Evening star., 1947-08-17
'Greenbe|tC
Will Welcome
House Inquiry
Officials Distressed
But Defend Record
Of Public Service

Announcement that a consumer
cooperative at Greenbelt, Md, will
be the first of several to receive criti-
cal scrutiny of the House Small
Business Committee brought quick
response last night from the Green
belt Consumer Services, Inc.
The investigation, to begin Friday
Pby a subcommittee headed by Rep.
resentative Riehlman, Republican,
of New York, is to ascertain
whether, and to what extent. tax
exempt privileges of co-operatives
are harmful to free competitive en-
terprise,'' according to Chairman
Ploeser of the full committee.
Asserting 1t was much distressed"
by the House committees COM
plants, officials of the Greenbelt
cooperative declared it would "wel.
come" an impartial hearing.
1--WE have nothing to fear from
impartial investigation for we be-
lieve that our record of services to
the community is clear" the group
stated.
Described As Monopoly.
The House committee had de-
scribed Greenbelt Consumer Serv-
ices, Inc, as monopoly holding
control of all business in the Mary
land community as a result of a
contract with the Federal Public
Housing Authority.
A statement that the Greenbelt
Town Council had called on the
FPHA to cancel its agreement with
the cooperative was denied by Of
ficials of the consumers group who
said three of the five members of
the Town Council, Paul Dunbar,
Joseph L. Rogers and Allen D. Nor
rison, also had denied it.
A spokesman for the cooperative
said complaints of the House com.
mittee includes a number of major
errors" including a charge that the
Consumer Services, Inc, has the ex-
elusive contract for business in the
community.
Part of Area Unrestricted.
The group said the north end Of
Greenbelt, where nearly half of
the homes are located,' is not re-
stricted to use by the cooperative.
The House committee said 1t had
reliable reports" that less than g.
900 of the community's 5000 people
favor the cooperative movement.
In answer to charges of many COM
plants from residents that they are
deprived of services which private
enterprise could give them promptly,
the consumers group pointed out
that 2,400 persons, approximately
two thirds of the 1850 families, are
members of the cooperative and
have invested an average Of more
than S100 with it. OF the 5000 popu-
lation, about 4,5Oo are children, the
group added. {. h 4
z The Maryland economic Council,
representing 81 Maryland business
groups, the Prince Georges County
Board of Trade and the Baltimore
Retail Merchants Association were
among groups expected to express
to the subcommittee demands that
Greenbelt be thrown open to private
enterprise.
Hearings to Open Tour Of Nation.
The hearings in Washington FRI
day and Saturday will be the first
on a tour which in six weeks or two
months Is expected to eover Midwest
and West Coast cities.
Chairman Ploeser was expected
to attend the hearings, as well as
Representative Grant, Republican,
of Indiana and Lynch, Democrat,
of New York, members of the House
Ways and Means Committee which
is conducting a separate investiga-
ton of co-operatives.
Government accountants were
studying audit reports received in
reply to letters and questionnaires
sent last month by the Small Busi-
ness Committee to so large CO.
operative groups throughout the
country.
The committee said it wanted the
report and operating expense figures
for 1935-46, plus information on
their tax exempt status, to deter
mine whether their expansion was
result of retained savings or a
result of tax exemption.
Subcommittee hearings have been
scheduled September 10-11 in
Seattle, September 1918, San Fran
cisco, and September 1925 in Los
Angeles. Other hearings, for which
dates have not been set, will be
conducted in Minneapolis, Kansas
CITY. South Bend and Columbus.