Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-09
300 Special Workers
ToCheck 0vercharges
On U. 5. Freight Bills

The General Accounting Of
flee has "re-created" a special
division of 800 workers to check
overcharges by railroads on Gov
eminent freight bills during the
war-estimated by a congress
sional committee today to be as
high as $700,o00,0O0.
Representative Bender, Republic
can, of Ohio, head of a House Elk
penditures Subcommittee, charged
today that the GAO-as the result
of a "basically defective and grossly
mismanaged" accelerated audit sys-
tem-failed to catch $3.50, 000, 900
worth OF the evercharges during
l943, 1914, and 1945.
In addition, Mr.. Bender said, the
subcommittee had intimations that
the interest Of the Government was
not adequately protected on the
original fixing Of freight rates A
subcommittee already is looking into
this angle, he added
Existed 70 Years ago.
As a result of the investigation,
Controller General Lindsay C. War
rem ordered a complete re-audit of
the wartime vouchers in March to
bill railroads for overcharges missed
during the war.
To carry out the giant job, GAO
"re-created" a separate Transporter
lion Audit Division, according to
William L. Ellis, assistant to the
Controller General. The division,
with about 800 workers, existed
about rs years ago as separate
unit, but was merged later with the
General Claims Division, Mr.. Ellis
said.
Mr.. Bender's subcommittee, mean
while, urged Mr.. Warren to re
consider adequacy of the 1949
deficiency appropriation that will
allow GAO to hire ITO new freight
rate experts to help speed the re-
audit.
only a few" of the ITO have
been hired so far. Mr.. Ellis said,
because of a shortage of rate ex-
perts.
Not Question of Money.
at isn't a question of getting
more money" he declared. There
just aren't any more good people to
get. You can't expect good men
with years of experience to come
here and leave railroads where they
are getting more money"
GAO differs sharply with the sub
committee on the amount of over
charges still to be caught, mean
while, estimating that about $780,
900, 900 more in overcharges will be
caught by the reaudit. The ac-
CELEBRATED wartime check, officials
said, caught $250,oo0.000 in over
charges, with another s104,000,00
still uncollected.
Mr.. Ellis said the 100000
estimate is based on a test audit
made last year on 10000 bills of
lading-about per cent OF the
number handled during the war.
The test found about sl,057 900 in
overcharges, he said.
The subcommittee also charged
that freight overcharges to the
Government, from l to per cent
before the war, zoomed to between
10 and II per cent during wartime.
Some Practices Criticized.
While the subcommittee said
GAO was justified" in setting up
an accelerated audit system because
of personnel losses and an annual
freight bill that jumped from $685.
OOO, 900 to $1,000 000, 900, 1t criticized
these points:
An absolute rule of auditing two
supplies of vouchers every
month to dig into a huge backlog
of vouchers.
That some section chiefs ordered
workers to pass as audited" vouch-
ers that had been usually screened.
That screening duties at times
were taken away from well-trained
reviewers and given to technicians.
Under the Transportation Act
of 1910, the committee hearings
brought out, GAO was authorized to
make payment of vouchers prior to