Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-07-29
War Profits
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w vi IoiItS
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for Sheffield as metallurgical serv-
ice engineer.
Mai. Kerrwin Hagerty, former
area contracting officer, Army Air
Forces, participated in contract
termination settlements at North
western Aeronautical Corp, on May
Is, 1916, after leaving the Army,
he was hired by that firm as vice
president in charge of production
at $700 month.
Ferguson Asks Inquiry.
Commenting that going to work
for those with whom one had been
officially negotiating had become a
common practice" Senator Fergu-
son, Republican, of Michigan asked
Mr.. Warren to find out about the
prewar employment Of the officers
he named
The committee. in the course of
its inquiry in the Carson munitions
interests, already has come upon
cases where officers went to work for
outside companies with whom they
had been dealing within the War
Department.
Discussing the inability of the
GAO under present statutes to delve
into the records of the companies
to which the Government has paid
out huge sums of money, Mr.. War
rem commented that he had just
sent a milk and water" report to
Congress, because I'VE had nothing
to report
Had Reported Cases Earlier.
He said he had earlier reported
to Congress several hundred cases
where war contractors had switched
from cost-plus to fixed-fee con-
tracts "a year after the contracts
had been completed" The switch,
he said, was permitted by the pro-
curement agencies to avoid audits
and to pay the contractor more
money"
Mr.. Warren told the committee
that time after time" he called the
attention of the War Department
to the type of some of the con-
tracing officers they had" He said
he did not reflect on the ability or
honesty of the great majority but
he felt the War Department should
exercise greatest possible care in
selecting them. He said War De-
partment officials informed him thev
would entrust such assignment to
| officers of higher rank.
| The Controller General testified
that he later read of several col
onels and lieutenant colonies who
were sent to Jail in New York, Texas
and elsewhere. He also heard, he
said, that some contracting officers
who tried to protect the public
interest were transferred.
Were Sent to Sticks"
"In other words, they were SEN
to the sticks" Senator Ferguson
remarked.
That's right said Mr.. Warren
WHY"
THE reports said Mr.. Warner
explained, ION orders from highel
up"
While commencing the work o
the majority of service officers
civilian government officials ant
81 year men, Senator Mead added
1T seems that these boys wht
took care of contract termination
and then took care of themselve!
took good care of themselves"
Committee Recesses.
On the conclusion of Mr.. Warren.
testimony, the, committee recessed
until 10 am. tomorrow when it viii
call Representative Coffee, Demo.
crat, of Washington for an eXpla
nation on his acknowledged receip
of a $4,000 check from a Tacoma
WashD, defense contractor MI
Coffee has described the check as {
campaign contribution.
The names of the officers wert
brought out after Mr.. Warren hat
charged '1ow moral standards" OF
the part of some war contractor
and Government officials connected
with contracts. The Controller Gen
eral said that from my seat it ha!
looked as If everybody and hi
brother were out to get the Govern.
ment during the lush war years"
At the same time Mr.. Warren ap
pealed for greater powers for tn
General Accounting Office as 9Th
last bulwark for the protection o
taxpayers of this country agains
unbridled and illegal expenditure
of public funds"
Had to Curtail Practice.
The committee, in it's investiga
J, ton of the Carson case, alread
! has brought out that half dozel
Army officers and War Department
civilians Travelled to New York a
Government expense to attend tn
wedding of Murray Garsson's daugh
ter with Mr.. Carson footing som
of the hotel bills.
Mr.. Warren told the committe
the practice got SO. bad" in tn
Maritime Commission that he calle'
personally on Vice Admiral Emor
Land (then chairman - who's
name was not mentioned in any O
the reports" and also wrote hin
officially. Admiral Land, he sale
issued an order condemning sucl
practices.
Mr.. Warren blamed the law a
well as those who administered i
for a situation where, he said, 9TH,
most far-fetched and extraya gan