Evening star., 1945-02-08
he sold had to be gathered from II |
scattered defense plants, loaded,
transported, unloaded and recondi-
toned to make It Salahle.

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scattered defense plants, loaded,
transported, unloaded and recondi-
toned to make 1t salable.
The Maspeth sale involved $500
lots Of goods. he said; the Burlington
sale, 2,200, at which q total Of $685.
600 was realized In Government
confirmed sales. with q subsequent
5000 realization from subsequent
private sales.
He estimated gross compensation
from confirmed sales at $4,000 on
the basis Of q total 7h per cent fee
~ against out-of-pocket expendi-
tares by his firm OF $4,000.
Taking exception to testimony by
Mayor La Guardia of New York that
Mr.. Goldberg established terms OF
sale precluding any agency Of Gov
emment from buying" the witness
said: Il
IT he has any specific information
or evidence from which any infer
ence OF wrongful conduct may be
drawn, challenge him to bring
forward any such proof"
Says He Kept Promise.
Mr.. Goldberg asserted he wasn't
interested In q profit from the
auction sales. that he wanted to
make them true guinea pigs" for
that type Of surplus disposal.
He said he had kept his promise
to the Government not to engage
In buying distressed goods on his
own.
Surplus liquidators didn't buy
5 cents worth Of merchandise" he
declared.
"Oh." said Senator Ferguson. Re-
publican, Of Michigan, but how
about Jake Goldberg?"
Jake Goldberg didn't buy any,"
the witness replied.
At his insistence, the auctioneer
was permitted to read 2,0O0-word
prepared statement despite the i'm
patience Of Chairman Mead to pre-
sent "a number Of questions I went
answered In yes or no STYLE
Please, Senator" the witness de-
clared. II have been attacked My
reputation Is ct stake. I want to
read this small statement to you"
Recommendation Regretted.
Mr.. Goldberg's turn on the witness
stand fell on the day after his work
for DPC was condemned by the man
who got him his contract.
After viewing the auction sale of
Mr.. Goldberg's Surplus Liquidators,
Inc, at Burlington, Walter E. Joyce,
DPC vice president, concluded:
Il don't think Goldberg is a first
class auctioneer. He is not properly
organized and gets into arguments
with bidders"
Conceding that he had recon-
mended use of Mr.. Goldberg to the
DPCs board Of directors month
after T. ]. Ahearn, DPC manager in
New York, had opposed this course,
Mr. Joyce told the committee yes
terday:
TT was an error In judgment"
He said that he and Hans Klags-
hrunn, DPC executive vice presi-
dent, had agreed they did not "in-
tend to engage him (Goldberg) any
further"
Other testimony developed during
the questioning Of william Margu-
lies Of Newark, N. j., an accountant
for Mr.. Goldberg's arm, disclosed
that some Of the money from sales
Of surplus DPC goods was spent on
coffee and sandwiches for buyers.
Mr.. Margulies said he considered
that proceeds Of the auctions be-
longed to the auctioneering arm un.
til an accounting was made to DPC.
Hatch Criticizes Witness.
Senator Ferguson countered that
the money belonged to the Govern
ment. Senator Hatch, Democrat,
Of New Mexico told the witness that
you make yourself perfectly ridic-
ulous.''
Ernest I. olrich, former assistant
10 the Secretary Of the Treasury, as
sailed testimony given by Herman
Brandt.
Mr.. Olrich advised the committee
IN q statement that he never at any
lime offered Surplus Liquidators.
Inc, job. despite testimony to that
effect BY Mr.. Brandt.
Although Mr.. Brandt stuck by this
testimony yesterday, Mr.. Olrich
Baid what occurred was that Cold
berg wanted TO represent the Treas
ury at : st. Louis auction to review
the work q an auctioneer there.
Asserting he had I representative
q the Warrington once On hand TO
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