Commissary Pay Roll, but who are doing work in other departments be terminated by the Commissary.

As F. T. O'Keefe, Director and Mary A. Mallard, Office Assistant are not on the Commissary Pay Roll they should be removed immediately. As Mr. T. Puglisi has been caught knocking down from the Commissary he should also be terminated. As the prices charged are out of all proportion to the service rendered and as there seems to be some collusion among those in charge of the Commissary to keep certain employees on the Pay Roll at wages out of all proportion to the service rendered and work performed, I recommend that Elsa Brand and John Gordon whom I am informed are the Mother-in-law and Brother-in-law respectively of F. T. O'Keefe, and Herman Bergold who is being paid about $20.00 a week more than his job justifies, be terminated immediately.

As Ferguson-Oman Co. have a contract with Horwath and Horwath which calls for a periodic audit by a staff of Field Auditors it is recommended that they be required to make such an audit at once showing why prices charged are higher than like establishments operated for profit are charging and why Pay Rolls are out of proportion to services rendered.

G. C. STERLING,

G. C. Sterling

Chief Commissary Auditor. FERGUSON-OMAN COMPANY,

April 9th, 1941.

INTER-DEPARTMENTAL LETTER

PERSONNEL DEPARTMENT-HOUSING AND COMMISSARY SECTION

[Legend: (F) Ferguson-Oman Payroll (Supervisory Payroll). (C) Commissary Payroll.]

Ferguson-Oman Payroll.

Commissary Payroll..

$370.00

660.00

Administrative

DEAR SIR: Confirming our understanding of this date on rentals and repairs of equipment owned by Oman Construction Company and rented to FergusonOman Company for use on the Wolf Creek Ordnance Plant, it is our understanding that all repairs are to be paid for by the Ferguson-Oman Company as a reimbursable cost to the job and no rentals shall be deducted for any repairs made in the field.

This is our interpretation of Section 2 under the heading "Rental for Contractor's Equipment", as shown on page 7 of Contract W 7011 qm-2.

Very truly yours,

Approved: Paul M. Brewer, Major Q. M. C., Constructing Quartermaster.

EXHIBIT No. 199

Subject: Timekeeping.

To: Capt. Glen E. Hofto, Constructing Quartermaster.

JULY 9, 1941.

1. There is a discrepancy between the working-time of shovel operators in comparison with the rental-hours of the equipment upon which they were working. Listed below is a comparative schedule between time that the shovel machines operated and wages that the shovel operators received during the identical period of June 28, 1941, which was Saturday, on which premium time ($3.00 per hour) was paid:

2. Similarly, crane equipment has not worked as many hours as the operators assigned to them. A list follows, showing the obvious discrepancies:

3. The time on equipment is reflected in the records of Mr. Anthony W. Bouck, Chief Equipment and Tool Inspector. The time on labor is reflected in the records of Mr. Leo Helzel, Chief Time Inspector.

T. D. THOMAS, Field Auditor.

EXHIBIT No. 200

WAR DEPARTMENT

OFFICE OF THE CONSTRUCTING QUARTERMASTER

WOLF CREEK ORDNANCE PLANT

MILAN, TENNESSEE

Service record on five Euclids, rental agreement #15, March 27, 1941 to July 19, 1941

These are actual figures taken from records in the Tool and Equipment Section.

J. F. MCCARTHY,

Supervising Auditor, Equipment Department

(The following paragraphs were written in pencil:)

Total days in service 115 x 5=575.

Total cost in rentals, repairs and replacements $20,600.02.

Average rental cost per day $35.82 per machine, exclusive of gas, oil,

grease and operators' wages.

Average cost of repairs and replacements per machine $956.00.

Cost of repairs and replacements per working hour 72¢.