The day-to-day administration of the act and day-to-day operations of the Office of Surplus Property will require, as you undoubtedly appreciate, the carrying out of all these objectives on a broad front. Our job in the disposal of surplus property, as I see it, is to protect the economic well-being of this country, and the protection of small business plays an important role in this task. The major problem which now faces us is the translation of these broad provisions into administrative procedure. We are going ahead with this task, now, at full speed. We expect shortly to issue instructions, stemming from the provisions of the act, to all our sales divisions in Washington and in the regions, which will define their sales policies. These policy directives will be used by the sales divisions as a basis for working up their disposal programs. Before any large disposal program is put into effect, it will be carefully examined as to its economic soundness and conformance with the economic and social objectives of the law. By constantly checking our disposal programs against our objectives we will soon become aware of necessary changes in policy directives and of amendments needed to the law. The act has recognized that the greatest financial return to the Government shall not be the sole criterion in the disposition of surplus property. I assume it is no accident that the actual objective calls for the securing of "the fair value" of surplus property "as nearly as possible" and is listed last among the 20 objectives set forth in the act. At the same time, the values which the American people paid for goods by the purchase of bonds and in the payment of taxes must be protected. The policies and practices which we shall adopt with respect to small businesses are designed not only to help restore small business to its pre-war position, but also to assist in expanding its role in our economic system in the years to come. We hope that our program will be an important link in the chain of events which will bring us closer to an era of full peacetime production and 60,000,000 jobs. Senator STEWART. What has been your business experience, if you do not mind telling the committee? Mr. PEHLE. I graduated from Yale law school in 1934, and I came directly into the Treasury Department and have been there ever since. I was employed originally in the General Counsel's office, working on monetary problems. In April of 1940, when Norway and Denmark were occupied by Germany, the Treasury set up the Foreign Funds Control, which exercised jurisdiction over all funds in the United States of occupied countries as well as enemy countries. I was named assistant of the Secretary and Director of Foreign Funds Control in September 1940. Foreign Funds Control was a rather substantial organization, controlling over $7,000,000 in property. I have also been executive director of a board that deals with refugees, but my main work has been in connection with financial problems. Senator STEWART. You succeeded Mr. Olrich? Senator STEWART. You heard me quote from the speech he made on October 16, in which he outlined five ideas that would formulate the policy of the Treasury Department. I shall not ask you to comment on those now, but I should like to have, at a later date, a letter from you stating how you feel about this statement, that is, comparing his statement with the statement made by Mr. Duncan. Mr. PEHLE. I went over that statement by Mr. Duncan before it was made. It represents our policy. I am not acquainted with the statement of Mr. Olrich that you referred to. Senator STEWART. I will supply you with a copy. It is contained at the bottom of the first page. Mr. VAN TASSEL. You have in your organization divisions corresponding to different commodities? Mr. PEHLE. That is right. Mr. VAN TASSEL. And the men heading those divisions are experts in their particular fields? Mr. PEHLE. Yes, sir. Mr. VAN TASSEL. I do not suppose it would be possible to have someone familiar with all the surplus goods to be disposed of? Mr. PEILE. I hope we will all become more familiar with it. Mr. VAN TASSEL. Your job is that largely of Administrator and Coordinator in which your experience in Government administration is of utmost importance? Mr. PEHLE. I would not describe my job exactly that way. It seems to me that the disposal of surplus property, in the quantities with which we are going to be confronted, involves, on the one hand, extensive merchandising skill but, on the other hand-and even more important-it involves the shaping of disposal policies in accordance with the intent of Congress in enacting the Surplus Property Act. For example, there was a long discussion before this committee. on the problem of hydraulic jacks. We were confronted with the task of disposing of jacks which constituted 10 years' normal production of the industry. It had to be done in such a way as to avoid a substantial unfavorable impact on the industry and, at the same time, in such a manner as to provide for an equitable distribution of the jacks at a fair return to the Government. It should be pointed out that planning the disposition of such huge surpluses involves not only merchandising skill, but also a keen appreciation of the necessity of accomplishing to the fullest extent possible the objectives which the Congress expressed in passing the act. I should like to make it clear that we are looking forward to working closely with your committee and its staff in formulating our policies. Senator STEWART. We are glad to hear that, and I am sure you will find the committee cooperative with Treasury Procurement. Thank you very much. The subcommittee will stand adjourned until further notice. (Whereupon, at 12:55 p. m., the subcommittee adjourned, subject to call.) APPENDIX U. S. TREASURY DEPARTMENT'S SURPLUS REPORTER PUBLISHED BY OFFICE OF SURPLUS PROPERTY Notice! All property listed here will go on sale on and after December 20, 1944 Issue Number 2 Division No. 1 December 6, 1944 IMPORTANT INSTRUCTIONS TO PROSPECTIVE PURCHASERS If interested in the purchase of property listed, contact immediately The Furniture Division of the Regional Office in which the property is located indicating your interest by numbers and names of items PROPERTY LOCATED IN REGION NO. 3. ADDRESS: U. S. TREASURY, OFFICE OF SURPLUS PROPERTY, 1126 21ST STREET NW., WASHINGTON, D. C. 8-2622-1...... 84 ea.. Stands, Acme, Frames, Acme, Cabinets.. Sections. Sections... Condensed description Used: Stand, desk, flexolire Acme, for Used: Chart section, 6 drawer. Drawer Used: Flat letter sections, 9 drawer, Upright sections.. Used: Section, wood, 4 drawer Docu- Sale method Informal bid. Informal bid. Informal bid. Informal bid. Informal bid. Informal bid. Informal bid. Informal bid. Informal bid. Informal bid. PROPERTY LOCATED IN REGION NO. 3. ADDRESS: U. S. TREASURY, OFFICE OF SURPLUS PROPERTY, 1126 21ST STREET NW., WASHINGTON, D. C.-Continued Location: Informal bid. 3-1864-7 200 bottles..... Acid, hydro bromic. 16 x 16 x 24, O. G. Steel. Washington, D. C. New: Acetone C. P. Packed in 5 lb. New: Acid, Hydrobromic purified. Informal bid. New: Acid, Phosphotungstic crystals, New: Acid Sulfosalicylic, Reagent 1 Informal bid. Informal bid. New: Aluminum Potassium sulfate Informal bid. 3-1864-7.... 1,500..... Ammonium sul- New: Ammonium Acetate ACS 4 lb. Informal bid. bottles #10620. Location: Rich mond, Va. New: Ammonium sulfamate, techni- Informal bid. 3-1864-7 500 bottles..... Barium chloride.. New: Barium chloride, ACS analytical Informal bid. reagent 4 lb. bottles #10930. Loca- Burner, alcohol... New: Burner, Laboratory, Alcohol Belt, dental................ #527 Coleman, #9E10350, 2 Burner Informal. bid. Informal bid. Informal bid. Informal bid. New: Pill tile, #9944500. 5" x 10" x 36" Informal bid. New: Magnesium Sulfate ACS 1-oz. 3-2111-7...... 450 bottles.... Uranium nitrate. New: Uranium Nitrate 1 oz. ACS Informal bid. Informal bid. Informal bid. New: Idoform NF vll Poison 4 lb. Informal bid. Sodium fluoride.. New: Sodium Fluoride technical poi- Informal bid. Top, cabinet, Cabinet, filing, Kit, jungle, med- son purified, tinted 1-lb. cannisters New: Kit, Jungle, Medical, Indi- Informal bid. Informal bid. Informal bid. Informal bid. PROPERTY LOCATED IN REGION NO. 3. ADDRESS: U. S. TREASURY, OFFICE OF SURPLUS PROPERTY, 1126 21ST STREET NW., WASHINGTON, D. C.-Continued Bottles. . 3-1862-7..... 500. Bottles... Bottles.. Condensed description New: Glass, narrow mouth w/mush- New: Glass narrow mouth 4 liter w/ Gloves, rubber... New: Gloves, surgeon's size 6, medium Sale method Informal bid. Informal bid. Informal bid. Informal bid. AVAILABLE PROPERTY FROM DIVISION #7. .PROPERTY LOCATED IN REGION NO. 2. ADDRESS: U. S. TREASURY, OFFICE OF SURPLUS PROPERTY 50 CHURCH STREET, NEW YORK, N. Y. |