Evening star., 1945-02-09
Mead Tells Goldberg
He Wants Explanation
OF Use Of Big Names
BY the Associated Press.

0Ac CuI1OSlGy uuapdGeQ Dy AuC-
tioneer Jacob Goldberg'S dra-
matte testimony, Senator Mead,
Democrat, of New York sought
further explanation today of the
use of "big names" in soliciting
Government business.
The chairman of the Senate War
Investigating Committee instructed
Mr.. Goldberg to return next week
with complete answer as to how
Bernard M. Baruch,s name found
its way into letters from Surplus
Lquidators, Inc, to RFC officials.
Richard E. Durham, a director of
the company, testified last week that
he had written Defense Plant Corp.
officials letters in which he said Mr..
Baruch had authorized the use of
his name in indorsing Goldberg as
an auctioneer of surplus Govern
ment property.
Acted on Brandt's Orders.
He did SO, he said, under inStruc-
tions from Herman Brandt, COM
pany secretary, and without any
lpersonal authority from Mr.. Baruch,
f1nancier and presidential adviser.
Senator Mead said he also wanted
to know why another company
letter stated that Jesse Jones, for
mer Commerce Secretary, had in
troduced Goldberg to Walter E.
Joyce, DPC vice president, in the
face of Mr.. Joyces assertion that
this was contrary to the facts.
Chairman Mead told Goldberg as
the latter left the witness stand
yesterday to mediate over the ques-
ton and prepare to answer it fully
when the committee resumes its
public hearings next Wednesday.
Mr.. Goldberg coupled his defense of
his conduct of Defense Plant Corp.
auctions at Maspeth, N. Y, and
Burlington, N. j., yesterday with
fervent protests against what he
called attempts to brand him" for
surplus goods activities after the
last war.
The auctioneer said it was an "un-
truth when Senator Ferguson, Re-
publican, of Michigan asked him If
he had sought to hand an auction
eer $25, 900 in an envelope at a
Junction City, Kans., hotel more
than two decades ago as part of an
effort to buy Camp Funston, near
Kansas City.
Il don't want to use an ugly
word" he said, adding that is a |
wholly untruth made up by some one
to injure me- Please don't brand me
by insination a criminal "a years
ago."
Senator Ferguson would not dis
cuss his line of questioning today.
THE committees interest is to
keep the Governments sale of war
surpluses under constant scrutiny to |
see that it gets the best return pos-
sible for the taxpayer" he said,
adding:
The time to expose evils is now.
We had too many postmortems after
the last war"
Mr.. Goldberg, banging his fist,
told the committee that another
witness lied when he testified that
Goldberg offered a $4,000 job to a
Government official to get a favor
able attitude within the DPC.
Testimony Of John Van Ginhoven,
a DPC engineer, that he had been
offered $4,000 job with Mr.. Gold
berg In the latter's hope of getting
a favorable report on the Surplus
Liquidators, Inc, brought this COM
ment:
Van Ginhoven told lie to you
gentlemen"
He defended signal bidding" at
the Maspeth auction, which Sem
ators contend made it difficult for
other than professional buyers to
make purchases.
IF one man bids $40, and his
competitor hears, the latter will bid
$21," he said, adding that it is, how
ever, for "the best interest of the
Government"
He didn't recall knocking down"
an item to one of Mayor La
Guardia's New York policemen who
happened to blow his nose or wipe
his eye," although he said it could
have occurred.
I'D like to see the Mayor on an
auction stand and see how well he
would do" Goldberg continued.
He said there were a great many
signals, including face scratching"
He said that an apparent "dis-l
crepancy" between gross receipts of
$168, 900 and bank deposits of $685.
900 would be accounted for by
changes in price authorized by
the DPC.