Evening star., 1942-01-25
Congress WiIICheek
War Costs Closely,
Recent Moves Show
Four Committees Keep
Eye on Progress Of
Notions Prorsom
By GOULD LINCOLN.


The determination Of Congress to
keep . close watch on the progress
OF the war program-vith particu-
lar reference to expenditures-has
been vigorously demonstrated.
1t is operating through four COM
nittees. They are the special Sen
ate Defense Investigating Commit
tss, headed by Senator Truman of
Missouri; the House Naval Affairs
Committee, the House Military AZ
fairs Committee and a special joint
committee of the Senate and OFF,
cials of executive departments to
determine what non-defense ex-
penditures of the Government may
Be eliminated or reduced. Senator
Byrd of Virginia heads the Joint
committee.
The Truman committee has just
been granted an additional $50 900
to continue its work. It's prelimi-
nary report, recently published criti-
cizing industry, labor and Govern
ment for failure to speed up the de-
tense program, received wide pub
hcity. 1t charged "inef1iciency and
self-interest" and claimed private
interests of those concerned him
dered the defense program.
Labor and Industry Blasted.
The report of the House Naval
Affairs Committee, made by Chair
man Vinson, blasted both industry
and labor, charging both with un-
due profits and accusing labor par
ticularly Of being responsible for
delays in the program because Of
strikes.
The immediate aftermath Of the
Vinson report was introduction Of a
bill by Representative Vinson to
compel all trade, labor and "volun-
tary associations" to register with
the Secretary of Commerce and to
file financial statements. The meas
ure was referred to the House
Judiciary Committee. Mr.. Vinson
said yesterday he would ask for an
early hearing and that he intended
to press for action on the bill.
Mr.. Vinson is preparing a second
bill, designed to prohibit and pre-
vent profiteering on war contracts.
He expects to introduce the bill In
the House this week. Already It
has been indicated the bill will have
strong support in the House and the
Senate as well. Chairman Walsh
of the Senate Naval Affairs Com
mittee has announced he will do all
he can to help keep down the costs
OF work on the naval program, and
50 has Senate Minority Leader Nc
Nary.
Tax on War Profits Sought.
Senator Walsh said yesterday he
and Mr.. Vinson had requested Secre-
tary of the Treasury Morgenthau to
have legislation drafted which would
reach war profiteers particularly
through taxation. Chairman George
of the Senate Finance Committee
Is also taking an interest In this
proposal. The plan suggested by
Senator Walsh is to have a special
tax levied on persons and concerns
holding war contracts, over and
above the ordinary surtaxes applied
in the income tax law.
Senator Walsh pointed out that
Congress had written into law q
provision limiting profits on defense
contracts with the Government to 8
per cent. That, he said, had lasted
only a few months. 1t was repealed
In an appropriation bill, after COM
plants had been made that 1t was
hindering the progress of the de-
fense program. The Vinson report,
however, showing that excessive
profits have been made on number
of naval contracts, has strongly re-
vived interest in this matter.
The opinion was expressed by
members of Congress that only by
the closest scrutiny of war con-
tracts would it be possible to pre-
vent waste and extravaganza in
forward the program which
calls for the expenditure of billions
of dollars during the next two years.
Some of the members, including
Senator Vandenberg, Republican, OF
Michigan, have taken the position
that something drastic should be
done about both contractors who
have proflteered and officials Of the
Government who have allowed such
profiteering to occur. His point is
that the Truman Committee should
not be merely objective, and dis
close what has been going on, but
that where there has been waste
and prof1teering, the matter should
be followed up with recommended
tions that steps be taken against
both the concerns and the officials.
Committees Allotment Cut.
The Truman Committee had
asked for 100000 to continue its
work of investigation. This was re-
duced to $50 900 by the Committee
to Audit and Control Expenditures
of the Senate, but Senator Lucas
of Illinois, chairman of that COM
mittee, explained that his commit
tee was in no wise attempting to
curtail the activities of the Truman
Investigating Committee. He said
that if the Truman Committee
found that it required more money
at a later date, it could come again
to the Senate for it.
ct hope" he said. that the Tru-
man Committee will continue to
operate in the future as 1t has in
the past"
The House Military Affairs Com
mittee has already made several
interim reports on its inquiries, and
has been effective in bringing re-
forms. 1t is expected that it will
present another such report dealing
with the Remington Arms Co., par
with reference to tool
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