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HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON EXPENDITURES IN THE

EXECUTIVE DEPARTMENTS

HOUSE OF REPRESENTATIVES

EIGHTY-SECOND CONGRESS

FIRST SESSION

FEBRUARY 6, MARCH 1, 8, 14, APRIL 11, 18, MAY 10, JUNE 24 AND 25, 1951

Printed for the use of the
Committee on Expenditures in the Executive Departments

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1951

83113

67 56450

690

XL
12/98 31150-199 NL" E

COMMITTEE ON EXPENDITURES IN THE EXECUTIVE DEPARTMENTS

WILLIAM L. DAWSON, Illinois, Chairman CHET HOLIFIELD, California

CLARE E. HOFFMAN, Michigan HENDERSON LANHAM, Georgia

R. WALTER RIEHLMAN, New York PORTER HARDY, JR., Virginia

CECIL M. HARDEN, Indiana
FRANK M. KARSTEN, Missouri

GEORGE H. BENDER, Ohio
JOHN W. MCCORMACK, Massachusetts CHARLES B. BROWNSON, Indiana
HERBERT C. BONNER, North Carolina THOMAS B. CURTIS, Missouri
JOHN A. BLATNIK, Minnesota

WILLIAM E. MILLER, New York HAROLD D. DONOHUE, Massachusetts MARGUERITE STITT CHURCH, Illinois M. G. BURNSIDE, West Virginia

GEORGE MEADER, Michigan RICHARD BOLLING, Missouri

WILLIAM E. MCVEY, Illinois
JOHN F. SHELLEY, California

ALVIN R. BUSH, Pennsylvania
W. J. BRYAN DORN, South Carolina
SIDNEY A. FINE, New York
WILLIAM C. LANTAFF, Florida
WALTER S. BARING, Nevada

CHRISTINE RAY DAVIS, Chief Clerk
THOMAS A. KENNEDY, General Counsel

WILLIAM A. YOUNG, Staff Director

INTERGOVERNMENTAL RELATIONS SUBCOMMITTEE

HERBERT C. BONNER, North Carolina, Chairman HAROLD D. DONOHUE, Massachusetts CECIL M. HARDEN, Indiana JOHN F. SHELLEY, California

CHARLES B. BROWNSON, Indiana SIDNEY A. FINE, New York

THOMAS B. CURTIS, Missouri
WILLIAM C. LANTAFF, Florida

ASSIGNED STAFF
THOMAS A. KENNEDY, General Counsel
HERBERT SMALL, A8sociate Counsel
ROBERT F. CARTWRIGHT, Investigator (General Accounting Office)
LEE G. SEYMOUR, Investigator (General Accounting Office)
ROBERT G. SINCLAIR, Investigator (General Accounting Office)
LOUISE HARRIS, A88istant Clerk

[graphic]

CONTENTS

Testimony or statement of

Pago

Blue, Marjorie, Peru, Ind..

568

Cartwright, Robert F., assistant chief investigator, General Account-

ing Office...

290

Curran, Harry R., Chicago, Ill.

579, 592, 601

Dudley, W. R., Bureau of Yards and Docks, Navy Department,

Washington, D. C..

678

Ellis, W. L., Chief of Investigations, General Accounting Office. 291

Fisher, Mrs. Maybelle, Washington, D. C.--

287

Forbes, Charles S., Assistant Chief, Exempt Rulings Section, Income

Tax Unit, Bureau of Internal Revenue.

535

Gwin, Virgil, Playing Field, Ind.--

653

Harrah, Clayton Charles, president, Duke Harrah, Inc., Niles, Mich- 19,

119, 243, 686

Hauptman, Jacob, Mercury Trading Corp., Cincinnati, Ohio..

248

Heath, Reginald Ivan, Arlington, Va--

236, 475

Heddleston, Russell A., Takoma Park, Md.

258, 503

Hutchcroft, Clifford, Bunker Hill, Ind.

671

Hutchcroft, Thomas O., Bunker Hill, Ind.

575
Jarvis, Paul, salvage and scrap dealer, Seymour, Ind.

244
Kennedy, Thomas A., general counsel, House Committee on Expendi-
tures in the Executive Departments.--

5

Ladd, Wayne M., farmer and president of Bunker Hill Corp., Bunker

Ind.

388, 689

Lowe, G., Peru, Ind.

563

McComb, Harvey G., Indiana Department of Education for the

Disposal of Surplus Property-

217

McIntyre, Robert H., field training director, Aeronautics Commis-

sion of Indiana..

593

Middlekauf, E. E., Peru, Ind.

563
Miller, J. O., former mayor of the city of Peru, Ind.

550
Patterson, Harry S., Peru, Ind..

563
Pemberton, Howard L., Kalamazoo, Mich.

156, 680
Pierce, Leroy, Bunker Hill, Ind.

570
Schneck, John P., Lansing, Ill.

154
Schneck, Philip H., Silver Spring, MD.

154
Seymour, Lee G., investigator, General Accounting Office

290
Shepler, Charles, Peru, Ind.

364
Short, James E., Hamlet, Ind

195
Shreve, Donald C., Bunker Hill, Ind.

679
Smith, Noble, Bunker Hill, Ind..

573
Stuber, John W., Peru, Ind.

563
Swank, Leslie, Peru, Ind.

563
Zick, Leonard O., Grosse Pointe Park, Mich.

187
Letters, statements, excerpts, etc., submitted for the record by-

Bonner, Hon. Herbert C., a Representative in Congress from the

State of North Carolina and chairman, House Intergovernmental
Relations Subcommittee:
Communication to Chief, Bureau of Docks and Yards, Chicago,
Ill., November 20, 1947 re Captain Briner.

621

Excerpt from application for Army donable property, June 26,

executed by H. G. McComb, Howard L. Pemberton, and C. C.

Harrah...

151

Letter from C. C. Harrah, president, Duke Harrah, Inc., Niles,
Mich., to Hon. Herbert C. Bonner.

381
Letter from E. I. McLarney, Deputy Commissioner, Treasury

Department, to Bunker Hill School of Aeronautics, May 21,
1947.

83
!

Letters, statements, excerpts, etc.-Continued

Bonner, Hon. Herbert C.-Continued

Page

Letters from Howard L. Pemberton, Kalamazoo, Mich., to Chief

of the Aircraft Sales Division, War Assets Administration,

July 10, 1947..

167

Letter from Lowell C. Stanley, Chief, Training Facilities Section,

Veterans' Administration, to whom it may concern, December
14, 1950.-

664
Letter from R. F. Robinson, executive secretary, Indiana State

Approval Committee, to whom it may concern, December 14,
1950..

664
Opening remarks-

1
Brownson, Hon. Charles B., a Representative in Congress from the

State of Indiana; letter from C. C. Harrah, vice president, Bunker
Hill School of Aeronautics, Inc., to R. A. Heddleston, September 5,
1947..

526
Cartwright, Robert F., assistant chief investigator, General Account-

ing Office, excerpt from Internal Revenue Code, section 54 (f)--- 338
Curran, Harry R., Chicago, Ill., letter from Bunker Hill Corp., to
Robert Oare, June 24, 1947.-

612
Donohue, Hon. Harold D., a Representative in Congress from the

State of Massachusetts, letter from R. A. Heddleston, Director,
Educational Division, Office of Aircraft and Electronics, to L. E.
Smith, June 19, 1947..

517
Harrah, Clayton, Charles, president, Duke Harrah, Inc., Niles, Mich.,

letter from R. A. Heddleston, War Assets Administration, to L. E.
Smith, June 19.

79

Heddleston, Russell A., Takoma Park, Md., excerpt from regulation 4,

paragraph 3804..

260

Hoffman, Hon. Clare L., a Representative in Congress from the State

of Michigan:

Excerpt from Peru Blade-Tribune, August 7, 1946..

443, 556

Excerpt from lease, section 6, dated January 1, 1947..

440

Excerpt from exhibit 18 (see p. 186) -

216

Kennedy, Thomas A., general counsel, House Committee on Expendi-

tures in the Executive Departments:

Awards made on surplus sales from April 1 to October 26, 1950. 9

Donable property reference -

9-11

Letter sent by the Comptroller General to his 21 regional offices

of investigation ---

13

Regulation No. 4, paragraph 8304–11. Disposals for educational
and public health purposes.

504

Ladd, Wayne M., farmer, and president of Bunker Hill Corp.:

Letter from C. C. Harrah, president, Duke Harrah, Inc., Niles,

Mich., to commanding officer, United States Naval Air Station,

October 16, 1946.

396

Letter from L. E. Smith, trustee, to Bunker Hill School of Aero-

nautics, Inc., June 7, 1947..

399

Letter from L. E. Smith, trustee, to War Assets Administration,

1947.

403

Telegram from J. J. Manning, Chief of Bureau of Yards and

Docks, Washington, D. C., to Bunker Hill School of Aero-

nautics, Inc., December 9, 1947,

406

Pemberton, Howard L., Kalamazoo, Mich.:

Excerpt of letter from deputy commissioner to Bunker Hill School

of Aeronautics, April 30, 1947-

541

Letter from E. A. Cushman, to H. B. Abbett, purchasing agent,

Purdue University, La Fayette, Ind. re a letter received by
E. A. Cushman, November 29, 1946-

163
Letter from H. G. Foster, special agent, Federal Bureau of

Investigation, Indianapolis, Ind., to C. C. Harrah, January 25,
1950.

184
Seymour, Lee G., investigator, General Accounting Office:
Excerpt from Regulation 4, paragraph 8301.

322
Telegram of February 11, 1947, re Mr. Talley's certification... 320

Shelly, Hon. John F., a Representative in Congress from the State of

California; excerpt from an article in the Peru Daily Tribune,

August 6, 1946.

459

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