How to Get Rich

Like a destroyer hunting subs, the House Naval Affairs Committee was busy last week sounding Navy contracts for traces of lurking profiteers. The committee tossed over some depth bombs, and the rising oil slick showed that at least one had found its mark: though the Government has taxed away most of the wartime profits of manufacturers, there is still lush money to be made in the shadowy, unproductive role of "war broker."

To the witness stand went nearly a dozen brokers who had specialized in getting Navy contracts for businessmen who did not know how. Their stories--and fees--made committee members splutter and reach for more depth charges.

>> A. P. Shirley, onetime Army major, formed a "sales engineering" firm with two onetime Navy civilian employes named F. B. Olcott and F. C. Nichols. They engineered war contracts for 46 munitions makers, made $106,196 apiece last year, have piled up $208,211 profits (apiece) this year.

>> William Scrimgeour, his wife and two sons, Maxwell and Bailey, charged fees ranging from 2 1/2% to 10% for getting Navy contracts. They made $613,798 last year, $250,000 the first half of this year. Father Scrimgeour denied stoutly that he had any pull with the Navy. But he did know "plenty of people down there."

>> Balding, hawk-nosed Horace Ward charged his 20 clients $431,463 in 18 months. He did business with Navy and Coast Guard officers at expensive parties--for which his clients also had to pay. But he had suffered a change of heart, thought now that it was wrong for such commissions to be paid on Navy business. Asked Chairman Vinson: "When did your conscience begin to hurt you?" Said uneasy Mr. Ward, nodding toward another angry committee member: "He brought it to my attention."

At week's end the committee had agreed on a bill to outlaw broker's commissions on war contracts, try to get back those already paid. The Justice Department was investigating possible violations of any existing laws. And the Navy took a sharp, critical look at officers who had been wined, dined and given presents by brokers who got rich quick on Navy contracts.

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