Evening star., 1943-10-18
Army Allowed
'Fa|seC|ains;
Warren Says
U. 5. Billed for Teeth,
Liquor, luke Boxes,
Controller Testifies
BY the Associated Press.


Controller General Lindsay
Warren told the House Military
Affairs Committee today that
Army contracting officers had
allowed hundreds of erroneous
contractors claims, including
charges for such items as false
teeth, liquor and juke boxes.
Mr., Warren opposed legislation
requested by the War Department
to give its contracting officers final
and conclusive jurisdiction in set
ting terminated war contracts. He
cited 270 cases in which he said
claims allowed by the officers had
been questioned by the General Ac-
counting Office and recoveries made
from the contractors.
War Department regulations COW
erlng the settlements, he told the
committee, have all the appear
ance of having been put forward by
special pleaders for industry"
By-Passing GAO Called Issue.
Untold billions of dollars are in
volved" in contract settlements, he
declared, and the question is wheth-
er Congress shall permit the by
passing" of the General Accounting
Office in their settlement.
What is proposed and is now
actually being done, is an arrogant
swapping of fingers in the face Of
Nv, foc
In the national interest" he said
heatedly, the War Department
should be peremptorily stopped" in
its present contract settlement pro-
cedures, which he said amazed and
astounded" him.
Il measure my words when
solemnly warn you that these regu-
lations will permit a grand cover
Mr. Warren continued, and will
"absolutely preclude any chance to
detect frauds"
In some instances, Mr.. Warren
said, the regulations will be actually
used to cover up frauds" and will
encourage extreme generosity" with
Government funds.
List Includes Flowers.
The practice of some contracting
| officers of winning and dining and
| fraternizing socially with contrac-
tors. Mr.. Warren said. has "a ten
/ dency to make them more liberal"
/ Some of the items listed by Mr..
Warren as allowed by contracting
officers and questioned by the Gen.
eral Accounting Office with recov-
cries from contractors in most cases
included:
S356,166 representing the purchase
price of materials that did not meet
specifications
The cost of flowers sent to funerals
of employees families.
s27 ,847 in profits by a contractor
/ for operation of a cafeteria.
| S65244 in insurance premiums on
| group insurance
Charges for transporting an en-
ploye's dog, and for sending an
employees wife to hospital in
maternity case
sl,743,000 representing the amount
a contractor failed to credit the
Government following a price re-
duction on material.
s2ll,621 for Truck Rental.
s2ll62l charged for truck rental
when the same trucks for the same
period already had been charged for
on another voucher
The cost of vitamin pills" as
! part of contract charge.
| A charge for the services of one
employe for al hours in a single day.
s574629 representing excessive
cost of armor plate.
S263000 paid by an employer to
his employees in the form of a special
Christmas bonus.
yet the War Department says We
are bound by the certificate of the
contracting officer in these cases,
| the Controller General commented.
! Now here's sweet one" he con-
| tlnued, explaining that a contracting
officer had approved a payment OF
$225 for a spare set of false teeth
for a contractors employe going to
| Russia.
Other items approved by contract
ing officers. Mr.. Warren said, in
cluded charges of $500 each for
1918 model Liberty trucks. 81, 900 for
1928 model dump truck and $4,000
for 1912 model steam rollers.
One contractor, Mr.. Warren said,
contributed to a local Community
Chest campaign and was hailed by
the press as "a paragon of generoity."
but the contribution was charged to
the Government and allowed by the
contracting officer.