U.S. DEFENCE COSTS

Press, Volume LXXVIII, Issue 23673, 25 June 1942, Page 6

U.S. DEFENCE COSTS

NEW APPROPRIATIONS

ARMY, AIR FORCES, AND NAVY

WASHINGTON, June 23. The Appropriations Committee of the House of Representatives has approved the Army Supply Bill of 24,820,000,000 dollars, the largest yet, bringing the total cost, of defence and war for three years to 205,141,000)000 dollars. The committee’s report said that the War Department regards the present situation as the most critical ever encountered.

The measure includes 12,700,000,000 dollars for war materials for the United Nations, bringing the total lend-lease figure to 62,945,000,000 dollars. Appropriations approved by Congress also include 11,317,000,000 dollars for 23,550 aeroplanes, completing President Roosevelt’s programme of 60,000 aeroplanes this year, 125,000 aeroplanes in 1943, and an Army of 4,500,000 men. The committee reported that voluntary returns from war contractors indicated that large economies are forthcoming. Aircraft for Army Lieutenant-General H. H. Arnold, Commander of the United States Army Air. Forces, said the Army’s share of President Roosevelt’s goal of 185,000 aeroplanes in two years would be 148,000. He said that not only would the production goal be reached, but it would be exceeded, and the aircraft factories would be geared considerably higher than the 1943 objective. Moreover, the Army must face terrific training and procurement problems, at the same time engaging the enemy in vigorous offensive action whereve r J e can be found.

Brigadier-General Clay said that the fighting services would face a 250,000ton rubber shortage in 1943. Representative Snyder, chairman of the Appropriations "Sub-Committee, said that the United States was now spending for the war 38 per cent, of the national income, compared with 45 per cent, in Canada, 55 per cent, in the United Kingdom, and 60 per cent, in Germany. New Ships for Navy The Naval Affairs Committee approved unanimously, without amendment, a House of Representatives measure adding 1,800,000 tons of combat ships, at a cost of 8,500,000,000 dollars. Senator Walsh said aircraft carriers, of which the bill provides 500,000 tons, have been approved as “the most serviceable vessels in our navy,” based on the experiences of the -Midway Island and Coral Sea battles. The committee also approved a measure authorising 1,250,000 tons of naval auxiliaries. The House passed and sent to the Senate the Army Supply Bill.

PROFITS ON WAR ORDERS

DISCLOSURES IN U.S. (Received June 24, 5 p.m.) WASHINGTON, June 23

The Military Affairs Committee of the United States House of Representatives has reported that a year’s investigation has uncovered evidence revealing a sordid picture of excessive commissions, brokers’ and vendors' profits, and exorbitant salaries, bonuses, and fees for management in many War Department contracts.

The chairman. Mr A. J. May, recommended ending the cost plus a fixed fee method excepting in unique cases under which the incentive towards extravagance is disregarded. "Economy appears to have been the exception rather than the rule,” states the report. “There has been evidence of widespread and inexcusable waste of public funds amounting to millions of dollars. The investigations reflected every conceivable type of extravagant waste. The time has come when the contractors' honeymoon at the nation’s expense must end. Unbelievable red tape, top heavy organisation, and lack of orientation of the State to war are still rampant in war-time Washington.” The report faulted virtually every branch of the War Department, especially the Air Corps.

PRICE FIXING IN U.S.

CONSUMERS’ SERVICES AFFECTED

WASHINGTON, June 23. The Office of Price Administration has placed price ceilings on consumers’ services, to be effective on Julyl, pegging prices at the highest March levels. Consumers’ services represent 5,000,000,000 dollars’ worth of industry, including laundries, undertakers, garages,- and all sorts of repair shops. To-day’s action is the final move in the Government’s plan to keep living costs at the levels of last March for the duration. Two previous orders, effective last month, pegged wholesale and retail commodity prices

Seaman Awarded George Medal.— The George Medal has been awarded to a British seaman, Angus Mcßae, for courage when his ship was bombed and set on fire. As the crew was taking to the boats Mcßae isaw that the gunner was lying unconscious on the poop. He went to the gunner’s rescue and carried him on his back, running with him along the blazing deck to safety. In carrying out the rescue Mcßae suffered severe burns to his feet. —Rugby,. June 23.