Evening star., 1947-01-02
|WAA AssaiIed
In Report Urging
End Of Priorities
Probe Finds Sloppy
Business, if Not
Downright Corruption

Accusing the War Assets ADJ
ministration of sloppy business
methods and "favoritism, II
not downright corruption" the
House Surplus Property Commit
tee today recommended that
Congress eliminate priorities for
purchase of all property except
real estate, exempting only Gov
ernment agencies buying for
their own use.
The committee called on Congress
ito police the general policy" on
surplus property operations in the
future. It recommended that the
House name a successor committee.
The report sharply assailed earlier
handling of the sale of war goods
in strong language, but said that
Robert M. Littlejohn, War Assets
administrator, now is conducting
the big job Sin a far more efficient
manner" than when the committee
first began it's investigations last
July.
Reviews Long Inquiry.
The committee, headed by Repre-
sentative Slaughter, Democrat, OF
Missouri, who was defeated for re.
election, issued a 75-page report re-
viewing it's investigations, which in
cluded 81 hearings. Four of the
five members signed the report, but
Representative Rooney, Democrat,
Of New York disagreed with some Of
the findings and will file separate
report later. ..-
The committee report said use OF
priorities has been abused, espe-
cially through the practice of having
veterans front" for other people
and in giving the United Nations
Relief and Rehabilitation Admin
istration an advantage over Amer
lean business.
The committee said Congress also
should act to insure that "specu-
lators" cannot in the future set up
schools under a nonprofit charter
which will make them eligible for
enormous discounts in the acquisi-
ton of surplus property"
Points to Thunderbird Deal
As Ease in point, it cited the
sale-at 100 per cent discount-of
Thunderbird No. 2 Airfield in Ari-
zona to the American Institute for
Foreign Trade"
The committee declared it believed
discount provisions of the Surplus
Property Act were intended for "es-
tablished educational institutions"
only.
It's prolonged Investigations and
voluminous testimony, the commit
tee said, led to these conclusions:
i. Disposition of surplus property
Is now being conducted in a "far
more efficient manner than when
the committee began its delibera-
tions." For this, the group gave
credit to Robert M. Littlejohn, war
assets administrator.
Discrimination Cited.
2. The regional WAA Offices have
been in state of complete dis
Organization and in many instances
favoritism, if not downright cor
ruption, was apparent in their op-
eration.''
3. The entire program for sale
of electronics equipment has been
"a costly, outrageous series of in
excusable, if not fraudulent bung-
ling"
4. Sloppy business methods" have
resulted in "a lack of confidence on
the part of the public and a reluc-
tance on the part of many sound
business concerns to deal with the
War Assets Administration"
5. There has been "a catastrophe
failure" to have any inventory, and
the property records are "in an
abysmal state of chaos"
High lights among the commit
tees proposals for new legislation.
Amendment of the Surplus Prop
erty Act to make it possible to place
international organizations in a po-
sition where they enjoy a preferred
status over American business.
New legislation to insure that
SPECTATORS cannot form so-called
non-prof1t schools and thus make
themselves eligible for enormous
discounts in the acquisition of sur
plus property.
Elimination of strong authority of
the Second War Powers Act from
the present Surplus Property Act so
as to curtail wartime authority over
an essentially postwar operation.
Amendment of the International
Organizations Immunities Act to
provide there shall be no immunity
from congressional subpoena en-
joyed by nationals of the United
States employed by such organiza-
tions.
Net Loss on Sales Feared.
When the War Assets Administra.
ton finally is liquidated, the Com
nlittee said it seemed likely that
"the Government will have re-
ceived in monetary return from
these billions Of dollars worth of
surplus property, figure SO small
as to be practically negligible. 1t is
even possible" the Committee pre-
dicted, that the program will end
up showing net loss to the Gov
ernment."
Based on the best figures the Com
n1ittee could get TO date, it was said
that property costing approximately
SO, 900 ,000. 900 had been declared
surplus, and 1t is anticipated that
approximately $1,000, ,000, 900 worth
more will be declared.
"Of this, it would appear" the
Committee said, that property
costing approximately $12, 500 ,000, 900
has been disposed of to date, and
that about 2,20O, 900 900 gross has
been received. This gives a gfbss
yield of approximately IT'S per cent
before charging OF the hundreds Of .
millions of dollars which have been
spent in the disposal program"
Rome Clash Injuries Three
Z. ROME Ian 2 fP-Tfe ITALIAN