Legal Document

334 U.S. 742 68 Supreme Court Reporter 1294 92 L.Ed. 1694 LICHTER et al.v.UNITED STATES. POWNALL al. versus UNITED ALEXANDER WOOL COMBING CO. Nos. 105, 74, and 95. Argued Nov. 20, 21, 1947. Decided June 14, 1948. Rehearing Denied Oct. 11, [Syllabus from pages 742-744 intentionally omitted] Mr. Paul W. Steer, of Cincinnati, Ohio, for petitioners Lichter others. Leo R. Friedman, San Francisco, Cal., Pownall Edward C. Park, Boston, Mass., petitioner Alexander Wool Combing company Philip baron Perlman, Sol. Gen., Washington, D.C., respondent. Justice BURTON delivered the opinion Court. 1 The Renegotiation Act,1 in time crisis, presented to this nation a new legislative solution major phase problem national defense against world-wide aggression. Through its contribution our production program it sought enable us take leading part winning World War II on an unprecedented scale total global warfare without abandoning traditional faith reliance upon private enterprise individual initiative devoted public welfare. 2 In each three cases before principal issue is constitutionality, face, Act insofar as authority recovery excessive profits be recovered by United States respective petitioners. case secondary whether failure petition Tax redetermination amount, if any, their excludes consideration here coverage Act, amount other comparable issues which could have been these District has held that was constitutional that, redetermination, existing orders become final claimed Government. Each Circuit Appeals affirmed, unanimously, judgment appealed it. We agree with courts below. 3 obtained sum alleged owed pursuant determination under Act. determinations were made Under Secretary or Contracts Price Adjustment Broad after Revenue 1943 had approved, February 25, 1944. That contained, Title VII, so-called Second included provisions filing petitions redeterminations excess profits. None petitioners, however, filed such On hand, relied claims matter law, unconstitutional face purports authorize judgments taken contend also failures file not foreclosed rights contest found them they might 4 Number 105 (The Case). 5 May, 1945, complaint Southern Ohio Jacob Jennie L. Lichter, engaged construction business name Fireproofing Company, copartnership. founded War, dated October 1944, $70,000 realized during calendar year 1942 nine subcontracts, executed price $710,244.16, were, showed entitled tax credit $42,980.61 It alleged, moreover, not, within required period, petitioned order question paid otherwise eliminated $27,019.39 thus due States. 6 admitted alleged; his valid specified; demane d nor profits, any. They put issue, specifically stated grounds, constitutionality recovered, applicability any requirement seek ordered repay that: subcontracts basis renegotiation, all 1942; four April 28, 1942, date original Act; none contained clauses permitting requiring renegotiation; only two amounts $100,000 each; among those no fact earned 1942. Finally several contracts referred entered into prime awarded department Government result competitive bidding buildings facilities themselves further bidding. For reasons answer exempt renegotiation. 7 moved pleadings and, alternative, summary judgment. Affidavits support motions. These particularly comprehensive affidavits Robert Pacific KF135 P2 Patterson, then Haw. Hawai‘i Reports KFH45 A2 Struve Hensel, Assistant Navy. set forth general background claiming renegotiation war necessary sustain nation's share burden II. Counterparts us. dismiss grounds failed state claim relief granted 8 findings substantially answer. concluded there genuine material law $27,019.39, interest at six percent per annum November 6, F.Supp. 19. Sixth affirmed expressly reason barred making attacks Secretary's 160 Federal Reporter, 2nd Series 329. Because basic significance questions involved we certiorari. 331 802, 67 1741, 91 1825. 9 74 10 September, California Atlantic V. Pownall, Grace M. Henes-Morgan Machinery Limited, corporation, doing Los Angeles, California, copartners General Products Company. record indicates precision parts, machinery tools use contractors. behalf Board, December 27, effect $628,373.14 dui ng subject $514,663.95 $113,709.19 Board adopted order; appropriate Court; expired; payment made. invalid numerous grounds; based undisclosed data findings; single contract exceeded $99,000. 11 did same. stipulations parties disputed left decision validity interpretation valid. 12 denied motions both parties. However, ruling merits cause it, facts stipulated. unappealed final. rendered $121,043.39, evidently representing $113,709.19, March 13, 1945. 65 147, see fact, conclusions court. Ninth followed earlier Spaulding Douglas Aircraft Co., 154 419, upholding holding having relief, exhaust administrative remedies. Accordingly, jurisdiction consider petitioners' contentions 159 73. 13 95 14 August, Massachusetts petitioner, corporation Lowell, Massachusetts, scouring wool combing tops noils commissions owners wool. September One determined $22,500 fiscal ended 30, $45,000 1943, excessive. $15,020.80 $36,596.42 1943. periods, either question; periods expr ed; paid, eliminated, $15,882.78 factual allegations but owing void because process unenforcible because, applied reasons. 15 or, above-mentioned Navy, others filed. Evidence oral affidavit form submitted opposition. opinion, 66 389, 391, 'had direct agency combed different companies. knew some companies destined government contracts, ignorant destination wool.' court, nevertheless, favor States, $15,882.78, powers Congress sufficient recapture these; standard 'excessive profits' satisfy limitations power delegate authority; defects departmental proceedings immaterial view opportunity afforded trial de novo petitioner's defenses ground lack retroactivity application lost First said, curiam: 'We think court below adequately covered affirm * *.' 103.2 16 Background. 17 main us: (1) (2) finality absence time, seeking certain uphold providing authorization rendered. accept given although statutory situation precisely same case. By attached determinationsm ade cases, do pass attempted raised matters not. 18 procedure affects property directly authorized governmental action authorized, resting capable gross abuse. very upheld emphasizes seriousness injustices can abuse large vested officials. minimize complaints may cut off necessities sake when survival stake. re-emphasize conditions, great need adequate channels procedural careful conformity channels. civilian make sacrifices least fortitude drafted soldier makes comfort, security life itself. Within Constitution, Administration, resulting should carefully examined far possible relieved. raising armed forces are essential. Both require mobilization control Congress. postwar 19 developed wartime policy Selective Training Service 50 U.S.C.A.Appendix, § 301 seq. sprang powers. crisis conduct dedicated preservation, practice development maximum measure freedom consistent unity effort essential success. 20 With advent warfare, mobilized equipment supplies became manpower. Mobilization extended uniformed services entire population. Acts mobilization. language Constitution authorizing measures broad rather than restrictive. says 'The shall Power To raise Armies, Appropriation Money Use longer Term Years; Article I, 8, Cl. 12.3 This places emphasis supporting well armies. inescapably express, merely implied. conscription manpower more vital interference life, liberty substitute them. hazardous, full-time service whatever deems fair modest compensation. Comparatively speaking, manufacturer goods undergoes hazard personal safety does front-line yet gives him better assurance reasonable return related legislation give men forces. military beyond question. less clear sweeping.4 valid, fortiori. 21 'To *' Laws proper carrying Execution foregoing Powers, remaining 'necessary Execution' especially 22 impossible picture proper' 1942—1944 meet responsibility facing field. do, catch glimpse authoritative, contemporaneous descriptions situation. margin excerpts message President State Union, January 1942,5 report Special Committee Senate Investigating National Defense Program chairmanship Senator Harry S. Truman, Missouri, 1943,6 UnPage 762 23 der August 3, 1945,7 24 describe demand proportions previously unimagined. call volume never approximated undreamed speed. results amply demonstrated infinite value war. proved sine qua non condition nation. Not provide successful war, outer limits discretion so terms renegotiate particular method prescribed conformed permitted exercise 25 Our first relates adjusting net compensation through compulsory 'renegotiation' between parties, including recourse unilateral payments Treasury portions officials profits.' There added ultimate was, event, come impingement them, must completed extent 26 approach over recognize Congress, unquestionably fundamental power, discussed, conscript requisition properties enabl Armies. furthermore primary obligation bring about win Given mission, choose alternatives performance. light compelling necessity immediate vast quantities goods, too clearly evident world, choose, namely, mobilizing productive capacity unit totalitarian model. would meant workmen. Armies much manner Already units arsenals, navy yards, increasing number governmentally owned, operated, plants. atomic bombs one example industry owned operated exclusively Faced ironical alternative converting preserve itself domination, steadfastly rejected. plan Profits chosen place appears true symbol free people united reaching unequalled retaining effort. 27 Somewhat crude initial simplicity, rapidly increased precedent. approved five months declaration adjusted strengthened effectiveness fairness amendments it.8 experienced different, fundamentally comparable, federal regulation proportion demands modern warfare.9 28 volume, types products, many changes specifications pressing delivery accurate advance estimates cost out Laying aside undesirable complete ownership operation kinds, solutions attempted. Often called capital expenditures building plant facilities. Adhering, Administration promote wide distribution even comparatively high marginal producers unfamiliar products. everything retain encourage intiative race largest quickest best supplies. clung enterprise. find means purchased. negotiation wherever practicable. let cost-plus-a-fixed fee. Escalator insterted. ceilings established. A flat percentage limit lines tried. Excess taxes imposed. voluntary refunds experience convinced fixed prices still provided incentive production.10 29 16, Bethlehem Steel Corp., 315 289, 62 581, 86 855, pointed possibility relief. page 309, 591, 855. 30 new. country, every opportunities profiteering often scandalously seized. See Hearings House Military Affairs H.R. n 5293, 74th Cong., 1st Sess., 590—598. recurrent evil, times various measures. fixing. placed recaptured taxation. reserved right cancel Pursuant Congressional authority, requisitioned built ones needed materials. utilized comprehensively, devised. But Executive additional laws protect profiteering, Court, them.' 31 authorized. outlined Original perfected. As consents written prior award finally express provision proceeding contractor subcontractor aggrieved order. Throughout developments congressional presented.11 32 readily adaptable needs time. available information entering contracts. Production proceeded once estimates. Many factors incapable exact determination. compensation, resulted benefit actual contract. allowable profit guided relevant factors. list commonly early directive. Later enacted statute. timely subcontractor. always limited duration period shortly following most instances disposition agreements reached parties.12 controversies survived day are, measure, dealing procedure, arising administration. 33 34 While steps13 consist 403 Supplemental Appropriations 1942;14 1942;15 amendment substantial expansion 701(b) 1944.16 sometimes 403, amended forms properly cited 'Reneo tiation Act.'17 up enactment Renogiation rigid limitation rejected flexible definition embodied term profits.'18 Department Directive 10, 'Principles, Policy Procedure Followed Renegotiation' promptly stressed determining directive introduced hearings Finance September19 passage important 35 'Joint Statement Departments Maritime Commission—Purposes, Principles, Policies, Interpretations' issued 31, considered Naval Affairs, 78th Vol. 2, Pages 469, seq., 1025—1039, 1028—1029 (1943). 58 Statutes-at-Large largely incorporated views 403(a)(4)(A),20 indicating approval assuring continuity balance 36 Delegation Authority 37 unconstitutionally decide present instituted forfeited. Cf. & Diesel Corporation Hirsch, 752, 1493, 1796; Wade Stimson, 793, 1727, 1821; Macauley Waterman S.S. 327 540, 712, 90 839; Yakus 321 414, 64 660, 88 834. 38 argument delegation carried slight standards. contended amounted official instead mere authority. hold constitutional. Certainly spelled 403(a)(4)(A)21 Renegotiated respect years ending objection ground. question, therefore, hority effective inasmuch exist 39 Act,22 403(b), (c), (d) (e) thereafter theretofore Department, Navy Commission, clause, thereto done concerned. purpose Chairman Commission 'Secretary.' Bureau Internal request Secretary, consent Treasury, purposes examinations Section. directed whenever likely re subcontract thereunder, price. represent subcontractor, recover 40 403(b),23 statement connection inserted future each. insert 'a when, certainty; Contractors like subcontracts. indicated relationship current later 'reasonable certainty.' 41 Also, 403(d)24 renegotiating Secretaries allowances 'for salaries, bonuses, officers employees reserves costs incurred unreasonable.' 42 Section 1942,25 At knowledge 1942,26 stressing emphasized alter particular. Among purported profits': exit ing practices expressed satisfaction specificity 403(c)(3)27 recognition exclusions deductions character Code. 403(c)(5)28 Secretaries, joint regulation, prescribe detail contractors subcontractors bearing concerned 'statements production' 'other financial statements years.' circumstances, notice commencement renegotiations, 'the eliminate liabilities thereby discharged.' subsection (i)29 containing exceptions exemptions 1943,30 similarly contributed definiteness practice. 43 determine power. (a) nature being employed, (b) (c) adequacy used context, lawful 44 implies purposes.—This significant methods employed degree specify policies standards own precise definition. peace scrupulously obeyed,31 branches keep assigned Constitution. highest importance kept mind full force action. nothing tragic expressive intent construe hinder help ind efending safety. 45 address Honorable Charles E. Hughes, New York, 'War Powers Constitution,' 5, 1917, A.B.A.Rep. 232, 238—239, 247—248, he said: 46 wage successfully. framers constitution illusions emerged long struggle taught weakness confederation, hope what won save established Union fight strength entrusted common defence. equipping tolerated inconsistent object, existence Nation stake resource command. 47 extraordinary circumstances (es) enterprises category affected thorough-going regulation. foodstuffs, articles necessity, relation efficiency, absolutely stress conflict, plainly sort. Reasonable regulations safeguard resources depend success regarded confided prosecute 48 'In words Court: 'It settled dispute self-destructive. words, confers hand immediately away other. *'32 said taxing Having terms, clause Fifth Amendment. another case: conflict conferring taking clause."33 49 'Similarly, expres ly execution. explicitly conferred destroyed impaired amendments. construed avoid self-destructive, citizen unwarrantable attack, while defence perpetuity liberties. rest preservation marches. is, constantly applications unchanged powers, ascertained novel complex situations, old grants contain, significance, So, also, fighting constitution. cannot fail appreciate wisdom fathers, charter, hundred thirty old—the Washington—the unity,—as children hereafter sword autocrats threaten world.' 51 derived but, just quoted, implication Thus, structure controls guides equally peace, read realistic instrument fully mind.34 52 stages maintain Navy; *,' utmost speed, combined flexibility product producers. named therein believe predestined uses. 53 definitive Act.—The currently interpreting appear scope policy. above 1942,35 Joint Departmental 1943,36 Committees. evidence correct understanding intent. restricting effect. Furthermore, statute shown whereas 54 profits,' expression render constitutional.—The defined probable desirability definition, demonstrate initiating problem. confirmed already tends show 55 imposition familiar emergency funds expenditures, peace. income railroads 1924. Dayton-Goose Creek 263 456, 169, 388, American Law 472. opinions 834; Schechter Poultry 295 495, 529—542, 837, 842, 848, 79 1570, 97 947; Panama Refining Ryan, 293 413 433, 241, 245, 253, 446, position. 56 choosing cost-plus 100% attempt conditions where alone disclose well-considered grant effectuate came described Chief Hughes supra, 421, 248, 446: 'Undoubtedly adapted involving host details Legislature deal directly. denying practicality, will perform function laying down establishing standards, leaving selected instrumentalities subordinate rules declared apply. Without authorizations sort anomaly calling exertion futility.' 57 supply specific formula guidance field adaptation infinitely variable constitute essence program. 'If lay act intelligible principle forbidden power.' Hampton 276 394, 409, 348, 352, 72 624.S tandards applied. 'They derive meaningful content context appear.' Light S.E.C., 329 90, 104, 133, 141, 103. establish meaning practice.37 word 'excessive' twice Eighth Amendment Constitution: 'Excessive bail required, fines imposed, 403(d),38 disallowed 'compensation 'any Cir., 423. following, somewhat sufficiently definite action: 59 'Just reasonable' rates sales natural gas, commission Hope Gas 320 600, 601, 281, 286, 287, 333; 'public interest, convenience, necessity' Communications Code Annotated KF65 U5 151 Broadcasting 319 190, 225, 226, 63 997, 1013, 1014, 87 1344; yielding 'fair return' value' property, Sunshine Coal Adkins, 310 381, 397, 398, 60 907, 914, 84 1263; 'unfair competition' distinct offenses Trade Keppel Bro., 291 304, 311, 312, 314, 423, 425, 426, 427, 78 814; 'just men, Tagg Bros. Morehead 280 420, 431, 220, 221, 524; rent premises, courts, Levy Leasing Siegel, 258 242, 243, 250, 290, 291, 292, 595. 3. Methods Prescribed Limitations Imposed Administration. 61 imposed contemplated helpful. confined short thereafter. Renegotiation, beginning, elimination departments subsequent exemptions. whom specified responsibility. existed defined. Tex discussed later. likewise recoveries. forms, Was Taking Private Property Public Use. proi ts received receivable collection taxes, requisitioning condemnation use. redetermining persons avoidance plants producing refund earnings railroad carriers 15a Transportation 1920, 488, 15a, sustained renegotiated penalty deprivation violation Including Its Amendments, Has Been Properly Applied Entered Into Before Their Respective Enactments. arose All stages. type known, All, except case, four, date. therefore relating performed 1941. involved. exists event uncompleted made, here. so. 69 Remedy. 70 (the Act) amended, review Secretaries. 1944 (§ 403(a)(4)(A),39 created 403(d)(1)40 future. providd secure Board. 403(e)(1).41 71 'A treated novo.' 403(e)(1). (e)(1), (of Board) conclusive agency.' 403(c)(1).42 403(e)(1) accordingly open addition procedures affecting provisions, 403(e)(2),43 July 1, days redetermination. situations cases. 73 No us, expired. here, 771, 1502, 1796, upon, resort course taken, afford Consistent speed matters, intended primarily renegotiations interested reach agreement Government, agreement, announce formal lieu review, hearing, stage point log requisite hearing becomes effective.' Opp Cotton Mills Administrator, 312 126, 152, 153, 524, 535, 536, 85 624. 75 decisions optional procedure. Failure there. excluded contention example, Likewise, processing 'subcontracts' 76 reasons, adjudged 77 affirmed. Affirmed. MURPHY concurs 80 JACKSON dissents 81 Appendix. I. 82 Excerpts chapter 247, 246. 83 '(a) subsections section, 'contract' includes 'contractor' '(b) retention repayment (A) 245. equal reduction (3) subsection; cn certainty, (B) (C) relieving liability account retained repaid '(c) directed, realized, price, withhold Such deemed indebted subsection, actions miscellaneous receipts. applicable heretofore contain '(d) allowance unreasonable. ascertaining unreasonable up, incurred, designated title XIII applicable. '(e) who holds section aggregate $100,000, statements, detail, require. 89 VIII, Contracts, 619, 798, 982—985, U.S.C.A.Internal Beginning 1940, 801, Page 376. 801 particulars, additions 403(a), 403(c) 403(i) reading follows: 'Sec. 801. Contracts. 93 Subsections (a), (b), e fense (Public 528, 77th 2d Sess.), 94 403. section— '(4) 96 '(5) 'subcontract' purchase work, furnish article, performance subcontract. 'article' material, part, assembly, machinery, equipment, property. 'For 'contractor's 98 Whenever, thereunder contractor, excessive, When discretion, group separately 99 '(2) Upon (i) reductions subcontract, revision terms; (ii) withholding, profits; (iii) directing subcontract; (iv) repayment, suit, actually him; (v) combination methods, desirable. withheld subsection. surety liable thereon. money way suit 100 '(3) excessiveness allowed Chapter 2E hereunder allow 3806 101 discharge cover past apply advisable. 102 Any applical e, shorter notice, fixing conference sixty If commenced discharged. 103 '(6) unless 104 (Sec. 801.) adding end thereof subsections: '(i) 106 107 outside territorial continental Alaska; 108 '(ii) which, certainty established, classes services, real perishable commodities minimum sale regulatory body, leases license agreements, days; 109 '(iii) portion prevent 110 individually types.' 111 982. III. 112 passed notwithstanding objections President, 63, 92, KF62 (Supp. V, 1946) 1191, 701, 491. 113 expanded reproduction relevant: 403(a)(4)(A); 403(c)(1); 403(d)(1); 403(d)(4); 403(e)(1); 403(e)(2); 403(l); 701(d) 1943: 114 Sec. 701. 115 Contracts.—Section 116 117 pot ion accordance factors: 118 efficiency regard attainment quantity quality production, economy materials, facilities, manpower; 119 reasonableness normal pre-war earnings, comparison peacetime products; 120 source worth; 121 '(iv) risk assumed, incident pricing policies; 122 '(v) effort, inventive developmental cooperation supplying technical assistance; 123 '(vi) business, complexity manufacturing technique, subcontracting, rate turn-over; 124 '(vii) equitable require, published adopted. 125 accrued reflect be, thereto. mailing registered mail proceeding. conference, adjourned endeavor accrued, may, include accrued. enter forthwith agency. (or mutual agreement) separate Whenever shall, prepare determination, therefor, proof therein. 126 hereby (in 'Board'), members. 127 whole function, duty delegated agencies designate, successive redelegations functions, duties. 128 ninety (not counting Sunday legal holiday Columbia last day) (c)(1), thereof. exclusive jurisdiction, order, reviewed redetermined than, to, greater novo. 129 thereof, year, duties, paragraph (1), 130 '(l) 'Renegotiation Act'.' 131 (SEC. 701.) Effective Date.—The inserting (a)(4)(C), (a)(4)(D), (1)(C), (i)(1)(D), (i)(1)(F), (i)(3), (l) enactment, Act.' 78. 132 DOUGLA dissenting part. 133 class N Dec. Immigration Nationality Decisions close statutes, Appendix III Court's bear me out. 134 provides And 403(c)(1) 'shall conclusive.' 135 Secretary. 403(e)(2) orders, too, inapplicable 403(c)(6) 'to on, 1943.' Hence Orders respects differently conclude leave fell access enjoyed invoked option 136 839, opposed conclusion. 1821, business. there, decided day. amendments, consisting of: Sometimes text infra. II, 185, 347, 348. IV. An fees 239, 564, 565. Repricing 78—93, §§ 1192, 1192; 701 491 508. III, 701(b), Sup lemental Act." 90. others, enactment.' 92. VI. extend termination 210, 294, 295, 1191. Courts text, Ring Construction KF6280 U55 1070; Cohen 1002; Stein Mfg. 863. discussions stopping passing 839. implementing vare obviously command attention: People Order perfect defence, Blessings Liberty ourselves Posterity, ordain America.' U.S.Const. Preamble. collect Taxes, Duties, Imposts Excises, pay Debts Defence Welfare States; declare 8. Commander Army 1. Madison Federalist, XLI,—General View Conferred 'Security foreign danger primitive objects civil society. avowed object Union. attaining effectually councils.' Hamilton XXIII,—The Necessity Energetic Proposed Preservation Union: endanger nations infinite, shackles wisely care committed. ought co-extensive combinations circumstances; direction councils appointed preside defence.' Armies', Navy', carry draft battle service. Draft Cases, 245 366, 159, 349, L.R.A.1918C, 361, Ann.Cas.1918B, 856. organizations lives less.' 305, 589, writing Conscription Lincoln characteristic clearness: 'Whether implied controversy; effrontery ventured distinctly declares Years.' armies.' else '* Do you admit armies, insist exercised mode?—has thing way? Who judge this? mode, relinquish alternative. fully, completely, unconditionally. armies authorities consent; compose entirely willing; 'if." Nivolay Hay, Works Abraham 75—77 (1894). quotation Lincoln, quoted Evans Constitution' Bar Association, 7, 234—235. Confederacy Civil North South. coercing service, indeed transcendent hands government; liberty, preservation.' Burroughs Peyton, Grat. 470, 473, Va. 473. 234 n. 856; Jacobson 197 29, 358, 362, 643, Ann.Cas. 765; Grimley, 137 54, 55, 636. 'Our objectives clear: objective smashing militarism lords enslaved peoples; liberating subjugated nations; securing speech, religion, want, fear everywhere world. stop objectives; satisfied gain know speak people—and good peoples us—when say follow. 'But task, shooting fighting, urgent working producing. 'Victory requires weapons transporting dozen points combat. produce slightly superior munitions Germany, Japan, Italy, stolen industries countries overrun. superiority ships overwhelming—so overwhelming Axis attain build planes tanks guns capacity. ability arms navies, air side. 'And armament conquered nations, stand ready seize revolt German Japanese oppressors, againstt traitors ranks, known infamous 'Quislings.' get patriots lands, fire shots heard 'round 'This ours levels, though mean dislocation occupations millions people. sights along line. Let man done. done—and undertaken 'I sent letter ordering steps taken: '1. increase airplanes 60,000 planes, 10,000 goal half ago. 45,000 combat planes—bombers, dive-bombers, pursuit planes. continued, next 125,000 airplanes, 100,000 '2. tanks; continue 75,000 tanks. '3. antiaircraft 20,000 them; 35,000 guns. '4. merchant 8,000,000 dead-weight tons compared 1941 1,100,000. 10,000,000 tons. 'These figures similar multitude imple- ments Nazis little idea accomplished attack Pearl Harbor. task hard—our unprecedented—and short. strain armament-producing facility utmost. convert tool production. goes greatest smallest—from huge automobile village machine shop. 'Production women—the human brains collectively labor. workers work hours; turn day's work; wheels turning fires burning hours day, week. realize sons brothers fronts. metals raw materials steel, copper, rubber, aluminum, zinc, tin. Greater diverted purposes. Civilian completely eliminated. money. So far, hardly begun defense. my Budget Message tommorrow, coming $56,000,000,000 one-half estimated annual income. bonds taxes. cutting luxuries nonessentials. word, all-out family country. 'Only hasten victory. Speed count. Lost regained—lost never. lives; peril; civilization—and slowness characteristic.' Cong.Rec. 32, 33—34 (1942). 'Ever since beginning constant controlling impeding latest efforts.T o obtain contracting peacetime. cost-plus-fixed-fee detailed specifications. lump-sum items guesses. billions dollars hastily 'shoveled' 'Is desirable counteracting wasteful effects procurement? Is administered intent? What changes, needed? 'As law: '(1) rapid procurement previous manufactured relatively small quantities, adjustment avoided. Taxes job higher corporate discourage economical production; scheme taxation devised efficient low-cost fairly reward bankrupt second set-up, inordinately third loss escalator contingencies. protection Experience 'cost-plus' worse worthless costs. strongly tend reversed. administration characterized accomplishments: assembly unusual able, conscientious, patriotic lawyers, accountants, businessmen administrators [Argument Counsel 760-762 gradual education adopting tailoring levels special constructive criticisms: Substantial variations attitude charged noticeably improved recent weeks. wholly unnecessary confusion, uncertainty, misunderstanding Results justify inference influenced desire achieve kind mathematical exactness cost-plus-a-percentage-of-cost contract, law. unnecessarily cumbersome handling essentially principles shrouded secrecy renegotiators themselves, causing i stracted unwarranted nevertheless fears unknown. audits duplicatory. dollar interfering overzealous seriously detrimental procurement.' S.Rep.No.10, Part Sess. 1—3 '5. procuring procurement. abandonment drawn-out surveys sound purchasing Competition necessarily wanes offers guide paid. Above all, forecasting becomes, informed guessing analysis. plants, producers; true, perhaps lesser degree, sharply amounts. manufacturers feel unable quote firm contingencies occurrence skyrocket costs, overturn '6. procurement, 1941, activities mold. Efforts course, develop contractual devices paramount difficulty estimating unavoidable, disadvantage removing incentives imposing heavy auditing contractor. clauses, according fluctuations indices labor unworkable. Letters intent, manufacture helped solve decreasing preventing '7. Shortly declarations executive accrue counter taken. evil morale population, ignored. fresh. dangers inequities profit, voluntarily reduced prices. spring analysis check, practicable, board negotiate payments. Tentative meetings had. laid estimation hoped alive undue light. '8. apparently felt, measures, cooperatio contractors, enough Vinson-Trammel limiting aircraft ship construction, repealed revive March, impede unfair generous After Case Representatives late offered proposal giving developing. accord (rather profits), endowed bilateral wise one, anything achieved. '12. Some conception activity Harbor gained ($22,905,000,000) considerably naval 1789 I.' Affidavit sworn note supra. McKinley 249 324, 668 (regulations local near stations); Northern Dakota, 250 135, 502, 897 (seizure railroads); Kentucky Distilleries 251 146, 106, 194, (local liquor traffic); Central Trust Garvan, 254 554, 214, enemy property); Hirabayashi 81, 1375, 1774 (curfew regulations); 834 (Emergency Control 901 seq.); Bowles Willingham, 503, 641, 892 (rent control); Korematsu 323 193, 194 (exclusion civilians west coast area). 93, 1382, 1774. successfully.' 238. extends affect progress. restricted victories repulse Since commits vicissitudes threatened injury selection resisting Where, andd iscretion choice war-making, sit theirs.' '20. 1939, 1934, (34 494 seq.) (relating vessels) Merchant Marine 1936, (46 1101 ships). 1939 (10 312), lowered approximately 8% 1940 (50 1152), 9, 12% prevail. '21. (54 974), tax, suspended statutes tax. Thereafter, until concerning tax.' Hensel McClung, Profit Limitation Controls Prior Present Contemp.Prob. 187 (1943—1944). publicly held: Pub.L.No.528, (September 23, 1942); Subcommittee Mil.Est.App.Bill 483—518, 571—580 (June 1943); H.R.2906 (Mil.Est.App.Bill 1944), 22, 30—33, 125—138, 150—151 (1943); H.R.Res.30, 10—30, Ways Means H.R.2324, 2698 3015 (Renegotiation Contracts), 9—23, H.R.3687 (Revenue 1943), 49, 388—392, 402—424, 443—452, 465, 598—601, 620—629, 669—684, 690—696, 925—926, 987—1111, 1121—1132 (November 29—December 15, H.R.2628 (extension Act), 79th (April 12—16, 1945). addition, interviews reports Committees: H.R.Rep.No.733, (October 1943). Report H.R.Res.30 Contracts); Sen.Rep.No.10, (March Additional 40—64, 192—199 4, 1944). (Third Annual Report); H.R.Rep.No.871, 75—90 18, Bill Sen.Rep.No.627, 98—119 (December H.R.Rep.No. 1079, 34—39, 76—88 (February (Conference also: Contracts—Law, Dea tes Other Legislative Materials—Compiled Means, Data brief jointly renegotiation: '11. advised 1947, 118,101 1946 years, aggregating $190,000,000,000 (excluding non-coverage) subjected Of assignments, 115,535 97.8%) Out 85,037 73.6%) cancellations clearances 28,889 25%) contractor; 1,609 1.4%) 30,498 assignments 5.28%) 94.72%) bilateral. 'Also recoveries $10,434,637,000, (after deduction refunds) $3,130,391,000. $895,493,000 8.58%) agreement.' 403(l) Representatives, Amendment, 6% debate. 3139—3140 strong representatives omission recommended Appropriations. ample omitted passed. 3378—3405; 3582—3599; 3647—3662; 3666 (1942), H.R.Rep.No.2030, 8—10 16—28 1942). Statutory Language. Published Patterson Renegotiating Pub.L.No. 34—43 2. Validity Authority. remains: restrictive authority? manifest, once, organs functions prescribes. Senators qualified manner. Executive, elected restraints office. judicial continues inferior ordained. Again, apart framework Thus Imposts, Excises' 'provide defense,' doubted purpose, army operations, restrictions.' Address 241—242. Billings 232 261, 282, 424, 596. Brushaber 240 24, 236, 244, 493, L.R.A.1917D, Ann.Cas.1917B, 713. Justice, insure domestic Tranquility, Welfare, (Italics supplied.) notes 26, Excessive means: 'Characterized by, exhibiting, excess; as: Exceeding usual proper; overmuch. b degree; exceptional; great.' Webster's International Dictionary, ed. (1938).

Classification Label: 3