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Mr. HÉBERT. Yes; but keep in mind, General, what we are dealing with. This is not a commercial venture. This is a defense weapon, a defense product. I don't think any individual would accept that a higher price should be paid for defense to one man than another, eren though he be more efficient.

General THURMAN. No, sir. We are interested in lower prices.

Mr. HÉBERT. You are interested in lower prices. Here, with all its grandiose statements-as somebody has said, the statement of General Motors was fine. It was set to music. But, take the music away and you don't have very much to go by.

Now, General Motors, in accepting these contracts, at the request of the Government or otherwise, was doing no more or no less than any individual did. I don't only mean General Motors. I mean any industrial outfit. They were producing weapons of defense to protect their own interests.

Mr. HARDY. All of us.

Mr. Hébert. That is what I say, all of us. They were producing to protect their business that they were in, and a business that would allow them to make a profit on a weapon of defense. Certainly the individual who flew that plane and was killed had no guaranty of any higher profit. The man who is drafted and goes to the front, he fights to defend a way of life. He fights with his fists or his guns or the weapons given by these individuals. They don't sit across any negotiating table

General THURMAN. Sir, you don't expect me to disagree with that.

Mr. HÉBERT. Of course not. I want to bring that into focus. I am not arguing with you, General, on that. I am just again reverting to the great position that General Motors took in this thing: “We did an outstanding job for the Government." They shouldn't have done any less, because if they hadn't done an outstanding job they wouldn't have any negotiating table probably to go to in the future. So there is no great contribution to be made, a great big pat on the back. They did what they had to do to protect themselves, the same as you, I, or anybody else had to do.

General THURMAN. I thoroughly agree.

Mr. HÉBERT. So when they come before the public, and their Madison Avenue boys sell it to the public that here they have not realized or they have realized a profit much less than commercial profit-I have no quarrel with what they get in commercial profit

. But I do have a quarrel when they realize 100 percent more, or twice as much as any other industry engaged in the same production, of the same weapon. And we should take a look at that. And that is all we are trying to do.

Mr. Courtney, now we have some matters to close this up.

Mr. COURTNEY. Mr. Chairman, in view of the question that was raised, I would like permission to interpolate into this record a tabulation of the types of contracts and the percentages that were developed during the course of the airframe inquiry a year ago.

Mr. HÉBERT. Without objection.

a

[blocks in formation]
[blocks in formation]

AF 33(038)9211.
AF 33(038) 14800
AF 33(038) 19050..
AF 33(600)6202
AF 33(600) 22303
AF 33(038) 14801
AF 33(038) 18988
AF 33(600) 6517.
AF 33(600) 8505.
AF 33(600) 22304.
AF 33(600) 29371.
AF 33(038) 27681.
AF 33(600) 25402..
AF 33(600) 26479.
AF 33(600) 6545
AF 33(600) 26962
AF 33(600) 28736.
AF 33(600)79150..
NO3(s) 9243
NOa(s) 9773..
NO (số 10486_
NOa(s) 51-634i.
NOas) 51-139i.
NOa(s) 51-642i..
NOa(s) 52-978i
NOa(s) 54-322i.
NOa(s) 54-323i
W 33-038-ac21800..
AF 33(038)8953.
AF 33(038)17206.
AF 33(038) 5895.
NAO(S) 53-313.
NA0(s) 54-318

November 1949.. June 1950.. $116, 597, 858 $8,959, 607 7.68
July 1950.
July 1951..

128, 774, 874 13, 884, 119 10.78
January 1951.. April 1951. 1 45, 822, 840 4, 805, 127 10. 49
October 1951.. August 1952 1767, 839, 522 17, 554, 876 10. 46
August 1952 June 1953 1122, 256, 389 10, 447, 556 8. 55
July 1950
April 1951.

68, 072, 746 4, 942, 343 7. 26
January 1951. March 1952 99, 469, 665 8, 899, 583

8. 95
October 1951. August 1952. 139, 438, 820 12, 766, 955 9. 16
December 1951.-) October 1952. 43, 556, 948 3,875, 890 8. 90
August 1952 June 1953

1 26, 322, 744 2, 602, 944

9. 89
December 1954.. June 1955.

42, 670, 979 ()
May 1951.
October 1952. 1 104, 291, 289 8,065, 236

7.73
June 1953
June 1954.

27, 577, 893 (2)
December 1953.. do

1 54, 528, 647 3, 523, 382 6. 46
June 1952

May 1953. 1 178, 036, 039 13, 552, 160 7.61
February 1954. June 1954

1219, 398, 495 17, 339, 884 7.90
October 1954. June 1955 1 147, 339, 981 1,080, 961 7. 34
May 1955. May 1955. 1 251, 260, 966 (?)
September 1947 - September 1947.. 19, 889, 150 492, 504

2. 48
May 1948. May 1948.

24, 342, 178 2,501, 291 10.28
September 1949. September 1949.. 13, 653, 294 1, 301, 024 9.53
February 1951.. February 1951.- 18, 547, 433 881, 461 10. 31
August 1950 August 1950.- 41, 931, 459 4, 150, 300 9. 90
February 1951.- February 1951.-- 129, 826, 646 10, 631, 787 8. 19
April 1952 April 1952 124, 873, 916 8, 959, 607 7. 17
March 1954 March 1954

39, 989, 511

(2)
October 1953 October 1953 121, 004, 034

(2)
June 1948.
April 1949

28, 779, 270 1,655, 053 5. 74
January 1950. January 1950. 8, 849, 108 732, 088

8. 27
July 1950

March 1951. 1 60, 762, 131 4, 196, 998 6.91
August 1951. November 1952.. 14, 381, 288 406, 652 9, 28
September 1952. September 1952 1 49, 292, 427

4, 216, 865

8. 55 April 1954. April 1954..

23, 721, 872 (2)

Do.
Do.
Do.
Do.

Do.
Redetermined.
Incentive.

Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.

Do.
Do,

[blocks in formation]

7.59 7.06 7. 16 4. 72 9. 17

AF 33(038) 14764.
AF 33(600) 5805.
AF 33(600) 22235.
W 33-038ac22413.
AF 33(038)-21407..
AF 33(600)-5148.
AF 33(600)22284.
AF 33(038)21096.
AF 33(600)22119.
AF 33(600)-26235..
AF 33(600) 28223
AF 33(600) 28410.

July 1950.- December 1950.- $234, 749, 936 $17, 822, 959
August 1951. November 1952.. 311, 164, 864 21, 958, 705
August 1952 January 1953. 200, 646, 210 14, 364, 808
September 1948. October 1949. 285, 175, 412 13, 468, 313
July 1950... May 1952. 912, 558, 483 83, 716, 064
November 1951.. May 1953.

(3)

(3)
August 1952 June 1953.

405, 780, 737 28, 588, 491
November 1952.- February 1954. - 1545, 049, 391 17, 706, 245
September 1952.- April 1953. 1521, 235, 863 35, 530, 856
October 1953.. December 1954. - 1270, 379, 114 18, 983, 864

August 1954. 255, 290, 365 16, 933, 933
September 1954..

|1 203, 983, 211 12, 273, 365

Incentive.

Do.

Do. CPFF. Incentive.

Do.

Do.
CPFF.
Incentive.

Do.
Do.
Do.

7. 05
3. 25
6.82
7. 02
6. 63
6.02

[blocks in formation]

GRUMMAN AIRCRAFT ENGINEERING CORP.

Date of letter

December 1952..
June 1953..
June 1954.
October 1954.
July 1950.
August 1950.
February 1951..
-_do

September 1952. September 1952. $22, 977, 391
_do.
154, 595, 745
18,643, 586
19, 376, 152
70, 434, 000
5, 000, 000
253, 018, 618
52, 447, 800
148, 989, 344
189, 779, 876

.do.
December 1952..
June 1953..
June 1954.
October 1954.
July 1950.
August 1950.
February 1951.
do..

Date of contract

August 1950.. January 1953. April 1953 October 1949. February 1952.. July 1950. April 1952 December 1950. April 1948 October 1952.. June 1953.. September 1954. September 1949. June 1950. July 1950.. ..do.

February 1951.

do.

May 1948. September 1949. July 1950... March 1951. September 1952. January 1952... January 1953.. February 1954.. March 1955

DOUGLAS AIRCRAFT CO.,

August 1950.. January 1953. August 1953.. October 1949.. December 1952. August 1950 May 1953 June 1952. April 1948. December 1953.

do. September 1954. September 1949.. May 1954 July 1950.

..do.
do

.do..
do

December 1951.
April 1952.
do.

December 1951.
April 1952
do..
..do.
do

do

Total sales price

do.

February 1951..

do..

$58, 322, 544 50,075, 956 163, 412, 959 188, 732, 025 200, 979, 540 116, 422, 819

(4) 10, 070, 000 (4)

$45, 732, 134 78, 497, 054 294, 870, 316 54, 406, 868 68,036, 359 139, 911, 091 188, 584, 998 365, 890, 196 21, 394, 550 106, 113, 982 193,648, 872 187, 847, 632 30, 036, 363 31, 288, 732 61, 748, 064 81,397, 850 50,676, 951 40, 497, 692 38, 503, 643 60, 118, 008 163, 223, 030 122, 858, 317 66, 337, 165 57, 372, 422 78, 241, 410 14, 276, 663

Per

: Contract No.

NAo(s) 53-273..
NAO(s) 53-099_.
NAo(s) 53-394.
NAO(s) 53-1138..
NAO(s) 55-125.
NAo(s) 55-171.
NAo(s) 51-022_
NAO(s) 51-074.
NAO(s) 51-638..
NAO(s) 51-635-

NOa(s) 9768..
NOa(s) 10481.
NOa(s) 51-023i.
NOa(s) 51-640i.
NOa(s) 53-204-
AF33 (600)8743
AF33 (600) 23393.
AF33 (600) 26859..
A F33 (600) 29841.

NOa(s) 51-141.
NOa(s) 53-693-
AF 33(600) 5806.
AF 33(038)9345.
AF 33(600)9646
AF 33(038) 14765.
AF 33(600)16314.
AF 33(038) 18564.
W 33-038ac-20260-
AF 33(600) 22452..
AF 33(600) 25669.
AF 33(600) 28368.
NOa(s) 10483
NOa(s) 12026.
NOa(s) 51-020.
NOa(s) 51-021
NOa(s) 51-630.
NOa(s) 51-632-
NOa(s) 51-637.
NOa(s) 51-654_
NOa(s) 52-247.
NOa(s) 52-977.
NOa(s) 52-979.
NOa(s) 52-980_
NOa(s) 52-981.
NOa(s) 53-381.
NOa(s) 53-382-
NOa(s) 54-316_
NOa(s) 54-320-
NOa(s) 54-324.
NOa(s) 54-325.
NOa(s) 55-189.

AF 33(038) 14803...
AF 33(600) 22316.
AF33 (600) 22315.
AF33 (038) 14810...
A F1433(600) 6704...
AF33 (600) 6581..

MCDONNELL AIRCRAFT CORP.

July 1950.
August 1952..
do..
July 1950.

do.

November 1952 November 1952.

do.

do.. October 1953..

October 1953..

do.

do..
..do.
do
October 1954.

October 1954.
October 1953.
October 1954.

See footnotes at end of table.

July 1950
August 1952.
do..
July 1950.
November 1951. November 1951
do.

do.....

REPUBLIC AVIATION CORP.

6, 164, 052

(5)

100000

INC.

$22, 282, 619
5,875, 807
14, 206, 978
14, 780, 111

$368, 387, 379
281, 165, 517
51, 219, 478
171, 624, 377
382, 987, 738
124,886, 821

Profit

$6, 622, 229
5, 178, 593
13, 063, 436
13, 480, 152
16, 594, 640
8, 323, 912

(4)
570,000
(4)

CCCCCC

cent Type contract profit

$23, 550, 709
21, 475, 910
3,793, 398
11, 975, 316
29, 976, 952
9, 250, 339

8.81
11. 20
9.54

7,79

11. 35
10. 34
7.99

$2,852, 829 6. 24
3,935, 058 5.01
13,378, 566 4.54
5,797, 566 10.66
1,886, 270 2.77
15, 744, 445 11.25
5, 557, 320 2.95
18, 634, 371
2,939, 722
2, 565, 860
2, 134, 098
(5)
1,945, 591
1,338, 550
5,780, 515
4,083, 031
6, 695, 226
1,753, 357
1,623, 179
4, 185, 951
11, 844, 470

(5)
1,591, 462
5, 438, 997

7.14

8.26

7.15

(4)

5. 66
(4)

5.09

13. 74
2.42

1.10

(5) 6.48 4. 28 9.36

5.02

13. 21
4.33
4. 22
6.96

7.26
(5)

2.40

9.48

6. 39
7.64

7.41

6.98

7.83

7.41

Incentive. Do.

Do.

Do.

Do.

Do.

Do.

Do.

Do.

Do.

Incentive. Do.

Do.

Do.

Do.

Do.

Do.

CPFF. Incentive.

Redetermined.
Do.
CPFF.
Redetermined.
CPFF.
Redetermined.
CPFF.

CPFF.
CPFF.

CPFF.

CPFF.

CPFF.

Redetermined.
CPFF.
Redetermined.

Do.
Do.

Do. CPFF. Redetermined.

Do.
Do.

Do.

Do.

Do.
CPFF.
CPFF.
Redetermined,

Do.
Do.
Do.
Do.

Incentive. Do.

Do.

Do.

Do.

Do.

Date of letter

February 1951.. January 1951.. July 1952. August 1950 November 1953. July 1948...

November 1948.
January 1950...
April 1951.
March 1950..
April 1951..
July 1951
March 1953.
July 1950
February 1951
September 1949.
July 1950.

February 1951...
July 1950.
February 1951.
January 1952.
December 1952.
June 1948.
March 1950.
March 1951.
July 1951
July 1952
June 1953
May 1954
August 1950.
February 1951
April 1952.
December 1952..
March 1951.
August 1952.
September 1952.
March 1954.

Date of contract

November 1948. October 1951. October 1952. August 1951. August 1950. July 1954

August 1952. November 1953. May 1946. December 1948..

August 1949. March 1950.. April 1951. July 1950. April 1951. May 1953. March 1953. March 1952. March 1953 February 1950. September 1951. February 1953.. March 1953. do June 1954. do April 1948. March 1950. March 1951 July 1951 July 1952 June 1953. May 1954. June 1952 March 1953. February 1954. June 1954. May 1952 April 1953. February 1953. April 1954..

February 1949... November 1952. May 1953 December 1952. August 1950.. July 1954..

February 1953. November 1953 December 1946.. May 1949..

Profit

$10, 436, 582 1,623, 150 115,744 3, 494, 616 2,993, 705 664, 093

$2, 144, 826 1,632, 643 1,546, 250 5,590, 331 8, 375, 902 434, 030 144, 785 4,087, 637 1, 281, 998 2,046, 327 14, 226, 328 6,611, 609 1,630, 256 1,287, 270 4,390, 814 269, 111 1,865, 801 1,379, 454 8,521, 363 8, 607, 255 7,887, 411 5,975, 641 480, 145 6,350, 200 5,051, 150 2, 494, 917 882,847 27, 404, 279 6,615, 503 3, 580.904 989 242

$859, 451 10, 186, 257 10, 129, 157 6, 104, 351 8, 657, 638 (3)

Per

cent Type contract profit

$7,424, 963 (5) 174, 527 16, 528, 071

6.25 Incentive. 9.16

Do.

7.69

Do.

4.83

Do.

9.71

Do.

2.22

Do.

8.14 6.08

5.25

6.85

8.46

1.67

1.59

8.25 8.60

6.25

8.51

7.55

5.80

7.69

7.67 .57

10.11 10. 57

7.02

9.76 7.73

5. 53 Inc

7.97

5. 16

3.50

Incentive. Do.

Do.

Do.

Do.

CPFF.
CPFF.
Incentive.

Do.

Do.

Do.

Do.

Do.

Do.

Do.

Do.

Do.

Do.

Do.

Do.

Do.

Do. Do.

Do.

Do.

Do.

Do.

Contract No.

NOa(s) 51-643.
NOa(s) 51-498.
NOa(s) 51-863.
NOa(s) 51-156.
NOa(s) 54–319.
NOa(s) 9937-

AF33(038) 1847.
AF33 (038) 9844.
AF33 (038) 14804..
AF33 (038) 11205_.
AF33(038) 14805.
AF33(038) 30543.
AF33 (600) 23362.
NOa(s) 51-228.
NOa(s) 51-653.
NOa 10487.
NOa 51-026.
NOa 51-652.
NOa(s) 51-025.
NOa(s) 51-651.
NOa(s) 52-763.
NOa(s) 53-332.
W 33(038) 19283.
AF33(088) 9205.
AF33 (638) 14806.
A F33 (038) 23071.
AF33(600)6578
A F33 (600) 22282.
A F33 (600) 26630.
NOa(s) 51-142_
NOa(s) 51-665 -
NOa(s) 52-983.
NOa(s) 53-604.
A F33(038) 21030.
A F33 (600) 22278.
A F33 (600) 22286..
A F33 (600) 26877.

AF33(038) 715.
A F33 (600) 5928.
A F33 (600) 22317.
AF33 (600) 5942.
NOa(s) 51-143.
NOa (s) 54-909.

A F33 (600) 22313..
A F33 (600) 26294
W33-038-ac14541..

A F33 (038)1817----

CHANCE VOUGHT AIRCRAFT, INC.

LOCKHEED AIRCRAFT CORP.

January 1951.
July 1952.
August 1950.

February 1951...$167, 001, 760
17,713,097
1,505, 683
72, 351, 027
30,841, 723
29, 891, 177

July 1948..

Total sales
price

$26, 340, 458
26,851, 583
29, 447, 760
81,563, 523
99,059, 029
26,047, 728

9, 081, 135
49, 520, 230
14,913, 402
32, 751, 009
167, 123, 015
87,603, 782
28, 131, 965
16,733, 291
57, 213, 897
46,992, 915
18, 448, 949
13, 054, 995
121, 365, 762
88, 146, 015
102,089, 479
108, 149, 921
11, 521, 989
79, 718, 178
97, 926, 177
71, 267, 509
11, 279, 456
558, 180, 933
250, 210, 696
79, 232, 904
64, 732, 557

NORTHROP AIRCRAFT, INC.

1 Estimated but not finished at reporting.

2 Not available.

3 Does not include profits for entire run of contract.

4 Letter only.

Incomplete.

CONVAIR DIVISION GENERAL DYNAMICS CORp.

$22, 855, 007
92, 001, 106
71, 619, 725
204, 170, 517
125, 788, 301
25, 943, 110

$130, 574, 452
142, 192, 024
7,362, 082
400, 319, 057

7.83

4.91

2.64

4.52
1.53

3.76
11.07
14. 14
2.99
6.88
(5)

5. 69 (5) 2.37 4. 13

CPFF.

CPFF.

CPFF.
CPFF.

Redetermined.

Do.
Do.
CPFF.
Redetermined.
Do.

Incentive.
Do.
CPFF.
CPFF.

[blocks in formation]

Mr. COURTNEY. Now, Mr. Chairman, with the addition of the affidavit which General Motors is to produce respecting the material prices

Mr. HARDY. That reminds me.
Mr. COURTNEY. I think that closes the record.

Mr. Hardy. Mr. Chairman, have we heard from General Motors on that?

Mr. COURTNEY. Not as yet.

Mr. HARDY. It doesn't look like it would take them that long here. Obviously, Mr. Mark, who sat at the table, was thoroughly familiar with this thing we developed this morning. He ought to have been able to answer it before now. He had all the information. He could have testified right here, but he didn't elect to do it. I didn't know about it until this morning.

Mr. HÉBERT. Mr. Courtney, will you contact General Motors and find out if and when they are going to file their affidavit?

Mr. COURTNEY. We will. I will do that by telegram immediately, Mr. Chairman.

Mr. HÉBERT. Again admitting their honesty and good faith in it.

General THURMAN. Mr. Chairman, has the entire body of the memorandum to which you referred earlier been introduced into the record?

Mr. HÉBERT. Yes, sir; the whole thing.
Mr. COURTNEY. Yes.

Mr. HÉBERT. That is just what I have been telling you. I wouldn't be guilty of doing something which I indicated I thought the Air Force was guilty of, of just giving them half of the picture.

General THURMAN. Did the chairman read the first part of it-
Mr. HÉBERT. I read the first part of it.
General THURMAN. Into the record ?
Mr. HÉBERT. Yes; it is all in the record.
General THURMAN. Was it read in the record ?

Mr. HÉBERT. I didn't read it into the record. The entire document is put in the record. The prepared statement of Colonel Thompson which

you

read into the statement and your own statement is all based on the first page, but you forget the second page, or didn't choose to include it.

And my complaint and criticism was that we should have had the benefit of the whole memorandum, instead of only one-half of it.

General THURMAN. Mr. Chairman-
Mr. HÉBERT. That is all.

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