[HUAC] Investigation into SOCAL

[Coin]

Congressmen of the House Committee on Un-American Activities, the following issues are raised for investigation.

*Standard Oil of California (SOCAL) continues expanding its gas station operations in the MSA, as well as buying up smaller wells near the border with the PSA. Concerns, both industry and political, have been raised over the rapid rise of this company, based in the Pacific States.

• Noting the continued acquisitions by Standard Oil of California in the Mountain States of America.
• Affirming the need for the House Committee on Un-American Activities to monitor economic activity of a nature infringing upon national security and stability.
• Calling on Standard Oil of California to immediately report to the House Committee on Un-American Activities in order to answer relevant questions on the aforementioned matters.
• Beginning the process of writing a report on the matter for the consideration of Congress and the Presidency.

Motioned by the following HUAC members for the voting of the full committee and Chair Robert S Ellis:
Robert P Goff
Norman Warner

[OYID]

Yes, very good. It's great that we're looking into this. I, for my part, as well as the rest of the Socialist Party are completely in favor of asking the director of SOCAL interests in the MSA to testify before this committee regarding their activities in our country. However, my colleagues and I fear this proposal does not go far enough to safeguard our national interests and keep foreign influence at bay. If we're unnerved about SOCAL's activities near the Western border, then we should ask about their activities everywhere in our country, as well as all their designs and projects relating to our territory and government. Imperialist meddling is not limited to buying wells at the frontier, and though it is unlikely we'll learn of the most secret of their plans, it is important we question them publicly in this matter and make clear our commitment to sovereignty and freedom.

For that matter, merely investigating the Japanese-linked side of the issue and not also looking into Nazi-puppet activity is not only shortsighted, but also even slightly suspicious coming from the Right-Wing. The Socialist Party believes USA business interests should be investigated along with those from the PSA, because companies with ties to Berlin like the Marathon Oil Company, Pennzoil, Exxon, and Mobil are also active (or, in the case of the last three, looking to be active) in our country. Marathon is especially interesting, since they own a strategic pipeline crossing the MSA from the Athabasca Oil Sands (the famous Alberta Tar Sands) into the USA, and so we submit the following proposal to the HUAC for approval:

• Noting the continued acquisitions and activity by business interests from the Pacific States of America and the United States of America in the Mountain States of America, notably the continued acquisitions by the San Francisco Oil Company and the infrastructure holdings of the Marathon Oil Company.
• Affirming the need for the House Committee on Un-American Activities to monitor planned or current economic activity of a nature infringing upon national security and stability.
• Calling on the director of MSA activities for the Standard Oil of California, his equivalent from the Marathon Oil Company and a representative from Pennzoil to immediately report to the House Committee on Un-American Activities in order to answer relevant questions on the aforementioned matters.
• Beginning the process of writing a report on the matter for the consideration of Congress and the Presidency.

Motioned by the following HUAC members for the voting of the full committee and Chair Robert S. Ellis:
Arthur Robertson
Andrea Hernández

[Gesar]

I applaud the recent efforts of my colleagues to the left and right on the Committee. Our Socialist friends raise an interesting point, of course: we should look into issues similar to the news coming from Standard Oil of California. This, however, is only feasibly done with two separate investigations, for what we have here are two separate issues. The matter of Standard Oil is one for which we already have the beginnings of evidence, and while it's by no means a stretch to suspect Marathon of something similar, we can't jeopardize one investigation for the sake of the others.

Agreed. If there are no further interruptions, we'll put the matter to two separate votes.

At this time, before we go on, I'd like to remind the gentleman from Minnesota and my colleague from Texas that sessions of HUAC are not the time nor place to accuse fellow members of the Committee of treason. Please refrain from making further remarks of this nature.

Noting the continued acquisitions by Standard Oil of California in the Mountain States of America.
Affirming the need for the House Committee on Un-American Activities to monitor economic activity of a nature infringing upon national security and stability.
Calling on Standard Oil of California to immediately report to the House Committee on Un-American Activities in order to answer relevant questions on the aforementioned matters.
Beginning the process of writing a report on the matter for the consideration of Congress and the Presidency.


Motioned by the following HUAC members for the voting of the full committee and Chair Robert S Ellis:
Robert P Goff
Norman Warner

Votes in favor:
Regina Carroll
Robert S Ellis

Votes against:
N/A

---

Noting the infrastructure holdings of the Marathon Oil Company.
Affirming the need for the House Committee on Un-American Activities to monitor economic activity of a nature infringing upon national security and stability.
Calling on the director of MSA activities of the Marathon Oil Company and a representative from Pennzoil to immediately report to the House Committee on Un-American Activities in order to answer relevant questions on the aforementioned matters.
Beginning the process of writing a report on the matter for the consideration of Congress and the Presidency.

Motioned by the following HUAC members for the voting of the full committee and Chair Robert S Ellis:
Regina Carroll

Votes in favor:
Regina Carroll
Robert S Ellis

Votes against:
N/A

[Coin]

Representative Robert P Goff, Republican, Iowa

We thank the Chair for approving the matter and motioning it to a vote; lest it be in any doubt I vote for the SOCAL investigation. However I would request the Marathon issue be both voted on and raised separately.

Representative N. Warner, Republican, Oklahoma

I second Congressman Goff's statements. I too, to make it clear, vote for the motion on SOCAL's recent actions, and shall vote on the Marathon issue in the relevant context.

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Unless we're making this thread for the HUAC in it's entirety which would be messy and unnecessary, could we have the Marathon motion in a new topic?

[OYID]

We approve of the Chairman's proposal, but we wish to make it clear that these two investigations are part of the same ongoing process to root out and expose foreign imperialist meddling in MSAmerican affairs. We must be on our guard and not forgo our duty to the peoples of this great nation to stop Un-American activities dead on their tracks. I vote in favor of both proposals.

Agreed, we will follow closely the development of both investigations to continue this process. I, too, vote in favor of both proposals.

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I think it should be split, having a single thread for all HUAC activities would be too confusing.

[Gesar]

With six votes, the investigation will continue. The House Un-American Activities Committee hereby calls on the following to report for further inquiries:

• Luis Iwasaki Calderon, director of the Mountain States of America branch of Standard Oil of California
• -His legal representative
• -His personal staff at Standard Oil's Kansas City headquarters
• Representatives from James & James Land Surveyors
• The former owners of QuikGas, a gas station chain recently purchased by Standard Oil of California

[Huojin]

Presenting themselves before the House Un-American Activities Committee:

Mr Luis Iwasaki Calderon, Standard Oil of California Regional Director for Mountain America.
Mr James Hillier, Partner at Shenoh & Mori, legal representatives for Standard Oil of California.

Mr Christopher Bachand, Press Director for Mr Iwasaki.
Mr Russell Nomura, Personal Aide to Mr Iwasaki.
Ms Masako Ashida, Personal Secretary to Mr Iwasaki.

Mr Chester McDavis, Representative for James & James Land Surveyors.

Mr and Mrs Robert and Constance Stabler, former owners of QuikGas.

We are all state and verify our identities before the Committee and makes ourselves available for questioning and comment.

-----
[[I had an idea; that anyone on HUAC can ambush me at any time on whatever medium they'd prefer - IRC, PM, FB, this thread, whatever - and ask a series of questions all at once, so that it's less back and forth more actual interrogation. As soon as we conclude, we'll write up the transcript and post it here.]]

[Coin]

House Un-American Activities Committee - Investigation Into SOCAL



Minutes of Mr Luis Iwasaki Calderon of SOCAL questioned by Congressmen Mr Robert Goff & Mr Norman Warner

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[[The initial discussion and line of questioning by OYID may be seen here: http://pastebin.com/XUZQEnRp - I simply didn't have the energy to forat that as well, apologies. There was a lot more after me, so I'll leave that for others to post. This was all done on IRC, I've merely changed the formatting to look a bit better.

Edited 02/02 to put the minutes in a spoiler tag]]

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Congressman R Goff: Thank you Representative Hernandez. Mr Iwasaki might I thank you for appearing before this committee, and I further hope you appreciate the necessity of trust between business and society.

It is for this reason that I requested this investigation. Now putting partisan remarks to the one side, this committee is here for an investigation, not a prosecution, and I would ask you remember this. I have before me a few matters of note I'd like to discuss; my colleague Congressman Warner may also jump in, depending on the frame of our conversation.

First off your company is among the largest, if not the largest oil conglomerate in the PSA, am I correct?

Mr Iwasaki: That is correct.

Congressman R Goff: Could you talk me through the structure of your company and her divisions, please, in a very broad manner?

Mr Iwasaki: As you wish.

There is, of course, the higher echelons of the company; the CEO, CFO, Board of Directors, and so on.With a number of divisions relating to the PSA, the MSA, various South American nations where we have a presence, and minor offices in some Asian nations.

Under, for example, the MSA division, it is further subdivided into departments concerning themselves with the various aspects of our business, be that marketing, retail, drilling, processing, refining, human resources, and so on.

We are, in many ways, like countless other companies around the world.

Congressman R Goff: Quite - I appreciate it may seem basic, but I find it important to get such matters on record. The MSA division is the youngest, yes?

Mr Iwasaki: I believe so, yes.

Congressman R Goff: Have you experience of working for SOCAL in other countries, priorto your present position?

Mr Iwasaki: At one point I worked at a lower level position in the California office, but only briefly.

Congressman R Goff: Was this immediately prior to your present post?

Mr Iwasaki: Yes.
Congressman R Goff: And before that, if I may, and without divulging personal information, before this were you involved in the oil business?

Mr Iwasaki: No, I was not.

Congressman R Goff raises his spectacles

Congressman R Goff: An impressive feat. Now back to the present day, how often in a standard month do you travel to meet or speak on the telephone with the Board or other executive directors in San Francisco?

Mr Iwasaki: My office issues regular reports each quarter, while usually once or twice a week I make calls to executives in San Francisco. More often if there is some pressing business, such as an acquisition.

Congressman R Goff: Acquisitions aside for the moment, the discussions presumably involve the strategy, direction and policies the Boad and shareholders are requesting, yes?

Mr Iwasaki: Normally, yes.

Congressman R Goff: Back to acquisitions - when beginning an investment or requesting additional capital, does SOCAL’s board approve all of them prior to a deal being done?

Mr Iwasaki: Depending on the scale of the acquisition. Normally with large acquisitions, yes, board approval is required.

Congressman R Goff: There has presumably been a heavy inflow of capital to your division, yes?

Mr Iwasaki: For the purposes of making purchase and securing our position in a competitive market, yes.

Congressman R Goff: Thank you.

Is there, to your knowledge, any divisions among shareholders on how much investment to put into the MSA?

Mr Iwasaki: There are always debates over such matters, much like your budgetary debates.

Congressman R Goff laughs

Congressman R Goff: Such debates have of late been quite absent. But that's another matter.

If we might backtrack a little, the MSA division of SOCAL is the only sizable one outside of the Co-Prosperity Sphere and her aligned nations, yes?

Mr Iwasaki: Yes.

Congressman R Goff: And a sizable shareholder in SOCAL is the PSA government, correct?

Mr Iwasaki: Sizeable, yes, but not by any means a majority.

Congressman R Goff: Indeed. However several major Japanese zaibatsu are also major shareholders, as are PSA oligarchs, and we can both agree spoken or unspoken that they are not entirely apolitical.

A final note, Mr Iwasaki. Would it be possible for a government and some of these zaibatsu to push strategic business policy not solely for commercial reasons?

Mr Iwasaki shrugs

Mr Iwasaki: You would have to ask them, Congressman. I am not a politician or a coordinator of high strategic aims.

Congressman R Goff nods and smiles.

Congressman R Goff: I appreciate that, Mr Iwasaki, and your ability to speak on such a matter. However from what we have spoken of today it is clear to me - unless you have other information to share - that the PS American government is 1) a major inputter of capital to SOCAL, including in the MSA and 2) closely involved as a shareholder in business strategy.

Before I give way to one of my colleagues - have you yourself ever questioned any strategy advised by the board in the MSA?

Mr Iwasaki: I have not made it my business to question strategies or actions recommended or ordered by the Board of Directors, Congressman Goff.

Congressman R Goff: That is... probably not inadvisable, as far as your job security is concerned, Mr Iwasaki. Thank you very much for your replies. Unless any of my fellow committee members wish me to give way to another, I now voluntarily give way to Congressman Norman Warner.

Congressman N Warner: Thank you Congressman Goff, and may I take this opportunity to thank you personally Mr Iwasaki for your attendance today. I'd like to note the interesting answers from the previous line of questioning, and their importance in the investigation, but open up my own line of questioning on a different note.

I would again like to press both to those in attendance, answering and fellow committee members to remember this is an investigatory committee, not a prosecution. Now Mr Iwasaki, bearing in mind your not quite impartial stance on the matter, the MSA division of SOCAL is doing rather well, isn't it?

Mr Iwasaki: Well, until recently, we were. Our stock has not reacted well to these investigations.

Congressman N Warner: For what it's worth I quite appreciate that being a negative side effect of these investigations, but the truth and facts are all I am interested in, and one imagines that is in both our interests.

Now you have a presence in two states at the moment, am I right?

Mr Iwasaki: Presently, yes.

Congressman N Warner: Colorado and New Mexico, correct? Plus an ongoing expansion into Wyoming?

Mr Iwasaki: That is correct. Investigations are underway, yes.

Congressman N Warner: All three, incidentally, bordering the PSA?

Mr Iwasaki: Yes.

Congressman N Warner: Why these three states? I am interested, from an economic standpoint, why you would ignore other states such as Texas?

Mr Iwasaki: As you are no doubt aware, competition is very high in Texas. It has been the Board's policy to steer clear of these areas where we are unlikely to make significant advances in the market.

Congressman N Warner: So the reports I have of your "operators looking at potential expansion in Texas" would be incorrect, yes?

Mr Iwasaki: Regardless of high competition, we are still eager to ensure that if openings present themselves, we can take advantage of them.

Congressman N Warner: Even if operating at an initial loss, and dependent on capital influx from San Francisco? I am aware this may strike an unusual tone, but you understand, my question is directed more at the spirit of the business, than it's balance sheet.

Mr Iwasaki: An initial loss can become a gain over time.

Congressman N Warner: I quite agree. Now your market share is quite sizable at the moment - 10%, over a very short period of time - what level do you, personally, wish to leave SOCAL with in the MSA?

Mr Iwasaki: I do believe it is proper for me to comment on that, sir. I am not an overall policy maker within the company. Whatever the case, I am sure planners have the intention of complying with anti-trust laws.

Congressman N Warner: I appreciate your hesitance, my apologies if it put you on the spot. But you wouldn't deny that the nature of your acquisitions has raised eyebrows? My colleague Miss Hernandez raised the focus on wells near the border, for instance.

Mr Iwasaki: It has, of course, raised eyebrows. Certainly here in this committee chamber.

Congressman N Warner: But what would the benefit of focusing unnecessarily on wells near the border be, commercially?

Mr Iwasaki: Proximity for exporting to the Pacific States.

Congressman N Warner: If I might roll back to your comments regarding the divisions - presumably the refining department of your MSA division is thus underdeveloped, if you merely wish to export crude to the PSA?

Mr Iwasaki: It is under developed by comparison to our facilities in the PSA, yes. Profit considerations have been made centrally, and a decision reached there.

Congressman N Warner: If your focus is on profit, and your refining processes in your own words underdeveloped, does this not make your retail acquisitions rather... unprofitable?

Mr Iwasaki: We undoubtedly make some losses, to export taxes and tariffs, transportation costs, and so on. On the whole, however, we have been growing our customer base.

Congressman N Warner: You would acknowledge it - hypothetically - being harmful to these western states however if you export their oil, process it in the PSA, and sell it back to them, however cheaply, purely from an employment point of view however, yes?

Mr Iwasaki: You would have to define "harmful".

Congressman N Warner: Detrimental to the number of jobs in the energy sector in these states, say.

Mr Iwasaki: I believe that to be a curious definition of "harm". Nevertheless, I suppose that would be the case.

Congressman N Warner: Particularly if what you in essence have becomes very close to a monopoly on the market in these states? Hypothetically speaking. I speak of a monopoly de facto, not de jure, but I will understand if you are reluctant to answer.

Mr Iwasaki: As I have previously stated, we have thus far complied with all state and federal anti-trust legislation and fully intend to do so in the future.

Congressman N Warner: I am glad to hear it, Mr Iwasaki, thank you for your answers.

I have one final subject I wish to touch on before i give way to my colleagues, though I am certain we shall all be glad of a refill of water in these jugs in the meantime. What is your own opinion of the manner in which the energy market works in the former United States of America?

Mr Iwasaki: I do not believe it to be my place to comment on the arrangements made between heads of states and superpowers for the post-war disposition of the energy market.

Congressman N Warner: You did raise the issue yourself, however, so I was merely looking for further comment.

"The market for gas stations in the MSA is very crowded, as you can imagine. Particularly with PAES limitations. Most of our business is done exporting the oil westwards."

Could you enlighten us on what you meant when you answered Miss Hernandez's question earlier thus?

Mr Iwasaki: Merely that certain limitations make for a market place that is attempting to maximise its efficiency. There is still profit to be made, but not solely within these borders.

Congressman N Warner pauses

Congressman N Warner: Thank you. I would like to go back to an earlier point, if I may. You earlier accepted that major shareholders frequently push when it comes to policy, and my colleague Mr Goff pointed out this includes the PSA government.

It was also made clear that not necessarily commercial interests are capable of influencing strategy in this manner.

I put it to you the hypothesis that the push by the MSA division of SOCAL to export oil bordering the PSA is partly commercial. But that it is also partly influenced by the PSA desire for energy security, and controlling the oil exported from the MSA to the PSA. Would you have any evidence to discredit this hypothesis?

Mr Iwasaki confers with Mr Hillier, his legal representation.

Mr Iwasaki: I would say that in such a case, the burden of proof lies with the accuser, wouldn't you sir?

Congressman N Warner: Perhaps. I did not accuse, I merely hypothesized. But the lack of denial is of interest. Thank you for your answers, Mr Iwasaki, and I appreciate you for taking the time to answer them. I for the moment have no further questions - Representative A. Robertson does however wish to ask a few things, I believe?

[Huojin]

Official Minutes of the House Committee on Un-American Activities investigation into Standard Oil of California - testimony of Mr. Luis Iwasaki Calderon

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MS HERNANDEZ: Hello, Mr. Iwasaki. I have a few questions for you. First off: Are you comfortable coming before the House Committee on Un-American Activities?

MR IWASAKI: I would not describe how I am feeling at present as "comfortable", but I find no particular issue with being here. Save the implication that this committee believes me, the company I work for, or my workers, to be guilty of some fascist association or meaning.

MS HERNANDEZ: All this committee wants is to know the truth, and there has not, to my knowledge, been any mention of Fascist association with SOCAL until now. But moving on... How long has Standard Oil of California been active in the Mountain States of America?

MR IWASAKI: Standard Oil began operating here approximately in the mid 1970s. I forget when precisely

MS HERNANDEZ: So it was during a Republican administration?

MR IWASAKI: I suppose. If you were after the date Standard Oil representative first began surveying in the Mountain States... that date may have been prior to that.

MS HERNANDEZ: What activities does Standard Oil of California carry out in the Mountain States of America? Currently.

MR IWASAKI: We drill, extract, process and sell, both wholesale and through our own gas stations, crude oil and natural gas products and derivatives.

MS HERNANDEZ: How many people do you employ?

MR IWASAKI: I don't have those figures to hand. We're a much smaller operation than some of our MS-based competitors. Perhaps you ought to inquire of them as to their affiliations.

MS HERNANDEZ: Perhaps you ought to be better prepared when coming before a congressional committee. Do you not take this investigation seriously?

MR IWASAKI: I take all serious investigations seriously, sir. I'm just unaware to what extent a zealous witch hunt meets that definition

MS HERNANDEZ: So you dismiss this investigation as a witch hunt. Very well. What are your company's future plans in the MSA?

MR IWASAKI: To make a profit, just like any commercial organisation.

MS HERNANDEZ: To do this, do you plan to expand your presence in the country?

MR IWASAKI: Yes, of course.

MS HERNANDEZ: When did the first SOCAL surveyors enter the MSA?

MR IWASAKI: The first Standard Oil representatives entered the Mountain States before my time with the company. However previous records would appear to indicate that preliminary surveying and market assessment reports began sometime in the late 1960s, early 1970s.

MS HERNANDEZ: Coinciding with growing Right-Wing influence in national politics, interesting. What is your opinion of the Mountain States of America?

MR IWASAKI: I believe that the Mountain States are a country like any other. It has had its dark moments in its past, but over time the country has recovered. Such as from the abysmal treatment of Japanese immigrants and their descendants. Now one of them sits on this very committee.

MS HERNANDEZ: Would you say the MSA offers a favorable political and legal environment for foreign businesses, PSA or otherwise?

MR IWASAKI: I would have said so, once. Your governments have gone to great lengths to encourage economic growth and wholesome outside investment. But here we are.

MS HERNANDEZ: So the Republican administrations went to great lengths to encourage foreign investment. Hm. Why did you buy, as the press says, "smaller wells near the border with the PSA"?

(chuckling from Mr. Goff.)

MR IWASAKI: The market for gas stations in the MSA is very crowded, as you can imagine. Particularly with PAES limitations. Most of our business is done exporting the oil westwards. Hence, near the border.

MS HERNANDEZ: We've established that SOCAL has opinions about the policies of the government of the MSA, finding some pleasing and some not. Has Standard Oil California ever carried out any action directed towards influencing MSA policy? If so, in what form?

(Mr Iwasaki receives a report from his legal representative next to him.)

MR IWASAKI: Standard Oil of California has, on occasion, been known to make campaign contributions, both independently and in coordination with other companies.

MS HERNANDEZ: To what political parties?

MR IWASAKI: I do not believe I am at liberty to give specifics.

MS HERNANDEZ: So Standard Oil of California will not disclose the political parties it donates to to this committee.

MR IWASAKI: Such information is disclosed by candidates, not Standard Oil.

MS HERNANDEZ: What should the MSA do, in your opinion, to better cater to the interests of SOCAL?

MR IWASAKI: Congresswoman, if you are concerned regarding this matter, perhaps you ought to pursue campaign finance reform. Otherwise, I cannot help you.

MS HERNANDEZ: I asked you, Mr. Iwasaki, what do you think the government should do to cater to SOCAL interests. Have the courtesy of answering the question.

MR IWASAKI: I am not an elected official of this country, Congresswoman. Perhaps you and your colleagues ought to consider that question. Oh, but you get your money out of oil in other ways, don't you?

MS HERNANDEZ: Your contempt for our institutions is evident. What is your opinion of the so-called "Greater United American Way Party"?

MR IWASAKI: They are a political party like any other, no?

MS HERNANDEZ: I asked you.

MR IWASAKI: And you have my answer.

MS HERNANDEZ: They are a minor party, one that you seem to be aware of. Defensive of, even. You speak of past injustices against the Japanese population. What is your opinion, then, of the situation of the Black and Latino peoples in the Pacific States of America?

MR IWASAKI: You are aware of them too, congresswoman. Perhaps Representative Goff over there, with all that disdain on his face, should launch an investigation into yourself? And I have no opinion of the situation in the PSA.

MS HERNANDEZ: None at all? Would you say the PSA offers a favorable legal and political environment for SOCAL?

MR IWASAKI: SOCAL is headquartered in the Pacific States, so I would assume that is the case. As you're no doubt aware, I am the Regional Director for the MSA. Higher policy level decisions do not involve me.

MS HERNANDEZ: Surely you have an opinion. Which you've given us.

MR IWASAKI: Is there a question there, congresswoman?

MS HERNANDEZ: Would you rather the MSA were more like the PSA?

MR IWASAKI: I would rather the MSA were more like the MSA is supposed to be like, instead of calling company employees before zealous fascist hunters.

MS HERNANDEZ: So you know what my country is supposed to be like?

MR IWASAKI: I feel at least one of us should, don't you?

MS HERNANDEZ: Mr. Iwasaki, you have come before this committee with an attitude of complete arrogance and a total unwillingness to cooperate, refusing to give us even basic statistical information about your company's activities in this country. The time in which your company has begun operating in the MSA is the same as organized crime, rampant in the Pacific States, has begun its incursion into our peaceful nation.

MR IWASAKI: Congresswoman Hernandez, I am here. I am physically present. There's your willingness to cooperate. Beyond that, I doubt the usefulness of worth of these investigations, or the unsubstantiated implications made by this body.

MS HERNANDEZ: You openly admit to financing MSAmerican politicians and having an preference for governments close to the RIght-Wing. I have no further questions at this time. Congressman Goff? It's your witness.

MR GOFF: Thank you Representative Hernandez. Mr Iwasaki might I thank you for appearing before this committee, and I further hope you appreciate the necessity of trust between business and society. It is for this reason that I requested this investigation. Now putting partisan remarks to the one side, this committee is here for an investigation, not a prosecution, and I would ask you remember this. I have before me a few matters of note I'd like to discuss; my colleage Congressman Warner may also jump in, depending on the frame of our conversation. First off your company is among the largest, if not the largest oil conglomerate in the PSA, am I correct?

MR IWASAKI: That is correct.

MR GOFF: Could you talk me through the structure of your company and her divisions, please, in a very broad manner?

MR IWASAKI: As you wish. There is, of course, the higher echelons of the company; the CEO, CFO, Board of Directors, and so on. With a number of divisions relating to the PSA, the MSA, various South American nations where we have a presence, and minor offices in some Asian nations. Under, for example, the MSA division, it is further subdivided into departments concerning themselves with the various aspects of our business, be that marketing, retail, drilling, processing, refining, human resources, and so on. We are, in many ways, like countless other companies around the world.

MR GOFF: Quite - I appreciate it may seem basic, but I find it important to get such matters on record. The MSA division is the youngest, yes?

MR IWASAKI: I believe so, yes.

MR GOFF: Have you experience of working for SOCAL in other countries, priorto your present position?

MR IWASAKI: At one point I worked at a lower level position in the California office, but only briefly.

MR GOFF: Was this immediately prior to your present post?

MR IWASAKI: Yes.

MR GOFF: And before that, if I may, and without divulging personal information, before this were you involved in the oil business?

MR IWASAKI: No, I was not.

MR GOFF: An impressive feat. Now back to the present day, how often in a standard month do you travel to meet or speak on the telephone with the Board or other executive directors in San Francisco?

MR IWASAKI: My office issues regular reports each quarter, while usually once or twice a week I make calls to executives in San Francisco. More often if there is some pressing business, such as an acquisition.

MR GOFF: Acquisitions aside for the moment, the discussions presumably involve the strategy, direction and policies the Boad and shareholders are requesting, yes?

MR IWASAKI: Normally, yes.

MR GOFF: Back to acquisitions - when beginning an investment or requesting additional capital, does SOCAL’s board approve all of them prior to a deal being done?

MR IWASAKI: Depending on the scale of the acquisition. Normally with large acquisitions, yes, board approval is required.

MR GOFF: There has presumably been a heavy inflow of capital to your division, yes?

MR IWASAKI: For the purposes of making purchase and securing our position in a competitive market, yes.

MR GOFF: Thank you. Is there, to your knowledge, any divisions among shareholders on how much investment to put into the MSA?

MR IWASAKI: There are always debates over such matters, much like your budgetary debates.

(Mr. Goff laughs.)

MR GOFF: Such debates have of late been quite absent. But that's another matter. If we might backtrack a little, the MSA division of SOCAL is the only sizable one outside of the Co-Prosperity Sphere and her aligned nations, yes?

MR IWASAKI: Yes.

MR GOFF: And a sizable shareholder in SOCAL is the PSA government, correct?

MR IWASAKI: Sizeable, yes, but not by any means a majority.

MR GOFF: Indeed. However several major Japanese zaibatsu are also major shareholders, as are PSA oligarchs, and we can both agree spoken or unspoken that they are not entirely apolitical. A final note, Mr Iwasaki. Would it be possible for a government and some of these zaibatsu to push strategic business policy not solely for commercial reasons?

MR IWASAKI: You would have to ask them, Congressman. I am not a politician or a coordinator of high strategic aims.

MR GOFF: I appreciate that, Mr Iwasaki, and your ability to speak on such a matter. However from what we have spoken of today it is clear to me - unless you have other information to share - that the PS American government is 1) a major inputter of capital and strategy to SOCAL, including in the MSA. And 2) closely involved as a shareholder in business strategy. Before I give way to one of my colleagues - have you yourself ever questioned any strategy advised by the board in the MSA?

MR IWASAKI: I have not made it my business to question strategies or actions recommended or ordered by the Board of Directors, Congressman Goff.

MR GOFF: That is... probably not inadvisable, as far as your job security is concerned, Mr Iwasaki. Thank you very much for your replies. Unless any of my fellow committee members wish me to give way to another, I now voluntarily give way to Congressman Norman Warner.

MR WARNER: Thank you Congressman Goff, and may I take this opportunity to thank you personally Mr Iwasaki for your attendance today. I'd like to note the interesting answers from the previous line of questioning, and their importance in the investigation, but open up my own line of questioning on a different note. I would again like to press both to those in attendance, answering and fellow committee members to remember this is an investigatory committee, not a prosecution. Now Mr Iwasaki, bearing in mind your not quite impartial stance on the matter, the MSA division of SOCAL is doing rather well, isn't it?

MR IWASAKI: Well, until recently, we were. Our stock has not reacted well to these investigations.

MR WARNER: For what it's worth I quite appreciate that being a negative side effect of these investigations, but the truth and facts are all I am interested in, and one imagines that is in both our interests. Now you have a presence in two states at the moment, am I right?

MR IWASAKI: Presently, yes.

MR WARNER: Colorado and New Mexico, correct?

MR IWASAKI: That is correct.

MR WARNER: Plus an ongoing expansion into Wyoming?

MR IWASAKI: Investigations are underway, yes.

MR WARNER:All three, incidentally, bordering the PSA?

MR IWASAKI: Yes.

MR WARNER: Why these three states? I am interested, from an economic standpoint, why you would ignore other states such as Texas?

MR IWASAKI: As you are no doubt aware, competition is very high in Texas. It has been the Board's policy to steer clear of these areas where we are unlikely to make significant advances in the market.

MR WARNER: So the reports I have of your "operators looking at potential expansion in Texas" would be incorrect, yes?

MR IWASAKI: Regardless of high competition, we are still eager to ensure that if openings present themselves, we can take advantage of them.

MR WARNER: Even if operating at an initial loss, and dependent on capital influx from San Francisco? I am aware this may strike an unusual tone, but you understand, my question is directed more at the spirit of the business, than it's balance sheet.

MR IWASAKI: An initial loss can become a gain over time.

MR WARNER: I quite agree. Now your market share is quite sizable at the moment - 10%, over a very short period of time - what level do you, personally, wish to leave SOCAL with in the MSA?

MR IWASAKI: I do believe it is proper for me to comment on that, sir. I am not an overall policy maker within the company. Whatever the case, I am sure planners have the intention of complying with anti-trust laws.

MR WARNER: I appreciate your hesitance, my apologies if it put you on the spot. But you wouldn't deny that the nature of your acquisitions has raised eyebrows? My colleague Miss Hernandez raised the focus on wells near the border, for instance.

MR IWASAKI: It has, of course, raised eyebrows. Certainly here in this committee chamber.

MR WARNER: But what would the benefit of focusing unnecessarily on wells near the border be, commercially?

MR IWASAKI: Proximity for exporting to the Pacific States.

MR WARNER: If I might roll back to your comments regarding the divisions - presumably the refining department of your MSA division is thus underdeveloped, if you merely wish to export crude to the PSA?

MR IWASAKI: It is under developed by comparison to our facilities in the PSA, yes. Profit considerations have been made centrally, and a decision reached there.

MR WARNER: If your focus is on profit, and your refining processes in your own words underdeveloped, does this not make your retail acquisitions rather... unprofitable?

MR IWASAKI: We undoubtedly make some losses, to export taxes and tariffs, transportation costs, and so on. On the whole, however, we have been growing our customer base.

MR WARNER: You would acknowledge it - hypothetically - being harmful to these western states however if you export their oil, process it in the PSA, and sell it back to them, however cheaply, purely from an employment point of view however, yes?

MR IWASAKI: You would have to define "harmful".

MR WARNER: Detrimental to the number of jobs in the energy sector in these states, say.

MR IWASAKI: I believe that to be a curious definition of "harm". Nevertheless, I suppose that would be the case.

MR WARNER: Particularly if what you in essence have becomes very close to a monopoly on the market in these states? Hypothetically speaking. I speak of a monopoly de facto, not de jure, but I will understand if you are reluctant to answer.

MR IWASAKI: As I have previously stated, we have thus far complied with all state and federal anti-trust legislation and fully intend to do so in the future.

MR WARNER: I am glad to hear it, Mr Iwasaki, thank you for your answers. I have one final subject I wish to touch on before i give way to my colleagues, though I am certain we shall all be glad of a refill of water in these jugs in the meantime. What is your own opinion of the manner in which the energy market works in the former United States of America?

MR IWASAKI: I do not believe it to be my place to comment on the arrangements made between heads of states and superpowers for the post-war disposition of the energy market.

MR WARNER: You did raise the issue yourself, however, so I was merely looking for further comment. "The market for gas stations in the MSA is very crowded, as you can imagine. Particularly with PAES limitations. Most of our business is done exporting the oil westwards." Could you enlighten us on what you meant when you answered Miss Hernandez's question thus?

MR IWASAKI: Merely that certain limitations make for a market place that is attempting to maximise its efficiency. There is still profit to be made, but not solely within these borders.

MR WARNER: Thank you. I would like to go back to an earlier point, if I may. You earlier accepted that major shareholders frequently push when it comes to policy, and my colleague Mr Goff pointed out this includes the PSA government. It was also made clear that not necessarily commercial interests are capable of influencing strategy in this manner. I put it to you the hypothesis that the push by the MSA division of SOCAL to export oil bordering the PSA is partly commercial. But that it is also partly influenced by the PSA desire for energy security, and controlling the oil exported from the MSA to the PSA. Would you have any evidence to discredit this hypothesis?

(Mr Iwasaki confers with Mr Hillier, his legal representation.)

MR IWASAKI: I would say that in such a case, the burden of proof lies with the accuser, wouldn't you sir?

MR WARNER: Perhaps. I did not accuse, I merely hypothesized. But the lack of denial is of interest. Thank you for your answers, Mr Iwasaki, and I appreciate you for taking the time to answer them. I for the moment have no further questions - Representative Robertson does however wish to ask a few things, I believe?

MR ROBERTSON: Haha, yes. Before I begin, I just want to say. Excellent work, everyone. This has been a very informative session. I believe it will also give way to a lot of work and cooperation across the aisle when this is done. At any rate. Hi, Luis-can I call you Luis? How are you doing today? I'd like to ask you some questions if that's alright.

MR IWASAKI: I am fine. Questioning would be appropriate.

MR ROBERTSON: Very well. First I'd like to know just where are these famous wells located exactly. I trust you know the answer to that one, don't you?

MR IWASAKI: If you would like precise longitude and latitude, I'd refer you to the information provided by Standard Oil ahead of these hearings. Other than that, as I previously confirmed for your colleague - they are in Colorado and New Mexico, with a lesser presence in Wyoming.

MR ROBERTSON: You're a charmer, aren't you? I can tell

MR IWASAKI: I take exception to being tried by, notably, the Socialist members of this committee - as though a convicted fascist interloper.

MR ROBERTSON: Say, from this description you've made of SOCAL's ingeniously imperialistic business model for our country, I gather your company makes a lot of movements across the border. Would that be correct?

MR IWASAKI: We conduct a high degree of cross-border trade.

MR ROBERTSON: And just how does this happen, exactly? What do you move across the border and in in what manner? And come on, Luis, don't be like that. We're just talking here.

MR IWASAKI: The usual - trucks carrying various extracted products in various stages of processing. Minor pipelines.

MR ROBERTSON: Trucks, yes. Are these vehicles owned by SOCAL or do you hire a shipping company?

MR IWASAKI: The vehicles are owned by Standard Oil.

MR ROBERTSON: Hold on let me take some notes here. "SOCAL moves many trucks across the border on both directions." It's good to keep notes, isn't it, Luis? I think it is. You said previously, if my notes are correct, that you sell gasoline in the MSA, both in gas stations you own and doing business with MSAmerican companies, correct? Are these gas stations located outside of Colorado and New Mexico? Or do you only sell there?

MR IWASAKI: Our operations are confined to Colorado, New Mexico, and Wyoming.

MR ROBERTSON: And you focus entirely on rural areas, without setting one foot on densely populated urban centers, correct?

MR IWASAKI: I would not say that is entirely correct.

MR ROBERTSON: Really? Interesting. So you are active in urban centers. See, I ask because our inner cities are currently undergoing a bit of a security crisis. Organized crime has wreaked havoc among many of them, particularly in New Mexico.

MR IWASAKI: It would be a poor business model for gas stations if they operated away from concentrations of people. And cars.

MR ROBERTSON: Hold on, Luis, I'm talking to you. Where was I? Oh, right. Are you aware that these gangs are, by and large, coming into our country from the West? And does this worry you at all?

MR IWASAKI: Naturally I am concerned about the spread of organised crime, wherever that may be. I am also concerned about the dangers to pan-American relations posed by such accusations.

MR ROBERTSON: Accusations? I'm only asking about your company's stance on the rising crime rates in the cities where you yourself claim to be active. I'm sorry if I hit a nerve, I didn't intend to make you uncomfortable. You've probably read the news at some point, Luis, it's well known that these Latin American and Asian gangs enter the MSA through the PSA border. I'll make amends my asking you a softball question. What do you really do in these wells? Say it for the record.

MR IWASAKI: This line of questioning is preposterous. We drill oil and natural gas. Quite what else you imagine we do, I have no idea.

MR ROBERTSON: Do you employ many citizens of the MSA?

MR IWASAKI: Of course we employ Mountain Americans.

MR ROBERTSON: And are your employees unionized?

MR IWASAKI: I do not have that information to hand.

MR ROBERTSON: Hm. Say, Luis. Do you also employ foreigners within our borders? Are there Asians or Latin Americans working for SOCAL in the MSA other than yourself?

MR IWASAKI: Naturally.

MR ROBERTSON: The trucks you mentioned, what sorts of "products" do they move across the border?

MR IWASAKI: As previously stated - natural gas, crude oil, and derivatives from those two products.

MR ROBERTSON: Right, right. So SOCAL trucks go out and into the areas of our country most currently affected by organized crime. Tell me, Mr. Luis Iwasaki... Do you or Standard Oil of California have, or ever have had, any sort of ties or dealings with organized crime?

MR IWASAKI: Perhaps you ought to ask your own police or intelligence services that question, Congressman. I believe you'll find that if you examine the body of law in this country, you'll notice that investigating and prosecuting crimes of that nature is their area of expertise. Moreover you should avoid asking a question you know I am not empowered to answer.

MR ROBERTSON: Oh. So you're not certain either way?

MR IWASAKI: That is not what I said.

MR ROBERTSON: Why, Luis. When we asked SOCAL to send their head of MSA operations to testify I know at least /I/ expected someone able to tell me whether they have dealings with the Yakuza or not.

MR IWASAKI: I can tell you that I, personally, have had no dealings with the Yakuza. I am not empowered to speak on behalf of every individual in the employ of SOCAL.

MR ROBERTSON: Your hesitation to give a straight answer is duly noted. And with that I have no further questions at this time. Representative Ortega? I believe You're up.

MS ORTEGA: Thank you, Representative Robertson. First of all: while you have made it clear what your opinion of this committee is, Mr. Iwasaki, I am sure you recognize that this is a proceeding the HUAC approves and undertakes lightly. I simply wish to express appreciation that, with few exceptions, you have so gracefully responded to our inquiries, or expressed outright your inability or unwillingness to do so. With that out of the way, while Rep. Robertson briefly touched on this subject, I would appreciate some further clarification. Since you began your employment as regional director of the MSA for SOCAL, has there been any policy, whether set by SOCAL or its interests within the MSA regarding a preference towards hiring workers from within the MSA or abroad for your interests here?

MR IWASAKI: There has been no official internal policy statement regarding that.

MS ORTEGA: Now, is there any official procedure in place for the hiring or transfer of personnel from outside the MSA to SOCAL interests in this country?

MR IWASAKI: There are, obviously, internal selection procedures, followed by the procurement of work visas with the MSA.

MS ORTEGA: Of course, and pardon if there was a lack of specification on my part. Would you be able to inform the committee of any procedure to determine the trustworthiness and security fitness of a transfer or new hire from outside the country?

MR IWASAKI: Naturally we conduct a level of vetting, but in terms suitability for working in the MSA, we leave most investigation to the visa authorities.

MS ORTEGA: Are you aware of any instances in which the company decided that an error of judgement had been made in the vetting process outside of fitness for a visa?

MR IWASAKI: These decisions are primarily made by the California offices. I am aware of cases in which a visa has been denied, but typically the reasons have not been fully disclosed.

MS ORTEGA: Is SOCAL shipping between the PSA and MSA overseen by your division to any degree, or is it also under the purview of the California offices?

MR IWASAKI: It is under joint overview.

MS ORTEGA: And to the extent of your knowledge, are SOCAL drivers and workers responsible for handling the loading and unloading of oil and derivative products subject to scrutiny equivalent to personnel brought on to MSA operations on a more permanent basis?

MR IWASAKI: To my knowledge, there is no discrimination on that basis.

MS ORTEGA: Would you say that such SOCAL employees receive a responsible level of scrutiny from management?

MR IWASAKI: I would say so

MS ORTEGA: Thank you. Now, obviously the oil and gas business involves the storage and transport of exceptionally valuable and rather hazardous product. Does SOCAL employ in-house security, or does it contract the services of third-party security companies?

MR IWASAKI: For vital areas, we utilise in-house security - such measures are impractical on larger scale, though.

MS ORTEGA: and so to your knowledge SOCAL operations in the MSA do not contract outside security for other areas?

MR IWASAKI: On the contrary - proportionally we utilise far more private security than in-house security.

MS ORTEGA: Thank you for the clarification. Are you at liberty to disclose the private security firms contracted by the SOCAL assets under your oversight?

MR IWASAKI: I believe we primarily utilise a small firm, ACC Securities.

MS ORTEGA: Given time to do so, would you be willing to provide the committee with any other firms that have been hired by SOCAL for security within the MSA?

MR IWASAKI: I believe that since my gaining this position, we have primarily used ACC, but if you would like I can procure that information for you at a later date.

MS ORTEGA: That would be greatly appreciated. Now, does SOCAL have any official policy regarding recording security footage of vital areas guarded by your in-house security?

MR IWASAKI: What kinds of policies is the Congresswoman referring to?

MS ORTEGA: Does SOCAL make a policy of recording areas of sensitive security on company property, and does it retain any such recordings or keep record of their contents?

MR IWASAKI: Yes, we record all high-security areas, particularly near and around our wells, and maintain those recordings according to our internal security policy.

MS ORTEGA: Does this policy apply to lower security areas protected by ACC Securities, or any other firm, and if so is responsibility for these recordings handled by SOCAL or by this private security firm?

MR IWASAKI: All security recordings obtained are held by Standard Oil. Lower security areas have their recordings maintained for shorter lengths of time.

MS ORTEGA: Thank you. I know this has been quite a lengthy questioning, but I assure you I only have a few more questions for you. First, if you are willing to disclose this so we might have some insight into what led you here, you earlier told this committee that you held a lower level position in California before being transferred to the MSA. What was your position in the PSA?

MR IWASAKI: I was a management-level official in the California offices dealing with exports to Asia.

MS ORTEGA: You also mentioned this position was your entry into the oil business, yes?

MR IWASAKI: Yes.

MS ORTEGA: Would you be willing to inform this committee of what field you drew experience from prior to being hired by SOCAL?

MR IWASAKI: My father was involved in a number of businesses along the West Coast related to post-war reconstruction. I was also employed as part of this business.

MS ORTEGA: To your knowledge, does SOCAL regularly hire management-level employees relatively new to the oil business, or was your hiring an outlier?

MR IWASAKI: I would characterise my hiring as atypical, and based on management and other skills demonstrated, rather than a long career in the oil business.

MS ORTEGA: Would you say the same of your promotion to regional director?

MR IWASAKI: I would say that the skills I acquired that gained me employment in the first instance were applied well on my part to the oil business.

MS ORTEGA: To your knowledge, has SOCAL hired personnel with experience outside the oil industry that seemed to be motivated by politics or other special interests rather than personal skill?

MR IWASAKI: I wouldn't know, Congresswoman. I imagine if one examined the ranks of any body, from a family-owned gas station chain to a government body, one might find that to be the case.

MS ORTEGA: Haha, likely very true. But we must ask such things, you understand. But have you ever had any reason to believe that those responsible for hiring in SOCAL hired personnel for the sake of any subversive causes?

MR IWASAKI: You would have to define subversive causes.

MS ORTEGA: Ideologies or organizations hostile to the independence of the Mountain States of America

MR IWASAKI: Congresswoman, would your definition include, say, the Republican and Socialist Parties? Or in their view, perhaps, your own Party?

MS ORTEGA: Are you suggesting that SOCAL has hired personnel for the sake of the Republican, Socialist, or Progressive Party, Mr. Iwasaki?

(Mr Iwasaki confers with Mr Hillier, his legal representation.)

MR IWASAKI: I am suggesting that perhaps if the Congress of the Mountain States of America wishes to persecute persons for their beliefs, they should perhaps make a list of those beliefs they deem subversive. And probably repeal the First Amendment while they are at it.

MS ORTEGA: Eloquent as ever, Mr. Iwasaki. And Mr. Hillier.

MR IWASAKI: As you have so astutely pointed out, Ms Ortega - I was not employed for my proficiency in the oil business.

MS ORTEGA: So for the record, you would say that you do not have any knowledge of SOCAL, its management, or its contractors hiring employees for the sake of advancing any criminal acts or conspiracies aimed at the people, economy, or government of the Mountain States of America, Mr. Iwasaki?

MR IWASAKI: I would say that our hiring policy is not centered around those aims.

MS ORTEGA: But would you say that such hiring has not taken place?

MR IWASAKI: I believe it would be far simpler to answer whether or not the President himself is a fascist or a fascist sympathiser, as you yourself have advocated investigating, Ms Ortega - rather than for me to make presumptions or claims regarding a company of many thousands of people.

MS ORTEGA: I believe it would be simpler to answer whether or not you have knowledge of such hiring taking place than it would be to discuss the details of my voting record, Mr. Iwasaki.

MR IWASAKI: Ms Ortega, you are making it increasingly difficult for me to avoid invoking the Fifth Amendment, lest I inadvertently perjure myself. I do not believe that such a hiring policy has ever been the primary aim of Standard Oil of California - on the contrary, Standard Oil's hiring policy is geared around profit production, not politically destabilising countries we are based in.

MS ORTEGA: I am sure that this is a stressful matter, Mr. Iwasaki, and I sympathize. I simply must investigate this matter through every relevant avenue of inquiry. That will be a sufficient answer to the question, if you have no knowledge of hiring taking place under your oversight that has contributed towards destabilizing the MSA.

MR IWASAKI: Congresswoman, the question remains one that proves dangerous - I cannot categorically state that no one hired by Standard Oil has gone on to destabilise the MSA, just as Congress cannot claim the same for its thousands of staff members.

MS ORTEGA: And you cannot make such a statement regarding hires by Standard Oil in the region under your direction specifically?

MR IWASAKI: Not given the reputation of this committee for the truth, no.

MS ORTEGA: Are you implying that you have an answer to the question and refuse to make a statement?

MR IWASAKI: Are you directing me to answer the question, Ms Ortega?

MS ORTEGA: Let it be noted that Mr. Iwasaki is directed to answer the question.

MR IWASAKI: For the record, will you please state the question you are directing me to answer, precisely?

MS ORTEGA: Are you or have you ever been aware of hiring by management of SOCAL assets in the MSA in which those hired directly took part or aided in actions to damage the economy or government of the MSA.

MR IWASAKI: I invoke the Fifth Amendment of the Constitution.

MS ORTEGA: Very well, then. To your knowledge, has your promotion to regional director for the MSA contributed to the destabilization of the MSA through damage to the economy or criminal acts against the government of the MSA?

MR IWASAKI: I must again invoke the Fifth Amendment. Though I wish to point out that such a question may be dangerously asked of any management-level official in any company, when concerning destabilisation of the economy.

MS ORTEGA: Duly noted. I thank you for your time once again, Mr. Iwasaki, and will open the floor if my fellow committee members have further questions.

MR ROBERTSON: Thank you all for coming, I'm sure we can all tell that this has been an important and productive session for this committee. I wish to thank my congressional colleagues as well as the brazen foreign agent for coming before us today. Good night, everyone, and Solidarity.

[Coin]

House Un-American Activities Committee - Investigation Into SOCAL



Testimony of Mr & Mrs Robert Stabler, former owners of QuikGas, a gas station chain acquired by Standard Oil of California

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[Mrs Stabler did most of the talking over the course of this interview, with her husband making relatively few interjections. Mostly he nodded along, agreeing with her statements.]

MR GOFF: What is your opinion of SOCAL?

MS STABLER: We have no strong opinion towards them. They might be from the Pacific States, but here they employ a lot of people.

MR GOFF: How did SOCAL acquire QuikGas?

MS STABLER: We were operating a small gas station chain in Colorado, when one day we were approached by a lawyer who said he represented a company that had been monitoring our profits and wanted to buy us out.

MR STABLER: Pretty outta the blue.

MR GOFF: Did you sell willingly?

MS STABLER: We were a little uncertain at first, but once we spoke to Bob's cousin Joshua from Colorado Springs-

MR STABLER: He's an attorney there-

MS STABLER: Yes, well he said it looked good. And we asked our kids, what they thought and they were all for it.

MR GOFF: Do you regret the sale?

MS STABLER: Honestly, it was a very generous offer, and kinda a dream come true for us. With the money we got, plus the stock options, we've been living comfortably off the interest and the dividends. And now we can afford to help our kids send their kids to college.

MR STABLER: When the time comes.

MS STABLER: Yes, when the time comes. Until then, we've had all sorts of offers to become investors and the like. It's very exciting.

MR GOFF: What was your impression of those who worked for SOCAL?

MS STABLER: We liked the lawyer who came along at first. The next one...

MR STABLER: Quiet type. Not so friendly.

MS STABLER: Yes, we got Joshua to deal with most of that matter for us. But on the whole, they seemed like fine, decent people. This whole thing pretty shocking to us, especially that we should be called all the way over here.

MR GOFF: Not so friendly how, might I ask?

MS STABLER: Just very business-like. I mean, we're entrepreneurs and all, but this guy just wanted things over as soon as possible. I reckon he didn't like Colorado much.

MR GOFF: Would that be your judgement, Mr Stabler?

MR STABLER: More or less the same. Probably likes the south better. Or maybe the West Coast. I don't know, I didn't concern myself with it overly.

MR GOFF: Did the representative from SOCAL seem eager to make the takeover with very little publicity?

MS STABLER: Not so far as we could tell... But now you mention it, the whole thing was very quiet. We weren't Texaco, but we weren't just a mom and pop chain of two or three locations, y'know! The local paper where we lived picked it up, but not much else. Just a change in color scheme at our old stations and that was that, y'know?

MR GOFF: So the lack of publicity was not due to any desire for privacy on your part?

MR STABLER: Nope.

MS STABLER: We told all our friends, and family, and neighbors, and so on. But we were expecting maybe a little more than just a small local article. It was our life's work, in many ways. It would've been nice for some people to take notice of its passing.

MR GOFF: Did you receive any indication even from the local reporter why it was so low-key?

MS STABLER: None at all. Honestly, he seemed surprised to be the only one questioning us. We hadn't thought much of it until these hearings.

MR GOFF: Now that you think it over, did anything else strike you as unusual about the acquisition? Or did your cousin Joshua share any such thoughts?

MR STABLER: Joshua didn't say much, but I suppose he's used to lawyers and so on. He's one of those mosquitoes after all.

MRS STABLER: Nothing seemed odd at the time, but even now, thinking back, I can't think of anything...

MR GOFF: Thank you both very much for your testimony today, and once again might I say we appreciate your coming down to this hearing. Some very interesting information there I'm sure we'll have time to chew on.

[[Adapted from pms with Huojin]]

[Huojin]

Official Minutes of the House Committee on Un-American Activities investigation into Standard Oil of California - testimony of Mr. Chester McDavis

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MR GOFF: I motion we question the surveyors initially? All being in order, Congresswoman Ortega, shall I begin?

MS ORTEGA: Feel free.

MR GOFF: First of all Mr McDavis, might I - on behalf of all the committee - thank you for appearing before this committee. I hope you appreciate our reasoning behind your appearance, and indeed the investigation as a whole.

MR MCDAVIS: Of course.

MR GOFF: Now, I would first start with a point of clarity for the minutes and for those on the committee unfamiliar with your company, but could you outline in a very basic fashion, James & James Land Surveyors' work in these Mountain States within the context of the energy industry?

MR MCDAVIS: We operate in a number of fields, but in the energy industry our primary service is the assessment of lands for surveying, exploration, drilling, and manufacturing of energy products, including oil and natural gas. We are also engaged in assessing certain areas identify as key for expansion.

MR GOFF: Thank you. On a similar point, how long has your company been involved in said services?

MR MCDAVIS: In the energy industry? On some level, the past 50 or so years.

MR GOFF: As a final point of clarity - could you confirm your own position in the company for us as well?

MR MCDAVIS: Officially, I am head of James & James in-house counsel, providing legal opinions and services on internal and external matters.

MR GOFF: Very well - you will appreciate as counsel the need for such initially basic questions in any such situation as this. Now as I understand it, your company is based almost entirely in the MSA, and provides surveying services to several different energy companies who operate in this country, correct?

MR MCDAVIS: Yes.

MR GOFF: Among these companies is Standard Oil of California, as we know. Do they provide much of your work?

MR MCDAVIS: As I understand it, in the last tax year they provided some 30+ percent of our work. Prior to the beginning of this investigation, that was set to increase.

MR GOFF: Was this a major increase on previous years?

MR MCDAVIS: Our records indicate a steady increase over time.

MR GOFF: Roughly speaking, when was the first contract signed with SOCAL?

MR MCDAVIS: Some time in the late 1960s, I believe?

MR GOFF: I appreciate what are perhaps difficulties in specifics - but as far as you know, what was the nature of that work in the 1960s?

MR MCDAVIS: Substantially the same as today, with an emphasis on plans to enter the market, of course.

MR GOFF: As a point of interest - are there records of any interest before the 1967 energy summit?

MR GOFF: Again, as far as your own company is aware.

MR MCDAVIS: Not as far as we are aware.

MR GOFF: Now as far as your surveying for the company goes, I would like to move onto the results and targets of that, if you don't mind.

MR GOFF: Chiefly SOCAL has focussed on the border with the PSA. Have their surveys been focussed so?

MR MCDAVIS: Primarily on border states, yes.

MR GOFF: If compared to your contracts in the states of Wyoming and New Mexico with MS American companies, and indeed other companies from neighboring countries, would you judge their to be a difference of focus in what you are asked to survey?

MR MCDAVIS: This Committee has not subpoenaed James & James files pertaining to our other clients, so I am not at liberty to discuss them.

MR GOFF: Let me rephrase, then. Does James & James find that the lands surveyed for SOCAL are not necessarily those which are most likely to yield the best results on a profit level?

MR MCDAVIS: I would not say this is the case - particularly as profitability is determined by output, which can only be ascertained after exploration and operations have begun.

MR GOFF: Would you say that the survey targets are generally closer to the PSA border than a purely profit-orientated survey would be? When speaking on the border states themselves, that is.

MR MCDAVIS: A purely profit oriented survey might consider areas nationwide. So in that sense, I suppose so.

MR GOFF: Has this geographical tendency towards the border been a feature of SOCAL contracts with James & James from the first of your work with them?

MR MCDAVIS: Yes.

MR GOFF: You mentioned identifying areas as key for expansion. As the SOCAL representative who spoke to this hearing said, there are plans they have for expansion into other states. Are James & James involved in those contracts?

MR MCDAVIS: In the early planning stages, yes.

MR GOFF: Which states are James & James - beyond the two already mentioned - involved in with these?

I ah, am also given to understand that I mis spoke earlier. Beyond Colorado and New Mexico. Wyoming and Texas in particular have been spoken of as the targets for SOCAL expansion, but I would hear confirmation, if I may.

MR MCDAVIS: Yes. We have been involved in surveying in both of those states.

MR GOFF: And to your eye, would a geographical bias, aforementioned, be true of the contracts in these two states?

MR MCDAVIS: In the sense that they remain closest to SOCAL's primary market, yes.

MR GOFF: I would like to go back a step, if I may, and query the follow-up to your surveys. The specific sites of the wells and fields owned by SOCAL have been provided by the company to us here.

However I would like to ask if - in Colorado and New Mexico - any wells have been built, or fields invested in, which the survey results indicated as perhaps not wholly profitable?

MR MCDAVIS: Some that would perhaps operate at an initial loss within the MSA, with the purpose of profiting from sales in the PSA?

MR GOFF: Perhaps. But still. On a purely profit-orientated view, some at least would be against your judgement?

MR MCDAVIS: I suppose so, yes.

MR GOFF: I have a final question before I give way to MS ORTEGA who has waited so patiently for my own line of questioning to cease.

But with your own experience of the market, and the energy rules on the North American Continent… Would it be fair to say that the price of MSA-refined gas will increase, the more of our crude is exported directly abroad?

MR MCDAVIS: I am not an economics expert, and cannot comment as to that.

MR GOFF: Thank you very much for your answers, Mr McDavis.

MR GOFF: Congresswoman Ortega?

MS ORTEGA: Ahem, yes, and let me go ahead and thank you again for your cooperation in these proceedings,
Mr. McDavis. Really, I should only have a few questions for you.

MS ORTEGA: To start off with, pardon my relative ignorance on the subject, my prior expertise is not in the oil industry, but perhaps you can help us establish some things.

MR MCDAVIS: Of course.

MS ORTEGA: Now, I am led to believe that when SOCAL makes these contracts with James & James, they select the locations they wish to have surveyed, yes? Is there consultation on the part of your firm as to areas more likely to hold deposits?

MR MCDAVIS: To some extent, yes.

MS ORTEGA: To what degree does SOCAL take any such suggestions from your firm, to your knowledge?

MR MCDAVIS: They take all our recommendations into consideration before making their final decision.

MS ORTEGA: Now, the data collected from these surveys conducted by James & James, would it be relevant to knowing anything besides oil and gas deposits, from your knowledge?

MR MCDAVIS: Transportation links to their markets. Buying and selling habits in domestic and foreign markets. Transportation patterns relating to passage of cargo or people and how it may factor into business models. And so on

MS ORTEGA: And is James & James ever paid to scrutinize this data to determine these other things?

MR MCDAVIS: You would have to provide me with examples, Congresswoman.

MS ORTEGA: These proceedings are in danger of running late into the night, so we shall call a recess for this evening and resume tomorrow.

[Coin]

I would urge those colleagues yet to speak with witnesses before this committee to do so soon, and ask those who have that we begin consultations on our probable publication date of a report, that the matter may be settled. We all can agree that the testimony has been most illuminating.