Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-28
House 10 Probe
|Wo|fson-GSA
Deal in Cuba
BY the Associated Press

A House committee said last
night it intends to explore next
month financial and legal details
Iof a big Government nickel
plant expansion in Cuba. The
General Services Administration,
handling the project. said. I'VE
have nothing to hide"
Representative Jack Brooks,
Democrat of Texas, said in a
statement that I'VE are in
terested in checking more
closely the connection between
GSA Administrator Edmund F.
Mansure. Financier Louis Wolf
son and William Balmer. whom
Mr.. Brooks described as a "long-
time political friend" of Mr..
Mansure. MIR. Wolfson is chair
man of the board and control
ling stakeholder of the Capital
Transit Co.
Mr.. Brooks said a special Gov
eminent Activities Subcommit-
tee which he heads will inquire
into that matter at hearings
next month. "along with some
other very important questions
pertaining to the legal status of
the entire operation"
The 500 million plant at
Nicaro, Cuba, was built by the
Government during World War
II. Shut down in 1947, it was
ordered reactivated in 1851 and
is now being expanded at a cost
which Mr.. Brooks put at $43
million.
Previous Probes
| A GSA public relations officer
said the entire project has been
thoroughly investigated" by two
other congressional committees,
He said the record of those hear
ingS offers rather massive dccu-
mentation on how GSA has
brought the Nicaro nickel plant,
one Of the largest of its kind
in the world, to record breaking
production"
! The GSA spokesman called
the Nicaro plant a vital source
Of nickel for the national de-
tense stockpile and for industry
and said it is turning out nickel
at less than the world market
price.
/ Mr.. Brooks said his committee
wants to explore a reported per-
Sonal decision by Mr.. Mansure to
make the New York construction
firm of Merritt Chapman &:
Scott a full partner on the ex-
pansion project with the Fred
erick Snare Corp. which got the
building contract.
"As far as we can tell" Mr.
Brooks continued, Merritt
Chapman & Scott has not vet
sent a single person to work at
the building site in Cuba and the
project has been underway for
l6 months"
To Quiz WolfsOn
Merritt-Chapman a. Scott is
one of the firms controlled By
Wolfson.
Mr. Brooks said his committee
will question Mr.. Mansure and
Mr.. Wolfson. as we'll as Mr.. Bal
mer He said the Chicago Arm
OF Balmer & Moore was desig-
mated to receive two-thirds OF
the insurance brokerage fee in
connection with workmen's com.
pensation insurance on the pro-
ject, with a Cuban broker getting
the other third
Wed like to look into the
reasons why these brokers were
singled out to handle the in
isurance," Mr.. Brooks said, land
how much money was dropped
IN their laps by these contracts.
Mr.. Brooks said Mr., Mansure
ordered the expansion program
under management of the Ma
tional Lead Co., and that the
plant is being operated by 9
subsidiary Of National Lead. the
Nickel Processing Co.
One of the points we want tc
clear up" he said. lis why Ma
Itional Lead is in charge of the
construction on an actual cost
plus fixed fee basis when they
aren't a construction company
!. and why Nickel Processing Il
being paid $500, 900 per year te
operate the plant when the for.
mer operators we're paid only
$4,000 per year."
The GSA public relations Of.
ficer said Mr.. Mansure had nc
comment.
He added, however, that Mr.
Mansure testified before a con.
igressional committee last August
IS that he had never talked with
Mr.. Wolfson at any time priol
to that date. The official sale
he doubted if they had talkec
since. He said Mr.. Balmer was ar
old friend of Mr.. Mansure.
The insurance, the spokesman
continued. is the kind that Ii
required by law to protect en-
ployes and the project.