Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-08-08
|NcE|royFaces
Senate Probe
On Holdings
BY JOHN A. GILES

| ~ COAAAN ns OAALO
Whether soap manufacturer
Neil H. McElroy will be re-
quired to dispose of almost
100000 worth Of Proctor &
Gamble stock before the Senate
confirms him as Defense Sec
Rotary remained up in the air
today.
There were some indications
that President Eisenhower's
nominee. whose appointment
was announced late yesterday.
may be allowed to keep the
shares.
Presidential Press Secretary
James Hagerty would only say
that Il imagine he (Mr. Nc
Elroy) will make that known. +"
He said he would leave that
announcement up to Mr.. Nc
Elroy, who may wait until he
appears before the Senate
Armed Services Committee be-
fore disclosing his plans.
Senator Byrd. Democrat of
Virginia. said the committee
certainly will want to clear
up any conflict of interests
which might be involved in Mr..
McElroy's nomination" but he
added that as yet there uas
been no showing that his PIG
stock constitutes a conflict of
interest.
Concerned About Stock
The Senator and other COM
mittee members indicated they
were more concerned about
stock Mr.. McElroy owns in
Chrysler and General Electric.
While he is a director Of both
firms, 1t is believed his hold
ings there are nominal.
Senator Russell, Georgia
Democrat who heads the
Armed Services Committee,
told newsmen that Mr.. Noel
roy had already discussed the
matter Of his stock holdings
with several Senators.
There should be no Difficult
ty about conflict of interests"
he said. "Of course, we will
have a hearing to satisfy the
committee and the Senate on
this point and on his back
ground"
Proctor and Gamble does a
good deal of business with the
Government. However, Mr.. Nc
Elroy said the concern docs
very little when compared
with General Motors and other
corporations dealing in defense
orders"
The Senate committee laid
down a precedent four-and-a-
half years ago when it required
that Defense Secretary Wilson
dispose of SIS million worth
of GIN stock. The difference
in his salary-$25,000 as De-
Tense chief com pared with
100000 a year as GIN presi.
dent-accounted for SIT mill
lion in the course OF his Az
year term. :,
Speeds Nomination
The McElroy nomination was
made even before Mr.. Wilson's
resignation was received at the
White House. Mr.. Wilson, who
is expected to leave some time
after September /. left the date
of his departure open.
Mr.. Hagerty said the idea is
that Mr.. McElroy will work
with Mr.. Wilson for the re-
mainder Of this month ito get
acquainted with his job"
The nomination came less
than six hours after the Presi-
dent told a news conference
that he was giving earnest
consideration to the Cincinnati
industrialiSt for the post but
could not announce a decision
until the required investiga-
tons Of Mr.. McElroy were
completed. Mr.. Eisenhower de-
scribed his nominee as lone Of
the most capable men and the
highest type people that l know
in the country"
Asked II the nomination
meant that the investigations.
required Of all appointees, had
been completed during the day,
Mr.. Hagerty said yes and in.
dicated he saw nothing I'M
usual in the speed with which
the injuries had hnnr, hnishnr,