Evening star., 1946-09-27
War Profits
Continued From First Page.)

lumber and cotton cloth, to various
nations on barter basis, because it
brings in tin and other items for
which there is even greater need
| here.
He declared, however, that this
was in the best interest of the
| United States because it brought in
tin and other items of which there
is even greater need here. Under
questioning by Senator Ferguson
Mr.. Small emphasized he did not
subscribe entirely to any theory that
the rehabilitation of other countries
through shipments abroad, was more
important than that of the United
States.
At the resumption of hearings this
morning on handling of overseas
surplus property, the Michigan Sen
ator noted that Deputy Recover
sion Director Harold Stein testified,
in effect, yesterday that the State
Department. by advocating bulk
sales of surplus goods to Pacific area
countries, seemed to be placing the
rehabilitation of those nations above
that of the United States
Small Defends Practices.
Mr.. Small replied that rehabilita-
ton of other war-torn nations is in
the interest of the United States.
But he said he did not hold that
it was more important than restrict
ing exports of critically needed
goods and in bringing back neces-
sary surplus materials from the
Pacific.
Were certainly not exporting
critical goods to bring in goods we
don't need" he declared.
Mr.. Small reported steady i'm
provement in the general production
picture, although he said supply of
many essential items will remain
behind demand for months to come
He said there is no question" about
serious shortage in shoe leather
during the next six months
Steel Scrap Stocks Low.
Stocks of iron and steel scrap are
at a critically low level, Mr.. Small
said. "All evidence supports the
conclusion that the inadequate sup
ply of scrap will continue and will
throw an almost unbearable load
on pig iron, if steel castings pro-
duction is maintained at current
levels"
AS the committe resumed hearings
on surplus property and the inter-
American highway, its members dis
agreed on the timing of scheduled
inquiry into American military gov
ernment activities in European areas
and on the scope of proposed in
) vestigation of the domestic housing
situation.
! Departure of a subcommittee tc
Germany and Austria probably will
be delayed until after the November
elections because not enough Sena-
tors are available now and because
preparatory work, including the
sending of committee investigator
to Germany, will require several
weeks, members disclosed.
So much "jurisdictional uncer-
u talnty exists, committee Onclal
disclosed, that the staff was directed
to submit a report spelling out the
legislative authority of the commit
tee to look into aspects of the hous-
j ing problem. AS national defense
investigating group, officials re-
marked, the committee might be
able to study some related aspects
of the housing shortage.
! Senator Kilgore, Democrat, OF
!. West Virginia, the new chairman
! reported the matter is still unsettled
5 Senator Ferguson, on the othef
hand, declared the committee in
tends to go ahead with it.
Lead in Housing Probe.
! The current hearings on reported
5 failure or slowness to return critica
overseas surplus goods to this coun-