Mr. WHEELER. I thank the Senator
for his observation.

I have in my files a letter from a large
contractor in my State, who has been
building and is now building Army
bases and doing other construction work
throughout the country. He has written
to me saying that the idea of renegotiat-
ing contracts is the greatest incentive to
hoarding labor there could possibly be.

They take contracts at huge prices
with the idea they are going to renegoti-

ate them. That is what has been done:

“in a great many instances. Contracts
have been made at exorbitant prices in

“some instances with the idea they will be
renegotiated, As the writer points out
in this letter, it is the greatest incentive
to the hoarding of labor that could pos-
sibly be given. He says:

If you eliminate that and put them on a
regular basis you will find out how much
labor will immediately be freed and will not

. be hoarded.

I quote further from the Baruch re-
port: :

Such wasteful practices are encouraged,
among other things, by prevailing cost-plus-
fixed-fee contracts. Under these contracts
the Government pays all costs—whatever
_they are, Since the Government is footing
the bill, there is no incentive for manufac-
turers to economize in the use of materials,
facilities, or labor. More workers are hired
than are needed. Workers may stand idle—
it costs the manufacturers nothing. Much
labor is wasted.

Mr. President, I inquire, who is respon-
sible for that. situation? Is it due to
the complacency of the people of the
country? Is it the fault of the Con-
gress of the United Siates, or does the
fault lie in the administrative depart-
ments of the Government? Unless we
solve this problem, what responsibility
do we have? I do not wish to, and would
not, interfere with the executive depart-
ments if it were not necessary. But
when the executive departments them-
selves have completely broken down and
have not done their job—as is said by
Mr. Baruch in his report—then whose
responsibility is it to take charge and
do something about it? If the admin-
istration will not do anything about it,
the only place left for the people to
come to is the Congress of the United
States.

Mr. REED. I am sure the Senator
from Montana and myself share the
view which he has expressed. Both of
us have had long public life and many

554199—3636

 

contacts. I venture the assertion, with
which I believe the Senator will agree,
that not in my lifetime have I seen such
a profligate waste of money, so much
inefficiency, so much confusion, and such)

.a lack of a sense of proportion with re-

gard to costs as related to production,
as exists at the present time. If the
morale of the country breaks down under
that kind of a situation it is the fault
of the administration and the adminis-
trative policy.

Mr. WHEELER. I thank the Senator.

With reference to Government waste,
the report of the Byrd committee, Senate
Document No. 66, page 4, of June 18, 1943,
states:

With 55 percent of the Federal employees
not engaged in direct war production—

Fifty-five percent, the report states—
it is obvious that cuts may be made in Fed-
eral personnel without hindering direct me-
chanical war production. Consequently a
drastic reduction can be made in the num-
ber.of Federal employees without harmful
effect to the war-production effort.

Other portions of the report show that
the efforts of the 55 percent of the Fed-
eral employees who are not engaged in
mechanical war-production work have
not been fully utilized because of the lack
of a vigorously administered war-trans-
fer program, and the failure to establish
an effective Federal employee manpower
pool.

The report shows an alarming increase
in personnel and in the monthly pay
rolls to meet it. It sets forth a table
showing the Federal employment in-
crease which, through the activity of the
a committee, has been brought up to

ate.

It reads as follows:

 

 

j ( Monthly

Year Personnel Tay roll
NOW TE OLR. i rel uy) boa OL7CO Loy acl
August 1939-.5.-.....1 See Le 933, 886 | $141, 733, 064
PAUBUM SL OaO tn aS eno 1, 039, 451 159, 260, 975
WORSE LOST ee eee 1, 444, 985 217, 772, 054
Ada mriaty O42 kee ath Wt es 2,450, 759 | 391, 502; 171
MM erohiloss eres kU Mar 2, 878, 824 638, 926, 265
Aupust 1048). 7 16 eli cS 3, 063, 379 646,.372, 969

 

 

 

The total number of civilians in the
War Department alone, according to the
July figures, was 1,355,515. That covers
the War Department alone, for July.

In the Navy Department, according
to July figures, the civilian employees
alone numbered 697,475.