Evening star. [volume], August 01, 1941, Page A-12, Image 14

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
Senators Told Army
Paid Firm Million tor
Building One Plant
Engineering Official
Tells Probers That Fee
Wasn't 'Unduly Large'
By the Associated Press.
Harrison Smith, a partner of
Sanderson & Porter. New York en
gineering firm, testified yesterday
the partnership would receive fees
totaling Sl.239.000 for supervising
the design, construction and first
year's operation of the Army's El
wood ordnance plant at Joliet. 111.
Appearing before the Senate De
fense Investigating Committee, Mr.
Smith said he did not think the fees
were "unduly large," because the
Government received for the money
the services of “an experienced or
ganization of competent people.”
The witness said that he was the
only full-time man furnished in
consideration of the fee, but that
part-time services of other partners
were provided, and Sanderson A
Porter paid additional compensa
tion to various employes who were
on the Government pay roll.
"Overhead'’ in Fee.
Estimating the total cost of the
project at between $37,000,000 and
$38,000 000, Mr. Smith said the Gov
ernment was required to pay for all
materials, equipment and labor in
addition to providing office facilities
on the job
Out of the fee to the engineering
company, he said, came a share of
the “general overhead" of Sander
son & Porter.
“Just what has Sanderson & Por
ter furnished the Government.”
Chairman Truman asked, “except
experts who are paid by the Gov
ernment.”
“We've furnished some business
ability, I hope, and have performed
a real service, I'm sure,” Mr. Smith
replied.
“Couldn’t the Government have
carried on the project just as well
by hiring these people itself, instead
of paying a big fee to Sanderson &
Porter?” Senator Truman asked.
Army Rents 1917 Truck.
“I think not.” the witness replied.
Mr. Smith said his firm's business
had averaged about $250,000 a year
for the five years preceding the de
fense emergency.
During questioning of Capt. R. L.
Richardson. War Department exec
utive. concerning rental of equip
ment on Army cantonment proj
ects, Committee Counsel Hugh A.
Fulton read figures which he said
showed the Army paid $150 a month
for rental of a 1917 truck at Fort
Bliss. Tex.
Asked whether such a rentaj
could be justified. Capt. Richardson
said that it might have been if
the truck were employed for a spe
cific job which could not be done
as well by any other type of equip
ment.
Dies Demands Ousting
Of Japanese Agents
A threat to expose alleged sub
versive activities of Japanese com
mercial attaches and other agents
In this country unless the Govern
ment puts a stop to them was made j
last night by Chairman Dies of
the House Committee Investigating *
Un-American Activities.
The Texan said his committee 1
had testimony from a former em
ploye of the Japanese consular serv
ice in Hawaii that the Japanese
have many fishing vessels on the I
West Coast capable of quick con- I
version into torpedo boats. Mr. ;
Dies said there was an especially
large congregation of such vessels at
Terminal Island off Los Angeles.
Between 3.000 and 5.000 Japanese
rommercial agents still are in this
country. Mr. Dies said, despite the
abrogation of the commercial
treaty with Japan. He insisted that
the Government take steps to get
rid of them, together with about
1.800 exchange students from Japan,
and break up the concentrations of
Japanese fishing fleets in American
harbors.
Service Orders
ARMY.
CAVALRY.
Augur. Lt Col. Wayland B . from Fort
Ril*y, Kan«.. to Washington
CORPS OF ENGINEERS
Yans^y. Lt. CoE Patrick H from Fort
Jackson. S C . to Washington.
Barrigan. Mai Paul D. from Portland.
Orae to Dallas. Tex
The following officers are ordered from
Fort Belvoir, Va., to Panama Canal De
partment :
Curran First Lt. Lawrence V.
Murphy. First Lt. Richard P
Fastede. First Lt. Frederick L.
Pledge. First Lt. Barnet J
Brackbill. Second Lt. Cletus R.
Greenwaid. Second L* Robert.
Klein. Second Lt Irvin I
SIGNAL CORPS.
Back Lt. Col George I from Fort Mon- j
mouth. N J . to Washington
CHEMICAL WARFARE SERVICE
Cp.gpfhuem. Lt Col Walter J. from Edge
wood Arsenal. Md . to Huntsville Arse- j
nal. Ala «.
MEDICAL CORPS
Marvin Maj Horace P fror- C; mp Liv
ingston. La to Balboa Heit''f C. Z
COAST ARTILLERY COE >
Haakensen. Maj Noble T. f m Fort
Winfield Scott. Calif., to Birmingham.
Ala.
Lane. Maj Vincent A from New York.
N Y. to Washington.
Guthrie. Mat Sidney H - from Ownsboro.
Ky. to Cincinnati. Ohio.
Lemmon. Cant Kelley B, from Fort Bliss.
Tex, to Fort Custer. Mich.
AIR CORPS.
Higgins. Maj Warren H . from Hawaiian
Department to Westover Field. Mass.
Fulwider, Capt. Lawrence S, from Pat
terson Field, Ohio, to Ellington Field.
Tex.
QUARTERMASTER CORPS
Francis Mai. Joseph A . from Chicago,
IU, to New Orleans. La.
Gates. Maj. Elvin R from Joliet. 111.,
to Flora. Miss.
Ooane. Capt. Francis E, from Joliet to
Flora
Niemx, Capt. Arthur M, from Joliet to
Flora.
Weil. Capt. Albert H, from Washington to
Paris. Tenn
Turner First Lt Edwin M . from Wash
ington to Columbus Ohio. -
Fa linger. First Lt. Calvin E, from Wash
ington to Chicago.
Weathefley. Second Lt. Joshua W, from
Baltimore. Md . to Washington.
iummerour. Second Lt. Patrick W, jr.
from Camp Shelby, Miss, to Panama
Canal Department
FIELD ARTILLERY
Murphy. Maj John B, from Fort Bragg. N.
C . to Fort Knox. Ky.
Hattan. Capt. Rpy E from Fort Bragg
to West Point N. Y.
INFANTRY.
Herman. Capt Roy T, from Fort Bragg
to Panama Canal Department
Brooks First Lt. Joseph B, from Fort
Jackson. S. C, to Panama Canal De
partment.
Bettys. First Lt. Charles M.. from Camp
Croft. S C, to Panama Canal De
partment.
Bose. First Lt Robert W, jr., from Fort
Jackson to Panama Canal Department.
DENTAL CORPS.
MacDermott, First Lt. William V.. from
Brooklyn. N. Y . to Bangor. Me.
ORDNANCE DEPARTMENT.
Palm First Lt. William G . jr., from
Pin# Camp. N. Y , to St, Louis, Mo.
Soldiers Dance at 'Y'
The Twelfth Street Branch of the
Young Men's Christian Association
last night entertained more than
200 soldiers at a dance held In the
gymnasium. Members of the Serv
ice Council were hostesses. It was
the tecond dance and recreation
service to be held under the aus
pices of the Y. M. C. A.
Sugai'Hoarding Brings
Government Threat
To Flood Market
Recent Purchasing Spree
Boosts Prices Despite
Quota Operations
By the Associated Press.
Apparently fearful that the war
may cause shortages. American con
sumers have engaged in another
sugar-hoarding spree which may
backfire on them.
Despite Government assurances
that supplies were ample, officials
said today that housewives, candy
makers, manufacturers of other
products requiring sugar, whole
salers and retailers have bought su
gar at a record-breaking rate this
year to build up reserve stocks for
use in case of a scarcity or high
prices.
This heavy buying activity had one
natural result—a sharp rise in quo
tations. Today they are the highest
since the war s start in 1939. when a
similar epidemic of hoarding led
the Government to take drastic ac
tion to check the advance. Raw su
gar is being quoted at about $3.60.
duty-paid basis, per 100 pounds at
New York.
Agriculture Department officials,
who ordinarily are able to control
sugar prices effectively, consider
present quotations excessive.
Quota System in lTse,
Under a sugar control law, the
department has the power to say
how much sugar may be marketed
in this country in any year and to
divide this quantity among various
producing areas under a quota sys
tem. By increasing or reducing the
quotas it usually is able to influence
prices.
When it became evident, through
recently increasing prices and mar
keting reports, that consumers were
buying far beyond their current
needs, the department increased the
quotas. It hoped this action would
at least halt the advance.
The department figured wrong.
Prices kept going up. Again it in
creased the quotas, but further ad
vances followed. A third, and very
large increase in quotas was made
this week. Marketings under the
increased quotas are expected to
total 7,627,563 tons, or about 1,000.000
tons more than was consumed last
year.
This third increase like its prede
cessors. has had little or no effect
on prices.
May Flood Market.
Obviously anxious to avoid specu
lative prices, officials said the Gov
ernment might have to repeat action
taken in 1939. At that time Presi
dent Roosevelt, acting under au
thority of the sugar law, suspended
the quota system, thereby removing
all import and marketing restric
tions. Officials were sure such a
step, if taken, would have the desired
effect.
A suspension of quotas, by per
mitting Cuba and domestic beet
sugar producers to sell large sur
pluses, might cause prices to drop
below levels at which hoarding con
sumers bought, officials said, thus
penalizing them.
Fears of shortages have been
founded on the fact that the United
States depends on offshore areas—
mainly Cuba. Hawaii. Puerto Rico
and the Philippines—for more than
two-thirds of its requirements and
the possibility that war-shipping
losses might interfere with move
ment of those supplies. The Agri
culture Department has issued
statements discounting this pos
sibility.
Albert Medal Is Given
Roosevelt by Halifax
Ambassador Halifax of Great Brit
ain presented to President Roose
velt at the White House yesterday
the Albert Medal of the Royal So
ciety of Arts, England, which had
been awarded by the unanimous
vote of the council of the Society.
An inscription on the medal's edge
states:
"1941—Awarded to His Excellency
Franklin Delano Roosevelt, Presi
dent of the United States of America,
in recognition of his pre-eminent
services to humanity as the fearless
and resolute champion of the ideals
of national freedom and individual
liberty.”
The award was founded in mem
ory of Prince Alberti consort of
Queen Victoria, who was a presi
dent of the society. The Duke of
Connaught, son of Prince Albert,
who is now the society’s head, told
Ambassador Halifax when request
ing him to make the presentation:
"During the long years of my own
office I have presented the Albert
Medal to many distinguished men
and women but have never had
greater pleasure in any presentation
than in sending it through you to
President Roosevelt, I may add
that I indorse most warmly the
terms of the award inscribed
upon it.”
The society was founded in 1754.
Theodore Roosevelt was a member
from 1910 to his death.
1"" 1 * ' ” 11 I
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