Evening star., 1956-12-11
Defense Told
To Halt Practice
By Industry

The Defense Department was
told today it must take steps to
stop the practice of industry lur-
ing scientists and engineers from
the Government with funds from
Federal contracts.
Officials of the department
heard the statement at a hear
ing before the House Subcom-
mittee on Manpower.
Subcommittee Chairman Davis.
Democrat Of Georgia, said that
all that is needed to correct
the situation is action by the De-
tense Department to define in its
contracts with private industry
just how much can be spent on
recruiting and paying scientists
and engineers.
Gus c. Lee, the departments
director of manpower utilization,
told the subcommittee that there
lis a turnover in scientific work.
ers in Government, and he said
that most Of it is with workers
in GS-11 positions who make
about $4,000 on the Government
scale. Mr.. Lee said that these
|employes can get about $1,000
more in private industry.
The subcommittee has ex-
pressed alarm that firms holding
coSt-pluS Federal contracts can
use Federal money to advertise
and recruit workers. Chairman
Davis displayed several national
magazines today containing such
ads and asked if the cost had
been paid by the taxpayers.
Conditions Outlined
Col. Albert Fregosi. assistant
staff director of purchasing and
contracting policies for defense.
said that the Government does
permit such advertising only if it
lis directly seeking workers for
Government contracts. But he
said there is no set formula for
allowing these costs or the cost
Of employe salaries in private in
dustry.
The colonel said only that
such costs must be reasonable"
Mr.. Lee said that about half
Of the scientists and engineers
who "leave Government work go
into private industry. The 9TH
ers, he said, go back to colleges
and universities and some trans
fer to other Government Jobs.
He said that the principal reason
given for leaving their Federal
jobs was salary.
The officials were asked to re-
port back to the subcommittee
the amounts of money various
firms spend for recruiting their
technical personnel.
The subcommittee was told
that such costs as recruiting
teams would also be paid for BY
the Government if industries
were seeking employees, for ex-
ample, on college campuses.
Questioned on Utilization
The Defense officials were also
questioned closely about their
utilization of manpower and at
one point subcommittee counsel
Fred Belen said that the staff
had visited Quartermaster re-
search group at Natick, Mass.
where, he said, the director of
research had surrounded him
self with scientists and engineers
who were not in a position to
use their full talents.
| He said that the research di-
rector was only interested IN
enhancing his own position" at
meetings of various technical
groups. He reported that the
matter has been referred TO the
Quartermaster Generals Office
here and that "they agreed with
us" and action was being taken
to remedy the situation.
New Positions Created
Mr.. Lee said that as far as
he knows there is very little OF
this. and, in reply TO a question.
said that the new high-grade
positions created in the Defense
Department In the past year
were mostly for such scientific
and technical personnel
He told the subcommittee that
manpower cuts were made in
Army and Navy last year but
that certain increases in the Air
Force upped the overall civilian
personnel in the Defense De-
partment. He said that roughly
$4,000 civilians we're added in
Air Force. leaving $4,000 military
personnel for other duties. The
overall personnel figure for the
Defense Department was i,183.-
900 this year. about a 1000 gain
over a year ago.
4 Mr. Lee said that the turnover
of scientists and engineers ia
just about the same as for all
other occupations, but that the
problem was finding suitable
ffrafNnA Wnxsinooru,,,fa