Evening star., 1949-09-01
TrumanSays He'll 1|KeepVaughan;
Larson Out|ines Broad Program
For Curbing Sharp Operators
Plans to Blacklist
Firms Violating
Contract Rules
By Miriom Gutenberg

sharp operators" ranging from
a virtual black listing of unethicsl
firms to a code of conduct for
Federal employees. was outlined to-
day by General Services Admin
istrator Jess Larson.
Mr.. Larson was called before
the Senate five-percenter inquiry
to tell what he has in mind to
eliminate the abuses aired in the
Senate subcommittee investiga-
ton of influence peddlers.
After Mr.. Larson completed his
testimony, Chairman Hoey re-
cessed the hearing until some fu-
ture date to be determined by
the chairman.
At the outset, Mr.. Larson &C
knowledged that particularly in
the surplus property program 'ur-
scrupulous operators declared
"open season" on the public treas
ury and resorted to every known
trick to obtain unfair advantage
of their own Government.
Actually, he, said, the surplus
disposal program came through
with minimum of law viola
tions.
Wants Red Tape Cut.
Mr.. Larson. who was War As
sets Administrator before he took
over the job of overseeing nom
military procurement policies.
told the committee the firms most
ready to listen to the "wiles of the
influence peddler are those who
are seeking an advantage in deal
ing with the Government that
they would not otherwise be en-
titled to have"
In other words" he added,
"the sharp operator who wishes
to put the heat on some Govern
ment official in order that some
thing be done for him which 9TH
erwise should not or would not be
done is an easy victim of the five
percenter-ample proof of the old
sdage that birds of a feather will
flock together
Mr.. Larson's name came into
the investigation earlier when the
committee was told that James v.
Hunt, the management counselor
whose activities touched off the
inquiry, had boasted he was re-
sponsible for getting Mr.. Larson
the War Assets Administration
post Mr. Hunt has denied max
ing such claim.
Mr.. Larson, analyZing the fac
tors which make it possible for
the flve-percenter to prey on the
unsuspecting small businessman,
said ignorance and misunder-
standing of Government opera
tions was partly the cause but he
added that Government red tape
must be cut to make it easier for
the legitimate businessman to deal
with his Government.
Procurement Centers Set Up.
He urged the committee, in its
zeal to stamp out the undesirable
operator, not to set up additional
red tape for the legitimate middle
man.
He assured the committee that
as a result of the laws creating
the General Services Administra-
ton and unifying the armed serv-
ices. there exists today in your
Government greater concern, bet
ter cooperation and more con-
crete accomplishment in the field
of reducing red tape than there
has ever existed heretofore in the
Federal Government since the
days of Andrew Jackson"
As result of the close cooper
alton between the, National Mill
tary Establishment and the Gen.
eral Services Administration, he
said procedures had been worked
out to make it easier for the bus
tnessmen to deal with the Govern
ment and to force disclosure of
the activities of flve-percenters.
To accomplish the first of these
two ends, he said, go procurement
centers have been set up through
out the country so that business
men will not have to come to
Washington.
To force disclosure of the five
percenters. Mr.. Larson said,
procurement form has been
worked out which would require
the contractor to disclose whether
or not he has employed a middle
man. other than a full time en-
(See FIVE-PERCENTERS, A-4D
RuiIedge Slightly Improved