Evening star., 1953-02-01
Senators Cite Delays,
Inefficiency in Alien
Property Handling
BY the Assoeiofed Press

0cIldOc ulNcSG1SdUOLo D. CI1dI SlIIS
ineff1ciencies and delays in the
Governments handling of prop
critics seized from the enemy in
World War II, yesterday called
for further inquiry to determine
whether actual wrong-doing oc-
: Cured.
A preliminary report on an in
vestigation of the Justice De-
partment's Alien Property Office,
submitted by Senate Judiciary
subcommittee, said many aspects
of the administration of the
multi-million dollar properties
require additional study.
"The committee is in posses
sion of some facts and of many
rumors and allegations pertain
ing to persons, manipulations,
malfeasance and misfeasance, of
political preference in appoint
mentS to lucrative job holdings,
all of which require further and,
in some instances, extensive in
vestigation," the report said.
One Year Probe.
The subcommittee, under the
Craftsmanship of Senator Willis
Smith, Democrat, of North Caro-
lima, began the investigation last
July /. Only yesterday the Sem
ate voted to give it $4,000, on
top Of the 100000 originally
allotted, to continue the inquiry
until June 80.
Who will succeed Senator
Smith as chairman of the sub
committee now that the Re-
publicans have taken over control
of Congress has not been an
nounced, but Senator Wiley, Re-
publican, of Wisconsin, is in line
for the job.
Senator Wiley was the original
sponsor of the investigation;
charging the Alien Property
Office had been used as "a super
gravy train" to provide plums and
patronage for friends of the Tru-
man administration.
German, Japanese and other
enemy or controlled prop
critics in this country seized dur
ing World War II included large
industrial concerns as well as real
estate. patents and copyrights.
The Alien Property Office
handles the management and
sale of these properties, and the
funds it realizes are earmarked
for the war claims fund for the
benefit of American nationals
who were prisoners Of war or
civilian internees.
The subcommittee's prelimi-
nary report said that salaries of
officials appointed to seized COM
panies "are quite large in some
instances" 1t added that in at
least one case a Federal employe
with a salarySof about $1,000
''was rewarded with $4,000 per
year tsarting salary by the vested
(seized) business enterprise"
It also said that in some cases
1t appears that former United
States employees "were per-
mitted to remain on the boards
of directors of vested businesses
after leaving their Government
employ and may have drawn the
usual directors fees paid to nom
employees"
Further Study Necessary.
Further investigation is neces-
sary, the report said, to identify
all the officials and directors ap-
pointed, the circumstances of
their appointments and the fees
pai dformer Alien Property Of
flee employees as directors.
The subcommittee also noted
that attorneys fees paid for 13
of the companies totaled more
than 81 million. This included
more, than SO million paid by
General Aniline and Film Corp,
the largest Of the seized proper
ties. and its companion company,
General Dyestuffs Corp.
For the most part, however,
the bulky report dealt with the
administrative procedures for
handling the liquidation of
seized properties and claims
filed against these properties.
With respect to these the re-
port complained of needless du-
plciation, inefhciency and slow
T1rOceSSin0