COMMITTEE ON EXPENDITURES IN THE
EXECUTIVE DEPARTMENTS
UNITED STATES SENATE
EIGHTIETH CONGRESS
A DRAFT BILL SUBMITTED BY THE FEDERAL
WORKS ADMINISTRATOR TO REORGANIZE
AND SIMPLIFY THE PROCUREMENT,
UTILIZATION, AND DISPOSAL OF
GOVERNMENT PROPERTY
MARCH 31, APRIL 1, 2, AND 5, 1948
Printed for the use of the
Committee on Expenditures in the Executive Departments
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1948
74-96,
104, 105, 106, 118, 119, 120, 121
Barrows, Hon. A. S., Under Secretary of the Air Force__
96, 101-107
Dinger, Robert F., executive secretary, National Housing Committee,
the American Legion--
Dole, Edwin K., chairman, legislative committee of National Commit-
tee State Educational Agencies for Surplus Property‒‒‒‒‒
Fleming, Maj. Gen. Philip B., Federal Works Administrator_ 13-23, 28, 39, 40
Gray, Hon. Gordon, Assistant Secretary of the Army- 96, 107-113, 116
Harris, Dr. Arthur L., Chief, Surplus Property Utilization Program,
Office of Education, Federal Security Agency----
Hayden, Harry V., Jr., national legislative representative, the Amer-
ican Legion, Washington, D. C‒‒‒‒‒
Hoff, William, general counsel, Office of the Foreign Liquidation Com-
missioner, Department of State___.
Johnstone, Alan, general counsel, Federal Works Agency-
19, 20, 21, 22, 23, 28, 40, 41, 63, 103, 104, 105, 106, 117-122
Kurth, Harry M., Assistant Director, Bureau of Federal Supply, Treas-
ury Department_-
Landgraf, Herman, special assistant to purchasing agent for Rhode
Island (representing the National Association of Purchasing Offi-
cials).
Larson, Jess, Administrator, War Assets Administration_.
62, 63, 100, 106, 115, 116, 117
Noyes, Guy E., Director, Research and Statistics Branch, Office of the
Foreign Liquidation Commissioner, Department of State---
Overman, Charles H., chairman of the National Committee of State
Educational Agencies for Surplus Property, and director-secretary,
Florida State Improvement Commission, Tallahassee, Fla---- 58-64, 100
Ramsey, Fred W., Foreign Liquidation Commissioner, Department
of State___
Springarn, Stephen J., assistant general counsel, Treasury Depart-
ment, and Deputy Director, Office of Contract Settlement:
Oral statement_
Wood, C. Tyler, Deputy to the Assistant Secretary of State for Eco-
nomic Affairs__.
Letter dated May 14, 1948, from Harry V. Hayden, Jr., legislative repre-
sentative, the American Legion, regarding correction of testimony__
Amendments proposed for Federal Property Act of 1948, submitted by Na-
tional Committee of State Educational Agencies for Surplus Property__
United States Office of Education, creation and authority_
Letter dated April 26, 1948, from Hon. M. E. Andrews, Assistant Secretary
of the Navy, regarding progress in standardization of parts between the
Departments of the National Military Establishment_
Letter dated April 21, 1948, from Hon. M. E. Andrews, Assistant Secretary
of the Navy, regarding percentage of Navy procurement requirements in
prewar years obtained through Treasury Procurement Division__.
Letter dated April 5, 1948, from Frank Pace, Jr., Acting Director, Bureau -
of the Budget, on draft bill__.
Letter dated April 6, 1948, from Hudson B. Cox, general counsel, Depart-
ment of the Navy, regarding proposed amendment relative to transfer of
functions of surplus property disposal__
Letter dated April 7, 1948, from James Forrestal, the Secretary of Defense,
regarding proposed amendment to exempt the National Military Estab-
lishment procurement and supply activities.
Letter dated April 8, 1948, from Maj. Gen. Philip B. Fleming, Administrator,
Federal Works Agency, regarding amendment relative to utilization of
services of officer personnel_--
Letter dated April 8, 1948, and memorandum, from H. M. Kurth, Assistant
Director, Bureau of Federal Supply, regarding Federal specifications
issued, canceled, etc-.
Letter dated April 9, 1948, from Maj. Gen. Philip B. Fleming, Adminis-
trator, Federal Works Agency, regarding proposed amendment to exempt
National Military Establishment__.
Letter dated April 13, 1948, from Lindsay C. Warren, Comptroller General
of the United States, regarding draft bill.
Letter dated April 14, 1948, from Alan Johnstone, general counsel, Federal
Works Agency, regarding amendment for disposal of property for educa-
tional purposes
Letter dated April 14, 1948, from James E. Webb, Director, Bureau of the
Budget, regarding proposed amendment to exempt National Military
Authority of the Bureau of Federal Supply with respect to Procurement
of Materials for the National Military Establishment-Memorandum
of Law.
Memorandum dated April 7, 1948, from Alan Johnstone, general counsel,
Federal Works Agency, on references to the statute law in the draft bill_
Letter dated April 15, 1948, from Hon. J. W. Fulbright, Senator from
Arkansas, regarding amendment relative to utilization of foreign cur-
rencies or credits_.
Letter dated May 4, 1948, from Charles E. Bohlen, counselor, Department
of State, regarding amendments relative to utilization of foreign cur-
rencies or credits-
Bill as reported by committee, and committee report (S. 2754, S. Rept.
1413)
FEDERAL PROPERTY ACT OF 1948
WEDNESDAY, MARCH 31, 1948
UNITED STATES SENATE,
COMMITTEE ON EXPENDITURES IN
THE EXECUTIVE DEPARTMENTS,
Washington, D. C.
The committee met, pursuant to notice, at 10 a. m., in the committee room, 357 Senate Office Building, Senator George D. Aiken (chairman) presiding.
Present: Senators Aiken (chairman), Thye, McClellan, and Hoey. The CHAIRMAN. The committee will come to order. The hearing this morning is the start of a series that will continue for the next 2 or 3 days on the proposal to transfer the Bureau of Federal Supply and the War Assets Administration to the Federal Works Agency. No legislation has been formally introduced as yet but a draft bill has been prepared and submitted to the committee by the Federal Works Administrator to carry out the provisions of the President's message of March 5, 1948, on Liquidation of Temporary Arrangements for Disposing of Surplus War Materials (House Doc. No. 558). Committee prints have been made available to those who are interested in this proposal. After the hearings, it is expected that a bill will be prepared and introduced.
This is a very important and urgent subject, and during the course of the hearings representatives of several agencies of the Govern-. ment and other persons who are interested will be heard.
(House Document No. 558 and the committee print of the draft proposal are as follows:)
[Doc. No. 558, 80th Cong., 2d sess.]
MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING RECOMMENDATION THAT THE CONGRESS NOW PROVIDE FOR THE LIQUIDATION OF THE TEMPORARY ARRANGEMENTS FOR DISPOSING OF SURPLUS WAR PROPERTY AND FOR THE COMPLETION OF THE REMAINING DISPOSAL ACTIVITIES WITHIN THE PERMANENT FEDERAL ESTABLISHMENT
To the Congress of the United States:
In accordance with the Government's settled policy of eliminating temporary war agencies as soon as practicable, I recommend that the Congress now provide for the liquidation of the temporary arrangements for disposing of surplus war property and for the completion of the remaining disposal activities within the permanent Federal establishment. At the same time, the Congress should provide for a number of improvements in the permanent system for the procurement, use, and disposal of Government property.
For a number of years the Federal Government has needed a better system of property management. The present arrangements, which have been developed under piecemeal legislation dating as far back as 1870, are inadequate to meet the present requirements of the Government. That legislation contains many
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