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[EXECUTIVE SESSION]

HEARINGS

BEFORE

SUBCOMMITTEE NO. 3 OF THE
COMMITTEE ON THE JUDICIARY
HOUSE OF REPRESENTATIVES

SEVENTY-EIGHTH CONGRESS
SECOND SESSION

ON

H. R. 4789 and S. 1718

TO PROVIDE FOR THE SETTLEMENT OF CLAIMS
ARISING FROM TERMINATED WAR CON-
TRACTS, AND FOR OTHER PURPOSES

(Includes Hearings before the House Special Committee
on Post-War Economic Policy and Planning, and
excerpts from other Congressional Hearings)

MAY 17, 1944

Serial No. 16

Printed for the use of the Committee on the Judiciary

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON: 1944

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CONTENTS

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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.

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