Evening star., 1934-03-13

was any mention Of the specifications
made to me.
The only change made by me was
in the method Of procurement
namely. the irsistence on procurement
by competitive bidding as against
procurement on a negotiated basis.
The inference that I in any way
changed the specifications or in any
way placed the Government in q po-
sition Of being forced to accept air
planes Of inferior performance, is
absolutely unwarranted and full proof
OF the truth of this statement Is
made by the testimony Of the chief
Of the Air Corps before the House
Military Affairs Committee in open
session on March. 7, at which time
the chief Of the Air Corps definitely
stated to the committee that his pre-
vious testimony before the House Ap-
preparations Committee had been mis-
construed and that the only change
made by me was in the method Of
procedure.
Praises Air Legislation.
The aircraft act of 1925. under
which airplanes and aeronautical
| accessories are procured, is. in my
opinion. one Of the finest pieces of
legislation ever given to any Govern
ment service. 1t not only provides for
the purchase of experimental equip
ment on a regulated basis but also
places adequate safeguards around
both the public and the national de-
tense by providing for purchase in
quantity by free and open competition
and authorizing award of the business
to the lowest responsible bidder who
can perform the work to the best
advantage to the Government It was
this latter method that I insisted
upon.
I have felt, and still feel, that air
| planes meeting the requirements of
rational defense can be obtained by
| open competition among qualified
bidders and that the establishment
OF such procedure will, over a period
OF time, improve the performance of
military airplanes. reduce the cost to
he Government and, what Is vitally
important in time of national stress.
increase the sources of supply from
which these airplanes may be OBJ
| taired
l wish to reiterate that my action
IN this case was taken in the normal
performance of my duties and solely
lor the purpose of carrying out what
l considered the spirit and intent of
the law. I feel that if had not taken
such action that I would have been
derelict in my duties to my Govern
ment.
A lot has been said about the sale
OF surplus property to the Silverman
firms. While some ten and a half
millions Of dollars worth of surplus
War Department property has been
sold to the Silverman firms since the
| World War. not dimes worth has
been sold to any of the Silvermans or
their firms since I became Assistant
Secretary OF War. Recently a pro-
posal was made to me by Mr.. Joe
Sllverman for trade of some surplus
property. I tentatively agreed to the
trade subject to the conditions that
! the trade would not be effective un-
less the general staff should, in writ
ing. certify that the property was
| surplus: and further that the quar-
termaster general should approve the
prices Of the property to be dis
posed Of.
l consulted the chief of staff for a
final decision as to whether or not
. the property was surplus. He in
| formed me the Army needed this
| property. Thereupon I dropped the
matter, and the contract was not con-
summated. Statements which have
been made relative to the insufficiency
OF prices to be obtained for the prop
erty to be disposed of by the Govern
ment are misle aiding, because, by one
of the conditions precedent that I
imposed. the quartermaster general
was to approve the prices or the con-
tract would not be complete. Upon
learning that the property was not
surplus, I stopped the sale without
asking the quartermaster general
about the prices. Hence, any COM
ment on prices that were to be OBJ
tanned Is absolutely without founda-
ton
Mr.. Silverman is the only client in
whose behalf Mr.. Ralph T. O'Neil has
ever appeared in this Office, notwith-
standing efforts which have been
made to create contrary impression.
Wants to Find Truth.
Some time ago accusations were
made that various individuals had at
tempted by improper means to secure
Government business through my Of
flee. I have encouraged investigation
OF these matters and done everything
IN my power to aid in the investiga-
tions being conducted by executive,
legislative and judicial departments of
the Government, to the end that the
full truth may be obtained and justice
administered.
At first I declined to discuss any OF
these matters with representatives of
the press because I felt that it was
more appropriate that the facts be
disclosed by the Investigations TO
which have referred, and carefully
re1rained from taking any action that
UC IOllSLl dll CllOlU W
fuence the grand jury. Now that the
result of its investigation has been an
nounced. I feel free to make this
statement. Now that such vicious in
situations have been made, feel 1t
my duty to reassure the public that
its interests have been carefully safe
guarded by my Office.
Among all the decisions of my Office
which have been criticized I recall
none that would now change If I
could.
The exercise Of supervision by my
Office has increased competition;
given the Army the kind of supplies
that 1t wants, and saved large sums
of public money.
Scurrilous statements and insinua-
tions have been made to the effect