◆ SpookStack

* cory (umf QG-B<98 EAT: HA MEMORANDUM FOR TH ATTORNEY GENERAL December 4, 1939 a According to preas dispatches appearing in the Cleveland newspapers during the past weekend, wr. A. Eb, Stevenson, Secretary of the CIO Cleveland Industrial Union Council, will proceed to Washington during the current week for the purpose of determining from you what part tue FBI is taking in a "rumored spy hunt." According to the press dispatches, the Cleveland Industrial Union Council has issuei demands that Mayor Burton of Cieveland confirm or deny “disturbing and sinister reports” that the city administration is seeking to prevent wartime sabotage in industry by spying on union officers and members. It is further indicated that Director of Public Safety Eliot Ness has cooperated with the Pinkerton Detective Agency, the Associated Industries and the FBI in formulating a "prevent sabotage” program, and that Mr. A. E. Stevenson has censured the Mayor for not consulting labor concerding the menace. Newspaper dispatches further refer to the fact that Director of Public Safety Ness has held meetings with several in- dustrialists in Clevelend recently to outline a program of the type described heretofore. For your information, the FBI has not participated in any manner or degree in the organization of the Industriel Safety Committee in Cleveland. The Bureau has observed that during the past several weeks Eliot Ness, Director of Public Safety, has formed a Safety Committee and has held meetings in connection with the organization of this group. The present plan provides that each industrial concern in the Cleveiand metropolitan area pay to the Safety Committee twenty-five cents per employee each three months. The Committee will collect these dues and in return will select two or more employees at each plant to act as undercover egents who will report to the Committee ectivities within the plant which may indicate espionage or sabotage. The Coumittee in. turn will refer this information to the Clevelend Police Department which will handle it through a speciel squad of that Department. Obviously, this plan is most repugnant to the Bureau. It is estimated that there are 1200 industriel plants in the Cleveland area employing at least 150,000 men. /s/f kat a a