Evening star., 1948-03-11
McCabe Confirmation
For Reserve Board
Seen by Z Senator'S
BY the Assoeicisd Press

members SalQ To-Day tIley nave uttlc
doubt Thomas 3. McCabe will be
confirmed as a Federal Reserve
Board member.
Senators Capehart, Republican, of
Indiana and Robertson, Democrat,
of Virginia told q reporter they ex-
pect the committee to give Mr.. Nc
Cabe clean bill on the way he
handled surplus property sales
abroad. That has been the issue
before the committee.
Chairman Tobey said he hoped
to end hearings today on the nomi-
nation Of the Pennsylvania indus
trialist, who Is President Truman's
choice to succeed Mariner 8. Eccles
as board chairman.
Senator Tobey said he had two or
three additional witnesses lined up
for today's session. He said he did
not know how soon the committee
would act.
McCabe Defends Record.
Senator Tobey has been leading
the committees inquiry into Mr..
McCabeis conduct as foreign liqui-
dation commissioner. In this post
the nominee directed disposal of
surplus goods outside this country
for about two years.
Mr.. McCabe himself defended the
record of his agency yesterday, de-
claring that generally it was well
handled although it was so large
that some mistakes were unavoid-
able.
Two former top Government off,
cials backed up this position and
urged confirmation of Mr.. McCabe.
They were Robert P. Patterson,
former Secretary of War, and Will
L. Clayton, former Undersecretary
OF State. Both said they were in
frequent contact with Mr.. McCabe
when he was in the Government.
They said he did an excellent job.
"RebuttaT" Witnesses Called.
Senator Tobey then called three
"rebuttal' witnesses to 60 over de-
tails OF some of the surplus property
deals in China and India.
During a lengthy examination of
the three, Senator Robertson COM
mented that the committee might
better spend its time asking Mr..
McCabe what plans he has for the
Federal Reserve system rather than
wasting our time" on details of
two-year-old surplus property sales.
One of the witnesses was Walter
G. Rumble, former China manager
for the United Press Associations.
Mr.. Rumble repeated assertions
made by previous witnesses that
Col. B. A. johnson, then brigadier
general and Mr.. McCabe's deputy
in China, was selling surplus to
the Chinese government at the
same time he was negotiating with
it for job
Censorship Attempt Charged.
Col. johnson is now on duty with
the Army in Tokyo. Senator Tobey
said the Army Department has
called him back to this country, but
ne said he has no present inten-
ton OF calling him as witness.
Mr.. Rumble testified that Mr.. NC
Cabe, who was in China late in
1946, tried to persuade him not to
file a story about irregularities in
the sale of surplus goods abroad
And he said that Col. Johnson
told me I had better get on his
bandwagon or he would pillory me-"
Senator Tobey has charged that
bad management-of sales to China
in particular-cost the American
taxpayers millions while Mr.. Nc
Cabe was foreign liquidation COM
missioner.
Explains Bomber Deals.
Mr.. McCabe denied Senator To-
hey S criticisms point by point yes
terday.
He said the sale of surplus prop
erty In China was rush job. with
some unacceptable Mistakes" but
well handled and "as favorable to
the United States as it was to
China"
Eleven tailless B-25's were sold to
Chinese interests, Mr.. McCabe said.
but it wasn't "wanton destruction"
AS he explained it:
The planes were to be dismantled
and sold for their parts, not as fly
ing aircraft. But the Army turned
the planes over to him without de-
militarizing them. The tails were
removed to fulfill conditions of the
contract