Evening star., 1946-09-27
Surplus
Continued From First Page.)
its contract for selling surplus elec-
tronics properties.
Salary Paid by Government.

| iIo SOliti dCG lOl SCllilS olll pluS clcC-
tronics properties.
Salary Paid by Government.
Mr.. Rnineholtz's salary had beer
paid by the Government as a part oi
the contract with Superelectric, the
witness testified, despite the faci
that this company never made any
sales on which they could return
proceeds to the Government
Later, Mr. Alheim testified, Mr.
Rhineholtz turned up again as g
representative of the Majestic Radio
g. Television Corp. at a proposed
salary of $l4,400 year, which was
disproved by WAA.
Mr. Alheim told the committee
Mr.. Rhineholtz had said he hoped
to sign up several more agents in
terested in selling surplus electronie
material.
Organization Questioned.
A mysterious organization iden-
titled by the initials A. N. E. P. A..
in which Mr.. Rineholtz seemed to
have many friends, stirred Chair
man Slaughter of the committee to
ask, rs this a sort of fraternity
within Government agencies?"
Hugh D. Wise, committee counsel,
who was questioning the witness,
was not sure of its real name, but
thought it probably meant the Army
and Navy Electric Production
Agency.
Mr.. Alheim told the committee he
was not sure of its identification or
purpose but indicated there seemed
to be in WAA a number of cast
offs from other agencies" including
people with experience in other for
er Government groups who worked
in pretty close cooperation" with
one another.
What's become of the merit sys-
temp" asked Representative Risley
What does the civil service do In
making checkup?"
Employees on Per Diem Basis.
Mr.. Alheim replied that some en-
ployes in transfer were actually en-
ployed on per diem basis until
they could be put on the payroll.
The committee drew from Mr.
Alheim an overall analysis of the
cost of selling surplus electronics, to
show that the net yield to the Gov
eminent on reported cost for the
month ending May 81, 1916, was
only % per cent.
The committee then launched into
an inquiry into the operations of
the Communications Measurements
Laboratories of New York. Dana
Griffin, an official of this concern,
was put on the stand to be ques-
toned by Herbert French, assistant
general counsel of the committee.
Mr.. Griffin charged that long de-
lays in getting approved prices on
surplus materials had been a factor
in sharply curtailing sales.
Shortly after the war was over
he testified, there was a Dig de-
mand for certain electronic ma
terials, but by the time the Gov
ernment gave him prices at which
to sell it there had been a lot
Of newly manufactured material
| thrown on the market.
Could Have Sold Material.
Asked by Chairman Slaughter II
he could have sold most of the
material to the public that he had
on hand last September if he had
been able to get price, the wit
ness estimated he could have dis
posed of large proportion of it.
did you take it up with the
WAA?" Chairman Slaughter asked
Eyes, I took it up by telephone
and by personal visits often" the
witness responded. Now, it is diff
cult to sell it. The market has COL
lapsed."
Mr.. Griffin was asked If his COM
pany could conform to a memoran-
dunn sent out by the former assist
ant director of the electronics divi-
sion Of WAA, which established fol
all agents "a monthly 81 per cent
ratio of expenses to net proceeds. ,
This was supposed to be effective last
July /.
Compliance Was Impossible.
Compliance was impossible, the
witness answered, because under the
contract it would have been neces.
sary to reduce expenses.
i Principal blame for recent diff
Guilty in selling was inability to Sc
cure pricing data on the materials
from in less than two or three, OF
even four months, he testified.
Another trouble that his agency
encountered, Mr.. Griffin told the
committee, was due to large ship
ments of such things as radio sets
arriving with missing parts. He
said he asked the Washington office
OF WAA to supply these missing
components and after about four
months he got all but one missing
tube for each set. Finally. after q
period Of delay, he bought the need
ed tubes and at last all the sets were
sold.
In one shipment his hrm received