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SURPLUS REAL PROPERTY AND CONSOLIDATION OF SUPPLY FACILITIES OF THE ARMED SERVICES, SAN FRANCISCO BAY AREA

MONDAY, SEPTEMBER 15, 1947

HOUSE OF REPRESENTATIVES,

SURPLUS PROPERTY SUBCOMMITTEE OF THE

COMMITTEE ON EXPENDITURES IN THE EXECUTIVE DEPARTMENTS AND SUBCOMMITTEE ON PROCUREMENT AND

SUPPLY OF THE COMMITTEE ON ARMED SERVICES,

San Francisco, Calif.

The subcommittees met at 10 a. m. in room 207, United States Post Office and Courthouse Building, Seventh and Mission Streets, San Francisco, Calif., Hon. Jack Z. Anderson, presiding.

Present from Surplus Property Subcommittee: Representatives Ross Rizley (chairman) and Chet Holifield; Edmond J. Donohue, Jr., general counsel; Paul F. Morrison, chief investigator.

Present from Subcommittee on Procurement and Supply: Representative Jack Z. Anderson (chairman); Bryce N. Harlow, professional staff member.

Present from Committee on Armed Services: Representative Franck R. Havenner.

Mr. ANDERSON. The committee will be in order.

The chairman desires to make a brief opening statement as to the purpose of the hearing to be conducted here this week.

In response to numerous demands from interested citizens in this part of the country the chairman of the Armed Services Committee has authorized the Subcommittee on Procurement and Supply, of which I am the chairman, to conduct hearings in the San Francisco Bay area in connection with surplus Government property, and has asked Congressman Rizley, of the House Committee on Expenditures in the Executive Departments, to sit in as cochairman with me.

We intend to ascertain, to the best of our ability, to what extent Federal property now held by Federal agencies might be returned to the local tax rolls, and where consolidations of armed services supply functions, warehousing, maintenance, and equipment might be effected.

As you all know, there has been a top-level consolidation of the services under the so-called Merger Act of 1947, and it is the purpose of our committees to ascertain whether or not consolidations can be effected at the lower levels.

Witnesses will be called. They will not have to be sworn. We will see how the hearing progresses as we go along.

I want to clear up one misunderstanding. There seems to be in the minds of some of the citizens in the various communities around

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the bay area an idea to the effect that the purpose of our committees is to select the location of a general supply depot. That is not our purpose. That is purely an administrative function which must be handled by the armed services. We do not consider ourselves in any sense of the word military experts and when it comes to the establishment or location of supply depots, or other military depots, we consider that not to be our function.

Congressman Rizley, as cochairman of this hearing, do you have any further statement you wish to make before the first witness is called?

Mr. RIZLEY. Congressman Anderson, I think you have about covered the situation so far as my subcommittee is concerned. Under the Reorganization Act we the Committee on Expenditures in the Executive Departments, were given the function of investigating the various branches of the executive department of the Government. A subcommittee was set up for the purpose of continuing an investigation that had been made by a special committee theretofore of the disposition of surplus war assets. I am the chairman of that subcommittee.

A preliminary survey made by our staff disclosed that throughout the United States there is something like twenty-two billions of dollars in real property that has either been declared surplus or is still being held by the Army, Navy, or some other branch of the Federal Government. That is an enormous amount of real estate.

We were directed to make such investigations as were necessary for the purpose of determining, first, whether the Army and Navy are unnecessarily hoarding surplus real estate; not only the Army and Navy, but other branches of the Government as well.

When we realize that about 25 percent of the real estate in the country is now owned by the Federal Government, and that an enormous amount of acquisitions was made during the war, it is evident that a serious problem confronts the municipalities and other divisions of local government.

We are glad to be here to participate with your subcommittee in making this investigation, and during the course of this investigation we will perhaps look into the surplus real estate that is being held by WAA in this particular vicinity.

Mr. ANDERSON. Thank you very much, Congressman Rizley.

Following the completion of our hearings each of our subcommittees will make a joint report with recommendations to our full committees, and based thereon the full committees will, in turn, make such recommendations as they deem necessary to the various interested agencies of the Government.

Now, Mr. Donohue, will you call the first witness, please?
Mr. DONOHUE. Mr. Francis Keesling, please.

TESTIMONY OF FRANCIS V. KEESLING, JR., ATTORNEY AT LAW,
SAN FRANCISCO, CALIF.

Mr. DONOHUE. Give your full name and your position to the reporter, please.

Mr. KEESLING. Francis V. Keesling, Jr., attorney at law. I represent a majority of the property owners, former property owners of the Islais Creek Marine Corps Depot property.

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