Evening star., 1948-03-24
Commerce Officials
To Aid Probe Of ILLEGAL
Exporting Licenses
Sy the Assoeiotsd Press

The Commerce Department has
disclosed, plans to help the Justice
Department run down any illegal
export permits.
The announcement last night by
Assistant Secretary of Commerce
David K. Bruce coincided with the
opening Of similar inquiry by a
Senate committee.
Saying the Commerce Department
knew there has been some traffic In
illegal export licenses, Mr.. Bruce
added that he attached Importance
to statements by Washington police
that many licenses were not per-
forated by official machines.
1--WE are proceeding Immediately
to follow through with the Depart
ment Of Justice to determine where
the perforating machine used to
validate these licenses was OBJ
tained," Mr.. Bruce said.
Also Helping Senate Probers.
His statement added that the de-
partment also is making its facilities
for the investigation available to
the Senate Small Business Commit
tee.
Until recently" he said, "the
appropriations of the department
were insufficient to employ a large
enough staff to enforce effectively
the stringent regulations against
such (dllegaD traffic.
I'm the last few weeks the once
Of International Trade has enlarged
its enforcement staff in an effort
to bring offenders to justice and
protect the exporters who abide by
the rules"
Ferguson Wants Inventory.
Investigation of export deals
with Russia was started in Congress
after two Senators called license
conditions shocking"
Chairman Ferguson said the Sen
ate expenditures committee wants
to know how much and what kind
of merchandise has gone overseas
recently. Especially, he emphasized,
to Russia and the nations she DOM
mates.
Senator Wherry, Republican, of
Nebraska, of a Senate Small Bus
mess Subcommittee investigating
licenses issued by the Commerce
Department, said:
There's traff1cking In the black
market between here and there
(overseas) and it's got to be
stopped"
Expert Testifies on Licenses.
The subcommittee spent most of
the day listening to Jack Quinn of
Jersey City, explain how his name
came to be connected with export
licenses for about $500, 900 worth of
food.
A documents expert for the
Metropolitan Police Department.
has testified the licenses were not
perforated by machine used for
that purpose by the Commerce De-
partment.
Harry Levey, president of Haro
Products, Inc, New York exporting
concern, testified he obtained the
licenses from Mr.. Quinn. He said
he paid Mr.. Quinn $28,255.
Mr.. Quinn testified yesterday the
licenses were obtained by him from
a man named Mcguire who claimed
to have influence in Washington.
He said he gave Mcguire 60 per
cent of the fees and he kept 40 per
cent.
Tells OF Payment Scale.
But he said Mr.. Levey didn't pay
S2a,255. He estimated it was around
5000. ba%s
The hearing was adjourned until
Monday to give Mr.. Quinn time to
produce Mcguire"
Mr.. Quinn said the customary
payment for a license was two cents
q pound on 100000 pounds of lard:
IS cents bag for -four and 81 a ton
for tallow.
Government officials said the
Commerce Department does not
charge for export licenses. Anyone
may obtain one. But applications
have been exceeding the ALLEGATIONS
for exports allowed most countries.
Thus no licenses are available for
the excess commodities. For in
stance in the month of February,
allocations totaled 250,o0O bags Of
-four and exporters applied for per-
n11tS for ShippinP 40 0f1c n0f hars