| Show Family Admits Profit From War Contracts in n 41 WASHINGTON July 16 Iff A UP-A A Washington family of four acknowledged before the house naval committee Thursday that it had realized profits amounting to in 1941 1911 by obtaining war contracts for 11 manufacturers on a commission basis your definition of war war I profiteering en t tat a t i v e Magnuson D. D Wash asked WilIlam William William Wil Wil- liam Ilam father and founder found found- er of the partnership I dont don't think that I have one replied what I thought observed observed observed ob ob- ob- ob served Magnuson The he partnership includes Scrim Scrim- his wife and their two sons Maxwell and C C. Bailey Scrim Scrim- Testifies to Profits Maxwell testified that the family had collected in commission fees for contracts contracts contracts con con- tracts obtained in the last three years from the navy department I alone and had another insight in insight insight sight from that source Vinson D. D Ga announced announced announced an an- that the committee was going to insist that the government government govern government ment renegotiate army and navy contracts to recapture commission commission commission commis sion fees paid to war brokers Besides saving money and breaking breaking breaking break break- ing up this commission racket Vinson said it would end the impression impression impression im im- among many manufacturers manufacturers manufacturers that they needed so called influence boys to help get government government government gov gov- contracts in Six Months Maxwell told the committee in response to questions that the family's profits for the first six months of this year amounted to about and Vinson instructed instructed instructed in in- him to furnish the committee committee committee com com- with details so so that we I and the government may have havea a a full account the father declared emphatically that he had no pull at the navy department to help him land contracts for his clients but said said said-he ho he knew plenty of people down there He and his sons did say they had paid civilian em em- of the navy department nt small sums for sending them public copies of navy requisitions for material in their spare time Taxes Take Talce Much He said the government would recapture much of the family's profits because taxes are getting a good part of it and said th that t tin in three instances he had lowered his fees for obtaining the con con- tracts The testimony of the father father father fa fa- fa- fa ther and sons showed that their commissions ranged from 10 per percent percent percent cent on small contracts down to 2 per cent on some of the larger ones Under questioning by Representative Representative Representative Mott R. R Ore as to what the mother contributed to the firms firm's activities Maxwell said that she had invested the firms firm's original original inal capital of between and when the father started 20 odd add years ago to obtain contracts for manufacturers Sitting in on the investigation are representatives representative's of the department department department depart depart- ment of justice and the army and the navy |
