Evening star. [volume], March 14, 1952, Page A-24 **, Image 24

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

Image provided by: Library of Congress, Washington, DC

                
A-24 **
THE EVENING STAR
Washington, D. C. 1
raiDAT. MAECB 14. 1051 . |
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S6O Billion Lies Idle in Treasury
As Services Ask More Funds
$. 1 * 1
North Amorkon Nowspopor Alltanco
| A total of nearly S6O billion
| lying in the Treasury while
f administration leaders urge new
| defense tax boosts has split House
I and Senate leaders in bitter dls
| agreement over the right way to
finance rearmament.
| * Heading opposite camps are, on
the one hand, Senators George of
: Oeorgia, Douglas of Illinois and
Moody of Michigan, all. Demo
crats, who would limit military
appropriations to the amounts
Pentagon purchasers can actually
| spend this year, and Representa-
I tive Clarence Cannon, Democrat,
of Missouri, the House Appropria
tions chairman, who insists on the
I status quo whereby the full cost
of each contract is laid abide be
! fore an order can be signed.
Authorisations Suggested.
The new dispute was touched
| off Monday when Air Force Un
dersecretary Roswell L. Gilpatric
told a Senate subcommittee that,
because of an average 24-month
“lead time” between contracting
and delivery of planes, Congress
could cut $3.5 billion from current
Air Force requests for funds with
out crippling air rearmament.
Speaking as an “individual tax
payer,” Mr. Gilpatric suggested
that Congress could approve con
tract authorizations which would
permit ,the armed services to
place their orders, and then ap
propriate the actual tax money
when bills for the finished items
/become actually due.
Immense Frozen Balances.
I* Senator Moody, who initially
i.an with the economy ball when
Jr. Gilpatric told the story before
! the Small Business subcommittee
i which the Michigan Senator
heads, came up today with Budget
bureau and Defense Department
figures showing the immensity ol
the frozen balances of cash on
'land.
As reported to Senator Moody,
the Pentagon, when the fiscal year
ends next June 30, will have on
hand an unexpended $56.9 billion
including $19.3 billion in Army
money, $15.7 billion belonging to
the Navy and $21.9 billion in funds*
on hand to pay for still-undeliv
jered Air Force items. Added to
$14.2 billion in Army money, $13.2
billion for the Navy, and $20.7
billion for the Air Force bebu
sought in the new budget, this
would give the three services a
total of $lO4 billion available for
1952-53 expenditure.
To Spend ssl Billion.
“The best estimates I can get,”
Senator Moody said, “indicate
that, during the next fiscal year,
the three services will actually
spend about ssl billion which
would mean that another $53 bil
lion would be left in the Treasury,
unexpended, when next year ends.
In addition to all the above, I am
told that, out of a new $3.5 billion
supplemental bill for military pay
and public works, an additional
$1.5 billion in unused money will
be left at the end of next year.”
Senator Moody added that "to
me it looks ridiculous to talk of a
deficit, or increased taxes, when
the money is simply going to lie
idle.”
Joining Senator Moody today*
Senators Douglas and George took
a rougher approach that the pres
ent system was desired by the
military services as away of get
ting out of the financial control
of Congress.
“I nad a row with one of the
service secretaries about it the
otner night,” Senator Douglas
said. “I told him I thought the
military was trying to accumulate
all the cash they can possibly
spend in the next few years and
thus make themselves inde
pendent of Congress. Actually, 1
am so distrustful of the whole
military approach to money that
I sometimes am afraid I am get
ting a little pathological about it
Their whole system strikes me as
being loose and wasteful and I
for one will approve no more
blank checks until they show
signs of a housecleaning.”
Senator George seconded Sen- |
, ator Moody’s theory that the cur- 1
rent tax crisis could be lessened. 1
and the military needs met, with j
contract authorizations.
“The high brass,” he said, “have
taken the completely fallacious
approach that they must have all
the money tied down when they
sign a contract. That is absurd.
Contract authority gives full as
surance that Congress will make
the money available when it is
time to pay the bills and has the
added value of assuring that no
more will be appropriated than is
actually necessary to meet the
costs. The services, just do not
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want their independence abridged
in that manner.”
Mr. Cannon took the opposite
tack and assumed for himself the
1 "blame” for the present system.
“We put this system in several
, years ago,” he said, “because we
found this contract authorization
business was a snare and a de
lusion.
‘.‘When Congress just approves
orders, but doesn’t put up the
money to pay the bills, it leaves
an impression that it is actually
spending less than it is. Then a
later Congress has to pay the
bills. The people should not be
so misled. In addition, by forc
ing 'Congress to vote the cash
when we sign the orders, we en
courage the individual members
to take a second look and be
sure they want to go through the
pains of appropriating the money
and taking the responsibility
for it.”
Rita Hayworth Goes Out
With Kirk Douglas
By th. Associated Press
HOLLYWOOD, Mar. 14.—Act
ress Rita Hayworth gave the film
colony a conversation piece last
night when she and Actor Kirk
Douglas had a night club date.
Photographers found them
seated cozily at a table at Ciro’s.
After a flashbulb barrage, Miss
Hayworth said, "Please, ooys, no
more.” Mr. Douglass Just grinned.
It was the first public date Miss
Hayworth has had since returning
to do a picture after the breakup
of her marriage to Prince Aly
Khan. Her lawyer says she plans
to go to Reno for a divorce about
March 22.
Mr. Douglas and his wife, the
former Diana Dill, were divorced
in 1950 and Mrs. Douglas obtained
the final decree in February, 1951.
TRANSPORTATION
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CHESAPEAKE BAY BRIDGE
(now u£i r construction )_i I
U MARYLAND'S*
CHESAPEAKE BAY
HORTEST ROUTE 'a and from |
THE EASTERN SHORE
WSsl
FPC Approves Increase
In Wholesale Gas Rates
The Federal Power Commission
I today said a $3 million increase
( in wholesale gas rates by the
i Atlantic Seaboard Corp. and the
Virginia Transmission Corp. will
1 become effective when the com
| panies post a $300,000 bond.
The increase will be felt by the
Washington Gas light Co. but not
by home owners yet. The looal
gas company gets its natural gas
through the Atlantic Seaboard
Oorp.
Rising costs of the price of the
gas it must purchase were cited as
a major reason for a 15 per cent
increase in gas rates which the
Washington Gas Light Co. seeks
from the Public Utilities Commis
sion. The matter is still before
the PUC.
The FPC required the two
wholesale gas firms to post the
bond so that if the commission
finds any portion of the increase
is not Justified, a refund can be
made.
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Frank Sinatra TV Show
Will Be Dropped by CBS
W— -* l—> hj-wiA WS.
opeciai uispaTcn to inf enn
LOS ANGELES. Calif., Mar. 14.
—After a fruitless search for a
sponsor, CBS today notified Frank
Sinatra it was dropping his net-!
work TV show April 1. I
Sinatra said he always felt CBS
had “overestimated” him. when
they moved his show In against
NBC’s Milton Berle. "It was a
case of $26,000 program bucking
a $60,000 one,” he said. "CBS’s
confidence was flattering, but it
didn’t work out.” *
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Microphones SI.OO $2.50 $3.50 TV Rabbit Ears $1.90
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