Evening star., 1946-09-24
WurAssets
Continued From First Page. }

approached by a representative of
Western Electric who had a list of
equipment needs he thought could
be filled from the surplus inventory.
He identified this representative as
Warren johnson.
I'VE will help you to find this
equipment in your declarations (of
property declared surplus" the
Western Electric representative was
quoted by Mr.. Schwarz. The WAA
official said his response was fine.
we need your help" adding that the
Government surplus officers then
were far behind in compiling surplus
property declarations.
The witness hastened to add, how
ever, that he had directly advised
the Western Electric agent that he
was interested not only in enabling
Western Electric to fill its needs.
but that surplus phone equipment
resulting from the survey would
have to be offered to $500 others.
He indicated this was done.
MemOranQum Produced.
Under questioning by Mr.. Dono-
hue he recounted that he had called
a War Assets official in the Phila-
delphia Office directing him. to assist
Western Electric employees in pre-
pairing the surplus owned equipment
lists. Mr.. Donohue asked if sealed
bids in the sale of such material did
not start about January l Of this
year, but the witness was uncertain
Asked why the sealed bid method
had not been invoked for other
items, the witness produced a memo
randum he had written suggesting a
better job" could be done by, using
similar method in the Government
regional offices.
In response to questions regarding
aid given the Office of Education
and educational institutions. Mr.
Schwarz said he was not aware of
it if inventory screening by such
surplus applicants had been aban-
doned.
Didn't you know Mr.. Green of
the Office of Education had been
forbidden to 60 on with the SCREEN
ing?" Mr.. Donohue asked.
NO, sir" said Mr.. Schwarz.
The witness added that If educa-
tional agents had been excluded
1T was not done in my knowledge
or with my approval"
Representative Riley, Republican.
OF Oklahoma, who had arrived at
the committee table few minutes
earlier, demanded bluntly to know
why they were excluded.
"Gfatuitous Service.
Hugh D. Wise, jr., chief committee
counsel, interrupted to say that
several witnesses would testify on
this later.
Mr.. Schwarz told the committee
that to shis knowledge the Western
Electric employees who screened the
surplus inventories had been paid
nothing for their assistance, that 1t
was "gratuitous service"
In other testimony Mr.. Schwarz
told the committee a search of his
records showed that five OF the so
$25 to $35 consultants once en-
ployed by WAA and later dropped
during reorganization, were "mem-
bers" of the firms of manufac-
turers' agents engaged by WAA to
help sell electronics items.
However, he added, none of these
received any additional pay by rea-
son of their dual relationship.
Chairman Slaughter interjected it
was not question of extra pay,
since certainly" the consultants
should not have been persons en-
ployed by firms having contracts
with the Government.
The witness insisted WAA needed
the best brains" it could get
Chairman Slaughter agreed, but
added, "disinterested brains"
"Of course, disinterested," the
witness agreed.
Sale of the radio trucks at the low
price was termed "reprehensible"
and "doubly improper" by Chair
man Slaughter as he asked Mr..
Schwarz to explain why the sale
was permitted.
The witness admitted he fixed