Evening star., 1942-12-05
Senate COP Appears
Victorious in Fight
To Force BEW Audit
Democrats Unwilling
To Delegate Gosh Veto
Power to RFC Board
BY the Associated Press.

BY the Associated Press.
A revitalized Republican mi
nority appeared victorious today
in sharp hind-the-scenes
Senate battle to force an ac-
counting of Reconstruction FL
nance Corp. funds spent by the
Board of Economic Warfare un-
der executive orders.
Administration leaders. seeking
Senate approval Of a House bill au-
thorizing q $4,000, 900 900 increase in
RFC borrowing and lending author
ity, were reported to have agreed
unwillingly to an amendment deny
ing any funds to the BEW or other
agencies until the RFC Board Of Di-
rectors gives advance approval OF
proposed expenditures.
Plans Compromise.
Senator Danaher, Republican. OF
Connecticut said he would offer this
amendment as compromise when
Senator Brown, Democrat. of Mich
igan renews efforts to obtain action
on the bill next week. Senator
Brown declined to comment on the
amendment, but was reported ready
to accept 1t in order to get the bill
passed.
Senator Danaher told reporters he
was interested in preventing what
he characterized as "untrammeled
and whimsical abuse Of powers" con-
ferred by executive order on various
Government agencies, including the
BEW, which is headed by Vice
President Wallace
His effort was in line with in
creasing minority resistance to some
administra ton sponsored measures
since the November 3 elections.
Minority Leader McNary blocked
| consideration Of the bill in the
Senate yesterday when Senator
Brown first attempted to bring it
up and Senator McCarran. Demo-
crat, of Nevada. interested in other
matters. later objected to unani-
nous consent agreement.
Senator McNary told colleagues
cation measure, saying he was "as-
founded by the representations made
by witnesses" before the Senate
Banking Committee which had ap-
proved the bill.
Testimony Is Secret.
Senator McNary had before him
copy of the testimony taken in a
closed session of the committee
Members said it could not be made
public because it contained war
secrets.
For my part" Senator McNary
declared. Il shall insist upon very
complete statement concerning the
reasons for granting to the Recon-
struction Finance Corp. very large
sum of money to be used without
accounting for it in the usual way"
Banking Committee members said
Secretary of Commerce Jones had
testified in response to questions
that the BEW and other agencies
armed with executive orders, had
made requests on the RFC for GER
tain funds to carry out secret prof.
eCts.
Questions about the accounting
made for these funds were reported
to have brought testimony that the
RFC had no way of knowing in de-
tail how the money was spent.
Supporters of the measure con-
ceded privately that if the bill were
finally approved with the Danaher
amendment attached. it would su-
persede executive orders and allow
the RFC Board to decide whether
proposed fund expenditures could be
made.
Activities of the BEW. chief agency
affected, for the most part have
been clothed in secrecy, but it is
supposed to promote economic re-
lations between the United Nations
and to counter Axis economic moves
against neutral countries.