Evening star., 1941-12-19
Defense MiddIemen

To Nation which is being asked
to make the heaviest sacrifices in the
name of national security, the picture
sketched before congressional COM
mittees Of large profits made out OF
the defense program by men with
Influence" or Government expert
ence" to sell is not pretty one.
From the testimony which has
been received to this time it does not
appear that there has been anything
illegal about the activities Of the men
in question. Neither are they the
inventors of the methods by which
their personal fortunes have been
considerably enhanced. But, grant,
ing these things, the fact remains
that their large profits are coming
directly or indirectly from the heavy
taxes which are being levied or which
will be levied on the American people,
and which are being cheerfully paid
by most of the people in the belief
that all of the money thus raised is
necessary to the defense Of their
country.
One Of these defense middlemen is
Leon K. Shanack, a former sports
promoter, who has conceded that his
bank balance of $1.25 on November
%, 1910, had mounted to $4,000 a
year later. Mr. shanack's activities,
although resulting in handsome
profits, seem to have consisted of
subcontracting defense orders. 1t
does not appear that influence or
Government experience were part Of
his working equipment.
Another witness to tell of his activ-
tiles in connection with the defense
program was Charles West, former
member of Congress, former Under
secretary Of the Interior and former
White House liaison man with Con-
gress. His actual profits seem to
have been relatively small, but he has
pending against the Empire Ord
nance Company suit for 100000
fee on British war contracts. The
precise character of his service Is
somewhat vague, but it is clear that
he interviewed several Government
officials relative to the contracts and
discussed with others a plan for
swapping coal for Brazilian manga
'nese. His nominal employer, Frank
Cohen, organizer of the ordnance
concern, has said that IF Mr.. West
ever did anything for the company,
I'd like to know what it was"
Thomas G. Corcoran, q former
White House adviser and one-time
close friend of the President, also
has testified before one of the con-
gressional groups. In brief, his testi-
mony was a denial OF any impro-
priety, disclaimer that he has ever
attempted to sell influence" and the
assertion that his activities have not
increased the cost of defense.
His principal activity, according to
his testimony, has been to advise
business firms as to what the Gov
ernment likes and does not like.
When in the Government service, as
special counsel to the Reconstruction
Finance Corporation, he received
$4,000 year. Since leaving the
service he has received about $4,000
month as counselor to firms en-
gagged in one way or another in
defense activity. What he may have
earned from "non-defense cases" was
not disclosed, but he did tell the
committee that he would not accept
a case involving a fee Of less than
$4,000.
The activities of these men, as has
been pointed out, are in no sense
illegal. But they raise an obvious
question as to whether there is not
something wrong with a system of
Government in which one class of
citizens, typifed by Captain Colin
Kelly, jr., go beyond the call of
duty to die for their country while
another class-that which supplies
the machinery of war-find it neces-
sary or think it is necessary to pay
large fees to get defense business OF
to find out how the Government
wants things done.