AVIATION: Clearance for Planemakers

Twelve months ago House Armed Services investigators set out to determine whether U.S. planemakers are making excess profits on military contracts (TIME, March 5). Last week, after an investigation of twelve major plane producers, the Congressmen concluded: "There has been no showing that, on the average, the profits allowed are excessive."

Indeed, plane producers showed 1955 profits totaling only 2.5% to 4.6% of sales v. 6.7% for all manufacturing. But the investigators considered this a fair relationship. Said the subcommittee report: "It is not to be expected that the airframe industry, which...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!