How Not to Run a Business

In its harried career, the War Assets Administration has come in for some businesslike spankings. Last week the brush was laid on for fair. A House committee, in its final report on surplus property disposal, charged WAA with everything from "sloppy business methods" to "catastrophic failure." It also charged "inconsistent pricing, unexplainable delays, unreliable, misleading and inadequate advertising." For hard-working WAA Boss Robert Littlejohn the committee had kind words. Nevertheless, the committee's conclusion read like a black book of business sins.

Some $22 billion has been declared surplus with another $7 billion to come, said the report. Property which cost $12.5 billion has been disposed of for about $2.2 billion, a gross yield of only 17.5 percent. But after charging off selling costs, and the bigger losses it will take on the less desirable surpluses left, WAA "may end up with a net loss."

WAA carelessness, charged the committee, had "contributed to the development of the veteran fronting practice." One example: a veteran got $769,950 worth of preference certificates, yet had no office, warehouse or bank account.

The committee closed its report with a warning to the new Congress to keep an alert eye on WAA. It also recommended 1) removal of all priorities, except those to the Government itself, 2) more authority for WAA's administrator to offset directives from other agencies.