Evening star., 1946-08-03
War Profits
Continued From First Page J

switching from cost-plus to fixed
price contracts, auditing of expendi-
ture of public funds, payment of
middlemens profits and brokerage
fees in war procurement, instances
of disloyalty and dishonesty of pub
lie officials and slip-shod business
practices which have cost the Gov
ernment money.
Detailed Report in Prepara ton.
A detailed report on all ammuni-
ton manufactured for the Army
since Pearl Harbor is being pre-
pared and is expected to be turned
over to the Senate committee, the
War Department disclosed.
Maj. Gen. Floyd L. Parks, Army
public relations chief. announced
that information relating to artillery
shells of all types as we'll as the
4.2-inch mortar shells is being
gathered at the direction of Under
secretary of War Kenneth B. Royal
Names Are Withheld.
In its six-page statement of inten-
tions the committee explained it was
its practice to withhold the names
of specific companies or individuals
under investigation until it was ready
to announce public hearings.
A few hearings may be held dur
ing August by subcommittees, and
the committees staff will be busy
preparing cases for public hearing
But the full committee will be ab-
sent except for an emergency"
Committee aides said the emergency
would be the appearance of Mr.. May
whose name cropped up repeatedly
during the committees recent inves-
tigation of the Carson munitions
interests.
The committees next public in
quiry also came out of the Carson
inquiry. when the failure of 42-inch
mortar shells was first mentioned
One of the Carson plants also was
one of the principal manufacturers
of the shells.
The committee revealed it had re-
ceived two War Department reports
on the shell failures, prepared by
Brig. Gen. E. F. Bullene. One was
dated March "a, 1945; the other, May
/, 1945. The committee said it had
not yet received the report from the
Chemical Warfare Service which it
has requested, but understands the
War Department is intensely en-
gagged in accommodating material" for
a report.
Ready Within Two Weeks.
The report. according to the COM
mittee, will be ready in from 10 days
to weeks. After the report and
questioAnaires sent to enlisted men
and officers have been studied the
committee said, executive hearings
will be held to determine whether
the failures arose from design or
manufacture.
No public hearings on the shell
failures will be held until the COM
mittee has satisfied itself on the
individuals or companies responsible
for the shell defects.
AS for the second public inquiry
the investigation of the Inter- Amer
lean highway and the activities of
Col Wyman-the committee said
subcommittee will be sent out on
field trips to complete the investiga-
tions.
The committee emphasized it's fu-
ture investigations, covering war
contracting in major industries, will
not be governed by the size of the
Governments loss or the particular
industry in which 1T occurred.
Interested in Performance.
"The committee will be principally
interested in the procurement and
control functions as they are per-
formed by Government officials and
will examine not only existing laws
and regulations, but will examine
also the people who administer
them" the investigating group
stated.
THE committee realizes the i'm
portance of the human element and
that laws and regulations, no matter
how wisely drafted, cannot admin
lister themselves"
The statement said the commit
tee would explore practices in the
selection of personnel, particularly
in positions involving broad dis
cretionary authority. One of the
complaints brought to the commit
tee by Controller General Lindsay
Warren was that wartime laws gave
procurement agencies virtually un-
checked authority in awarding con-
tracts and that some of this au-
thority was in the hands of public
officials who accepted favors from
war contractors.
The committee said 1t was aware
of the necessity of speed in procure
ment in World War II and "appre-
ciates that In the event of any fu-