Evening star., 1946-10-03
Error Of S1,471,0OO
In Surplus War Data
Told al House Hearing
By Don S. Worren

Uy 0OV - w 0sbSUtF
A story of confusion. sudden
shifts and a $1,471 900 "typograph-
ical error" in arrangements for the
sale OF 9,O00, 900 pounds OF bare cop
per wire was unfolded today In
testimony before the House Sur
plus Property COMMITTEES.
Numerous witnesses were called
to recount the preliminary dealings
at Government war surplus agerl-
cies leading to the ultimate sale of
the scarce wire through two. OF the
Governments industrial agents. IA
It was testified the 5000 900
pounds of wire had been declared
surplus by the Army Signal Corps
in September of last year, but that
this had not come to the attention
of surplus disposal agencies under
the Reconstruction Finance Corp.
until last January.
Order for Material.
Speedy search was ordered for
the proper surplus declaration
after an order for such material
came by telegram from the Essex
Wire Co. of Fort Wayne, Ind, an
agent for the Government.
A ''hand carried" declaration of
the surplus was given surplus off,
cials by the War Department, 1t was
testified. During testimony about
the handling of the necessary pa
pers one witness testified it must
have been a typographical error"
that an original document listed the
Governments acquisition cost Of
the wire at 3 mills a pound instead
of II cents pound. ...
Committee counsel brought out
that this error-later corrected
would have represented a difference
between about $29, 900 and 81 SOC, 900.
Counsel later expected to show
that the wire was sold through Gov
ernment agents for a little over 14.2
cents pound.
Two Firms Made Sale.
Accounts given the committee to-
day showed a little more than half
of the total quantity was sold
through the Essex firm and the re-
mainder through the Electronic
Corp. of America, another War As
sets industry agent.
Other testimony was that though
it was standard procedure" for bare
copper wire to be sold through the
metal sales divisions of the War As
sets setup, the disposals were
handled by the electronics division
although the New York regional Of
fee of WAA last January was
charged on its inventories with
handling the wire. Two officials Of
the New York office testified the
inventory charge was still on their
books ard that they had no way Of
getting it off.
THAT is the job of the accounting
department" said one of these wit
nesses, Gerald Del Guercio, an as
sistant In the New York metal sales
Office.
When Representative Ridley, Re-
publican, Of Oklahoma asked the
witness what he would do If WASH
ington officials asked him to show
what had become OF the property,
he said he would merely say ''it was
not there"
Told to Okay DISPOSED.
Edward w. Dillon, chief Of the
storage and issue section Of the elec-
tronics division, said he got instruc-
tions from Harold Naylor, chief Of
the divisions pricing section, to
okay disposal of the wire through
the efectroa1ics division instead of
the metal sales Office.
Spokesman for the Surplus; Prop
erty Committee promised new SEN
sations in the committees investi-
CATION after hearing . quip from
War Assets Administrator Robert
M. Littlejo the inquiry SO far had
turned up "just chicken feed"
As he left the White House after
q conference with President Tru-
man yesterday. Mr.. Littlejohn told
reporters "the peculations uncov-
cred fby the committee) are not as
high as In a normal commercial
operation, considering the volume
of our job and the number Of people
involved"
They are, he said, "just chicken
feed"
Slaughter Retorts Quickly.
In quick response, Chairman
Slaughter retorted that when The
taxpayers become aware of WAA
activities they won't believe 1t was
chicken feed"
Later, in a statement issued from
his office, Mr.. Littlejohn said he had
called on the President to urge that
the Army, Navy, Maritime Com
mission and the Reconstruction Fl
nance Corp. be asked to speed up
their declarations Of surplus goods
Crush