The people's voice., 1957-05-31
By Leroy ANDERSON

this week is considering the Depart
ment of Defense budget. This is the
largest segment of the entire budget
and one in which every American has
vital interest. This 331 " billion dol
lar defense bill is for the operation
of the Army, Navy, Air Force and
Marines for the fiscal year beginning
July /, 1857.
Certainly, no good American would
jeopardize oar nations defense. Yet
there must be sharp curbing of eX-
travagances. There are honest differ
ences of opinion within the frame
work of the entire program. | have
been particularly interested in the
Army Reserve portion of the budget
which concerns civilian components
of the Army. Almost every Montana
community has members in National
Guard or Reserve unit. l believe we
should have funds to continue the
six-months active duty training pro-
gram for our young men. This rela-
lively low-coSt program enables
Guardsmen and Reservists to be
trained to protect themselves if need
should arise. Because of the relatively
short training period involved, they
can continue their schooling or en-
ployment with a minimum of inter-
ruption. I feel they will get just as
much technical training out of this
six-month program as they would in
a two-year draft program.
With that in mind, have been over
to the Pentagon comforting with the
Secretary of the Army and members
of his staff, as well as with members
of the House Appropriations Commit
tee urging them to replace funds, not
now in the Appropriation Bill, for
this training program.
| have been discussing with var
ious congressman the extravagances
i revealed in Defense Department re-
ports to the Small Business Com
mittees of Congress. These reports,
in plain language, indicate there is
a golden pipeline spouting a steady
stream of dollars from your pockets
into the u. S. Treasury, thence to
the various branches of the Armed
Services, and then to the doors of
just 100 companies and their sub
sidiaries.
This pipeline has carried money
into these few firms totaling S81.5
billion in net value of military prime
contracts during the 18 months from
January, 1866 through June, 1856, or
68.7 per cent of the $3.50 billion spent
during that period. Many millions
have been given in the form of rapid
tax write-offs. Other millions have
been gained through cost plus 10 per
cent profit under government regu-
lations. Congressional committee re-
ports have shown this 10 per cent
sometimes has grown to 80 per cent
by the time the government gets the
bill. because larger firms had their
subsidiary companies each add an
extra 10 per cent.
If there are to be defense budget
reductions. let it be through eliminat-
ing extravagances, but not by cut
ting essential training which will save
the lives of our young people.
Budget Developments-Since there
is such an awareness of our current
National Budget, | would like to re-
port on current developments here.
The Senate Appropriations subcom-
mittee is still busy on the budget for
the Department of Health, Education
and Welfare. Prospects are the bill
won't go before the full committee
until early June. AS the House passed
the measure, it calls for per cent
cut from the $2.98 billion recon-
mended for next fiscal year. In COM
parison with money now being spent
by HEW, the reduction would be only
| per cent.
Both houses of Congress have
passed only four major budgets as
II. |