THE DEPARTMENT OF JUSTICE REPORTS

In fulfillment of its function of legislative oversight, the subcommittee herewith transmits to the Senate pertinent passages from annual reports of Acting Assistant Attorney General J. Walter Yeagley and J. Edgar Hoover, Director of the Federal Bureau of Investigation. Mr. Yeagley summarizes the accomplishments of the Internal Security Division of the Department. According to his report—

the year 1958 brought a substantial increase in violations of
our neutrality laws. More than 145 persons were convicted
of various offenses against Federal laws designed to protect
the Nation's neutrality. Most of the convictions were of
supporters of Cuban rebel groups who have been attempting
to bolster the revolution of Fidel Castro by sending arms,
men, and equipment from the United States to rebel strong-
holds in Cuba. Although the activities of the Castro
supporters were centered principally in the Florida area,
persons violating these laws were also apprehended in Texas,
California, and New York, as well as other areas of the
country.

The report also reflects a marked increase in cases brought against firms alleged to have been engaged in trading with Communist China in violation of the Trading With the Enemy Act. During the year six convictions were obtained while seven other cases are pending.

The year also witnessed an increase in the number of agents in this country representing foreign principals. As required by the provisions of the Foreign Agents Registration Act of 1938, as amended, more than 90 new registration statements were filed during the past 12 months by individuals and organizations acting within the United States as agents of foreign principals. This brings the total number of active registration statements to 387 as of December 27, 1958, which is the highest number for any one year since the administration of the act was assigned to the Department of Justice in 1942.

Mr. Yeagley announces that the Division

obtained convictions under the membership clause of the
Smith Act against Junius Scales, chairman of the Communist
Party in the Carolinas, and John C. Hellman, leader of the
party in Montana. Conviction of Scales was affirmed by the
court of appeals and his case is pending before the Supreme
Court for the second time. The earlier conviction had been
reversed on the basis of the Jencks opinion regarding pro-
duction of statements of witnesses.

The Court of Appeals for the Second Circuit affirmed the
earlier district court conviction of Rudolf Ivanovich Abel for
conspiracy to violate our espionage laws. Also a conviction
was obtained in New York City against Mark Zborowski for
falsely denying before a special grand jury that he had known
Jack Soble, a confessed Soviet espionage agent.2 Soble,

: Zborowski had previously testified before the Internal Security Subcommittee: Pts. 4 and 5, "Scope of Soviet Activity in the United States."

the Government's chief witness, testified to meeting Zborow-
ski 40 to 50 times for the purpose of receiving information
concerning anti-Soviet organizations and individuals active
within the United States. Zborowski took the witness
stand in his own defense and admitted to a long history of
Soviet service including activities in Europe as well as within
the United States.

Summarizing the efforts of the Division to enforce the Federal criminal laws against those Communists who infiltrated organized labor, the report said—

Two union officials were convicted of falsely filing non-
Communist affidavits, and seven other individuals were con-
victed for conspiracy to file false non-Communist affidavits
with the National Labor Relations Board. Three others
whose convictions had been reversed by appellate courts
were retried and again convicted.

The report further stated that

of 18 cases involving internal security considerations in suits
brought by individuals against the Government or Govern-
ment officials in Federal district courts this Division was
successful in winning 15 cases.

MR. HOOVER'S WARNING

J. Edgar Hoover warned that apathy toward the threat of subversion continued to grow in 1958.

Sensing a more favorable atmosphere, the Communist Party, U.S.A., and its dupes and sympathizers gained further courage and became more vocal in their attacks upon law enforcement and other professions which are dedicated to preserving our freedoms

he said.

Among the Communist Party's most ambitious activities during 1958 was the formulating of positive programs to infiltrate mass organizations and to establish a new Communist youth group, Mr. Hoover revealed.

The Communist Party professes to be a legitimate political organization on the American scene; however, its leadership reins are firmly held by rabidly pro-Soviet elements, and the party's ultimate objective remains the overthrow and destruction of our Government by force and violencesaid Mr. Hoover.

Throughout 1958 the party continued to function as an integral part of the international Communist conspiracy which now controls more than one-third of the earth's people. Since June 1958 several party leaders have applied for passports and made plans to travel to the Soviet Union. The FBI Director stated that, in 1958, two Communist Party leaders were convicted under the membership provision of the Smith Act. On the other hand, as a result of appeals filed following their

Smith Act convictions, 11 Communists were ordered acquitted and the cases of 23 others were remanded for new trials during the year.

THE SACB IS STILL HAMSTRUNG

The subcommittee calls particular attention to the chaotic situation, which has been caused by the failure of the U.S. Supreme Court to reach a final judgment in the case of the United States v. the Communist Party, U.S.A.

The situation is best set forth by quoting from the 1958 report of the Subversive Activities Control Board.

On September 23, 1950, the 81st Congress enacted the Subversive Activities Control Act, providing for the establishment of a bipartisan Board of five members appointed by the President by and with the advice and consent of the Senate, one of whom is designated by the President as Chairman. The Board is charged with the duties of hearing and determining

(a) Whether organizations alleged by the Attorney General to be either Communist action or Communist front, as defined in section 3, (3) and (4) of the act, are such;

(b) Whether unregistered individuals whom the Attorney General alleges should have registered are in fact required to register under section 8 of the act;

(c) Whether organizations (or individuals) which, after having registered and later made application to the Attorney General for release from registration, are entitled under section 13(b) to the relief sought.

World Communist Movement.-Section 2(1) of the act contains findings by Congress that there exists a world Communist movement which, in its origin, its development, and its present practice, is a worldwide revolutionary movement. The purpose of this movement, the act goes on to state, is, by treachery, deceit, infiltration into other groups, espionage, sabotage, terrorism, and any other means deemed necessary, to establish, through the medium of a worldwide Communist organization, a Communist totalitarian dictatorship in countries throughout the world.

The findings assert that the movement has a following in the United States of many thousands of persons (p. 1).

On August 16, 1954, the 83d Congress enacted the Communist Control Act of 1954, which, among other provisions, amended the Subversive Activities Control Act to include organizations believed by the Attorney General to be Communist infiltrated.

A Communist-infiltrated organization is defined as any organization (other than Communist-action or Communistfront) which is (a) substantially directed, dominated, or controlled by an individual or individuals who are, or within 3 years have been, actively engaged in aiding or supporting a Communist-action organization, a Communist foreign government, or the world Communist movement; and (b) is serving, or within 3 years has served, as a means for either aiding or supporting such organization, government, or movement,

or impairing the military strength of the United States or its industrial capacity to furnish logistical or other material support to the Armed Forces of the United States.

Affiliates.in good standing with labor organizations whose policies and activities have been directed to opposing communism are presumed, prima facie, not to be infiltrated.

When a decision of the Board finding an organization to be Communist infiltrated becomes final by operation of law, that organization, if it be a labor union, thereafter becomes ineligible to:

(1) Act as representative or bargaining agent of any employees within the meaning or for the purposes of sections 7 and 9 of the National Labor Relations Act;

(2) Make, or obtain any hearings upon, any charge under section 10 of such act; or

(3) Exercise any other right or privilege, or receive any benefit, substantive or procedural, provided by such act for labor organizations (p. 5).

The Board's primary duty consists in conducting formal adjudicatory hearings and issuing written findings and appropriate orders. The workload of the Board depends entirely upon petitions filed with the Board by the Attorney General against specific organizations or individuals, and petitions by specific organizations or individuals for subsequent rescission of determinations as provided by statute. Thus far, Board proceedings have been confined to adjudication upon petitions filed by the Attorney General.

As of the close of the fiscal year 1958, a total of 24 cases had been filed with the Board by the Attorney General. These consist of the case against the Communist Party of the United States, cases against 21 organizations charged with being Communist-front organizations by reason of their relationship with the Communist Party, and cases against two labor unions charged with being Communist-infiltrated organizations.

The Board in April of 1953 determined, after lengthy hearings, that the Communist Party, U.S.A., is a Communistaction organization and ordered it to register as such with the Attorney General. This was appealed in June 1953 by the Communist Party to the U.S. Court of Appeals for the District of Columbia and represents the initial and basic test of the constitutionality of the statute.

The court of appeals on December 23, 1954, issued its decision upholding the constitutionality of the statute and the Board's determination against the Communist Party. Certiorari was granted by the Supreme Court and that Court on April 30, 1956, remanded, without deciding the constitutional questions, for Board reconsideration of the evidence in the light of challenges, which were made after the proceeding had left the Board, to the credibility of three of the Attorney General's witnesses. In December of 1956, the Board sent to the court of appeals a report on reconsideration in which the Board struck the testimony of the three witnesses and reaffirmed its earlier determination.

On January 9, 1958, the court of appeals again remanded the case to the Board, this time for the production of reports made to the Federal Bureau of Investigation by two of the Attorney General's witnesses. The court held that the principle of the then recent decision of the Supreme Court of June 3, 1957, in the case of Jencks v. United States, was applicable to Board proceedings. The Communist Party thereafter filed various motions with the court seeking to expand the scope of the remand and on June 16, 1958, the court action remanding the case was completed. At the close of the fiscal year, hearings in the Communist Party case had been reopened by the Board.

On the basis of findings made after protracted public hearings, the Board has concluded that eight respondents were Communistfront organizations, as defined by section 3 of the statute, and ordered them to register as such with the Attorney General. Two of these determinations were made and orders issued during the fiscal year 1958; namely, as to the Civil Rights Congress and the American Peace Crusade. Concerning the latter organization, before the expiration of the statutory period for an appeal to the court, the case was reconsidered after granting an unopposed motion to strike the testimony of one of the Attorney General's witnesses. The determination and order were reaffirmed in a modified report also issued during the fiscal year (pp. 8-9).

At the close of the fiscal year 1958, five cases in which hearings had been completed and recommended decisions issued were pending final Board determination and the issuance of appropriate orders. The organizations, each charged by the Attorney General with being Communist fronts, were: American Committee for Protection of Foreign Born, in which the hearing was held before Board Examiner Edward M. Morrissey; California Emergency Defense Committee, hearing before Board Member James R. Duncan; Colorado Committee to Protect Civil Liberties, hearing before Board Member James R. Duncan; Connecticut Volunteers for Civil Rights, hearing before Board Member Thomas J. Donegan; and Washington Pension Union, hearing before former Board Member Harry P. Cain.

Three cases were pending the_completeion of hearings. these were: second remand of the Communist Party case, before Board Member Francis A. Cherry; International Union of Mine, Mill and Smelter Workers, before Board Member Francis A. Cherry; and, United Electrical, Radio and Machine Workers of America, before Board Member R. Lockwood Jones.

Further proceedings in each of the above (seven) cases, except the remand proceedings in the Communist Party case, were suspended until the completion by the Board of the remand proceeding in the party case. It was appropriate to defer these cases because each involves charges of relationship with the Communist Party as a Communist-action organization.3

See sec. X, "The Berfield Case," p. 75.