Evening star., 1953-01-19
Early Confirmation
Of Wilson Predicted
By Sherman Adams
BY the Assoeioted Press

SQeTIud1 Audu1S, ucW VAlCC
House chief Of staff. predicted
today the Eisenhower admins
tration will ride out" protests
over the appointment Of Charles
E. Wilson as Secretary of De-
fense.
Mr.. Wilson's confirmation has
been challenged by some Sena-
tors because he has said he will
not give up $2.5 million in stock,
a yearly pension and a retire.
ment bonus from General Mo-
tors. of which he was president.
G. M. is the largest Defense De-
partment private contractor.
Mr.. Adams told a reporter he
is confident the controversy over
Mr.. Wilson's holdings will be
ironed out in time for early Sem
ate approval of the cabinet ap-
pointment. Leaders have aban-
doned earlier plans to seek con.
firmation of Mr.. Wilson tomor-
row.
"We1l ride this one out all
right" the new chief of Presi-
dent-elect Eisenhower's White
House staff declared. Il don't
blame the Senators for bringing
up this question-there's a prin-
ciple involved here"
Ferguson Has q Plan.
Although Mr.. Adams did not
elaborate. Senator Ferguson Re-
publican of Michigan, said in a
separate interview he expects
some arrangements to be made
under which Mr.. Wilson would
be relieved of the necessity for
passing on General Motors con-
tracts If he retains his holdings
in the automotive firm.
cts just a matter of finding
a way in which Wilson could dis
qualify himself when any Cen
eral Motors contracts come up
for a decision" Senator Fergu-
son said.
BY diSpoSing Of his stock in
General Motors, Mr.. Wilson fig
ureS he will lose something like
half a million dollars through
capital gains taxes.
Senator Butler, Republican, of
Maryland. came up with a pro-
posed solution today.
He suggested law permitting
Mr.. Wilson or any one else in q
similar position to sell "contro-
verSial stocks" without paying
the capital gains tax. but with
the proviso that all profits real
lied in the sale be Immediately
used to purchase noncontro-
versial securities"
Original Cost Basis.
Senator Buffers statement
said 1.-The newly purchased Sc
curities would take the same cost
basis Of the old securities so that
at subsequent sale of the new Sc
curitieS any resulting profits
would be taxed on the basis of
the original cost of the old
stocks"
THUS" Senator Butler said,
the profit tax is not eliminated
but only postponed or deferred"
Mr.. Wilson, speaking at a busi-
ness luncheon in New York to-
day, said as Defense Secretary
he would re-examine this Ma
tion's basic security plans, in
cluding commitments to Western
Europe. He said, too, he hopes
to streamline the Defense De-
partment.
Opinions About Law Differ.
There were differences of
opinion in the Senate about MIR.
Wilson's case and the law which
bans contract negotiations by
officials with any interest in the
firms involved.
Senate Majority Leader Taft
has said the law may have to be
changed, but Senator Carlson,
Republican, Of Kansas, a close
Eisenhower associate, says he
does not favor a change. Sena-
tor Carlson said. on a CHS tele-
vision program yesterday. that
his personal suggestion would
be for Mr.. Wilson to place his
G. M. shares in the hands Of a
trustee for the duration of his
tenure in Government.
Senator Taft has said he likes
a suggestion for enactment of a
law under which q department
head could step aside and ask
the President to appoint some
one else when his own firm is in
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