Evening star., 1934-06-29
W0ODR|NG LIFTS
LOBBY BAN AFTER
RULING BY M'CARL
Removes Restriction to
Widen Competition in
Army Motor Bids.
ACCEPTING OF FAV0RS
BY INFLUENTIAL HIT
Legality of Provision Upheld, but
Extension of Its Aims
Is Recommended.

Exercising an option conceded to
him earlier today by Controller Cen
eral McCarl, Assistant Secretary OF
War Woodring this afternoon lifted
at least temporarily, his recent ruling
that automobile companies bidding
for Army business must certify they
employed no lobbyists or other out
side agents to influence the awards.
Woodring said, in a formal an
nouncement, the requirement will be
waived with the approval of the con-
troller general in the interest OF
widening competition under the pend
ing s10,0OO,O00 military motorization
program.
Revealing details of a decision by
McCarl upholding legality of the So
called anti lobbying certificate,
Woodring disclosed also that the con-
troller general said that if the rule
is to be enforced, it should be made
to apply also to conditions equally,
if not more dangerous, such as that
of giving and accepting favors by
those in position to influence speci-
flcationS."
May Require Affidavit.
THE controller general" Wood
ring said, has informed the Secre-
tary of War that if it is adminiStra-
lively determined as necessary in the
public interest, the Secretary may re-
quire that each bidder make an affi-
davit as a condition to eligibility or
consideration. that it has not agreed
to pay any sum for services in secur-
ing the business and contingent in
any manner upon the award thereof
The controller general points out
also that in such instances it would
appear there should be also guarded
against other practices and conditions
equally, If not more, dangerous, such
as that of giving and accepting favors
by those in a position to influence
specifications or the maintenance of
special sales organizations, generously
financed. but able to escape the ban
because regularly employed.
HE points out that it might be
that an agent with compensation con-
tingent upon accomplishments would
deserve to win solely on the merits
of his wares and the reasonableness
of his price, but would be denied be-
cause of disclosure of his compensa-
ton: while a competitor who has ac-
tually exerted improper influence may
secure the award at a higher cost to
the Government because no similar
showing is required of him and his
practices may not otherwise be
brought to light.
Widest Competition.
THE War Department is primarily
concerned with obtaining the widest
possible competition in the purchase
of supplies, consistent with the pub
lie interest. A condition exists in
limited field of the automotive indus
try where the retention of the re-
quirement of this affidavit results in
there being but one possible bidder.
In view of this and in view of the
recent developments brought out by
the Congressional Investigating Com
mittee with reference to the practices
of certain representatives of auto
motive manufacturers. the Assistant
Secretary of War is studying the
peculiar problem presented-that is,
the conflicting conditions of improper
actions by bidders and restrictive
competition, both of which affect the
interests of the Government.
"He is inclined for the present at
least, to withdraw the requirement
that each bidder submit an affidavit
that he mas not employed any one
upon a contingent fee to secure Gov
ernment contracts. The Assistant
Secretary feels that the view of the
Congressional Investigating Committee
supports him in the opinion that under
existing conditions the best interests
of the public require him, at least
temporarily. to suspend the use Of
the affidavit in the interest of wide
competition"
In his reiterated criticism of the
departments detailed specifications,
McCarl said:
In his ruling McCarl was again
severely critical of the details to
which the War Department has gone
in drawing up motor specifications
declaring that these opened the field
to high pressure salesmanship," and
Continued on Page 2, Column 81