Indianapolis Times, Indianapolis, Marion County, 17 December 1942 — Page 32

Measure Sought to Get Ful Value From Wartime Spending.

‘By FRED W. PERKINS

% WASHINGTON, Dec. 17.—As congress ended yesterday there died “vith -it a ‘bill that has been the darget of a behind-the-scenes fight | by men who want to see the govern- . ment get every dollar’s worth out of po wartime spending. The senate made the bill's death certain when [Minority Leader JMcNary (R. Ore.) objected yesterday to the plea of Chairman Bailey (D. N. C) of the senate commerce committee for immediate passage My, Perking or the measure, which would have amended the law ‘governing conduct of the war shipping administration and the mari- ! time commission. +. Principal opposition to the bill, “which the house has passed, was directed at an amendment by the senate commerce committee which would have changed the basis on which the maritime commission is empowered to pay for ‘privately owned merchant vessels taken over for war purposes. \

Sees Return Purchase

. Opponents said the change would result in the government paying full prices without regard to subsidies previously granted to merchant marine companies — that, in effect, the government would be buying back its own subsidies. » The change was backed by the . maritime commission. Opponents - said the effect would be to ratify transactions by the commission ‘which have been denounced by the comptroller general's office as an unlawful use of several millions of dollars. The house merchant marine committee 1s investigating two of these transactions, which the general aceounting office says resulted in unauthorized financial benefits for the Tampa (Fla,) Shipbuilding Corp. and the Waterman Steamship Co. of Mobile, Ala.

Charge Loss to Commission

* In the Tampa case the maritime eommission was alleged by the eomptroller general to have induced the navy department to redeem its dnvestments and those of the Re‘construction Finance Corp. by paying nearly $2,000,000 more than was Jjustified for uncompleted vessels the ‘commission had originally ordered. + In the Mobile case the commission is charged with having lost $1,995, 900 through selling five old ships to the Waterman company and later sJbuying from the same concern five older ships at higher prices. Admiral Emory S. Land, maritime

‘commission chairman, defended the |;

Waterman transaction yesterday before the house committee and got into an argument with committee ‘ members threugh implications that investigators of the general account ing office had acted improperly and drawn the wrong conclusions, Admiral Land said that the commission had saved ‘money for the : government. -

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