Evening star., 1945-02-15
Senate War Inquiry
Turns From Surplus
To Federal 'Hoarding
Ply the Associated Press.

Ey the Associated Press.
An embattled Jacob Goldberg
went home today while the Sen
ate War Investigating Commit
tee turned its inquiries from
surplus goods sales to reports of
Federal boarding.
Senator Ferguson, Republican, Of
Michigan said committee investi-
gators were checking on complaints
that some Government departments
were allowing surpluses to accumu-
late rather than arrange for their
disposal.
"We are trying to find out II some
OF the departments are failing to
declare unneeded goods as surplus
for fear of congressional criticism
for overbuying, Senator Ferguson
told reporters.
The inquiry into Goidberg's auc-
tion sales for the Defense Plant
Corp. at Maspeth, N. Y, and Bur-
lington, N. j., came to a close yes
terday, with the auctioneer shouting
that the committee had wrecked his
business.
why don't you indict me, put
me in prison, If you think I've done
anything wrong?" the white-haired
president of Surplus Liquidators,
Inc, demanded.
Sees U. S. Officials Stymied.
Complaining that his telephone
had been tapped by some one (the
committee denied its investigators
used this method of gaining in
formation), Goldberg then accused
the committee of costing the Gov
ernment millions and millions of
dollars" by its inquiry.
Il know that everything is at a
standstill on liquidation of sur
pluses," he declared, "and the initia-
tive of Government officials charged
with its disposal is stymied."
Chairman Mead and Senator Fer
guson accused the witness in turn
of making "unfounded charges" and
said that by their efforts to keep
disposal sales honest the Govern
ment would save billions of dollars"
Chairman Mead assured Goldberg
the committee was not aiming its
inquiry at him personally and that
its report would weigh the good and
the bad of the auction sale method
of surplus disposal.
Goldberg Almost in Tears.
Almost fearful, in contrast to his
previous militant mood, Goldberg
declared:
This investigation is costing my
company thousands and thousands
of dollars. am labelled from coast
to coast. If you find that I'm an
honorable and honest man, please
do me this favor: Save a mans re-
putation"
For several weeks the committee
has been inquiring into the conduct
of the auction sales, including COM
plants by Mayor La Guardia of
New York that prices were changed
10 days after the close of auctions,
and that the methods made it diff
cult for nonprofessionals to put in
bids.
Goldberg yesterday heatedly de-
nounced 23-year-old story that he
once offered another auctioneer a
$25 900 bribe.
That's lie," he asserted when
Senator Ferguson read from a War
Department report of May n, 1922.
quoting another auctioneer as lav-
ing said Goldberg tried to hribe him.
General Made Charge.
The report, signed by Gen. H. L.
Rogers, then Quartermaster general,
and addressed to the Assistant
Secretary of War, said that the
Goldberg Wrecking Co., Kansas
City, Mo-, had been barred from
bidding for surplus goods.
Gen. Rogers report said disbar-
ment was on the ground that Gold
berg had attempted to bribe Charles
S. Gerth, Government auctioneer at
Kansas City, ''to recommend ac-
ceptance of bid of $4,000 for
Camp Funston, Kans.
In the report, however, Gen.
Rogers recommended reinstatement
of the firm, on the ground of con-
flict in testimony over whether
Goldberg offered Gerth $25 600 prior
to a public auction Of the camp