Evening star., 1950-11-21
Senators Blast 'B|unders in Sale
OF War Plants and Hand|inq Of
Rubber and Alcohol ProQrams
Less Prudence
Than 'Churity
Buzuur' Cited
By Robert K. Walsh


The Senate Preparedness Sub
committee today scored plumbers
in the disposal of surplus plants
and the "far from satisfactory
handling of the rubber program
and industrial alcohol facilities
by Government agencies.
1T i'll becomes Government of
flcials to conduct the public busi-
ness with less prudence than they
would display in operating a
charity bazaar but that has
happened" the subcommittee de-
clared.
The 37-page report by the Armed
Services subcommittee headed by
Senator johnson. Democrat, If
Texas, was the second issued by
that group which in general
resembles the old war investigat-
ing committee. President Truman,
then Senator, was chairman of
the wartime committee.
In its September report the
subcommittee criticized a "siesta
psychology" in surplus property
and rubber programs. Today's
report singled out the Munitions
Board, Commerce Department,
General Services Administration
and the Air Force for special
attack.
Plant Disposal Criticized.
s"Over the agencies re-
sponsible for the surplus property
program, primarily the Munitions
Board and GSA-have been slow
to awaken to the realities of the
challenge presented by Commu-
mist aggression" the subcommit-
tee charged. The results, in
some instances have been costly
to the preparedness program"
The subcommittee was particu-
larly caustic in its comments on
the way that some production
plants it described as greatly
needed in the defense program
were sold or leased to private
concerns.
The Munitions Board in some
instances has mot exercised its
discretion as wisely as could be
expected" the subcommittee
found. GSA. in the subcommit-
tees opinion, displayed a COM
mendable awareness of the chang
ing world conditions" when it is
sued freeze order" on surplus
disposal in August.
Plant Sold for Tenth of Cost.
Noting, however, that the Ma
tons industrial alcohol producing
facilities are inadequate, the sub
committee said the Munitions
Board should not have allowed
GSA to dispose of alcohol plants
at Kansas City and Omaha.
Sale of the ST million Kansas
City plant for $4,000 to Schen-
ley since the outbreak of the Ko-
rean fighting caused much con-
cern" to the subcommittee.
1--WE take the simple position"
the subcommittee stated, that
production of alcohol for the syn
thetic rubber program is some
what more important than pro-
duction of alcohol for beverage
purposes"
Suggesting that the Government
take steps ito salvage something
from the waste that haste has
wrought" the subcommittee asked
GSA and the Munitions Board to
seek a security clause in the con-
tract so that the Government
could reclaim the plant in event
of emergency.
"It is our view," the subcommit-
tee said, that Schenley's moral
and perhaps legal relationship to
this plant is such that it should
consent, without reservation, to
make the plant available to the
Government for any defense use
that the Government wants to
make of it,
AS for the Omaha alcohol plant
leased for 10 years to the recently
organized Central States Corp. of
Chicago, the subcommittee de-
clared the Government should
Continued on Page A-3, Col. H.