Henderson Daily Dispatch

PLAN TO "POLICE" WARSHIP BUILDERS TO AVOID GOUGING

Four-Point Program Proposed to Senate by Munitions Committee Following Probe

REAL COMPETITION FOR WORK SOUGHT

Would Limit Profits to Five and Ten Percent and Prevent Cotton from Getting into Hands of Foreign Powers;

Would Register Shipping Lobbyists

Washington, June 24.--(AP)--Demanding a big stick policy to "police" builders of warships and prevent them from confusing "public defense needs with their private pockets," the Senate Munitions Committee today urged a four-point legislative program to:

1. Provide real competition in bidding for naval construction jobs.

2. Prevent American cotton from getting into the hands of foreign powers.

3. Limit profits to five percent of the total cost to the government, in cases where the government assumes risk of the enterprise, or to ten percent where the government does not.

4. Require that shipbuilders' lobbies register with the government and disclose their income and expenditures.

Plan To "Police" Warship Builders to Avoid Gouging
(Continued from Page One.)

Some shipbuilders, said the committee, headed by Senator Nye, Republican, North Dakota, are certainly not above suspicion of willingness to wave the flag or to circulate war scares in the plain and simple interest of their own pocketbooks, regardless of results.

The committee, making a preliminary report on the situation to determine whether a collusion existed, declared there was telepathy among ship builders in dealing with each other so that each got the job it wanted and profits, ranging as high as 36 percent.