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JOINT ECONOMIC COMMITTEE
(Created pursuant to sec. 6(a) of Public Law 304, 79th Cong.)

PAUL H. DOUGLAS, Illinois, Chairman

WRIGHT PATMAN, Texas, Vice Chairman
SENATE

HOUSE C- REPRESENTATIVES JOHN SPARKMAN, Alabama

RICHARD BOLLING, Missouri J. WILLIAM FULBRIGHT, Arkansas

HALE BOGGS, Louisiana JOSEPH C. O'MAHONEY, Wyoming

HENRY S. REUSS, Wisconsin JOHN F. KENNEDY, Massachusetts

FRANK M. COFFIN, Maine PRESCOTT BUSH, Connecticut

THOMAS B. CURTIS, Missouri JOHN MARSHALL BUTLER, Maryland CLARENCE E. KILBURN, New York JACOB K. JAVITS, New York

WILLIAM B. WIDNALL, New Jersey JOHN W. LEHMAN, Clerk and Acting Executive Director

SUBCOMMITTEE ON DEFENSE PROCUREMENT

PAUL H. DOUGLAS, Illinois, Chairman
SENATE

HOUSE OF REPRESENTATIVES JOHN SPARKMAN, Alabama

WRIGHT PATMAN, Texas JOSEPH C. O'MAHONEY, Wyoming

RICHARD BOLLING, Missouri JACOB K. JAVITS, New York

THOMAS B. CURTIS, Missouri

WILLIAM B. WIDNALL, New Jersey
RAY WARD, Professional Staff Member
RICHARD J. NEWMAN, Professional Staf Member

II

COM

CONTENTS

Page

49

2

19
442

30

51
153

154

53

247

256

STATEMENTS AND EXHIBITS
Bean, C. D., Commissioner, Federal Supply Service, General Services

Administration..--

Campbell, Joseph C., Comptroller General of the United States; accom-

panied by Lawrence J. Powers, Jr., Assistant to the Comptroller General;

Charles Bailey, Deputy Director, Defense Accounting and Auditing

Division, GAO; and J. Edward Welch, Deputy General Counsel, GAO..

General Accounting Office reports furnished to the Congress on re-

views of the military assistance program.

Chamber of Commerce of the United States.-

Floete, Franklin, Administrator, General Services Administration.-

National industrial equipment reserve.

Hangen, Herman C., Director, Armed Forces Supply Support Center..

Utilization of long supply inventories and receipts from sale of surplus,

fiscal year 1959.--

Macomber, James H., Jr., General Counsel, General Services Administra-

tion

MeGuire, E. Perkins, Assistant Secretary of Defense (Supply and Logis-

ties), accompanied by A. C. Bannerman, Director of Procurement Policy

OASD (Supply and Logistics); Paul H. Riley, Director of Supply Man-

agement Policy, OASD (Supply and Logistics); Robert C. Moot, OASD

(Supply and Logistics); and Col. J. R. De Luca, Armed Forces

Supply Support Center

Department of Defense factual accomplishments-inventory man-

agement and surplus disposal...

Department of the Navy comments on the General Accounting Office

recommendations relative to the aircraft engine pipeline.

Examples of design competition, February 24, 1960.

Letters to chairman...
Letter and enclosures of Courtney Johnson, Assistant Secretary of the

Army, to Comptroller General of the United States.

Names of former Secretaries of Defense, including Under Secretaries

and Assistant Secretaries who have been in the Department of

Defense and who are now employed by companies now listed

among the top 100 companies doing business with the Defense

Department...

Procurement presentation to the Procurement Subcommittee of the

Committee on Armed Services, United States Senate.

Subcontracting policies and procedures..

The defense materiel management program, fiscal year 1960..

Newman, Richard J., professional staff member

Shoemaker, Perry M., president, Lackawanna Railroad, representing the

committee of Hoover task force members, accompanied by Gen.

Robert E. Wood, chairman, Hoover Commission task force on use and

disposal of surplus property, and Frank Upman, Jr., executive secretary

of the committee of Hoover Commission task force members..

Staats, Hon. Elmer B., Deputy Director, Bureau of the Budget, accompa-

nied by William F. Schaub, Chief, Military Division; George G. Mullins,
Chief Property and Systems Management Group, and Asamuel M.
Cohn, Chief, Fiscal Analysis

Dates on which Air Force installations were activated..
Response of Small Business Administration to House Small Business

Committee request for additional information for the record.
Summary of military expenditures
Warehousing projects proposed for authorization by the Department

of Defense in fiscal year 1961..

Ward, Ray, professional staff member.

Whitten, Hon. Jamie L., a Representative in Congress from the State of

Mississippi..

ADDITIONAL INFORMATION

Actions taken in process, or planned in implementation of section 3(2)(6) Pago

of Public Law 85-599 (see Aug. 6, 1958).

46&

Army Alameda Medical Depot transfers to Navy; medical test cases,
news release.

510

Department of Defense boards, committees, councils, and groups, in opera-

tion between July 1, 1958, and May 31, 1959.

80

Department of Defense multibillion dollar supply system, extension of re-
marks of Hon. John W. McCormack.

491
Department of Defense procurement presentation to the Procurement

Subcommittee of the Committee on Armed Services, U.S. Senate, in
connection with the committee's study of procurement policies and prac-
tices, as provided for in Public Law 86-89 (86th Cong., H.R. 7086, July
13, 1959) February 8 and 9, 1960..

295

Depot inactivations -

528

Establishment of the Armed Forces Supply Support Center.

119

Excerpts from certain General Accounting Office reports during 1958 and
1959..

450

Forty-three military prime contractors: Net value of their military prime

contract awards, July 1, 1957-June 30, 1958, and defense sales as per-

cent of total company sales, 1958.-

511

Import of transportation of household goods of military and civilian per-
sonnel on the household roods carriers.

537

Letters of Hon. Clarence J. Brown to Hon. Maurice Stans, Director, Bureau

of the Budget.

502, 505

Letter of Hon. Joseph W. Campbell, Comptroller General, to Hon. Neal
Smith..

533

Letters of Hon. Thomas B. Curtis to Hon. Raymond J. Saulnier, Chairman,

Council of Economic advisers.

473, 474, 479, 480

Letter of Hon. Paul H. Douglas to Erwin D. Canhon.

449

Letter of Hon. Paul H. Douglas to Hon. Joseph Campbell, Comptroller

General..

447

Letter of Hon. Paul H. Douglas to Hon. Francis Floete, Administrator,

General Services Administration.

448

Letter of Hon. Paul H. Douglas to Secretary of Defense.

449, 477

Letter of Hon. Paul H. Douglas to Hon. Maurice Stans, Director, Bureau

of the Budget.

448

Letter of Hon. Paul H. Douglas to Paul Upham.

449

Letter of Gen. Dwight D. Eisenhower to Hon. Clifton Woodrum.

64
Letter of Frank P. Green, executive vice president, Fayette R. Plumb, Inc.,
Philadelphia, Pa., to committee..

76
Letter of Hon. R. C. Lanphier, Jr., Deputy Assistant Secretary of Defense
(Supply and Logistics) to Hon. John W. McCormack..

499
Letters and enclosures of Philip Leboutillier, Jr., Acting Assistant Secretary
of Defense (Supply and Logistics) to chairman.-

538, 562

Letters of Hon. John W. McCormack to chairman, and enclosures- 429, 477

Letters of Hon. John W. McCormack, to Hon. Maurice Stans, Director of

the Bureau of the Budget-

487

Letters of Hon. John W. McCormack to Secretary of Defense..

431,

475, 491, 497, 500

Letters of Hon. Perkins McGuire, Assistant Secretary of Defense (Supply

and Logistics) to chairman..

365, 467, 565

Letter of Hon. Perkins McGuire to Hon. John W. McCormick 476, 489, 492

Letter of C. P. Milne, Acting Assistant Secretary of Defense (Supply and

Logistics) to Chairman.

478

Letter of Carl F. Oechsle, Assistant Secretary of Commerce, to chairman,
and enclosure..

72

Letter of R. Palmer, Snap-on-Tools Corp., Kenosha, Wis., to committee. 512

Letter of T. P. Pike, Assistant Secretary of Defense (Supply and Logistics)

to Hon. R. Walter Riehlman...

507

Letter of Philip A. Ray, Acting Secretary of Commerce, to chairman.

69

Letter of Hon. Raymond J. Saulnier, Chairman, Council of Economic

Advisers, to Hon. Thomas B. Curtis.

Letters of John M. Sprague, Deputy Assistant Secretary of Defense, to

chairman, and enclosures -

376

Letters of Hon. Maurice H. Stans, Director, Bureau of the Budget, to Hon.

Clarence J. Brown..

593

Letter of Hon. Maurice H. Stans to Hon. John W. McCormack.

487, 488

Letter of Howard L. Stier, Federal Statistics Users' Conference, to chair- Page

man...

527

Letter of Hon. Stuart Symington to Hon. Neil H. McElroy, Secretary of
Defense.

490
Letter of R. Maxwell Tinsley, Washington, D.C., to committee.

513
Letter of Hon. Harry S. Truman to Hon. Jerome C. Hunsaker, Chairman,
National Advisory Committee for Aeronautics.

114
Letter of John H. Windsor, president, the Bridgeport Hardware Manufac-
turing Corp., Bridgeport, Conn., to the committee...

512

Limitations on use of stock funds of the Department of the Air Force. 376

Magnitude of Department of Defense support activities.

Miscellaneous papers relating to transportation costs in the Department of

Defense..

536

Miscellaneous papers on surplus property and stock fund operations relat-
ing thereto.

563
Names of former Secretaries of Detense, including Under Secretaries and

Assistant Secretaries who have been in the Department of Defense and
are now employed by companies now listed among the top 100 compa-
nies doing business with the Department of Defense--

536

New unified food supply system announced by Defense Department, news

release...

501

Number of items in general supplies -

161

Percent distribution of inventories of General Supplies Study Model Among

the Services.

171

Reported savings in the Department of Defense supply systems, extension
of remarks of Hon. John W. McCormack_

488

Service participation in single department procurement

165

Single manager plans...

180

Status of recommendation for a single-contract audit agency

349

Stock fund operations-in General Supplies Study Model

175

Summary of financial inventory management of the General Supplies Study

Model..

165

Summary of item commodity-

162
Summary of item commonality in general supplies study model as of Sep-
tember 4, 1959..

162

Surplus canvas duck, webbing and tape from military supply depots. 515

Surplus property actions-fiscal years 1957–59.

74, 516

Title II of the Federal Property Act of 1949.

60

Transfers of excess property--

568

Transportation of household goods of uniformed personnel by Motor Van

Carriers.

541

Unification of military procurement and supply, extension of remarks of
Hon. Thomas B. Curtis.

474

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