99189 [EXECUTIVE SESSION] HEARINGS BEFORE SUBCOMMITTEE NO. 3 OF THE SEVENTY-EIGHTH CONGRESS ON H. R. 4789 and S. 1718 TO PROVIDE FOR THE SETTLEMENT OF CLAIMS (Includes Hearings before the House Special Committee MAY 17, 1944 Serial No. 16 Printed for the use of the Committee on the Judiciary UNITED STATES WASHINGTON: 1944 CONTENTS Hon. Carl Vinson, a Representative in Congress from the State of Georgia, and chairman of the House Committee on Naval Affairs___ (Some statements of John M. Hancock and Lt. Col. H. C. Rose appear in connection with Mr. Vinson's statement.) Brief summary of most important differences between Vinson bill (H. R. John M. Hancock, acting chairman, Joint Contract Termination Board, and Lt. Col. H. C. Rose, secretary, Joint Contract Termina- House Special Committee on Post-War Economic Policy and Planning on settlement of claims arising from terminated war contracts, dated May 12, 1944 (H. Rept. No. 1443), submitted by Mr. Folsom... Hon. Estes Kefauver, a Representative in Congress from the State of Tennessee, and a member of the House Committee on the Judiciary Exhibits to statement of Hon. Estes Kefauver: Frederick C. Crawford, National Association of Manufacturers Arthur G. Drefs, chairman of the committee on contract termination disposal, National Association of Manufacturers. Hon. Maury Maverick, Vice Chairman, War Production Board, and Chairman, Smaller War Plants Corporation....... Herbert L. Carpenter, president, Carpenter Container Corporation, Brooklyn, N. Y., and chairman, small business division, post-war planning committee, Commerce and Industry Association of New Edward A. O'Neal, president, American Farm Bureau Federation___ STATEMENT BEFORE HOUSE NAVAL AFFAIRS COMMITTEE United Automobile, Aircraft, Agricultural Implement Workers American Institute of Accountants, dated May 17, 1944, with at- tached resolution adopted May 9, 1944... St. Louis Chamber of Commerce, dated May 13, 1944. The Clark Controller Co., Cleveland, Ohio, dated May 13, 1944.. Association of Reserve City Bankers, Chicago, dated May 11, 1944. Federated Industries of Washington, Seattle, dated May 8, 1944. CONTRACT TERMINATION WEDNESDAY, MAY 17, 1944 1 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE No. 3 OF THE COMMITTEE ON THE JUDICIARY, Washington, D. C. [EXECUTIVE SESSION] Subcommittee No. 3 of the Committee on the Judiciary met at 2 o'clock p. m., pursuant to call, Hon. Francis E. Walter, chairman of the subcommittee, presiding. (The subcommittee had under consideration H. R. 4789, which is as follows:) [H. R. 4789, 78th Cong., 2d sess.] A BILL To provide for the settlement of claims arising from terminated war contracts, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, OBJECTIVES OF THE ACT SECTION 1. The Congress hereby declares that the objectives of this Act are(a) to facilitate maximum war production during the war, and to expedite reconversion from war production to civilian production as war conditions permit: (b) to assure to prime contractors and subcontractors, small and large, speedy and equitable final settlement of claims under terminated war contracts, and adequate interim financing until such final settlement; (c) to assure uniformity among Government agencies in basic policies and administration with respect to such termination settlements and interim financing; (d) to facilitate the efficient use of materials, manpower, and facilities for war and civilian purposes by providing prime contractors and subcontractors with notice of termination of their war contracts as far in advance of the cessation of work thereunder as is feasible and consistent with the national security; (e) to assure the expeditious removal from the plants of prime contractors and subcontractors of termination inventory not to be retained or sold by the contractor; (f) to use all practicable methods compatible with the foregoing objectives to prevent improper payments and to detect and prosecute fraud. SURVEILLANCE BY CONGRESS SEC. 2. (a) To assist the Congress in appraising the administration of this Act and in developing such amendments or related legislation as may further be necessary to accomplish the objectives of the Act, the appropriate committees of the Senate and the House of Representatives shall study each report submitted to the Congress under this Act and shall otherwise maintain continuous surveillance of the operations of the Government agencies under the Act. (b) In January, April, July, and October of each year, the Director shall submit to the Senate and House of Representatives a quarterly progress report on the exercise of his duties and authority under this Act, the status of contract terminations, termination settlements, and interim financing and such other pertinent information on the administration of the Act as will enable the Congress to evaluate its administration and the need for amendments and related legislation. 1 |