Evening star., 1942-05-29
$65,000 in Fees
Already Paid,
House Is Told
Vinson Rops Firms
For Commissions to
These Parasites
b the Associated Press.

b. the Associated Press
Alexander Stone of Washing
ton, until two years ago a Gov
ernment employe at $88 week,
acknowledged today that he had
obtained naval contracts for va
rious companies amounting to
$12,000,000 under commission
agreements giving him 5 per
cent of the costs.
Under examination before the
House Naval Affairs Committee, he
estimated his gross earnings" for
Is months at about 100000, subject
to cancellation of some pending con-
tracts.
Bluntly, Chairman Vinson of the
committee, addressed Roger Wolcott
Griswold, Erie, Pa, president of the
Griswold Manufacturing Co., and
one of the companies with which
per cent fee:
DO you think that it was necessary
to go to these parasites, who neither
toll nor spin in order to do business
with your own Government? It's
you people who build up these para
sites who feed on the taxpayers and
whose fee is added to the price of
war work"
Mr.. Stone resigned as an employe
of the Federal Housing Administra-
ton November 10, 1910, the day he
obtained his first agreement with a
company-the Lionel Corp. of Irv-
ington, N. ito seek defense con-
tracts He had been with F. H. A.
since 1884.
He said that he has actually COL
lected thus far on contracts on
which he obtained for various COM
panies the sum of about S65,000
Under his agreements he receives his
fees only after deliveries and pay
ments have been made.
To Ask Fee Deduction.
The committee decided to send
transcript of its evidence to the
Navy Department and the controller
general with the recommendation
that fees for Mr.. Stone be sub
tracted from the contracts before
final payment is made.
Edmund Toland, committee coun-
sci, said Mr.. Stone strives to i'm
press prospective clients with his
connections" and took prospective
clients to the Navy Department with
him, showed proposed contracts to
naval officers and tried to create
an impression that the department
approves of such arrangements
Mr.. Stone admitted taking some
company officials to the Navy Offices,
but denied fatty trying to impress"
them. In denying he had ever
claimed he had "a pull exclaimed:
I'm not an important person.
Mr.. Griswold said he entered into
an agreement with Mr.. Stone in
the belief he could obtain defense
contracts sooner through some one
who knew his way around Washing
ton, and knew where to 60 and
whom to see He said his plant had
manufactured cooking utensils.
saw fAutOCdtC
1t was brought out that among
other firms Mr.. Stone represented
were the Lee Tire & Rubber Co. of
Conshohocken, Pa, and the Unique
Art Manufacturing Co.
John A. Underwood, now assistant
to the president of johnson & john
son of New Brunswick, N. j., who
was formerly president of a New
Britain Conn company testified
that he reported it to the Navy
when he learned that under a plan
by Mr.. Stone he would have to add
per cent commission to war con-
tracts.
Mr.. Underwood said Mr.. Stone
offered to take him to the Navy's
Judge Advocate General to sub
stantiate his claim that the S per
cent agreements were legal and Mr..
Stone testified that the Judge Ad-
vocate General had assured him ver-
bally of their validity.
L want to thank you," Mr.. Vim
son told Mr.. Underwood. IF the
other manufacturers would do the
same thing, we would break up this
belief that you need a special agent
to obtain contracts with your Gov
ernment, and stop this hue and cry
throughout the country"
Mr.. Stone said he had obtained
about $4,000 900 in contracts for the
Lionel firm alone, but added that
about s3,00O,OO0 of that amount
would be Cancelled.