Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-08-08
lishment of the Military Procure
ment Information Center.
To Correct Misconceptions.

ment Information Center.
To Correct Misconceptions.
He said the military establish
ment will also carry on an indoc-
trination campaign within the de-
partment Ito help correct any of
the misconceptions regarding small
business and to see to it that
'brushoff' or un-around' tactics
are not used"
He said the defense establish
ment also will investigate any in
dividual cases of discrimination
against any firm because OF its
size.
Although percentage contract
men operate in trying 10 place
contracts with many Government
departments, there has been par
ticular reference to the armed
services since the present charges
arose. While the investigation was
still in its preliminary stage, II
resulted in the suspension Of Gems.
Watt and Feldman. Both are eX-
pected to testify later.
Three Suggestions.
The launching of the Senate
investigation, as we'll as his own
campaign. Mr.. johnson declared
in his testimony. is producing re-
suits, but the work OF dealing
with this problem has only begun.
He predicted that more wide
spread publicity on advertised
bids and important contracts to
be negotiated by the services will
be a powerful corrective.
He urged. however, that the
committee look into all possible
remedial measures and made
these specific suggestions:; :.
1.-~Perhaps we need registrar
. ton of company representatives
whether they are on salaries, re-
tainers or commissions. g.
! 2. Maybe procurement officers
should be restricted for a reason
able period of time from taking
positions with companies with
whom they have recently negoti-
ated contrasts. q.
8. 1t might be a good idea to
have "a statement by the Congress
setting forth its ideas as to the
limits of propriety in the social
relations between company rep
Iresentatives and procurement Of
f1cials, or as to the appropriateness
of tokens or gestures of apprecia-
ton"
In response to committee ques-
tons Mr.. johnson said he bumped
into the five per cent situation
shortly after he took Office last
March.
He said an assistant told him
then that man. whom Mr..
Johnson identified only as a Mr..
Webb in Mexico City, had been
quoted as saying he was a very
close friend" of Johnson's and had
influence" with him.
Mr.. johnson said that so far as
he knows he has never seen the
man and Immediately started to
check on him. He said he turned
the files on the case over to Bert
Andrews. chief of the New York
Herald Tribunc's Washington Bu-
reau, and expressed a willingness
to cooperate with the paper in
it's investigation of five percenters.
It was the Herald Tribune
which first published Mr.. Grindle's
story Of his experiences here.
MIR. johnson reminded the COM
mittee that he fired his first salvo
at the f1ve-percenters on May S
in an address to the United States
Chamber of Commerce. He said at
the time he took Office he had
been hearing that the number of
five-percenters was on the increase
and II was amazed at their audac-
ity and at the extent of their
operations.
Scheduled after testimony on
Mr.. Grindle's case is searching
inquiry into the Tanforan Race
Track case. The committee wants
to know how the promoters of the
California track managed to get
permission to build at a time
when materials were scarce.
Hoey Outlines Program.
At the outset of the hearings
Senator Hoey, Democrat. of North
Carolina, the subcommittee chair
man, issued a policy statement
explaining the committee will con-
slider a few specific cases with
these two goals:
/. To highlight certain abuses
needing correction.
3. To serve notice on others en-
gagged in committing like abuses
that they will not be tolerated. 4,
1T is important" said Senator
Hoey, mot only that we have good
government but that the public
have confidence in the integrity
and the decency Of its govern
ment.
Forces which tend to create
the belief that our Government
functions with. favoritism or by
conniving should, if possible, be
eliminated"
Safeguards Studied.
The committee, he said, pro-
poses to consider the broad ques-
ton OF what safeguard Congress
can take to prevent or minimize
4 improper influences.
! The purpose of the investiga-
ton, he said, is not to embarrass