Evening star., 1942-06-23
War Contract
Hit in House
End of Honeymoon
For War Contractors
Demanded in Report
Ry the Associated Press.

Ry the Associated Press.
The House Military Affairs
Committee reported today it had
uncovered evidence revealing "a
sordid picture of excessive COM
missions by brokers, profits by
vendors, eXhorbitant salaries,
bonuses and huge fees for man
agement and related services in
many War Department con-
tracts"
The report prepared by Chairman
May, after a year of investigation.
recommended that a curb be put on
contracts awarded on a cost-plus-a-
fixed-fee basis.
Nearly every conceivable type OF
extravagant waste has been reflected
by these Investigations. the COM
mittee said, adding that 'the time
has come when the contractors
honeymoon at the expense of the
taxpayers of the Nation must end"
Promising continuance of its in
quiry, the committee commented
that unbelievable red tape. top
heavy organization and a lack of
orientation to state Of war still
lead the parade in wartime WASH
ington."
Every Branch Assailed.
The report found fault with viz
tually every branch of the War De-
partment, especially the Air Forces.
The committee said it felt the
time has come to call halt to the
further use of cost-plus- -hXed-fee
contracts and recommends that they
be banned except in unique cases
Under this type of contract, it
said, 1.-The incentive toward extrava-
gance and disregard for economy ap-
pears to have been the rule rather
than the exception. There has been
evidence of widespread and inexcus-
able waste of public funds amount
ing to millions of dollars.
This type of contract per-
mitted excessive personnel, exorbl-
tant salaries and led to the refusal
on the part of contractors to sublet
speciality contracts when they
we're totally unprepared either to
plan or execute them. - Evidence
of reckless expenditures under
fXed-fee contracts. particularly in
the Air Corps branch, continues to
increase in committee files.
Reckless Spending Charged.
While it is true that the para
mount consideration of every Amer
ican is the winning of the war" the
committee continued. and while it
is true that victory must be achieved
regardless of the cost, this does not
mean that there is go ahead
signal for the spending of American
dollars with abandon"
The committee asserted that
reckless abandon in the eXpendi-
ture of taxpayers money on the
ground of eXpediency must yield to
judgment and reason" and must
cease to be a habit"
Citizens of this country cannot
be expected to be faced interminably
with indifference in spending on the
ment after the period of initial ne
cessity has passed. and continue
buying bonds with enthusiasm.
Overlooking the extension of bu-
reaucratic domination and suffering
deprivations with a complacent at
titude." the report said
Criticizing what it said was
tendency on the part of the admin
istration to create new boards,
bureaus and commissions, the COM
mittee commented that whenever
new or varied problem is pre-
sented. a new commission, board,
committee or agency is usually
created"
Far Too Complacent.'
Blaming the administration. Con-
gress and the public generally for
the shortage of some materials now
needed. the committee said too
much emphasis had been placed
"on social reforms rather than ma
tional security and our experts in
industries and Government have
been far too complacent in allow
ing us in the past to have no fear
of a shortage if war should come
1t added:
I'VE have persisted in using out
moded methods of purchasing while
the Axis powers were adopting a
realistic approach
The committee commended Sec
retary of Commerce Jones, RFC
chairman and head of the Rubber
Reserve Co., for pushing the syn
thetic rubber program" and said
Secretary Jones's contribution to
the program has been grossly un-
derestimated"
The Maritime Commission and
1See CONTRACTS Page 2-XD