Evening star., 1943-07-01
Probe Of BEW
Projected by
Byrd Committee
Wallace und Jones
Still at Odds After
Peace Conference
BY the Associated Press.

A sweeping investigation into
the policies and worldwide oper-
ations of the Board Of Economic
Warfare was projected by men,
bers Of the Byrd committee to-
day as Vice President Wallace
gave notice the agency soon will
ask Congress for direct financing.
The inquiry resulted from a hot
exchange in which Mr. Wallace,
head of the BEW, accused Secretary
OF Commerce Jones of obstructing
the boards acquisition Of vital war
materials
James F. Byrnes, war mobiliza-
tion director. summoned both to the
White House yesterday for a peace
making conference which appar-
emily failed of its objective. Both
principals promptly issued more
critical statements.
Chairman Byrd and Senator
George, Democrat, OF Georgia, COM
mlttee member. meanwhile told re-
porters the committee will broaden
a present inquiry into subsidiary
corporations of the Reconstruction
Finance Corp, which Mr. Jones
heads. to look into the allocations
and commitments made by BEW.
Will Investigate Policies.
Senator George said the Byrd
Committee was not interested in in
vestigating what he called IAN un-
fortunate controversy between the
two high administration officials, but
was determined to explore fully the
BEW policies
The whole BEW program, in
cluding its commitments and prom
ises, ought to be examined" he de-
clared. Il think the country wants
it, and the organization itself ought
to want it. OF course this must be
done without disclosing any military
secrets. but it can be done"
Mr. Wallace said in a statement
last night that he and Mr.. Jones
had agreed to continue temporarily
tSe arrangement by which the BEW
draws funds from the RFC for its
foreign purchases.
Mr.. Wallace wants BEW to have
its own funds.
Some idea of the extent OF BEW's
outlays was given in testimony OF
Milo Perkins, executive director. be-
lore the Senate Appropriations
Committee when he said the agency
had issued directives to the RFC
from April l3, 1912. to February !,
le43, calling for l,438 900 900.
| Wallace Explains CHARGES.
In his statement, Mr.. Wallace said
he had advised Mr.. Jones at White
House conference with Mr.. Byrnes
! that he had no intention OF reflect
ing on Mr.. Jones patriotism when
he accused the RFC head OF OBJ
structlng the war program.
Il intended to assert that the de-
lays in RFC in acting upon projects
had delayed the war effort" Mr..
Wallace said. Il did not state or
intend to create the impression that
his personal motive was deliberately
or Intentionally to delay the war
effort.
Our difficulties have had to do
with strong differences of opinion
with regard to the quantities of va
rlouS products to be obtained at a
given time and place That there
should be these differences of opin.
ion may reflect upon the judgment
OF the individuals involved, but such
differences do not reflect upon the
desire OF the individuals to serve
I their country
Will Continue Setup.
7 Mr.. Wallace also said that he and
Mr.. Jones have agreed for the time
/ being to continue the present ar,
rnagement under which the Board
OF Economic Warfare is functionine.
Preparatory to the Congress recon-
venlng. the Board of Economic War;
fare will initiate steps through the
Budget Bureau which will result in
a proposal to the Congress that
there be made available to BEW the
necessary program funds for the
procurement and development Of
all imported strategic war materials
under public purchase so that BEW
may be completely independent OF
RFC. Mr.. Jones did not object to
| this policy decision.
Mr.. Jones promptly shot back:
Mr.. Wallace tonight repeats that
delays of the Reconstruction FL
nance Corp. have retarded the war
effort. This dastardly charge is as
untrue as when he first made it. AS
for the rest of his statement. Mr..
Wallace was not authorized to speak
for me. 1 will continue to speak
for myself and as previously stated
1 shall insist upon a congressional
investigation
The disputants were said to have
discussed their differences quite
(See WALLACE-JONES, Page A-3)