Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-02-14
IS THIS ECONOMY?

In these days, when the demand
for greater economy in government is
heard throughout the land, it will be
we'll for every taxpayer to watch
closely the proceedings before the
United States Senate committee in
vestigating the munitions industry.
Recent testimony before this COM
mittee has given startling evidence
as to where some of the taxpayers
money goes.
1t is hardly necessary to mention,
of course, that these revelations con-
Germ money that goes into the pockets
of those who profit from the bloody
business of war-the munitions man
ufacturers. The country expects to
have to pay for such ornaments as
its government deems necessary. But
shall pay for a given quantity Of
arms. Shall this amount be double
the fair price?
Testimony before the investigating
group headed by Senator Gerald Nye
has disclosed that the contract prices
for cruisers increased from about
SS.30O.OOO i'm 1882 to $16.500,000 in
1934-nearly double.
One witness, an unsuccessful bid
der on naval contracts charged major
shipbuilding companies with collision
in naval construction bids. He named
the big three" of the shipbuilding
industry as the New York Ship Build
ing company. the Newport News Ship
building & Drydock Co. and the Beth
lehem Ship Building Co.
The hearing has brought out the
sinister implications of the use Of po-
litical pressure in the awarding Of
certain naval building contracts.
If group of ship builders. by max
ing an agreement among themselves
as to their bids on navy work can
double the price the government pays
for warships that is something that
concerns every taxpayer. Because the
taxpayers in the end must foot the
bill.
There have been frequent demands
for the investigation of the way in
which funds of the Public Works ad-
ministration, one of the governments
great unemployment agencies, have
been spent.
There has been considerable crit
icism from some quarters as to al
legged waste in some OF the PWA ex-
penditures. 1t must be recalled that
n considerable portion of the PWA
money has been spent on warship con-
struction. Now, if the price Of
cruisers has been doubled since 1882.
1t seems evident that here is one spot
where the spending of PWA funds will
bear investigation.
1t is pertinent to remark that one
of the industrialists who has been
involved in the shipbuilding inquiry
is c. l. Bardo of New York, former
president of the New York Ship Build
ing Company, one of the big three
named in connection with the alleged
ly collusive bids. which were so costly
to the federal government.
Mr.. Bardo is president Of the Ma
tional Manufacturers Association.
This group has vigorously opposed
government expenditures for work re-
their employment in private industry.
II has been an outspoken advocate Of
economy in government and tighten
ing Of taxes on industry.
But how can Mr.. Bardo square his
demands for economy in government
with the testimony that the company
he formerly headed was n party to an
arrangement which saddled millions
In extra expense on the government
In order to increase the profits Of
makers Of war machines?
Mr. Bardo may feel that the whole
munitions Investigation is an ''inquisi-
ton" but that is hardly likely to be
the view Of the taxpayer who contri-
butes his bit to the support Of gov
eminent. 1t is to his interest that
the Investigation continue and that
economy in government be carried
out in the warship business as well
as in the business Of providing jobs
for those unfortunates who have lost
their employment through no fault OF
fhpir own