Evening star., 1945-07-29
Surplus Property Sales
To Find Eager Market

chOTDlIdHJ COSLo, anu tIldL ny FedSUIl
of poor location, substandard con-
struction, obsolescence or high cost
of conversion they do not fit readily
into the requirements of postwar
industry.
On the basis of original cost the
approximate values of some other
types of surplus property which will
be for sale are as follows: $23, 1884,
000,00 for non-industrial facilities,
including airfields, troop housing
war housing and the like; $26, ,000,-
0O0, 1000 for aircraft and parts: s10,-
000, 900 900 for Liberty and Victory
ships, transports, tankers and other
sea -going craft; $9,500,000, 900 for
Army equipment including combat
vehicles, and radio and radar sup
plies; s7,450, 100000 for a compre-
hensive classification of potential
civilian goods in the finished state:
"a, ,588 100000 for petroleum prod
uctS, stockpiles of raw materials and
other commodities usefu& in civilian
production; $3,700,000,000 for ma
terials in process, and $2,252, 900, 900
for miscellaneous equipment and
supplies.
These figures are estimated from
preliminary report made last year
by the Senate Small Business Com
mittee. In many cases the original
cost prices will bear very little rela-
ton to the value of the goods and
| .,oEe ~ he Y1l condition,
in which they will be offered for
sale
Will Use Regular Channels.
The public at large will learn
about surplus property mostly from
the so-called consumer goods COM
ing on the market at various times
and through scattered sources. There
will be thousands of items, such as
shoes, clothing, toilet articles, small
tools, household appliances, trucks
automobiles, farm tractors and con-
struction machinery.
After the First World War, when
surplus property of all kinds aggre-
gated about seven billions, various
devices were tried for disposing OF
consumer goods. The Government
opened its own retail stores in &c
cities, and operated mail-order
service. These methods of disposal
were unsatisfactory. The Govern
ment-operated stores were soon
closed, largely because the estab-
lished retail industry complained OF
the competition.
| A basic policy for disposal of this
lished channels of trade are to be
used wherever possible. This means
that as a general rule the Govern
ment will sell only to dealers or pro-
cessors. In the early phase there was
much controversy over methods
Sometimes it was said that small
! dealers were Disseminated against
and that insiders got all the best
buys, sometimes paying less than
others were ready to pay.
The Commerce Department, desig
mated by the board to sell surplus
consumer goods, and the RFC
handling the war plants and cap
ital" goods in general, now have set
! up extensive organizations for
reaching the largest number of po-
4 tential purchasers.
/ The RFC has surplus property
sales outlets in Al cities and expects
soon to open seven more and pos
sibly others later. One of its biggest
| jobs is the disposal of surplus ma
chine tools and production equip
ment from plants doing war work.
This equipment is expected to play
an important part in the reconver-
/ sion of the country's industries to
peacetime production. Production
for civilians can be speeded if the
excess machine tools are made avail
able where they will fit into the
needs of industry.
The RFC also mas the job Of SELL
ing the surplus aircraft and parts.
The agency has opened 66 sales
Offices exclusively for this purpose
Comparatively few of the many left
over combat planes will be suitable
for flying. Surplus transports and
training planes are selling well.
Some discarded combat craft are
being made available to colleges and
universities for their engineering
Laboratories. For about $3.50 a quail
fed school can obtain a Bit for
this purpose.
For disposal of consumer goods
the Commerce Department has
established IL regional Offices. COW
ering the whole country. 1t pub
llshes at frequent intervals Sur
plus Reporter. listing and describ-
ing goods available for sale This
publication goes to about 250,000
wholesale and retail dealers and
other interested concerns. A pros
pective purchaser may bid for the
listed goods by letter. The board
reports So per cent of all consumer
goods sales thus far have been in
lots of $500 or less.
Priorities and preferences set up
in the law, or desired by various in
terests, have been a troublesome
factor in administering the Surplus
Property Act Thousands of acres
of agricultural land acquired by the
Government for war purposes will
be for sale. The law gives States
and municipalities first chance at
it, presumably for parks and recrea-
tional areas as much of it is in large
tracts. Senator Lucas of Illinois
wants the original owners to have
the preference and has introduced
an amendment to that effect.
The law provides a priority for
war veterans for goods and equip
ment needed for small businesses
which they may establish. The
board places a limit of $2,50o of
such priority to any one veteran
and also rules that the preference
shall not apply to merchandise pur-
chased for resale. Which brings
from the American Legion a vigor-
GUS protest-typical of many other
protests and complaints incident to
this worlds biggest bargain sale.
Printed by Special Arrangement With the
St. Louis Post-Dispatch.
p,1h1ic ihrorx,