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Sign up freeThe Ypsilanti Daily Press
Ypsilanti, Washtenaw County, Michigan
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In Washington on Oct. 19, Comptroller General Warren charges War Department with squandering millions on fraudulent war contract claims, leading House committees to pledge thorough investigations and scrutiny of future appropriations amid WWII fiscal concerns.
Merged-components note: Main article and continuation on war contract investigations.
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House military and appropriations leaders promised today thorough investigation of charges by Comptroller General Lindsay Warren that War Department officials are squandering "untold millions" in settling war contract claims.
Warren was called before the House, Military Affairs Committee today for pointed questioning on accusations he delivered before the body in a dramatic session yesterday.
"These charges are so serious that an adequate investigation must follow," declared Rep. Clason (R) Mass., a committee member. "Such an investigation will save the country millions of dollars."
Chairman May (D) Ky., of the House Committee, in announcing that Warren would be questioned further on his very revealing statement, said the Comptroller General's testimony shows that "our committee is pursuing the right procedure in conducting hearings on this question."
Dish Funds Out
Warren's declaration that "absolutely inept contracting officers are dishing funds out of the United States Treasury with reckless abandon" brought a pledge that pending Army appropriations would be given close congressional scrutiny.
"We will investigate his charges with a view to future War Department appropriations," said Chairman Cannon (D) Mo., of the House Appropriations Committee.
Cannon said his committee was not an investigating unit but would be certain to consider Warren's accusations before approving any further funds for the Army. The War Department's appropriation for the fiscal year 1945 is expected to reach about fifty billion dollars—slightly below that of the current year.
Warren took blunt exception to Undersecretary of War Robert Patterson's claim that present contract settlements were being made on a sound basis.
See CONTRACTS—Page 2
Contracts
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...tract termination regulations are adequate.
"I say there is nothing in them to stop even fraud in the claims put forth by contractors," he said.
"Looting Treasury"
"Those who are looting the Treasury should be made to disgorge and those who are guilty of permitting it should be sent to jail."
He called attention to contractors claims for "wining and dining and parties of all sorts," presenting a list of 170 cases
The government, he charged, was called upon to pay for flowers sent when there had been death in the families of employes, group insurance, installation of juke boxes in war plants, hiring of valets, a $245 set of false teeth and other items.
Himself a former congressman, he demanded that Congress appropriate sufficient funds to "clean up this awful mess".
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Story Details
Key Persons
Location
Washington
Event Date
Oct. 19
Story Details
Comptroller General Lindsay Warren accuses War Department officials of squandering millions in war contract settlements through ineptitude and fraud, prompting promises of thorough congressional investigations by House committees to scrutinize future appropriations and ensure accountability.