We present a technique for automatic induction of slot annotations for subcategorization frames, based on induction of hidden classes in the EM framework of statistical estimation. The models are empirically evalutated by a general decision test. Induction of slot labeling for subcategorization frames is accomplished by a further application of EM, and applied experimentally on frame observations derived from parsing large corpora. We outline an interpretation of the learned representations as theoretical-linguistic decompositional lexical entries.