SURPLUS GOVERNMENT PROPERTY AND MATERIALS

COMMUNICATION

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

PURSUANT TO SENATE RESOLUTION NO. 195, A SECOND QUARTERLY REPORT CONCERNING SURPLUS GOVERNMENT PROPERTY AND MATERIALS NO LONGER NEEDED FOR WAR PURPOSES

SEPTEMBER 19 (legislative day, SEPTEMBER 1), 1944.-Read; referred to the Committee on Military Affairs and ordered to be printed

THE WHITE HOUSE, Washington, September 18, 1944.

The Honorable the PRESIDENT OF THE SENATE,

Washington, D. C.

SIR: Reference is made to Senate Resolution 195 which was considered and agreed to on March 14, 1944, and which is here quoted:

Resolved, That the President is hereby requested to direct the appropriate executive agency or agencies to make a study and investigation with respect to (1) the types, quantities, cost, location, and custody of those war materials and other tangible property, real and personal, owned or controlled or hereafter acquired or controlled by or in behalf of the Government of the United States, which are or shall become no longer needed for war purposes; (2) the adequacy of current records and inventory controls to keep the Congress and the Executive informed as to the foregoing particulars with respect to such materials and property; and (3) those modifications in the methods of keeping such records and maintaining such controls which may be necessary to make the above information readily available to the appropriate Government authorities. The President is requested to report to the Senate within three months after adoption of this resolution and at intervals of not more than three months thereafter until such study is completed, concerning the results thereof together with his recommendations.

Reference is also made to my initial report in response to this resolution, submitted to you under date of June 13, 1944 (S. Doc. No. 203, 78th Cong., 2d sess.).

As requested by the resolution, I here submit a second quarterly report.

B. Docs., 78-2, vol. 12-71

I. CHARACTER AND EXTENT OF WAR SURPLUSES

Substantial progress has been made during the past 3 months in determining what Government property has become surplus. The disposal agencies designated under Executive Order No. 9425 have received additional declarations of surplus property totaling $334,000,000, have disposed of over $59,000,000, and had on hand as of August 31, 1944, $348,000,000. In addition, the various owning agencies are in the process of determining excess and idle property which will to some extent subsequently be declared surplus and available for disposition. A total of $742,000,000 was in the process of screening or was being held idle in standby condition, but not yet declared to be surplus as of August 31, 1944.

General summary of surplus property reported to disposal agencies, May 31, 1944, to Aug. 31, 1944

! Appraised value for confirmed inventory of Procurement Division of Treasury Department. * Own surplus stocks included only for month of August.

EXCESS PROPERTY IN PROCESS OF SCREENING AND IDLE PROPERTY IN STAND-BY CONDITION NOT YET DECLARED TO BE SURPLUS

Excess property includes property which has been determined to be in excess of needs of a particular bureau, technical service, command, regional area, or program, but not yet determined to be surplus to the needs of the War, Navy, or other owning or controlling department

or agency.

Owning agency:

Defense Plant Corporation..

Maritime Commission (including War Shipping Administra-
tion).

Approrimate cost $243, 909, 000

30, 347, 000 5, 700, 000 1, 512,000

448, 000, 000 12, 803, 000

742, 271,000

ACTIVITIES OF DISPOSAL AGENCIES

Reconstruction Finance Corporation.-Between June 1, 1944, and August 31, 1944, the Reconstruction Finance Corporation received declarations of surplus property costing $250,075,176, disposed of $32,362,565, and had on hand awaiting disposition as of August 31,

$261,173,063. The following table presents the principal items included in these amounts:

On August 31 the Defense Plant Corporation owned 4 plants costing $18,295,200, the lease agreements on which have been terminated, but which have not yet been declared surplus. The Defense Plant Corporation also owned 22 plant projects costing $225,613,500, the operation of which has been stopped and the plants held in stand-by condition at the request of the sponsors.

Procurement Division, Treasury Department.-Between June 1, 1944, and August 31, 1944, the Procurement Division received declarations of surplus property amounting to $73,584,903, disposed of $26,269,528, and had on hand awaiting disposition as of August 31, $77,537,263. The principal categories included in these amounts were:

Maritime Commission.-The Maritime Commission, between June 1, 1944, and August 31, 1944, received declarations of surplus property amounting to $9,322,038, has disposed of $137,249, and had on hand awaiting disposition as of August 31, $9,181,530. The principal items included in these amounts were Diesel engines, cost $5,434,084, and small vessels, cost $3,183,181.

Unrequired material in process of being screened for redistribution or disposal at the end of August amounted to $30,347,000. It is estimated that 40 percent of this amount or approximately $12,000,000 will be declared surplus to the Maritime Commission's requirements within 60 days.

War Food Administration.-The War Food Administration, between June 1, 1944, and August 31, 1944, received declarations of surplus property amounting to $200,308 from other Government agencies and during the month of August 1944, has declared $501,602 from its own stocks. Of these amounts it has disposed of $563,601, and had on hand awaiting disposition as of August 31, $138,309.

A review of War Food Administration's inventories indicates that the following items probably will become surplus in the near future:

Foreign Economic Administration.-The Foreign Economic Administration is responsible for the disposal of surplus property outside the United States, its Territories, and possessions. Its disposal activities are in the process of organization. It has received and has on hand only one small declaration amounting to $2,020.80. It is now engaged in screening excess material owned or controlled by Lend-Lease and other Foreign Economic Administration agencies prior to determining actual surpluses. The total of such excess material was $1,512,000 on August 31, of which approximately $200,000 was outside the United States.

DISPOSAL ACTIVITIES OF OTHER AGENCIES

Under regulations issued pursuant to Executive Order No. 9425, all Government agencies are given limited authority to dispose of certain of their own surpluses. In addition some agencies have specific statutory authority for surplus property disposal operations. Such operations have been in important volume recently in the War and Navy Departments, as indicated by the following summaries: War Department.

Redistribution and disposal of excess personal property for purposes directly

Navy Department.-During the first half of 1944, the Navy disposed of surplus property valued at $27,000,000. Of this amount, approximately $3,000,000 represents material declared to disposal agencies from the beginning of their operation on May 15 through June 30. Sales account for $20,000,000, while the balance of $4,000,000 represents transfers between bureaus and to other governmental agencies.

During July and August of 1944, the Navy disposed of surplus property having an original cost of $18,974,000. The following tabulation indicates the source and disposition of this material: