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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (April 11, 1962)
14B MEDFORD MAIL TRIBUNE W.dneida., April 11, 1M McClellan Would Spend Summer on Study of Profits Washington - HOT - S e n. John L. McClellan said today he would keep his investiga tions subcommittee in session ill summer if necessary to de termine why a defense con tractor claimed profits of $1, 325,000 on work to which he contributed $3,300. For the fourth day, the Ar k a n s a s Democrat recalled executives of the Douglas Air craft Co. to testify about al leged profit pyramiding on components for the Nike anti aircraft missile, which Doug las had subcontracted to other firms. Douglas and his aides will be asked about a report by the Air Force auditor general which was put Into the hear ing record at a stormy session Tuesday. Says Douglas Unreasonable The audit said Douglas was unreasonable in asking for a 9 per cent profit - $1,323,000 - on 1,032 launcher loaders and 1,526 launcher rails which were manufactured by a Doug las subcontractor, Consolidat ed Western Steel Co. Douglas' own contribution to the components cost $3,300, the auditors said. And on these "in house" costs, they said, Douglas wanted to bill the government another 10 per cent profits. Thomas E. Nunnally, one of McClellan s investigators, said Douglas' claimed profits were "redetermined ' down ward from $1,325,000 to $1,211,771 Profits Said 'Fees' The aircraft company presi dent insisted throughout the hearing that the alleged prof its really were "fees against which many costs of doing business had to be applied. He convinced Sen. Carl T. Curtis (R-Neb.) but not Mc Clellan. "I'm going to get this thing in perspective," Mc Clellan said "We are going to do It if It takes all summer." McClellan introduced the Pentagon audit report after Douglas sought to explain that the subcommittee was confusing profits with fees paid for managing a part of the missile program. Feel Belioved Earned His company's 17-year-lotal of fees came to $63.9 million, Douglas said, but his profits wore only $29.8 million. He said Pentagon procurement practices did not allow him to claim as production expenses the cost of borrowing money, amortization of emergency fa cilities, advertising and mis cellaneous expenses. "We agree that we earned fees on work we subcontract ed to Consolidated Western Steel and to Fruehauf Trailer Co. - and we say that we earned it," Douglas testified. "We say that you cannot meaningfully adduce what fees we were paid on those Subcontracts; and we argue that our total fee on the en tire Nike job is what counts and that that was reasonable." I PRESCRIPTION DRUG STORES trrfrrn mi J M m GIRLS' NYLONIZEO PASTIES 4,1.00 27.M 1.5 45-PIECE TITAN j MELMAG ELECTRIC ; Dinnerware HEATER : 16.88 - 199 POLISHED , SPRING CLOTHES PINS 108 Count 69c L 2.29 KEAPSIT . QUART VACUUM BOTTLE GLEEM 59c TOOTHPASTE Family size Reg. 83c J DATES EFFECTIVE APRIL 11-12-13-14-15 INCL. 9' x 12' VINYL CLOTH Reg. 49c 39c School District Decision Waited '. La Grandc-0-Clnslng gumcnts were heard here Tuesday in a suit against union County School Supt Wilbur Ostciioh by eight res lrienls of Palmer Junction. The suit seeks to force Os tcrloh to hold a second vote on school reorganization in the Palmer Junction district The slate of Oregon also has Intervened as a defendant in the care. - Circuit Judge W. F. Brown ton said lie would issue a rul ing in a few days. In 1!)59 voters in the Elgin and Palmer Junction districts voted to mcrce Into one ad ministraiive district. A group of voters in t lie smaller Pnlnv cr Junction district then pell tioncd Osterloh to hold a sec ond election only in their dis trict, as provided by one sec tion of stale law. Osterloh refused, citing an other provision of (he state law which has since been re pealed. The suit to determine which provision should apply then followed. SClfcNTinC bTATbS Washington-HOT- More than 21 per cent of all employed scientists in the United States live in New York, New Jer sey and Pennsylvania, ac cording to a National Science foundation rep,.ri. Scientist? living in these stales have the highest median sulnrj of any area In the country, the re port said, sio.non. Subscribers To report improper or non rlfliwry of the Mall Tribune In Mcdford and Ahlanrl. phune SP 2-6141. Montague & Yrrk. phone Globe H-.H7I. before 6:43 pm. daily and 10 .30 a.m. Sunday. if rPBtilar rfelivorv arrv.. ihortly attpr ou call, pleae i notify office, thuj eliminating I pecial rnesacnecr service. VENTILATED CAR SEAT CUSHION 2.95 -f A Value 1.3 FAMILY SIZE atgysj CREST TOOTH PASTE REG. 83c CHAS. 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Saucepan With Covor FOLD-A-WAY LIGHTWEIGHT ni mi I ii a HLUIftl BED ComplcC With Foam Pad 24.95 Value CHIPPEWA BOOTS REG. 24.95 21.87 REG. 18.95 16.87 REG. 21.95 18.88 REG. 20.49 17.88 REG. 14.95 12.88 BOYS & GIRLS LEATHER DRESS SHOES 4.9S VALUE 2.99 3.95 EASY LIVING WOMEN'S SHOES 1.99 1.25 CHILDREN'S CANVAS SHOES Starlet 87c 2.50 CUSHION OXFORDS 1.87 3.50 LADIES CANVAS SHOES 2.69 Vi 1 Detachable i' Lock. On Handle Value 9.81 T V. 50 FEET RABBIT T.V. LEAD-IN EARS WIRE 87c y1;:. 69' Ltfetim Lightweight BOWLING BAG Moulded of U.S. Royihre . . . ih Tow ghest Impact Rciiitant Material 14.95 Value 6. A a: FOSTCRIA CLIPPER SET 9.95 Value NOW JUST 4" 'V a; PRESTO -12" FRY PAN 16.95 Value 6.J 35' EVERAIN OSCILLATING LAWN SPRINKLER Covers Up to 35' x 45' Area. 6.95 Value .aaeW aW 7. FULL ))CJ pound V) f!m rfHI ""OAUow I I TAYLOR'S l5ll l JAMS ffiA if AND I 2 I JELLIES acj I 2 lb.-12 Oi. 1.25 Value rja"" I 1139' M CALIFORNIA CASUAL CUSHION-REG. 1.25 DECORATOR SOFA ftc PILLOWS 07 Each REGAL AUTOMATIC ELECTRIC GRIDDLE SERVER Fully Immersible for Easy Washing Sturdy Stay-Coot Handle Deep All Around Gravy Groovt Over 200 Sq. Inches of Flat Cook ing Surface 23.95 Valuo 13.88 21.95 G.E.-F-71 SPRAY, STEAM & DRY IRON 14.83 14.95 UNIVERSAL AIR FLOW HAIR DRYER 11.97 mm DREAMY ROYAL BED PILLOW u. 88c home ptra Ea.
