Evening star., 1949-08-28

| anu LII Cllc pICPoA ooAoAA - -
ment entitled Government Pro
curement Manual" intended to b.
of assistance to the small busi
nessman. 1t is 300 pages LONG
Twenty-one departments and 81
procurement bureaus and agencie
are listed. It describes 1900 class
| es of items. It describes approx
mately 1000 different purchasing
locations. When this manual wa
completed, it was so complicated
that it was not distributed to tn
general public as originally in
tended, but it is made availabl
at the AZ field Offices Of the De
partment of Commerce. The smal
businessman who calls and ask
to look at it is told that it is no
distributed to the general publi
because 1t needs expert interpre
tation."
Three of His Clients Called.
10. The literature printed an
distributed by the various pro
curement agencies in an effor
to assist the small businessman
to do business with the Govern
ment is practically without limit
The Bureau of Federal Supply In
dex of Federal Specifications alon
lists over $500 publications givinI
specifications. -
I II. There have been and IN
doubtedly will continue to b
abuses in this field, as we'll IS II
every other. The committee ha
seen fit to call only three person
who could, by any stretch OF tn
Imagination, be called clients o
mine. One was Mr. Pierre Welch
with whose testimony I have n
quarrel. The second was Mr.. AL
bert j. Gross of Milwaukee.
disgruntled former client VIII
telephoned my office on June q
1949, the day after the origina
story about me appeared in tn
Herald Tribune, and told my sec
retary in substance that I la'
better repay him his $4,000 or n
would go to the Senate commit
tee. Naturally I refused to pa,
him $4,000. The third was MI
Paul D. Grindle who pretended t.
be a small businessman seekin'
Government contracts in order t.
obtain material fer a story TO
the New York Herald Tribune, hi
former employer.
IL. The committee. or its in
vestigators, have. to my knowl
edge, interviewed OF have seen tn
afhdavits of at least 20 clients o
mine, reputable Businessmen VIII
were we'll satisfied with their deal
ings with me.
I3. On. June "a, 1949, in a for
NAL press release, Senator Hoe,
stated that the objective of tn
subcommittee was to, make
thorough investigationsof all pro
curement activities by Govern
ment agencies with particular at
tention to inor6inately large fee
paid as contingent commissions.
I should like to point out to tn
committee that there is no evi
dence whatsoever of my ever hav
ing received a fee (''inordinatel.
large" or otherwise) as cor tin
gent commission on a sale to ,
procurement agency of the Gov
ernment. AS a matter of fact
ernment.
Suggests Law.
IA. If the committee wants tx
eliminate, or at least minimize
such abuses as may exist in thi'
field, respectfully suggest thai
the result could best be accom-
plished by law which would re-
quire:
/. That every Washington
representative (other than a
person who is a full-time en-
ploye of a single employeo be
required to register with the
Department of Justice;
2. That each such registered
representative be required to
furnish the department of
Justice with the names of all
persons. firms and corporations
on whose behalf he was au-
thorized to act, and with exact
information concerning his ar
rangement for compensation
from each of his clients;
3. That the Justice Depart
ment be required to make pub
lie, at stated intervals, the
names of such registered rep
resentatives and the names of
those on whose behalf each one
was authorized to act;
4. That the information re-
garding arrangements for COM
pensation be not made public
but be made available to any
bureau or agency Of the Gov
ernment which requested such
information:
S. That the act contain severe
criminal penalties for failure
to register or to comply with
any of its provisions.
I should be happy to. be tn,
first man to register under suci
an act. g.
Is. There are certain specific
subjects that have been men.
toned in the testimony of othel
witnesses concerning which !.
would like to make the following
comments:
16. Until June 81, 1949, I hae
no idea that Mr.. Paul D. Grindlt
was anything other than what
he represented himself to be-
small businessman looking for as.
sistance in getting Government
contracts. His testimony now dis.
closes that he had no intention
even at the start of entering intt
a bona f1de arrangement with u!
but was merely seeking materia
for some kind of an expose. H,
of Rights. He also remarked.