Evening star., 1946-09-27
$4,000 pairs of radio headsets which
were incomplete, he said
10 Pct. Agents to Testify.


were incomplete, he said.
10 Pct. Agents to Testify.
Other manufacturers agents Serv-
| ing the WAA on a 10 per cent fee
plus-expenses basis today were to
be given their first opportunity by
the committee to tell their side of
the story of the bogged-down elec-
tronics disposal system.
The administration of this phase
of the colossal surplus sale program
already has resulted in several
shakeups and is still in the process
of reorganization under the re-
Gently revamped top command of
WAA itself.
All new shipments of war sur
plus radio and radar equipment to
Industry agents were frozen re-
Gently, pending the proposed adop-
tion Of new and fiat fee system
At yesterdays hearing new protests
arose that there had been no audits
completed as yet of the sales of
agents engaged as long as 10 months
ago.
Scheduled to be called to the
stand today were L. L. Kelsey, re-
presenting the Hallicrafters Co. of
Chicago, which was said to have
been given the power to dispose of
most of the large quantities of cleo
tronics stored at the Chicago Signal
Depot, and Herman Krissman of the
Belmont Radio Corp. of Chicago
said to have been given a virtual
monopoly in the disposal of air.
borne electronics materials.
WAA data placed in the commit
tee record yesterday by Mr.. Al
helm showed that, since the pro-
gram started, 154 industry agents
for electronics had been allocated
more than $3.50, 900, ,060 of mate
rials and had sold $4,000, 900 worth.
Their expenses, including commits
sions, amounted to nearly $4,000, 900,
or 33 per cent of the proceeds.
$4,571 Expenses Sale.
An exceptional case showed one
agent had sold only $14 worth, al
though his expenses, charged to the
Government, amounted to $4,571,
showing 32,650 per cent.
Committee examination brought
from Col. George H. Moriarty, di-
rector of the WAA Electronics Di-
vision since last July %, statement
that he had serious doubts"
whether the Government would net
anything at all when it has COM
pleted its electronics disposal pro-
gram.
The original cost to the Govern
ment Of the electronics materials
marked for surplus sale has been
estimated to run as high as s3,OO0,-
100000.
Records supplied to the commit
tee yesterday showed that the con-
tracts of nearly half of the 154 in
dustry agents, whose reports were
listed, had been Cancelled, voluntar-
lily or otherwise.
Cancellation of the contracts of
five industry agents because of poor
showing, lack of full cooperation
and high expenses" was reported to
the committee late yesterday by Col.
Moriarty.
He listed one of the five as the
Hallicrafters Co., which has figured
prominently in the investigation
The others named were: Cords, Ltd. =,
Inc, OF Newark, N. j.; Frank Rieber,
Inc, Los Angeles; Electronics De-
signs, Inc, of Irvington-on the
Hudson, New York and the United
Electronics Co~of Newark.
Examination of the data on agents
supplied by the WAA official showed
the Hallicrafters Co., through May
81 had made sales having a proceeds
value of $5,225, ,720. with expense
charges totaling $1,312,617, or Is
per cent of the return to the Gov
ernment.
The other four as reported: Cords,
sales OF sl4 with expenses of $4,571.
for a percentage of 32,65O; Frank
Rieber, Inc, 800 in sales with ST.
300 In expenses, or 10 per cent; Elec-
tronics Designs, sales, 50, ,e44, and ex-
penses. $l6,l44, or 182 per cent, and
United Electronics, sales, $103.975
and expenses, $132, 1852, or 127 per
cent.