The Waterbury Democrat., 1941-03-28

! EuSOn "a g @ 1 n), con gressional and administrative lavish. ness in approaching billions of dol
 lars has stirred every selfish instinct
 of every self-centered group whict thinks itself entitled to government aid. So the broad highway to victory is lined with gimme hitchhikerl ready to grab hold as the caravan of government contract trucks goes by.
 The whole spectacle is of course natural. No one can forget easily the long lean years when profits vanished, when trade dwindled when layoffs stretched into unem- ployment, when the three R's of re- lief, regulation and reform were primary education for the New Deal When defense spending began by billions, the inclination was to gel back part losses, and if this meant at government expense, dandy.
 FOLLOW
 THE LEADER
 Perhaps the first to have extensive ambitions of recovered profits were manufacturers seeking prime con- tracts for war supplies, for memories of prof1teering in the last war were still pleasant. Countering the pros- pect of these hopes, however, was the public demand and the administra- tion determination that in this ef- fort there would be no profiteering.
 In the same class were the firms given contracts for construction of new plants for defense production, firms given contracts for construc- ton of new camps and cantonments, and the land agents who bought acreage for new military reserva- tions.
 Speed has been essential and many of the contracts, instead of being let on the competitive bid basis, have been let on the cost-plus- fixed-fee basis in which the govern ment pays all costs, regardless of extravaganza or economy of manage ment, and awards the contractor a percentage, usually 32 per cent for supervision and profit. To just what extent there has been irregularity in the awarding or operation of these contracts may come out in the in vestigation by Senator Harry s. Tru- mans committee. Washington opin- ion is none too helpful, owing to the committees limited funds and the questionable strength and ability of the committee itself. Definitely, what is not wanted from this committee is a liberal coating of whitewash. What is wanted is thorough probe of every rat hole.
 Labor, no less eager than capital to recoup losses, has come in for its full share of dirty looks. The record of even few exorbitant assessments of union initiation fees. of strikes in defense industries, of demands for wage increases, has already resulted in the appointment of the new Labor Mediation Board and may result ill recommendation for new labor legis- lation from the House Judiciary Committee.
 The farm bloc, seeing capital and labor making efforts at 8 comeback to get theirs, has moved in with de- mands for increased parity payments from $2OO million to $400 million to raise the prices farmers get for the things they sell. And so powerful is this farm bloc that the Senate Agri- culture Committee recently heard John H. Bankhead of Jasper, Ala, recommended that farmers go on strike for a year, so as to raise prices This, mind you, in year of all-out defense effort.
 Government agencies, instead of wing to see which could cut re- quests for appropriations most. have actually competed to get control of defense funds.
 Every department of Federal &c., curity agency-the WPA, IVA, SSB, B. of E., and USES, to mention only few by their familiar and unfami- liar initials, have found reasons to increase their spending. Even organ ized labor supports WPA claims for more relief money, so as to keep efll- ployed wage levels high.
 Government workers have their hands out, too-alld if everyone else is getting it, the theory is why not" ALL COMES BACK
 TO THE TAXPAYER
 All these grabs for government gravy have certain mflationary 1m- plications. If everyone is to get more money, the tendency is for prices to rise. Shortage of some materials, soon to be felt in manufacture and sale of everyday articles for private use, will provide a too-easy excuse for raising prices.
 Retail merchants on the whole have co-operated with the plea to keep prices down. There have been some instances of a desire to regain losses, but the theory of the more farsighted trade associations has been that greater sales volume, greater turnover and therefore great CT profits can be gained by keeping prices down.
 What is generally overlooked in this mad scramble for federal fold- ing money is the simple fact that the more billions appropriated, the more the taxpayer must eventually shell out. That's fundamental. but in times like these, of shoot-the- works psychology, we forget the axiolns.