The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1944-02-09
Post War


terials and partially proeessed
goods in the hands OF the contrae-
tor. and as large a percentage. up
10 go per cent. OF all other items
in the claim as ia contracting
a ency feels will afford the govern
ment reasonable protection.
.. The Office OF Rehabilitation
be authorized to take immediate
title TO all inventories in the hands
OF manufacturers allocable TO can
celled contracts and that they be
disposed OF under the policies laid
down by that office. Estimates of
goods that will be owned by the
government at the end of the war
run high as seventy-hye billion
dollars.
3. Procuring agencies be auth
orized 10 base their estimates for
contract termination payments on
certificates submitted by cOntrac-
tors. relaxing traditional rules Of
pre-audit in order to avoid delay,
"stagnation" OF private economy
and Unemployment.
4. A penalty OF one per cent
month upon the amount OF any eX-
cessiye advance payment obtained
by contractor through over
statement OF his claim, be imposed
uTon him. The penalty would not
be deductible expense for income.
tax purposes.
5. Speed up settlement Of con-
tracts by permitting the filing of
overall claims and settlement on
ali overall company basis; authori-
cation for the Army TO settle on
Navy contracts, and, vice versa,
authorization for the government
to purchase sub-contractors claims,
II necessary. instead of having
them deal with prime contractors
scattered throughout the country.
6. Settlement agreed upon TO be
upset only for fraud, with the
statute Of limitations against fraud
prosecutions extended.
Z. Right OF appeal IN settle
ments TO the court OF claims, II the
contractor wishes; or. in a more
summary method. to an arbitrator,
an umpire appointed by the Office
81 rehabilitation, or a review
boaru IN Washington.
The committee proposed appoint.
ment by the Director OF Demobilf-
cation OF a board Of deputy direc-
tors, without qualification as to Ia
Dor. business or agricultural rep
resentation. he ONCE of Demo
Utilization would consult, however,
with such 4t-rests.
No government war plants or
surplus PROF erty would be strapped
or destroyed except upon a two
thirds vote OF the board, concurred
in by the director OF demobiliza-
| ton. The special congressional
committee, any of its members. or
/ its desiCnee would attend meetings
OF the Demobilization Board.
The report said all plants suit
able for the production OF peace
time goods and not needed for ma
tional defense should be sold,
where this can be done without
causing "ruinous overproduction in
any industry. Plants which can
not be used should be converted
| into warehouses for storing sur
plus property and no government
plant should be disposed OF in a
manner TO create monopoly, the
committee said
Prompt Use
The option which many private
operators have to purchase govern
ment plants should be removed UNI
less there is reasonable certainty
that they will be exercised prompt
ly." the report set forth Recog'
nizing that more people will have
to be employed in private indus
try after the war than ever before,
the committee stated
THE problem OF getting these
people TO work will be difficult
enough without complicating It by
having factories remain idle be-
cause they cannot get their plants
cleared of war inventories and gov
eminent machinery and their can
celled war contracts settled.
There will be no war contracts
to substitute at that time. To
avoid disastrous unemployment to-
tails, the period of cessation OF
work in those factories must be
kept to an absolute minimum