ways.