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Long wear heels and soles, tco, W Siies4-I0 HVMBOLDT STANDARD A/ed., April I I . 1962, Page 10 Firm Denies Profiteering On Missiles WASHINGTON (UPI - T h e Western Electric Co., prime con- ractor for the Army's Nike guided missile, assured its stockholders today that the company did not profiteer on the work of subcontractors. Company President H. I. Romnes said Western Electric has ieen unjustly associated in the public mind with profiteering on defense work. He told a stockholders meeting in New York that Senate investigators of alleged profit pyramiding on the Nike were guilty of statistical manipulation. "We did not anticipate that sound and traditional business practices would be characterized as profiteering on the work of others," Romnes said. A copy of his statement was made available here. .The executive said Western Electric's Nike earnings were reasonable and justified. The company reportedly earned $169.5 million in 17 years of research, development and production of Nike components. Subcommittee investigators have said $53.2 million of this was profit on subcontracted work. "No part of Ihem (the profits) is taken for the work of others," Romnes declared. "Every cent we earned ourselves by what we did." Douglas Aircraft Co. officials testified meantime that $62.9 million allegedly earned on the Nike represented fees and not pure profits. Company President Donald W. Douglas Jr. said his firm's actual profits as the major Nike subcontractor were $29.8 million. Subcommittee Chairman John L McClellan, D-Ark., had challenged the distinction between fees and profits. McClellan said Douglas was paid separately for managing and supervising certain third-layer subcontractors. Douglas replied today that many costs of doing business had not been allowed by Pentagon contracting officers. For example, he said Douglas paid $24.9 million for technical development work which Pentagon negotiators had refused to consider as an allowable cost. Moreover, he said, Douglas paid $3.6 million in interest, $2.1 million for advertising and $1.3 million to amortize emergency facilities. Admiral Short In Court Action On Candidacy Issue SAN FRANCISCO (UPD-Rear Adm. Wallace C. Short, (ret.) complained to tlie California Supreme Court Monday that he was being prevented illegally from running as a Republican candidate for assemblyman. Short, who lives in Alarneda, said that Secretary of S t a t e Frank Jordan rejected his declaration of candidacy April 5 because he had not been registered as a Republican at least three months. The would-be candidate said he lias considered himself a Republican all his adult life. He said the legislature has no right to deal with the qualifications of candidates and t'skcd the court to compel Jordan to receive his declaration. Short said he had resided in Alameda since 1959 and seeks to run in the 14th District. Calls Session On Peronist Problem BUENOS AIRES (UPP - The Argentine congress has been summoned into an extraordinary session to decide what should be done about the Peronists -- whose leaders have forecast a civil war if their election victories are not recognized. The followers of ousted dictator Juan D. Pcron won 43 seats in congress in the Marc* 18 elections. Their victories were nullified under a section of the Argentine constitution, triggering a political crisis which propelled President Jose Maria Guido into power. Guido Monday night called the special session to den! with the mounting problems that have besieged the country since the elections. Following a meeting of the caretaker government's cabinet, Minislci' of Agriculture Cesar Urion siiid Congress would convene within '18 hours.
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