Evening star., 1954-10-01
White House
Explains Aim Of
NeWInspections
Seeks to Bar More
'FHA Scandals But
Shopping Is Denied
BY Gornett D. Horner
Star Sfoff Correspondent

DENVER, Oct. IA new Fed
eral personnel inspection" sys-
tenn being set up by the Eisen-
hover administration is aimed
at preventing anywhere in
the Government-or uncovering
promptly If they exist--such
things as the Federal Housing
Administration scandals.
This was made clear by a
White House spokesman's ex-
PLANTATION of the program that
had been kept secret until it
was forced into the open yes
terday by a story in The Wash
ington Star by Joseph Young.
The explanation was given at
the Presidents vacation White
House headquarters here last
night by Murray Snyder, as
sistant presidential press secre-
tary, in response to questions
about The Stars story. It gen.
orally confirmed Mr.. Young's
exclusive report and added con-
siderable detail which officials
in Washington had refused to
divulge.
Mr.. Snyder insisted, however,
that to say "there will be a
shopping, Gestapo-like setup" is
completely wrong" Mr.. Young
reported that officials of some
Government agencies had criti-
cized the new program as Great
ing just that.
What is involved. Mr.. Snyder
said, is establishment Of Gin
spection programs" in each Gov
ernment agency. supplementing
those already in existence, to
prevent misconduct or improper
conduct by Federal workers and
to detect any such bad conduct
that might occur.
Lists illustrations.
Mr.. Snyder explained that the
system is aimed especially at
preventing or uncovering i'm
proper actions by Government
employees in relation to such ac-
tivities as:
/. Large scale contracting and
procurement operations.
2. Handling large sums Of
cash or its equivalent.
8. Making loans or insuring or
guaranteeing loans.
4. Granting of licenses or cer-
tificates.
S. Economic regulation or law
enforcement which might affect
private interests.
He said the activities listed
were merely illustrative, not
fixing limits for the new in
vestigative programs.
Mr.. Snyder emphasized, as did
The Stars story yesterday, that
the new set-up is designed to
deal with misconduct short of
law-breaking, which is the JUS
tice Departments responsibility
to handle, and that it excludes
security risk" matters which
will continue to be dealt with
under the entirely different Sc
curity program.
The inspection" programs
were initiated, he said, in a
letter sent by Budget Bureau
Director Rowland Hughes to
about 40 Government depart
ment and agency heads on last
June IA.
OutgrOwth of Discussions.
Mr.. Snyder said this letter.
which he refused to make public
textually-was prepared by a
committee made up of repre-
sentatives Of the Budget Bureau.
the Justice Department and the
Civil Service Commission.
It was the outgrowth, he
added. of discussions that had
gone on for some time in the So
called "sub-cabinet" and SUBJ
sequently in the cabinet itself.
President Eisenhower ap-
proved the general objectives, I"
Mr.. Snyder said, although he
did not know whether the Presi-
dent approved the actual letter
sent out by Mr.. Hughes.
Mr.. Snyder said the Budget
Bureau advised him yesterday
that most Government agencies
had reported they were setting
up machinery to carry out the
program and that ''in most cases
it is more or less in effect
The Hughes letter, Mr.. Snyder
(See CHECKUP, Page A-s.)