to $2,000 to $2,500 per year; May 1918 to December 1922, clerk, accounting department, for Willys-Overland Co. at $1,500 to $1,800 per year.

Education: 1917 to 1918, Georgia-Alabama, extension courses; LaSalle Extension University, accounting.

Weld, Edward M.

Industrial specialist, CAF-15, $8,000, November 9, 1944; Assistant Director, P-8, $8,250, April 1, 1945; entered on duty November 9, 1944.

Experience: From June 1942 to 1944, United States Army, ending as major: May 1941 to June 1942, assistant general counsel, Defense Supplies Corporation, Reconstruction Finance Corporation, at $6,500 to $8,000 per year; September 1938 to May 1941, principal attorney, Civil Aeronautics Board, at $5,600 per year; September 1930 to September 1938, attorney at $2,400 to $5,000 per year. Education: 1923 to 1927, Harvard College, B. A.; 1927 to 1930, Harvard Law School.

Willard, Charles H.

Assistant general counsel; P-7, $6,500 per annum; entered on duty August 21,

1944.

Experience: July 1942 to 1944 was loan officer, War Department, healquarters, Army Service Forces, at $5,600 per year; November 1930 to June 1942 was associate attorney for Davis Polk Wardwell Gardener & Reed, New York, st salary of $2,400 to $11,000 per year; June 1929 to June 1930, assistant to secretary, National Commission on Law (Wickersham Commission), at $3,000 per year. Education: 1922 to 1926, Yale University, B. A.; 1926 to 1929, Harvard Law School.

Wilson, James R.

Assistant general counsel; P-7, $6,500 per annum; entered on duty March 1,

1945.

Experience: August 1943 to March 1945, principal attorney in the Department of Agriculture at $6,228 to $6,528 per year; April 1942 to August 1943 was chief counsel, Legal Branch of the Office of Price Administration, at $5,200 to $6.200 per year; June 1941 to April 1942 was visiting professor for the University of Pittsburgh at $4,000 per year; September 1938 to June 1941 was professor of law at Stetson University at $3,000 to $4,000 yer year; September 1930 to November 1934 was revising editor for the American Law Book Co. at $3,500 to $5,200 per year.

Education: 1928, University of Iowa, B. A.; 1930, University of Iowa Law School, J. D.; 1931, Columbia Law School, J. S. D.

Wood, Dudley P. K.

Assistant Director; CAF-15, $8,000 per annum; entered on duty April 20,

1945.

Experience: From October 1944 to 1945 was lieutenant colonel, Army Air Force, United States Army; July 1940 to March 1942 was vice president of the American Export Airlines, at a salary of $11,000 per year; August 1939 to June 1940 was adviser to the Secretary of the Department of Commerce, at $7,500 per year. March 1930 to August 1939 was assistant vice president and director of the American Machinery & Foundry Co., at $16,000 per year.

Education: 1925 to 1928, Harvard College, B. A.

Woolfson, Joseph J.

Special assistant: $6,500; entered on duty January 24, 1945.

Experience: From October 1944 to January 1945 was State procurement officer. Selective Service System; January 1942 to October 1944 was public relations chief for Compagna Construction Corporation at a total income of $6,400 per year; January 1941 to December 1942 was public relations officer for Gov. Robert A. Hurley, State of Connecticut, at $6,000 per year; 1937 to December 1940, free lance reporter and writer, at $4,800 per year; 1930 to 1937 was telegrapher and publicist, at $120 per week.

Education: 1911 to 1913, Ellis Grammar; 1913 to 1916, Rindge Manus Training.

SUMMARY OF ALLOCATIONS TO DISPOSAL AGENCIES

Mr. CANNON. You have already discussed this item of $60,000,000 Suppose you now give us a review of your complete statement, summarizing how you expect to handle it and just what your routine wil

be in the allocation of this $60,000,000 to the disposal agencies, taking up each one, one by one.

Colonel HowSE. I have here a statement for the record. I do not know whether you wish me to read it or not.

Mr. CANNON. You may just insert the statement in the record and give us a brief summary of how the allocations will be made. (The statement is as follows:)

In January, this year, the Director of War Mobilization and Reconversion proposed that the Surplus Property Board present a consolidated estimate of the 1946 fiscal year expenses of the disposal agencies designated by the Board, and the Director of the Bureau of the Budget concurred in this proposal. There is included in this estimate an amount necessary to reimburse Government-owned corporations for expenses incurred during fiscal years 1944 and 1945 in the care, handling, and disposition of property declared surplus to them by other Government agencies. I would like to call to your attention, however, that no funds are to be provided to reimburse disposal or owning agencies for the costs of disposal of property owned by them. Such costs will be defrayed from their regular appropriations or capital funds.

The expenses of the Office of Surplus Property of the Treasury Department having been included in the estimate of the Treasury Department, and subsequently transferred to the Department of Commerce by Executive Order No. 9541, are not included in this estimate. In 1947 fiscal year, however, their estimate will be merged into the Surplus Property Board's estimate, so that then there will be uniformity in handling disposal agencies' expenses.

The Board has designated, thus far, nine disposal agencies for surplus property in the United States and its possessions. They are:

Reconstruction Finance Corporation-Industrial property.

Office of Surplus Property, Commerce Department-Consumer goods.
Maritime Commission-Ships and maritime property.

War Food Administration-Food.

Agriculture Department-Agricultural and forest real property.

National Housing Agency-Housing.

Federal Works Agency-Community facilities.

Interior Department-Grazing and mineral real property in United States and property in possessions and Territories.

Foreign Economic Administration-Aircraft to foreign nationals.

The various owning agencies have been designated as disposal agencies for their own property located outside the United States and its possessions, and no part of this estimate is to be used for the expenses of these foreign disposals, with the exception of the expenses for disposal of aircraft and related items for which the Foreign Economic Administration is the designated disposal agency. No part of this estimate is for the expenses of the Office of Surplus Property of the Commerce Department, because the $15,000,000 appropriated to the Treasury Department for that office's expenses have been transferred to the Commerce Department by Executive Order No. 9541.

You can well imagine the difficulties the disposal agencies had in estimating the values, the kinds, and the condition of property that would be declared surplus to them, the amount they would dispose of, and the proceeds of disposition. Their experience to date could provide at best only a slight indication of the size and scope of 1946 operations. At the end of that fiscal year we may find the actual experience to be twice their estimates; or, on the other hand, it may be only one-half or one-third the estimated volume.

The record shows that the past year's operations have resulted in declarations of surplus property having an original cost of $1,665,000,000. Of this amount approximately $1,000,000,000 consisted of aircraft, of which you will hear more later. Property with an original cost value of $265,000,000 has been sold for approximately $160,000,000.

It has been estimated by the disposal agencies that 51⁄2 billions of dollars cost value of property will be declared surplus to them by other agencies during 1946 fiscal year. Dispositions of property costing $2,345,000,000 will be made in the same period.

Although I must reiterate that these estimates are pure guesses, I would like to call attention to the fact that the disposal agencies have computed their expenses on the same bases, and presumably expenditures will be proportionate to realization of these estimates. In the estimate for the Board's own expenses,

a special division has been provided for, to review the fiscal operations of the disposal agencies. It is the Board's intention to scrutinize and analyze most carefully these operations before making an allocation or reimbursement from the appropriation to any disposal agency.

These disposal agencies have submitted to the Board estimates for 1946 fiscal year expenses in the amount of $150,000,000. In addition, Government-owned corporations have estimated that it will require 32 million dollars to reimburse them for 1944 and 1945 fiscal years' disposal expenses. These figures do not include recently submitted estimates of Maritime Commission, Agriculture, and Interior Departments amounting to approximately $6,000,000. The estimates were based on the continuation of global war through the fiscal year 1946. The achievement of VE-day may tend to make them conservative.

The estimates have been reviewed by the board, by the Director of War Mobilization and by the Bureau of the Budget. It was apparent to all concerned that no one could forecast with any degree of accuracy (1) the volume or nature of property of all varieties that might be declared surplus; (2) what part of the property declared surplus in 1946 would be sold in 1946; or (3) what amount would be realized on property sold. It was mutually decided, therefore, that the board would not seek an appropriation for the full estimate of $188,000,000 st this time but instead would ask for $60,000,000, which should meet the requirements for at least 4 or 5 months of the fiscal year 1946. This period of time will enable the disposal agencies to organize adequately to handle their problems and the board to evaluate more accurately on a broader factual basis the further requirements of the disposal agencies for the balance of the fiscal year.

You have undoubtedly noticed that if actual operations approximate these estimates there will accrue during fiscal year 1946 an increase in property inventory of more than $3,000,000,000 of cost value. Most of this increase will represent combat aircraft and parts and components thereof which will be declared surplus by the armed forces to Reconstruction Finance Corporation. As of March 31, 1945, 60 percent of Reconstruction Finance Corporation's inventory consisted of this class of property. The whole problem of disposal of aircraft and related items is perhaps the greatest from the standpoint of volume and cost value that confronts the Board and Reconstruction Finance Corporation. I have with me Lieutenant Colonel Harding, of the Surplus Property Board's Aviation Division, who is prepared to present a general outline of the aircraft-disposal problem.

Colonel HowSE. Briefly, the budgets of the disposal agencies, as we have pointed out before, indicated an estimated amount of $150,000,000, plus 324 million that remains in the 1944-45, in respect to the disposal of property, and not recognized in the Budget last year. Mr. CANNON. The first agency is the Reconstruction Finance Corporation.

Colonel HowSE. Mr. Cannon, if I may, these figures do not include the Procurement Division of the Treasury Department and certain other groups that are delineated in this statement. We are asking now for only a token fund of $60,000,000 from which we can gain some experience. We have the Reconstruction Finance people here to explain their budget, but first of all we have the Director of the Aviation Division who would like to explain one or two of the principal problems and policies governing the policies on the part of the R. F. C. in the aircraft disposal problem.

RECONSTRUCTION FINANCE CORPORATION

STATEMENTS OF LT. COL. WILLIAM BARCLAY HARDING, SURPLUS PROPERTY BOARD, DIRECTOR OF AVIATION DIVISION; WILLIAM L. CLARK, AVIATION DIVISION, SURPLUS PROPERTY BOARD; AND HANS KLAGSBRUNN, DIRECTOR, SURPLUS PROPERTY, RECONSTRUCTION FINANCE CORPORATION

BACKGROUND OF DIRECTOR OF AVIATION DIVISION

Colonel HowSE. Colonel Harding, I might say, Mr. Chairman, is on detached service from the Army and has been for nearly a year, with the Surplus Property Board.

Mr. SNYDER. What service was he in?

Colonel HowSE. He was in the Air Corps.

Mr. CANNON. You may at this point in the record indicate what his service has been.

Colonel HARDING. I have served with the Air Transport Command. Mr. SNYDER. That is what I understood.

Mr. CANNON. You may at this point in the record give a résumé of his service and background.

(The statement requested follows:)

Colonel Harding was born in New York City in 1906. He was educated at Browning School, New York City; Groton School, Groton, Mass.; and Yale University.

In private life he is a partner of Smith, Barney & Co., one of the larger investment banking firms in New York City. In this connection, Colonel Harding has specialized in financing aviation enterprises, and has acquired a wide understanding of the economic problems which concern both the aircraft manufacturing and air-transportation industries. He was actively associated with a number of aviation enterprises, both large and small, serving as a director of Eastern Air Lines, Inc., and Roosevelt Field, Inc.

Although unable to qualify for military pilot rating because of inadequate eyesight, Colonel Harding has maintained an active private pilot's certificate for the past 16 years. He has piloted his own airplanes extensively throughout the United States, Canada, and Latin America.

In the autumn of 1940 Colonel Harding came to Washington to join the staff of the Coordinator of Inter-American Affairs. He was appointed Director of the Division of Transportation and Aviation. Under his supervision extensive surveys of Latin-American air transportation, shipping, railroads, and highways were completed.

In the spring of 1941 Colonel Harding was appointed Vice President of Defense Supplies Corporation, a Reconstruction Finance Corporation subsidiary. In this capacity he was joint director of the Government's program to eliminate Axis influence in Latin-American air lines. The program was under the supervision of Mr. W. L. Clayton.

Colonel Harding resigned a Naval Reserve commission in 1942 in order to accept a commission in the Army. He served a year in the Military Intelligence Service, after which he obtained a transfer to the Air Transport Command, where he served for a year in the Plans Division of the Headquarters Staff.

In the spring of 1944 General Arnold named Colonel Harding senior Army member of a joint Army-Navy mission to Latin America to effect closer coordination of the activities of the two services in that area.

In May 1944 Colonel Harding's services were requested by Mr. W. L. Clayton, then Surplus War Property Administrator. He was named Director of the Aviation Division, Surplus War Property Administration, and has continued to serve in this capacity under the Surplus Property Board which assumed responsi bility for the disposal of surplus property in October 1944.

PROGRAM FOR DISPOSAL OF SURPLUS AERONAUTICAL PROPERTY

Colonel HARDING. Mr. Chairman and members of the committee, I appreciate the opportunity of appearing before the committee to outline the program for disposing of surplus aeronautical property. The complexity and scope of this problem can readily be seen from a few simple statistics.

Out of every dollar the Congress has appropriated for purchase of war materials, 24 cents have gone for aircraft. So far this has amounted to more than $43,000,000,000.

Out of all war property declared surplus as of May 1, 63 percent, in terms of cost, is aircraft. As a relatively small portion of aeronautical surpluses are salable, only 18 percent of total surplus disposals, in terms of original cost, consisted of aeronautical property, and this class of property accounted for only 8 percent of proceeds from surplus sales. Aeronautical surpluses now represents roughly 70 percent of surplus inventory.

Although the salable aeronautical surpluses are small in relation to the total volume of this class of property, nevertheless they loom very large in relation to the postwar civilian market, if past experience is any criterion. For example, less than 17,000 civilian-owned aircraft were in operation in the United States on January 1, 1944. That number has been increased by the addition of more than 10,000 surplus planes.

Another example is the case of transport aircraft. Until November 1944 the commercial air lines of the United States were limited by Presidential order to the operation of 300 planes. Up to the present time, more than 200 surplus transports have been sold or leased to domestic and foreign air carriers, of which 94 have been added to the 300 planes to which I have referred.

Since the war began more than 20,000 transports have been built, and it can be expected that a large proportion of them will become surplus property. The majority of these transports were built to military specifications and are probably not economically convertible to commercial use once new commercial models come into production. Even so, the manner of their disposition can hardly fail to have an important impact on the development of commercial air transportation in this country and throughout the world. Equally significant to American aviation will be the policies applied to the disposition of the multitude of surplus components which include engines, propellers, instruments, and so forth. Vast quantities of these items, many brand new, will be left in warehouses, factories, and the pipe lines of supply when the war comes to an end.

The policies and procedures governing the disposal of surplus aircraft are based largely on recommendations of the Poage committee. This was an interdepartmental committee headed by the Chairman of the Civil Aeronautics Board, formed approximately a year ago to recommend policies to be followed in the disposal of this class of surplus property.