Mr. WIGGLESWORTH. You have not? Mr. KIRSCH. No. Mr. WIGGLESWORTH. They have never been prepared? Mr. KIRSCH. They have never been prepared. Mr. DIRKSEN. If and when some of this property is not exactly usable and salable and has to be broken up for scrap, what will be its commercial rating in the market? Will it be called scrap steel? There are half a dozen different ratings. Will it be called melting steel? Mr. KIRSCH. Scrap steel. Mr. DIRKSEN. What is the rate of melting steel now? Mr. KIRSCH. I suppose that you can get as much as $15 to $20 a ton for it now. Mr. GORMAN. $13 a ton average would be closer. Mr. DIRKSEN. The buyer will furnish the torch and cut it up himself? Mr. GORMAN. Yes. BACKGROUND OF PRINCIPAL PERSONNEL HANDLING THE DISPOSITION OF SURPLUS PROPERTY Mr. KIRSCH. I offer for the record the following statement which gives the background of the principal personnel handling the disposal of surplus property. BURTON L. HUNTER Date of birth: October 11, 1899. Director, Contract Settlement and Surplus Materials Division, United States Maritime Commission, $8,000. 1916-19: United States Naval Academy, bachelor of science degree. 1930-33: University of Southern California, master of science in public administration degree. 1919-26: Commissioned officer, United States Navy. 1926-28: Examiner, civil service commission, city of Los Angeles, Calif. 1928-38: Efficiency engineer and deputy budget director, bureau of budget and efficiency, city of Los Angeles, Calif. 1938-39: Adviser to Territorial Legislature and the city and county of Honolulu, T. H., also lectures on public administration, University of Hawaii. 1939-41: General manager, civil service commission, city of Los Angeles, Caf 1941-44: Chief Budget examiner and chief of estimates group, Bureau of the Budget, Executive Office of the President. 1944-45: Special expert, Office of Commissioners, United States Maritime Commission. 1945: Director, Contract Settlement and Surplus Materials Division, United States Maritime Commission. ERNEST W. GORMAN Date of birth: August 19, 1902. Assistant to director, Contract Settlement and Surplus Materials Division, United States Maritime Commission, $6,500. 1919-21: Clerk in a fire-insurance company. 1921-24: Clerk, State of Connecticut. 1924-25: Seaman, deck and engine departments, various ships. 1925-26: Insurance agent, Equitable Insurance Co. 1926-36: Fleet storekeeper and engine foreman, United States Shipping Poart 1936-42: Inventory checker and inventory supervisor, United States Marite Commission. 1942: Chief of inventory, Warehouse and Sales Section, United States Maritime Commission. 1942-44: Assistant director and assistant to director, Division of Purchase and Sales and Procurement Division, Inventory Warehouse and Sales, respectively, United States Maritime Commission. 1944-45: Special assistant to director Procurement Division, United States Maritime Commission. 1945: Assistant to director, Contract Settlement and Surplus Materials Division, United States Maritime Commission. GEORGE H. MCKEAN Date of birth: March 6, 1907. Chief of Materials Disposal Section, Contract Settlement and Surplus Materials Division, United States Maritime Commission, $6,500. 1930: Lafayette College, bachelor of science degree. 1935: University of Pittsburgh, Law School, bachelor of laws degree. 1935-37: Business specialist and legal adviser to production distributor. 1937-40: Consultant and legal adviser, General Motors. 1941: Business manager, Chevrolet Motors. 1942: Inspector commodity liaison, Office of Price Administration and procurement specialist, Navy Department. 1942-44: Materials conservation specialist and chief of section, United States Maritime Commission. 1944-45: Coordinator and chief of section, Contract Settlement and Surplus Materials Division, United States Maritime Commission. Mr. CANNON. Are there any further questions of the Maritime Commission? We thank you, gentlemen. TUESDAY, MAY 22, 1945. DEPARTMENT OF AGRICULTURE AND WAR FOOD ADMINISTRATION STATEMENTS OF DAVID MEEKER, DIRECTOR, SURPLUS PROP- DISPOSAL OF SURPLUS AGRICULTURAL AND FOREST LAND AND AGRICULTURAL COMMODITIES AND FOODS Mr. CANNON. Continuing our examination of the budget for the Surplus Property Board, we have checked over two of the disposal agencies, the Reconstruction Finance Corporation, and the United States Maritime Commission, and we have remaining the Department of Agriculture, the Department of the Interior, the Federal Works Agency, and the National Housing Agency. We will take up first the Department of Agriculture. Mr. Meeker, what type of property will you handle in the disposition of surplus property? Mr. MEEKER. As far as disposal is concerned, agricultural and forest land and surplus agricultural commodities and foods processed from agricultural commodities. Mr. CANNON. And in what amounts by categories? Mr. MEEKER. We have only estimates of the amounts. We do not have accurate information about the amount of food which will be surplus and will be declared for disposal. Mr. CANNON. What effort have you made to secure an estimate of the amount? What steps have you taken, rather, in order to secure an estimate as to the approximate amount? Mr. MEEKER. The problem has been discussed with the military and they, apparently, have considerable difficulty in determining the amounts that will be declared surplus. It depends on what their requirements are in Europe, and depends in part, upon the amount of food that is in storage here and in the pipe lines when VJ-day comes. Mr. CANNON. On a rough estimate, then, you would say that you would have approximately what amount? What is the best estimate you could make as to the approximate amount in each category? Mr. MEEKER. We have estimated $10,800,000 of food being declared surplus for the fiscal year 1946. Mr. CANNON. That is over-all, or is that divided up as to various lines, and so forth? Mr. MEEKER. That is food. Mr. CANNON. That is for food, then? Mr. MEEKER. Yes, sir. Mr. CANNON. What part of that, if any, is your own, and what part will be transferred to you from other agencies? Mr. MEEKER. That is our estimate of the quantity of food that will be declared surplus by other Government agencies, the Army, the Navy, the Maritime Commission, and other agencies that will have food that will be surplus to their needs during this period. Mr. CANNON. Now, just how do you expect to handle it, what is your plan of organization, and what field offices will you have and what personnel? Mr. MEEKER. I will ask Mr. Garman to explain that, Mr. Chairman, if I may. Mr. CANNON. Yes, Mr. Garman. Mr. GARMAN. What we have planned, Mr. Chairman, is to integrate this disposal work with our other work in connection with the handling of food. Mr. CANNON. You expect, then, to have no additional personnel, you will utilize the personnel you have? Mr. GARMAN. No, sir; it will require additional personnel to do the disposal job. Our estimate, I think, is probably best illustrated by this chart. I have copies of it here that I could hand to the committee, if you wish, Mr. Chairman. Mr. CANNON. Yes. Mr. GARMAN. This first bar on this chart represents the $10,800,000 worth of food that Mr. Meeker indicated, as near as we can estimate. would be the amount we would have to dispose of during the fiscal year 1946. The second bar represents the estimated proceeds that would be received from the sales of that food, $9,180,000. The third bar represents the estimate which we made to the Surplus Property Board as to what it would take to do the job. Mr. CANNON. The first item, Mr. Garman, the $10,800,000, is that the cost price, the price paid by the Government, or is that the amount you estimate to be the market price at the time of disposal Mr. GARMAN. That would be the declared value at the time it would be turned over to us, which, in most instances, would be the cost but in others it may be an estimate value approximating cost. In one instance that I recall the value took into consideration the condition of the commodity, its location, and the other things of that kind. Mr. CANNON. As well as its original cost to the Government? Mr. GARMAN. Yes, sir. It was more of an appraised value, you might say in that case. Mr. CANNON. And it might be considerably less than the Government paid for it? Mr. GARMAN. Yes, sir, in that case. Mr. CANNON. It could not be more? Mr. GARMAN. No, not likely, unless there had been a big increase in market price. ADDITIONAL PERSONNEL REQUIRED Mr. CANNON. You say you have to have additional personnel? Mr. CANNON. About how many? Mr. GARMAN. The estimate we have calls for 263 man-years, at a cost, including personnel and other administrative expenses, of $885,800. That is illustrated, Mr. Chairman, on the third bar that you have on the sheet there, the bottom half being the administrative cost of $885,800, and the top half being the nonadministrative cost, including warehousing, repacking, stenciling, inspection, transportation and handling, a total of $1,134,000. Mr. CANNON. How will your personnel be distributed as to Washington, field offices, and offices abroad? Mr. GARMAN. They would be distributed between our field offices and Washington. One hundred and thirty-three of them would be here in Washington, and the remainder, or 130, would be in the field. METHOD OF DISPOSING OF SURPLUS FOOD I Mr. CANNON. Now, what is your plan of operation? Food is turned over to you. Í take it for granted that it will be announced to you that it is stored in some warehouse or storage plant or other depot. Now, what will be your method of procedure from that point on? Mr. GARMAN. Mr. Chairman, if it is agreeable with you, Mr. Brenner, Deputy Director of Supply, and Mr. W. H. Pittman, Chief of the Sales Branch of the Office of Supply, can tell you the operations better than I can. Mr. CANNON. Will you give us some information on that, Mr. Pittman? Mr. W. H. PITTMAN. I am talking now solely about food, and this food, of course, is to be used primarily for food uses. So, the first thing is, to get a very careful inspection of it to determine its fitness for food use. We realize that much of this surplus has achieved a measure of maturity and requires very careful inspection for that reason. Mr. CANNON. You expect then, to have some loss, is that what you mean to tell us? Mr. W. H. PITTMAN. Oh, yes; there will be segregation and sorting made, sorting the fit from the unfit before we can sell it as food. Mr. CANNON. Such food as is unsaleable will be inventoried, but will be charged off? Mr. CANNON. What effort have you made to secure an estimate of the amount? What steps have you taken, rather, in order to secure an estimate as to the approximate amount? Mr. MEEKER. The problem has been discussed with the military and they, apparently, have considerable difficulty in determining the amounts that will be declared surplus. It depends on what their requirements are in Europe, and depends in part, upon the amount of food that is in storage here and in the pipe lines when VJ-day comes. Mr. CANNON. On a rough estimate, then, you would say that yo would have approximately what amount? What is the best estimate you could make as to the approximate amount in each category? Mr. MEEKER. We have estimated $10,800,000 of food being declared surplus for the fiscal year 1946. Mr. CANNON. That is over-all, or is that divided up as to various lines, and so forth? Mr. MEEKER. That is food. Mr. CANNON. That is for food, then? Mr. MEEKER. Yes, sir. Mr. CANNON. What part of that, if any, is your own, and what part will be transferred to you from other agencies? Mr. MEEKER. That is our estimate of the quantity of food ths: will be declared surplus by other Government agencies, the Army, the Navy, the Maritime Commission, and other agencies that will have food that will be surplus to their needs during this period. Mr. CANNON. Now, just how do you expect to handle it, what is your plan of organization, and what field offices will you have and what personnel? Mr. MEEKER. I will ask Mr. Garman to explain that, Mr. Chairman, if I may. Mr. CANNON. Yes, Mr. Garman. Mr. GARMAN. What we have planned, Mr. Chairman, is to inte grate this disposal work with our other work in connection with the handling of food. Mr. CANNON. You expect, then, to have no additional personnel: you will utilize the personnel you have? Mr. GARMAN. No, sir; it will require additional personnel to de the disposal job. Our estimate, I think, is probably best illustrated by this chart. I have copies of it here that I could hand to the committee, if you wish, Mr. Chairman. Mr. CANNON. Yes. Mr. GARMAN. This first bar on this chart represents the $10,500,000 worth of food that Mr. Meeker indicated, as near as we can estimate would be the amount we would have to dispose of during the fiscal year 1946. The second bar represents the estimated proceeds that would be received from the sales of that food, $9,180,000. The third bar represents the estimate which we made to the Surplus Property Board as to what it would take to do the job. Mr. CANNON. The first item, Mr. Garman, the $10,800,000, is that the cost price, the price paid by the Government, or is that the amount you estimate to be the market price at the time of disposal Mr. GARMAN. That would be the declared value at the time it would be turned over to us, which, in most instances, would be the cost but in others it may be an estimate value approximating cost. |