Evening star., 1946-07-14
Surplus Property
Continued From First PageD

Of that kind has come up in testi-
mony or in the general investiga-
I ton, he said.
Investigation Uncertain.
So far as he knows, Mr.. Meader
said, the actual or prospective leas-
/ ing of the Centerville' property by
t Batavia is not within the immediate
scope of the war profits investiga-
ton. He added. however, that 1t
conceivably could be of official con-
Germ ito somebody" if there were
evidence that use of unWarranted
war profits entered into the trans
action.
Another factor that could enter
into the picture is the claim that
overpayment of more than $1,000,00
was made to the Batavia company
for war materials. Mr.. Meader eX
planned that the committee could
not hope to dig into every postwar
operation by the company, in adoi
ton to the job Of investigating war
time activities, unless there was evi
dence OF a direct connection with the
principal aim of the investigation y
No such evidence has come to his
attention, he said
Although the Justice Department
ordinarily examines only those sur
plus property sales involving $1,000
600 or more. attorneys from that
department as we'll as in WAA were
reported yesterday to be giving
closer study" to the proposed lease
of the Centerville property. A WAA
official disclosed that the lease has
not been negotiated "or even
drafted" and before there is any
transfer Of property or payment of
money by the Batavia company the
final papers" would have to be ap-
proved by our lawyers and the
Department of Justice
Bid Reported Approved.
There was no information avail
able at WAA as to when, if ever.
the transaction will be completed
But there were reliable disclosures
that WAA authorities approved the
BID as we'll as the bidder along with
list of other routine approvals be-
fore becoming aware that the COM
pany was under investigation by the
Senate group.
Efforts to obtain detailed informa-
Oh
ranoum of its action approving the
Batavia bio last month resulted yes
terday in a WAA office explanation
that the memorandum is tempo
rarly out Of the files and not avail
able at the moment"
Recently, the War Assets Admin
istration has reorganized its real
property disposal procedure. A Real
Property Disposal Board was estab-
lished last week to replace the
former Price Review Board here
WAA explained that the change. ef-
fective tomorrow. will reflect more
properly the many considerations
which are given to the oblectiveS of
the surplus property act in the dis
posal of all types of real property"
/ Emphasis will not be merely on
monetary considerations in dispos-
ing of surplus real estate but also
in Facilitating the transition of en-
terprises from wartime to peacetime
production and of individuals from
wartime to peacetime production
and strengthening and preserving
the competitive positions of small
( business concerns in an economy OF
free enterprise"
| Recommendation Passed.
In any event, WAA records show
that on June 18 the Price Review
Board approved the recommends
ton of the Chicago regional office
that the Batavia company be allowed
to rent the Hercules Manufacturing
plant for $500 a month from June /,
1916, to October 81, 1850, with a
standard option" to buy the proper
| ty for s93, 100 on or before October
81, 1949.
| The property consists of 1.3 acres
! OF |; 4 and one-story structure
with lean-to. comprising 14,5OO
square feet of floor space. 1t en-
ployed 18O men during the war. The
Batavia company. in its bid, prom
ised to employ 300, largely veterans
for training in metal molding.
Offers were invited by the Chi
cago office at open bidding and
Batavia was the only concern that
responded, WAA spokesmen said.
A WAA official said the regional
or Washington Offices are not
obliged to accept offers when there
is only one bidder. In this in
stance, he said, the prompt ap-