Evening star., 1944-02-19

BERNARD M. BARUCH,
JOHN M. HANCOCK.
; Recommendations
I tractors of the uniform termination
article for f1xed-price contracts.
6. Speed the handling of subcon-
tractor claims:
a. The procurement agencies to be
authorized by legislation to protect
subcontractors in event of insolv-
ency or default of their customers.
b. A standard termination article
for subcontractors to be completed
soon to supplement the uniform
termination article for prime con-
tractors
C. A minimum figure to be set by
the director of war mobilization
below which nuisance sized" claims
can be Immediately validated with
suitable safeguards.
Experimentation Advocated.
d. Vigorous experiment with the
so-called "company-sized" type of
settlement, seeking a workable plan.
7. Schools to be set up around
the country for training Govern
ment negotiators and contractor
representatives In the same class
rooms.
8. Prompt clearance of Govern
ment property from private plants
not later than 60 days after the FL
ing Of inventory lists, the manu-
facturers having the right to re-
move and store the property earlier
at their own risks.
9. This entire termination program
to be put into effect by the agencies
at once to the extent administra-
lively possible.
10. Prompt enactment of legisa-
ton to make this program fully ef-
fective, including appropriate au-
ithority to permit company wide set
Elements, to the extent found prac-
ticable.
c. Surplus Property:
l. The director of war mobiliza-
ton to name a surplus property ad-
ministrator in the once of War
Mobilization with full authority for
handling every aspect of surplus
disposal.
| 2 A surplus property policy
board, the administrator as chair
man with full and final authority
and with these agencies repre-
sented: War, Navy. Treasury, Re-
construction Finance Corp. Mari
time Commission, War Production
Board, Bureau of the Budget, the
food administrator, the Attorney
General Federal Works Agency
State Department and Foreign
Economic Administration.
Would Bar Overlapping.
;. Four major outlets to handle
actual disposal. each in a clearly
defined field, with no overlappings
a. Consumer goods to the Treas
ury Procurement Division.
b. Capital and producer goods, all
types Of industrial property, to a
single corporation within the Re-
construction Finance Corp, conson-
dating present RFC subsidiaries.
c. Ships and maritime property
to the Maritime Commission.
d. Food to the Food Administra-
tor.
4. All OF these agencies. as well
as any other agencies called upon
to handle special disposal problems
to follow policies laid down by the
administrator in consultation with
the policy board
5. The surplus administrator tc
report to Congress as soon as DOS
sible on legislation needed, basine
his recommendations on actual ex.
perience with the problem.
6. Our own suggestions as to the
broad policies that the surplus ad-
ministrator may wish to follow are
summed up in 10 basic principles
l. Sell as much as he can as early
as he can without unduly disruptine
normal trade.
2. Listen to pressure groups but
act in the national interest.
3. No sales, no rentals to specu.
lators; none to promoters.
4. Get fair market prices for the
values, with proceeds of all sales
going to reduce the national debt
Would Keep Sales "Open."
S. Sell as in a goldfish bowl, with
records always open to public in
spection.
6. AS far as practicable, use the
same regular channels of trade that
private business would in disposing
OF the particular properties.
7. No Government operation of
surplus war plants in competition
with private industry.
8. No monopoly; equal access to
surpluses for all businesses; prefer
ence to local ownership, but no SUBJ
sidizing of one part of the country
against another.
8. Scrap what must be scrapped
but no deliberate destruction Of use
full property.
10. Before selling surplus equip
ment abroad, assure Americas own
productive efficiency on which our
high wages and high living stand
ards rest.
7. The surplus administrator to
be a man of proven executive Ca
pacity. business sagacity, unques-
toned integrity and great courage
to fight on the selfish interests vino
will be seeking to exploit these
surpluses.
8. The facts on all sales to be
open to public inspection, with
regular reports from each disposal
agency to Congress.
8. All Of the disposal agencies to