Evening star., 1952-01-06

Will leave WIFI QlIu. SENATOR rul1-
bright, Democrat, of Arkansas,
whose Senate banking subcommit-
tee last year brought out mink
coat and other disclosures which
resulted in a partial reorganiza-
tion of RFC, said last week that
his group would closely watch
high-level personnel changes in
the agency. Any formal inquiry
however, probably would be turned
over to Senator Hoey's subcom-
n1ittee. s
Then there is the perennial prob
lem sof war surplus. property. Pre-
liminary studies BY the Hoey SUBJ
committee may bring on a full
dress airing of operations of the
old War Assets Administration as
well as rumors. that various buyers
of surplus sold the goods back to
Government agencies at higher
prices.
Military aspects of such a situa-
ton will be part of the continuing
concern of the Senate Armed
Services preparedness watchdog
subcommittee headed by Senator
Lyndon johnson. Democrat o1
Texas. A House Expenditures sub
committee, with Representative
Bonner, Democrat. North Caro-.
lima, as chairman. also will inves-
tigate surplus prices,
Another subject which las
cropped up., with SEC, RFC anc
possible political connections, re-
lates to a never published war.
time report by SEC, severely criti.
cal of the old Empire Ordinances
Corp. The White House recently
announced that the President saw
no reason to release the 1943 re.
port now.
Mckinney Got Profit.
Empire Ordnance was the par
ent of the Empire Tractor Co., q
Philadelphia concern in which
Frank E. Mckinney, now Demo-
cratic national chairman, reaped
a $4,000 profit on a $4,000 pur-
chase of common stock within a
few months in 1946-47.
Investigation of SEC, with con-
siderable spadework already done
may turn into one of the biggest
and certainly most complicated OF
the year. It will be handled by a
House Commerce subcommittee
headed by Representative Heller,
Democrat, of New York.
The subcommittee expects to
select counsel and map it's de-
tailed program late this week. It
then will have closed hearings
until mid-February to hear the
five SEC commissioners, study the
six statutes they administer, and
dig into bulky reports which the
commission recently submitted at
the subcommittee's request.
Mr.. Heller emphasized that his
group is not seeking scandals or
sensational charges" The in
quiry's main purpose, he explained
is to give SEC it's first full-scale
congressional investigation since
its establishment II years ago
and thus to strengthen SEC pro-
cedures and laws wherever neces-
sary.
Financing Disputes.
The subcommittee nevertheless
expects to consider specific cases
and complaints. It will inquire
into the United Corp, a gas and
electric holding company, the
Tucker automobile venture and a
KAISER -Fraser-Oti financing dis
putes. 1t also wants to learn how
some former SEC officials got big
jobs with United Corp.
The list of Investigations, pres
sing or prospective. could fill al
most the whole alphabet beginning
with a demand for a look at the
Alien Property Custodian's Office
It could end with TX" in the form
of some still unknown scandal in
some unsuspected, unpredictable
place. Some of the more import
ant, although not necessarily in
the order of appearance or with
the cast of committees definitely
determined, are: