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

of a friendly or downright sociable
contracting officer"
Attacks Cost -Plus Procurement.
! Declaring that cost-plus procure
ment is the greatest device ever
invented for pumping out the treas
ury,' Mr.. Warren said he had cried
out from the beginning at the waste
and extravaganza that the cost-pluS
system invites.
Mr.. Warren referred at several
points to the Carson contracts. At
one point. he said the General Ac-
counting Offices audit of negotiated
lump-Sum contracts, including the
Carson contracts. was limited to
seeing that payments were made &C
cording to the total sum promised
in the contract.
1--WE may not question favored
firm, an eXtravagant price nor a
speciouS undertaking" he said. 1T
is practically impossible in the alb
sence of fraud. for the GAO to take
exception to any payments made in
accordance with these contracts"
Door Closed on Recovery.
Without referring by name to the
million-dollar overpayment to Ba-
taVia Metal Products Co, Inc, one
of the Carson affiliates, Mr.. War;
rem said:
Had some independent agency
been in on the settlement of termi-
mating claims, I am confident the
interests of the Government would
. have been better protected. Do you
suppose the GAO would have ap-
: proved a million dollars overpay-
ment?"
Declaring it was futile to question
a settlement, except for hard-to-
detect fraud, because settlements
are final and conclusive, Mr.. Warren
!, reported that already over SOS ,000,-
100000 in Cancelled war contracts
have been settled, land the door
closed forever on any recovery of
overpayments by the Government
Attacks Terminal Leave Bill
In another reference to a figure
mentioned in the Carson inquiry
Mr.. Warren said that under the
Revenue Act of 1943, officers and
employees of the big war procure
: ment agencies not directly con-
nected" with a matter could leave
the service and prosecute a claim
,, the next day using knowledge and
entree gained while in the employ
of the department"
He pointed out in this connection
that Albert w. Jacobson, now under
War Department suspension for his
alleged activities in behalf of the
Carson interests, could handle
claims Immediately after getting out
OF the service" provided he was not
: required to be member OF the bar
Mr.. Warren went on to cite al
"the last straw" the passage by the
Senate of an amendment to the
terminal leave bill which would per
NIT officers on terminal leave tt
prosecute claims against the Gov.
eminent. provided they had MOI
been directly concerned with the
y subject matter.
/ Reviews Obstacles in GAO.
t Reviewing the obstacles in the
way of the General Accounting Office
e in trying to police public expendi.
= lures in wartime, Mr.. Warren tole
e of one instance where "a great dea
of Inconsistency" appeared in rene
= gotiation of a number of machine
E tool contracts.
! When he invited comments
Y from the War Contracts Price Ad
e iustment Board, he went on, he wa
( told that lin view of the tremen,
1 dous amount of work which woule
!, be entailed by even a superficial
/ answer to your inquiry, this Office
deems it inadvisable to attempt tx
5 furnish an answer in detail" 4.
That, gentlemen, Is a polite wa,
, of telling the GAO. ar. agent o
Congress. to mind'its own business,
: Mr.. Warren told the committee.
He said it was all very well t,