Show NAVAL PROFITS TAX DEMANDED WASHINGTON Jan 27 UP Chairman Harry S. S Truman D. D Mo of the senate defense investigating investigating investigating gating committee Tuesday urged congressional enactment of of an excess excess excess ex ex- cess profits tax to absorb per percent percent percent cent of unreasonable and unconscionable unconscionable unconscionable profits on naval construction construction construction con con- contracts Appearing as a witness before the senate naval affairs committee commit commit- I tee Truman presented testimony received from naval officials and shipbuilders which he said indicated indicated indicated indi indi- that the navy showed little interest in saving money once contracts contracts contracts con con- tracts for vessels were awarded Bonus Paid He told the committee that in some cases a bonus of per per day was paid to builders builders builders build build- ers holding plus fixed con con- tracts In IR one case the bonuses bonuses' were paid to a company employing men he added In response t to questions by Senator Senator Senator Sen Sen- ator Guy M. M Gillette D. D Iowa Truman pointed out that labor costs costs and and every other imaginable ble expense expense are are calculated in plus cost-plus contracts and that the payment was strictly in the nature of a bonus to encourage speed in the construction work He charged that naval observers stationed at shipyards had shown little interest in saving money for forthe forthe forthe the government The navy also has failed to establish any methods of figuring costs on vessels built in public yards he said No Yardstick Truman said naval officials told his committee that certain factors factors factors fac fac- tors made it impossible to calculate calculate calculate late the cost of any vessel built in a government yard hence no yardstick was available for use usein usein usein in awarding of contracts to private private private vate firms Truman told the committee that in some cases shipbuilders had re returned returned returned re- re turned unconscionable profits to the government the government adding that the f further the Vinson committee house naval affairs group went into the matter the more profits were returned |