Evening star., 1953-01-14
Senate Challenge
Seen for A Named
To Defense Posts
Continued From First Page.)

him while on leave from the
corporation.
There is no salary question
involved in the matter of the |
Eisenhower appointeeS. One
Senator, however, who asked not !
to be quoted at this time, said
he saw no difference, in principle,
between receiving money as
salary and receiving money as a
stockholder from a corporation.
He said that, if a Government
official received compensation. a
pension or stock dividends from
a corporation with which the
Government did business, par
ticularly if it was his own de-
partment, he would be subject to
criticism.
High Caliber Men.
This Senator freely admitted
that Mr.. Wilson and the three
men selected to head the armed
services departments are of high
character and above suspicion
and that they were selected by
Gen. Eisenhower for their known
ability to help meet the national
defense needs. But, the Senator
added, criticism might be leveled
against them.
He pointed out that Mr.. Will
son is a motorcar man; that Mr..
Stevens is a wool and textile
man; that Mr.. Anderson is an
oil man. and that Mr.. Talbot is
an ai:plane man. The Govern
ment. he said, buys huge quanti-
ties of motors; the Army Depart
ment, which Mr.. Stevens will
head. buys woolens and textiles;
the Navy Department., to be
headed by Mr.. Anderson. buys
Oil, and the Air Force Depart
ment. head by Mr.. Talbot, nee
essarily buys airplanes.
These are matters which
should have been given consid-
Grafton at the time these gentle
men were selected for appoint
ment," he said. 1T might have
avoided embarrassment all
around. The Armed Services
Committee of the Senate, which
will have these nominations be-
fore it. has been called to meet
tomorrow. Undoubtedly, the
committee will look into the
financial situation of each one
of the appointees."
Edwin w. Pauley, a prominent
figure in California Democratic
politics, and an oil man, was ap-
pointed Undersecretary of the
Navy by President Truman back
IN 1916. He never was confirmed
by the Senate. The fight made
on him was that he was inter-
ested in oil-of which the Navy
purchases large quantities |
he had not supported Federal |
control of the oil tidelands, and
that he had offered to obtain |
Democratic campaign funds for |
the administration. if the Gov
ernment ownership of the tide
lands was not pressed.
Precedent Has Been Set.
The contention of Senators
who are looking into the Eisen-
hover appointees is that the Sem
ate has turned its back, in the
past, on nominations of men to
Government Office where they |
might be involved in trading with
companies or corporations in
which they had been interested,
or continued to be interested.
All four of the Defense De-
partment appointees have either |
resigned or will resign their
present jobs. it is reported. They
are expected to clarity the ex-
tent Of their stockholdings and |
what they plan to do about |
them.
The new administration has
been considered fortunate to |
obtain the services of Mr.. Wilson
and his associates in the Defense |
Department. Indeed. it has been |
freely predicted that they will |
save the Government large |
sums of money and operate their |
departments with great eff
cheney.
The sale of large blocks of |
stocks, if forced upon the ap-
pointeeS. might entail real |
financial losses. And where there
were capital gains resulting
from such sales, the owners of |
the stock would have to pay the
capital gains tax-25 per cent
to the Government.
The Secretary of Defense
designate, Mr.. Wilson, has been
head of General Motors. The
business affiliations of the other
three men follow:
Mr.. Anderson is Vernon
CTex. Gilman. He manages a
500,000-acre ranch. one of the
largest in Texas. Has been vice
president of Associated Re
f1neries. Inc, since 1943, and a
director of the Northwest Broad
casting Co., Inc, since 1914.
After 1886. he became general
manager of the w. T. Waggoner
Estate in Texas. He is a di-
rector of the Vernon Times Pub
fishing Co., Vernon Transit Co.
and the General Mid -Continen-
tai Oil and Gas Association. He
Is a member of Independent
Petroleum Association of Amer
lea.
Mr.. Talbot is a member of
the Chrysler Corps Finance
ComiSSion. He was chairman of
the board of the North Amer
lean Aviation Co. from 1881 to
1882 and was president of the
Dayton Wright Co. from 1916
to 1920. At present. he also is
chairman of the Finance Com
mittee of the Electric Auto-lite
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