October 18, 1943

WAR CONTRACTOR MISDEEDS
Erroneous Claims Allowed

WASHINGTON, D.C.—Comptroller General Lindsay Warren today levied accusations that improper charges by war contractors have been allowed by Army contracting officers. Among the improper charges were claims for items such as liquor, juke boxes, insurance premiums, flowers, and even false teeth. Additionally, nearly two million dollars were not refunded to the government after materials had reduced in price. The accusations were made before the House Military Committee. Referring to legislation requested by the War Department, Warren stated, “What is proposed, and is now actually being done, is an arrogant snapping of the fingers in the face of Congress.” Warren cited two hundred and seventy cases in which the general accounting office had questioned claims approved by Army contracting officers and subsequently recovered monies. The War Department has requested military contracting officers to have final jurisdiction in settling terminated war contracts, thus circumventing the general accounting office.