Evening star., 1946-08-09
|WAAFreezes Delivery
I0f Sheet Aluminium in
Probe Of 'Cornerinq'
By Don S. Worren

Oy OOU ,. VoftSH
Reports by the War Assets Ad-
ministration of a purported at
tempt to corner the market" in
sheet aluminium gave new stim-
ulus today to plans of the
Slaughter Committee of the
House for broad inquiry into
the whole Government system
of disposal of surplus war
materials.
The WAA, some of whose officials
already were scheduled to testify in
the House inquiry into disposal Of
scarce bronze wire screening and
other building materials, announced
last night 1t had uncovered big-scale
purchases of surplus aluminium
which would have resulted in a
corner of the market"
Revealing that the Federal Bureau
of Investigation was working with
lit on the case, WAA said it had
ordered temporary freeze" on de-
livery Of aluminium sheets by certain
Of its regional Offices, in Kansas,
Missouri and some other States, in
order to review the entire situa-
ton"
Channelled to One Firm.
At least 43 persons in the South
west were using their veterans pri-
oy.ifu cortificotoc a yXyAA cr>oLasx,ox,
said, to buy Government aluminium.
The bulk of it is said to have been
offered for safe subsequently to a
single Midwestern firm, which went
unnamed.
Investigation and possible prose-
cution is now in the hands of the
Justice Department, a WAA spokes-
man said. He said he did not know
whether criminal intent would be
found in the activities of the veter-
ans who branched out from the Dali
las, (TexJ region into several other
states in buying surplus aluminium.
Deliveries of aluminium purchased
in this manner have not been made
in all cases but serious inroads were
reported to have been made in avail
able stocks In that territory.
The first indication of the alumni
mum purchases came to light last
week when the WAA clamped tight
er restrictions on brokers by prohib-
iting them from exercising veterans
or small business priorities in buy
ing surplus property.
Affects Fields Dealing.
A WAA official said at the time
that this order not only had some
thing to do" with the activities of
Benjamin F. Fields, so-called public
relations counselor, but also resulted
from an especially fragrant" case
involving use of veterans priorities
in the Southwest. That, a spokes-
man said today, was the aluminium
matter.
WAA regulations, it was explained,
do not allow veterans to use their
priority position to buy surplus
property as Spectators or brokers.
The veteran must actually take title
to and possession of the property.
Whether this was done in the alum
mum purchases is being investigated
by the FBI, the WAA official said.
The fact that scarce aluminium
sheets were reaching "only one or
two companies" the WAA spokes-
man continued, represented viola
ton OF the Surplus Property Act
which provides for equitable distri-
button of all sales"
This information came to light as
the House Committee was COM
pleting plans for its formal airing
OF reported well-paying brokerage in
the sale of critically-short building
materials.
The first full-dress hearing had
been scheduled for this morning.
Late yesterday, however, it was post
poned until 10 m Monday when it
was learned that the chairman,
Representative Slaughter, Democrat,
of Missouri, just defeated for re-
nomination for the next Congress,
would not return to Washington in
time for today's scheduled session.
He is expected to arrive prior to the
Monday hearing.
Representative Ridley, Republican,
of Oklahoma, ranking minority
party member of the Slaughter
committee, said he received infor-
nation on the .luminum situation
several days ago" and had turned
it over to the committee staff.
After noting the WAA disclosures
OF last night, Mr.. Ridley said he
would ask the committee to "go
thoroughly" into the aluminium sale
questions, along with others.
Earlier, Hugh Wise, counsel for
the investigating committee, told
reporters the committee had COL
lected evidence" which places "sev-
eraP persons in rather tight po-
sition."
The Slaughter committee has
subpoenaed Fields as one of it's first
witnesses. Fields recently refused to
testify before the Mead War Inves-
tigating Committee in its probe of
the Carson companies war con-
tracts. He has been listed in the
House probe as a prof1t-making
broker in disposal Of scarce surplus
war materials.
The first scheduled witness is to
be Howard Payne, District represen-
tative OF an Oklahoma City con-
tractor and home builder, c. B.
War;, said to have bought bronze
wire screening through brokerage.
Among others called to testify are