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attorneys, investigators, accountants, and other employees as he Provisos.
may find necessary for the due administration of the provisions eligibles to
of this Act: Provided, That such clerks, investigators, account. be used.
ants, and other employees shall be appointed from lists of eligibles
to be supplied by the Civil Service Commission and in accord.

Detailed an-
ance with the civil-service law: Provided further, That the Presi. nual reports
dent shall cause a detailed report to be made to Congress on the required.
first day of January of each year of all proceedings had under
this Act during the year preceding. Such report shall contain
a list of all persons appointed or employed, with the salary or
compensation paid to each, and a statement of the different
kinds of property taken into custody and the disposition made
thereof.

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SUBCOMMITTEE TO INVESTIGATE THE
ADMINISTRATION OF THE TRADING WITH

THE ENEMY ACT

TO THE

COMMITTEE ON THE JUDICIARY

UNITED STATES SENATE

(Pursuant to S. Res. 245, 82d Congress)

Printed for the use of the Committee on the Judiciary

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1953

COMMITTEE ON THE JUDICIARY

WILLIAM LANGER, North Dakota, Chairman ALEXANDER WILEY, Wisconsin

PAT MCCARRAN, Nevada WILLIAM E. JENNER, Indiana

HARLEY M. KILGORE, West Virginia ARTHUR V. WATKINS, Utah

JAMES 0. EASTLAND, Mississippi ROBERT C. HENDRICKSON, New Jersey ESTES KEFAUVER, Tennessee EVERETT MCKINLEY DIRKSEN, Illinois WILLIS SMITH, North Carolina HERMAN WELKER, Idaho

OLIN D. JOHNSTON, South Carolina JOHN MARSHALL BUTLER, Maryland THOMAS C. HENNINGS, JR., Missouri

SUBCOMMITTEE ON TRADING WITH THE ENEMY ACT

(Pursuant to S. Res. 245, 82d Cong.)

WILLIS SMITH, North Carolina, Subcommittee Chairman PAT MCCARRAN, Nevada

ALEXANDER WILEY, Wisconsin WARREN G. MAGNUSON, Washington HOMER FERGUSON, Michigan HERBERT R. O'CONOR, Maryland

ROBERT C. HENDRICKSON, New Jersey ARMISTEAD W. SAPP, Subcommittee Counsel

(II)

LETTER OF TRANSMITTAL

JANUARY 16, 1953. Hon. WILLAM LANGER, Chairman, Committee on the Judiciary, United States Senate,

Washington, D.C. DEAR SENATOR LANGER: You are, of course, familiar with the fact that I have been chairman of a committee that was organized pursuant to Senate Resolution 245 to make an examination and review of the administration of the Trading With the Enemy Act. This resolution was one adopted at the second session of the Eighty-second Congress.

On this committee with me were Senators McCarran, Magnuson, Wiley, Ferguson, Hendrickson, and Senator O'Conor, who is no longer a Member of the Senate.

The committee organized immediately after the appointment of the members and then began to plan for the examination and review, having in mind that we were dealing with an instrumentality of the Government, the Office of Alien Property, of very considerable proportions and involving millions of dollars of alien property and the handling and disposition thereof. We at once realized that the task of making a careful examination and review was one of stupendous size and that it would be necessary for us to ascertain basic information before we could get into details involving particular companies or, for that matter, particular individuals.

Pursuant to the plan which we adopted, Mr. Armistead. W. Sapp, of Greensboro, N.C., a man long known to the chairman as an able lawyer, who has been ranked for a number of years as one of the topflight lawyers in North Carolina, and having been president of the State bar of that State, was employed as general counsel for the committee. He immediately set about organizing the staff which necessarily consisted not only of lawyers, but of accountants, investigators, and clerks necessary to do the initial work.

I feel that a very sound basis has been laid with respect to the important basic facts, and that the groundwork has been so laid that the committee is about ready to go into more detailed and basic investigations of companies, businesses, individuals, and the connection of the Office of Alien Property with those businesses and individuals, and with other governmental agencies that may or may not be involved. Necessarily, the ramifications of the Office are quite extended.

The life of the committee, by prior enactment, was to extend until January 31, 1953.

It is my privilege now to present to you, as chairman of the Committee on the Judiciary, an interim report of my committee, so that you and the other members of the Committee on the Judiciary may become familiar with what has been done up to date. All members of the subcommittee have been furnished a copy of this interim report

have considered it, and, I think, each of them is quite familiar with the detail work of the committee.

While Senator O’Conor is no longer a Member of the Senate, and consequently, not on our committee, I have taken the liberty of sending him a copy of this report since he was exceedingly interested in the work of the committee and was at all times anxious to advance the work of the committee.

May I say here that the members of the the committee have been most pleasant to deal with and I know that I appreciate their cooperation, as does Mr. Sapp and the other members of the staff.

We have been intent upon establishing facts and not upon trying to place any blame initially on any particular individual or, for that matter, to implicate anyone in any improper practices. There may be work of this sort to do on the basis of the initial work done, but that will, and should, remain for careful consideration to the end that no one may be improperly or unfairly accused of any dereliction of duty.

The subcommittee had appropriated for its use $100,000. It has used approximately $55,000 of this sum and, therefore, has left approximately $45,000 of the first appropriated sum.

In view of the change in administration and the recognized proprieties thereof, I hereby tender my resignation as chairman and member of the subcommittee, and at the same time wish to assure you and the succeeding members of the committee that I shall be glad at any time to respond to any request for assistance that may be made of me as a member of the Committee on the Judiciary.

With kind regards and best wishes for a successful administration by you of the affairs of a very important committee of the Senate, I am, Sincerely yours,

WILLIS SMITH, Chairman.

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