Monday, Nov. 14, 1955

Conflict of Interest?

"I am grateful for the opportunity this country has given me to make a place in the world for myself," said Danish-born Peter Strobel in June 1954 to Washington newsmen. "By taking this job perhaps I can partly pay back this country." With that, Strobel left Strobel & Salzman, a Manhattan engineering partnership that paid him about $100,000 annually, for the $14,800-a-year job of Public Buildings Commissioner in the General Services Administration. As such, Strobel had charge of letting millions of dollars of contracts.

Last week the Government career of Peter Strobel seemed to be drawing to an end after three days of hearings before Representative Emanuel Celler's House Judiciary subcommittee, which is probing possible conflict of interest of businessmen in Government.

With the knowledge of GSAdministrator Edmund Mansure, said Strobel, he kept his controlling interest in his firm after going to Washington, but in no way "used or sought to use my official position to further the firm's interests." But Stro bel admitted that he had arranged for a $16,390 contract for remodeling a Government building to be awarded to a Manhattan architectural firm which was also one of his company's clients, even though the usual practice is to award such contracts after competitive bidding. Another time, said the committee, Strobel personally went to Ferrenz & Taylor, a Manhattan architectural firm which had hitherto done no business with his firm or with the Government, and solicited an $18,000 construction contract for his engineering company. Strobel also testified that after joining GSA he went around to the Army Engineer Corps and pressed a claim for $7,500 still owed his company by the Government. Said Strobel: "But I did it on my lunch hour."

After Strobel was through testifying, GSA Chief Mansure told newsmen that he would let Strobel resign. Said Mansure: "Strobel has done nothing really wrong, but he just didn't use good judgment." He added that Strobel had not only put off signing the GSA's standard no conflict-of-interest pledge for half a year, but that it also took months to get a list of his firm's clients out of him.

Snapped Strobel, who has been fighting with Mansure over GSA procedures: "I didn't want anybody snooping around my private business. Besides, I had other things to do. I was working 12 hours a day. If they want to get rid of me, they'll have to fire me. I'm not the kind of man who runs."

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