The Waterbury Democrat., 1940-09-23

COSL plus q 11ASu 1CG.
 However, any future congress sional investigation that looks into these contracts is going to discover a very interesting 1act, namely that in many cases the Army and Navy are paying the social secur- ity taxes, plus state and local taxes for the firms which fill na- tional defense contracss.
 In other words, one part of the United States government turns around and pays taxes to another part of the government on be- half of a private firm.
 A typical negotiated" contract Q. e., one awarded without com- petitive bidding) was the one giv- en Kaufman Construction Co., and the J. E.. Brenneman Co., for the building of an additional pier at the Philadelphia Navy Yard, The total contract figure was around $800,000, with the con- tractors getting fixed fee of $36,o00 for doing the job.
 This contract contains a clause exempting the contractor from paying certain items, among which are the following:
 "The net amount of any U.
 s. social security taxes and any
 state or local taxes, fees, or
 charges, which the Contractors
 may be required, on account of
 this. contract, to pay on or for
 any plant, equipment, process,
 organization, materials or per-
 sonnel under any applicable
 valid law or regulations issued
 by, competent authority"
 Army and Navy claim they have precedent for this in World War contracts which were re- affirmed in the National Defense Act of 1920. This law empowers the Army and Navy, in time of emergency or war, to make such contracts.
 In fact, under then interpreta- tion claimed by some Army-N Navy officials the government could even pay income taxes. Whether this has been allowed in any contracts is unknown, but 1t is an open secret that certain con- : tractors have asked for it.
 FROM MISSOURI
 In two weeks there will bt 1oasnnlHoII .0y1o r,f f11o rrxa0 foo% ,,,,I1 licity drives in U. s. political history.
 7 From thousands of billboards, posters, window signs, movie screens, radios and sound trucks, the voters of the country will be bomharded with arguments, slo- gans and oratory until Noyena- Der as to why Wendell Wiflkie should be elected President of the United States.
 The campaign will be under the auspices of the Republican National Committee, but its real
 authors are a group of live wire st. Louis business men headed by bustling Edgar Queeny, president of the Mon- santo Chemical Co, one of the biggest such firms in the cOun- try.
 An original Willkie booster, Queeny has been giving 8 large part. of his time to the job of electing him. He lunches daily with a score of politically-smart friends, and 1t was at these inc formal pow-wows that the nation wide publicity plan evolved.
 Originally Missouri was to stage the show alone. but the National Committee was so impressed with its possibilities that Queeny was asked to apply 1t to the entire country. He responded with characteristic zip,
 Through hls influence, five leading advertislng firms went tO work with the agency that handles the MEonsanto account, Che Gardner Advertising Go. of SC. Louis, and assigned two representatives Co each state to explain the drive to loeal COP chiefs. .t,.
 One particular point to be ex- plalned was that the cost would be too large for the National ,ried to wipe out of his mind Che memory Of the stupendous evil he