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Mr. Case. Has the Department of Interior made any comment on the proposal for you to take over this development of Alaska!

Mr. MAVERICK. I want to again say we are not taking over the development of Alaska ; we are doing a duty which we should have done in the first place but did not do.

I went to Alaska myself, and I found that we should have been there before. I would say we are a little bit derelict as to Alaska, rather than aggressive. We are just getting around to it. We are doing our duty as we should have done in the first place.

Mr. Case. If you have asked that the Corporation be designated as the executive agency, are you not taking over the Government's functions and the Government's interest in the development of Alaska?

Mr. MAVERICK. If it was granted, but it has not been granted, so it is not relevant.

The request, I now remember, was promptly withdrawn. Therefore, it is not relevant to this testimony.

Mr. CASE. Well, presumably the reason you are asking for these funds is to carry out that activity if the request is granted.

Mr. MAVERICK. No, sir. That is a mere statement that we asked for that.

And whether I asked for something else or not in the form of a letter, this request is strictly in line with our duty. More, it is a very small sum and a very small number of employees for Alaska for the usual run of our business, without reference to this economic committee or the Department of the Interior.

Mr. CASE. Well, what does this sentence mean:"Approval of the Department of Interior is expected in the near future?"-the Department of Interior has not approved it, has it?

Mr. DENIT. Well, the committee would get more up to date on this by going back to the chairman's remarks of yesterday, which are more current.

These justifications were compiled some time ago, and at that time the Bureau of the Budget had approved the proposal of our office to have a set-up in Alaska, and I was advised by the Budget Burean that the approval of the Department of the Interior was expected.

Now, it is my impression that that approval has since been given to this extent--that we would have a field office there as a representative of Smaller War Plants Corporation, and nothing else.

Mr. Cass. Not for the full exploitation of the natural resources ?

Mr. DENIT. It does not say "natural" resources, and the reference is made to economic resources. I think there is a difference. Perhaps it is a purely academic difference, but I think there is a difference between the two terms. We would not be there if we did not intend to exploit as fully as we can the economic possibilities of small business there.

Mr. CASE. No use in laboring that.
Mr. CANNON. Proceed.

CONTRACTUAL SERVICES

Mr. WIGGLESWORTH. I was just going to ask-you have a very large increase in your “Other contractual service” here, over $200,000 what is the reason for that?

Estimate

Mr. DENIT. For one thing, we expect an increase in the loan and Jease closure service.

That is the item Mr. Case has discussed with the chairman to some extent.

All our loans in the field are closed by R. F. C. under reimbursable agreement, and as our loan volume increases, our loan and lease closures correspondingly increase.

Mr. WIGGLESWORTH. Will you break that item down a little so we can see what it is for? Mr. DENIT. Yes. (The information requested is as follows:)

Other contractual services Laan and lease closure

$375, 000 Management, engineering, and economic survey services.

230, 000 Reimbursement to Treasury for disbursement services

15, 000 Daplicating services.----

50,000 Miscellaneous services, such as storage, repairs, and alterations of machinery, vehicles, and other types of equipment; installation of *quipment, electric outlets, and buzzers; conference reporting; and building repairs and alterations.

20,000 Total estimate --

710, 000 Mr. WIGGLESWORTH. Does this publicity that you set up include such articles as I have noticed in the Saturday Evening Post and, I think, the Reader's Digest, and so on? Is that included in the work?

Jír. MAVERICK. No, sir. All that I write myself. It is hard work. I get up early and write and rewrite.

And, of course, when I write an article or make a speech which I think is beneficial to little business, I get facts and figures from the Bureau of Reports and the Library of Congress. My associates help, of course.

Mr. WIGGLESWORTH. That is all I have.

SURPLUS PROPERTY INVENTORY Mr. CASE. Mr. Chairman, I merely wanted to ask one question. Mr. CANNON. Yes, Mr. Case. Mr. Case. And that is with respect to surplus property.

Does the Smaller War Plants Corporation itself have any sizable Tentory of surplus property?

Mr. MAVERICK. No, sir. It is extremely small; it is just a thousandth of a dribble beside that of the War Department and the Navy Departbent.

Mr. CAse.. Well, will you place in the record an inventory of your surplus property?

Ur. DENIT. That amount should be stricken, because we have no rplus at the moment.

Mr. Case. Is it your policy to dispose of it yourself or turn it over 4, the Administrator of Surplus Property?

Mr. MAVERICK. So far we have done it ourselves. We sell it or inase it ourselves.

Mr. CASE. Do you have any inventory of properties of any characfor that you have purchased from Surplus Property Administration or trof its disposal agencies?

Mr. CASE. Has the Department of Interior made any comment on the proposal for you to take over this development of Alaska!

Mr. MAVERICK. I want to again say we are not taking over the development of Alaska; we are doing a duty which we should have done in the first place but did not do.

I went to Alaska myself, and I found that we should have been there before. I would say we are a little bit derelict as to Alaska, rather than aggressive. We are just getting around to it. We are doing our duty as we should have done in the first place.

Mr. CASE. If you have asked that the Corporation be designated as the executive agency, are you not taking over the Government's functions and the Government's interest in the development of Alaska?

Mr. MAVERICK. If it was granted, but it has not been granted, so it is not relevant.

The request, I now remember, was promptly withdrawn. Therefore, it is not relevant to this testimony.

Mr. CASE. Well, presumably the reason you are asking for these funds is to carry out that activity if the request is granted.

Mr. MAVERICK. No, sir. That is a mere statement that we asked for that.

And whether I asked for something else or not in the form of a letter, this request is strictly in line with our duty. More, it is a very small sum and a very small number of employees for Alaska for the usual run of our business, without reference to this economic committee or the Department of the Interior.

Mr. Case. Well, what does this sentence mean: "Approval of the Department of Interior is expected in the near future?"--the Department of Interior has not approved it, has it?

Mr. Denit. Well, the committee would get more up to date on this by going back to the chairman's remarks of yesterday, which are more current.

These justifications were compiled some time ago, and at that time the Bureau of the Budget had approved the proposal of our office to have a set-up in Alaska, and I was advised by the Budget Burean that the approval of the Department of the Interior was expected.

Now, it is my impression that that approval has since been given to this extent that we would have a field office there as a representative of Smaller War Plants Corporation, and nothing else.

Mr. Case. Not for the full exploitation of the natural resources !

Mr. DENIT. It does not say "natural” resources, and the reference is made to economic resources. I think there is a difference. Perhaps it is a purely academic difference, but I think there is a difference between the two terms. We would not be there if we did not intend to exploit as fully as we can the economic possibilities of small business there.

Mr. Case. No use in laboring that.
Mr. CANNON. Proceed.

CONTRACTUAL SERVICES Mr. WIGGLESWORTH. I was just going to ask-you have a very large increase in your "Other contractual service” here, over $200,000 what is the reason for that?

Mr. DENIT. For one thing, we expect an increase in the loan and lease closure service.

That is the item Mr. Case has discussed with the chairman to some extent.

All our loans in the field are closed by R. F. C. under reimbursable agreement, and as our loan volume increases, our loan and lease closures correspondingly increase.

Mr. WIGGLESWORTH. Will you break that item down a little so we can see what it is for?

Mr. DENIT. Yes.
(The information requested is as follows:)
Other contractual services

Estimate Loan and lease closure

$375, 000 Management, engineering, and economic survey services..

250,000 Reimbursement to Treasury for disbursement services -

15, 000 Duplicating services--

50,000 Miscellaneous services, such as storage, repairs, and alterations of

machinery, vehicles, and other types of equipment; installation of equipment, electric outlets, and buzzers; conference reporting; and building repairs and alterations.--

20,000 Total estimate --

710, 000 Mr. WIGGLESWORTH. Does this publicity that you set up include such articles as I have noticed in the Saturday Evening Post and, I think, the Reader's Digest, and so on? Is that included in the work?

Mr. MAVERICK. No, sir. All that I write myself. It is hard work. I get up early and write and rewrite.

And, of course, when I write an article or make a speech which I think is beneficial to little business, I get facts and figures from the Bureau of Reports and the Library of Congress. My associates help,

Mr. WIGGLESWORTH. That is all I have.

of course.

SURPLUS PROPERTY INVENTORY Mr. Case. Mr. Chairman, I merely wanted to ask one question. Mr. Canxon. Yes, Mr. Case. Mr. Case. And that is with respect to surplus property. Does the Smaller War Plants Corporation itself have any sizable I.rentory of surplus property! Mr. MAVERICK. No, sir. It is extremely small; it is just a thousandth fa dribble beside that of the War Department and the Navy Depart

Mr. CASE. Well, will you place in the record an inventory of your surplus property?

Mr. Dexit. That amount should be stricken, because we have no rplus at the moment. Mr. Case. Is it your policy to dispose of it yourself or turn it over the Administrator of Surplus Property?

Mr. MAVERICK. So far we have done it ourselves. We sell it or -24 it ourselves.

Mr. CASE. Do you have any inventory of properties of any charac'or that you have purchased from Surplus Property Administration or 15 of its disposal agencies?

Mr. MAVERICK. No, sir.

Mr. Case. You speak of making purchases in order that small businessmen might enjoy the priority provided for the smaller war plants.

In connection with such purchases of surplus property, do you purchase any that has not been requested, so to speak, by private corporations?

Mr. PRINCE. We have only bought against one commitment.

Mr. Case. And do you contemplate engaging in that in the coming fiscal year?

Mr. PRINCE. In commitment?
Mr. CASE. No; just buying to acquire stock.

Mr. PRINCE. Well, as a matter of fact, it is not contemplated, but we have not sufficient experience to say that it may be necessary in order to protect small business as it reflects in the present policies of distribution and sales.

Mr. MAVERICK. I would like to add to that; I do not want my estoppel or any lack of making a statement to cause abandonment of any duties or rights of the S. W. P. C. required by law.

We might do that, but at the present time we do not intend to do it. Mr. CASE. Well, I think the country would be interested in knowing whether the Smaller War Plants Corporation are to become a gigantic Army and Navy store for the purpose of becoming a middleman in the ultimate distribution of surplus properties.

Mr. MAVERICK. The answer is absolutely and definitely “no.”

However, as I have explained other times, we have the power of taking a prime contract in battleships and everything else that military agencies buy. We can buy $80,000,000,000 worth of battleships if we want to; that is what Congress gave us. But we have to be guided by the rule of common sense and reason.

That is why I still have my job, because we do not violate the precepts of common sense; but we should have the power of purchase of surplus goods in order to see that the rights of small business are guarded propertly. And if necessary we will use it, but there is not the slightest chance of our becoming a great warehouse or Army and Navy store.

COOPERATION OF HOUSE AND SENATE SMALL BUSINESS COMMITTEES

Mr. Cannon. On the record or off the record, what cooperation has there been, if any, between the Smaller War Plants Corporation and the committee of Congress, official committee of Congress, appointed to investigate small business?

Mr. MAVERICK. I would like it to be on the record.
Mr. CANNON. On the record.

Mr. MAVERICK. The cooperation we have received from the Senate Small Business Committee, of which the Honorable James E. Murray is chairman, and the House Small Business Committee, of which the Honorable Wright Patman, of Texas, is chairman, has at all times been sympathetic, aggressive, and fair.

We were constantly, not investigated, but scrutinized, by the members of those committees, and I occasionally received letters, you might say, of criticism.

Mr. CANNON. And of commendation?

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