Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-07-29

talk about the billions collected by
the Government in renegotiation
but added, What I would like to
know, how many billions were given
away in contract Examinations"
Conceding that naturally, in time
Of war there will be some waste and
extravaganza and some fraud" Mr.
Warren said what he was insisting
upon is Just a little ordinary COM
mon decency."
He concluded that there would be
"far less fraud, far less IMPROVE
dence and far less extravaganza in
war contracts" if the civil and mill
tary officers of the War Department
and other procurement agencies
had been constantly alert and had
always borne in mind that they were
the representatives and agents OF
the United States
Last week the committee asked
the General Accounting Office to
study all transactions between the
War Department and Midwest
munitions combine relative TO re-
negotiation and termination OF
contracts
Mr.. Warren cited specific in
stances in which he said the GAO
saved the Government millions of
dollars by -the-spot audits of war
contracts. Presence of GAO experts
in plants in some cases assisted con-
tractors in orderly operation of con-
tract provisions. he said. He men,
toned these cases, he said. as proof
of the necessity of full authority
by the GAO.
Cites Savings to Government.
AS a result of an "on-the- barrel"
audit at the Boeing Aircraft Co. on
the West Coast. he testified. about
81 .567 900 was turned back to the
Government during the war. In an
other case, involving one voucher"
he said, there was saving of 81,
074,000 for the Government in a
production contract with Lockheed
Aircraft Corp.
He cited reduced cost" of
81 1857 900 for the Government when
auditors detected errors in the op-
Grating of a contract at the Con-
solidated Vultee Co. plant at Fort
Worth. Still another saving of
about 81 10000 resulted from SIM
liar auditing operations concerning
Wright Aeronautical Co. contract,
he testified.
In reply to a question by Senator
Ferguson. Mr.. Warren said he had
no information about reports that
some 100000 in war contracts
were missing"
Mead Promises Support
Mr.. Warren interrupted the read
ing of his prepared statement sew
eral times to answer committee
member questions or elaborate on
his views
George Meader, special investi-
! gator for the committee, that the
/ GAO, if restored to its full vigor"
as watchdog of the Treasury. would
not have slowed up war production
in individual plants, hindered the
efficient contract renegotiation and
/ termination. or interferred with re-
/ conversion operations.
Senator Mead, reminding him
/ that the committee Is mot legisla-
| tive" promised nevertheless that 1t
! will present very strong state
ment to the Senate" in line with
Mr.. Warren's general views about
| the authority which GAO should
have in checking and policing war
contracts.
| Worked Out Salary Plan.
Mr.. Warren reported that his Of
fee worked out a plan whereby in
| dependent audits and examinations
could have been done in three
months. This is quicker, he said
than some of the renegotiation and
termination procedures.
But if we didn't do a thing he
added, "the mere fact that we woulc
be sitting there like policeman or
his beat would have been a great
safeguard"
The controller general interrupted
his prepared statement to explain
that a majority of the House Mill
tary Affairs Committee. of which
Representative May of Kentucky i:
chairman, had supported his recon-.
mendations about strengthening the
position of the GAO in the contract
settlement bill in 1913. The bill
however, was sent to the House Jul
dietary Committee, after being re-
turned from the Senate, he ex.
planned. and was passed in 1914 IL
a form that did not include his pro.
posals.
/ Before hearing Mr.. Warren, thu
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