Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-07-29
q Officers Cited:
GAO Helpless,
Controller Says
MAY LETTER to constituents de-
tends position in probe. Page A-3
By Miriam Gutenberg


Controller General Lindsay
Warren today leveled a blast at
Army officers, war contractors
and Government officials in a
general indictment of the Gov
ernment's handling of war con-
tracts.
Testifying before the Senate War
Investigating Committee, he charged
specifically that:
l. At least four Army officers,
whom he named, took high paying
jobs with companies Immediately
after completing contract termina-
ton settlements with the same
companies.
2. War contractors were permitted
to switch from cost-plus to flxed-fee
contracts after the contracts were
completed in order, he said, to
avoid General Accounting Office
audit and to get more money. In
one instance the switch took place
after the contract was completed,
on the grounds that it would expe-
dite the progress of the War-al-
though the war was over by that
time.
Moron Could Have Made Audit"
3. The GAO got so little infor-
nation from the War Department
ON which to audit contract ter
limitations that "a l0-year-old mo-
ron could complete the audit in 10
seconds"
4. AS an example of what it could
DO under its limited powers. the
GAO recovered more than 100000
600 in on-the-spot audits of cost
plus contracts. 1t was permitted to
do nothing about fixed price con-
tracts. however.
With some high Governmentxoffi-
Gals, the acceptance of entertain
ment. including cocktail parties,
hotel bills and travel from a con-
tractor, while drawing travel ex-
pense and per diem from the Gov
eminent, was the rule rather than
the exception.
To Name More Officers.
At the request of Chairman Mead
of the investigat ting committee, Mr..
Warren agreed to furnish the names
of more officers who went to work
for firms with whom they had been
involved in their Army capacity and
officers throughout the country
who accepted entertainment from
contractors.
Terming employment by a COM
pany with whom an officer had been
negotiating for the War Department
an 'indefensible practice" Senator
Mead said the committee will 20
deeper into this and make known
our recommendations to the Sen
ate"
When Mr.. Warren said there was
nothing illegal in it. Senator Mead
promised committee investigation
and observed, This practice should
be stopped by law"
Denounces Practice.
Mr.. Warren revealed that as soon
as the employment of these officers
was discovered the GAO threw
every searchlight on the terms of
the contracts they negotiated.
In disclosing the names, Mr.. War
rem denounced as "damnable" what
he termed the widespread" practice
OF Army officers obtaining lucrative
jobs from war producers whose Gov
eminent contracts they helped draft
and settle while in the service.
MY WqTrpn tho
this list of officers and the COM
panies they joined:
Maj. George w. Parker. former
contracting officer and termination
contracting officer, who was assigned
to the Howard Aircraft Co. He now
is general manager of that company
Became Procurement Chief.
Col. Forrest w. Smith. who was
the original contracting officer and
termination contracting officer for
five contracts with the Schwitzer-
Cummings Co, Indianapolis. He
left the Ordnance Department Nav
Is, 1915, and the following June Is
became manager of procurement for
SchwitZer- Cummings.
Capt. G. I. Calvert. former officer
In charge of the st. Louis ordnance
district, at Houston. He was the
contracting officers representative
to expedite plant clearance and
dispose of termination inventories.
from August /, 1915, to December
l, 1945, in connection with final
settlements with the Sheffield Steel
Corp, Houston. After his release
from the Army he went to work