Evening star., 1941-08-14
Senator Pepper Hit
In House Probers'
Asphalt Deal Report
Procurement Division
Is Raped for Delay on
Army Airport Project

was on record today with sharp crit
icism of the unreasonable, unwar-
ranted and unjustif1ed delay in the
construction of Eglin Field, Army
aviation project in Florida, after
hearing extensive testimony about
the congressional activities that fig
ured in the award of an asphalt
contract for the air base.
In its findings on another defense
project, the Pensacola CFlaD Mu-
nicipal Airport, the investigators
report, made yesterday called Sem
ator Pepper, Democrat, Of Florida
by name and asserted:
"The special committee most
strongly deplores the fact that any
member of Congress would permit,
even by inference, an employe OF
the Government 10 believe that his
promotion to better position was
contingent upon the securing of a
Government contract by a partlc-
ular corporation"
The report said Wilbur E. Hark-
ness, then the Florida procurement
officer and now State w. P. A. ad-
miniStrator, was aware that Senator
Pepper wanted the Pensacola as
phalt contract awarded to the Pam
American Petroleum Corp.
1t said Mr.. HarkneSS, who had
considerable personal feeling in a
controversy which developed over
the contract, had been backed by
Senator Pepper for the better job
of w. P. A. administrator.
Charge Pepper Intervened.
IN both the Eglin Field and Pen
sacola disputes, Pan American and
Allied Materials, Inc, Atlanta, each
claimed to be low bidder on asphalt
to be used for the runWays. In
hearings before the House commit
tee, witnesses representing Allied
complained that Senator Pepper in
tervened on behalf Of Pan Amer
lean.
Pan American got the Pensacola
contract. Each company received
part of the Eglin Field award.
The eight member investigating
committee, headed by Representa-
tive Harter, Democrat, of Ohio, is
Is a division of the House Military
Affairs Committee It's other men,
bers are Representatives Brooks,
Democrat, of Louisiana; Costello,
Democrat, of California; Edmiston,
Democrat, of West Virginia;
Schaefer, Democrat, of Illinois;
Arends, Republican, Of Illinois;
Clason, Republican, of Massachu-
sets and ElSton, Republican, of
Ohio.
Treasury Unit Criticized
On the Elgin Field controversy, the
committee said construction was
delayed about 80 days. 1t added
that coming at time of grave
national emergency when the best
efforts of the entire Nation are be-
ing directed toward speed, with lit
orally millions of dollars being spent
for overtime. wages and for methods
of operation neceSsitated only by
the crucial international situation,
such a delay was unreasonable, un-
warranted and unjustified.'
1t held that the delay was caused
In part by incomplete and made
quate specifications in the invita-
tions for bids. For that, it blamed
the Florida Offices of the w. P. A.
and "the Procurement Division in
Washington for failure to properly
control its employees actions" Pro-
curement is division of the Treas
ury Department.
An uncertainty arose over the ap-
plication of land-grant railroad
rates on delivery of the asphalt, it
said, and both Pan-American and
Allied obtained the assistance of
members of Congress.
Members of Congress Hit.
because of the unusual nature
and number of congressional in
quiries," it said, "the Procurement
Division in Washington held up the
award for the purpose of hearing
the protests, and it is the finding
of the special committee that the
delay in pursuing the investigation
was unreasonable.
Then it declared: The special
committee deplores most strongly
the fact that any members of Con-
gress would exert sufficient inf1u-
ence, and that an established Gov
ernment agency would be so sus-
ceptible to such influence, as to
cause unWarranted delay in the
completion of a project so essential
In the development of the national
defense"
Several Legislators Interested.
The final period of delay, it said,
was caused by Mr.. Harkness, as pro-
curement officer, when he "arbi-
trarily delayed the issuance of ship
ping instructions from April 25 to
April 30" The committee said it
believed this delay, together with
the threat of an unwarranted in
junction suit by attorneys for Pam
American, was part of a deliberate
and successful attempt to compel
the Army to make an emergency
purchase under circumstances which
made it practically certain that Pan
American Petroleum Corp. would re-
ceive the award"
In 17-page outline of testimony
on the Eglin and Pensacola projects,
the committee said its records indi-
Gated that Allied called on Senator
George and Representatives Rams
peck and Camp, Georgia Democrats,
for help on the land-grant question.
1t was also brought out at the hear
ings that members Of the Texas del
egation interested themselves in the
matter, Texas being the sources Of
Allied supplies.