Evening star., 1945-02-03
Defense Plant Corn.
Chiefs Face GriIIinq
On Sale Of Surp|uses
Senate Group Requests
Full DetoiIs on DeuIs
With Auctioneer COLDER,
BY the Associated Press.

BY the Associated Press.
Top-ranking officers of the
Defense Plant Corp were booked
today for an explanation to Con-
gress of their dealings with
Jacob Goldberg, auctioneer.
Chairman Mead said the Senate
War Investigating Committee vii
seek to learn why the Reconstruc.
ton Finance Corp. granted Goldberl
a contract to auction DPC surpluse.
at Maspeth, N. Y, and Burlington
N. j.
These auctions, conducted by
Goldberg's Surplus Licuidators, Inc.
are the subject of a committee in
quiry which will be resumed Tues
day.
Will Consider Action.
Guy M. Gillette, chairman of the
Surplus War Property Board, said
the board would consider action on
the case when the Senate hearings
close The SWPB has representa-
tive at the inquiry.
Mr.. Gillette, former Iowa Senator
said the board at this stage was not
considering cancellation of the auc-
tioneering firms contract with DPC
We'll wait until the reports of the
Senate committee and our repre-
sentative are made, and if they in
dicate need for action, wen con-
slider the steps to be TAKEN" former
Iowa Senator stated.
Testimony has been received that
Herbert Bayard Swope, former
chairman of the New York Racing
Commission, wrote letters to Jesse
Jones, former Commerce Secretary
and RFC chief, and others, seeking
Government auction business fol
Goldberg's concern.
Calls 1t Friendly Letter."
Mr.. Swope, whose daughter Jane
is married to Robert Brandt, son o1
Herman Brandt, secretary of Sur.
plus Liquidators, Inc, said it was 6
friendly letter" such as he might
write for any friend, especially 8
member ''of the family"
Senator Mead said Walter E
Joyce, DPC vice president, and Dor
Brown, who represented the DPC a
the auctions, will be called mex
week.
"The board of directors of the cor,
poration announced the granting o
a contract to Goldberg last Octobe
although nearly all the lower leve
officers of the corporation ha,
recommended against it," Senate
Mead told a reporter.
One witness testified at yester
days session that he bought
searchlight for $31 at the Maspetl
auction and resold it to a Gov
ernment-flnanced contractor 70
$235. Another said she bough
eight floor strainers for $3.25 an
resold them for SIP each to Gov
ernment ship repairer.
Brandt Says Company Lost.
Mr.. brandt testified that tn
company "lost money" on the auc
tionS.
Mr.. Swope's name was brough
into the proceedings again yes
terday when more of his letters +
Government officials were read int
the record.
Senator Ferguson, Republican, o
Michigan said he had difficulty see
ing why Mr.. Swope kept up his lette
writing "for a year more
| Mr.. Swope told newsmen later:
IF can help friends, am gla'
| to write letters. I would do tn
same for any friend. It (the lette
to Mr.. Jones) was a friendly letter
written in a friendly, family way"
Mr.. Brandt. whose testimony pro
duced a number Of clashes whicl
often had witnesses, counsel an,
committeeman talking at once, tes
titled that Mr.. Swope had no con
nection with the company.
The outstanding case Of stimuli
taneous talking was set of by Nj
Brandts' assertion that buyer
! (See SURPLUS, Page A-4D