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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (March 29, 1985)
y students wen nt Senate. Am tween Mark Ns i the sophonioit ■at. be a runoff It ?” Ball and Mail 'Mb president, i elected Clast 50.7 percent t s elected Clasts i-1 percent of ik ae race. ^stilts are postti to the Pavilion n Contractors asked to return excess profits to Ai r Force f ic Horticul- {n, horticul- s to sponsor ores try Sci- :s, vegetable nts, faculty, •blems. The ng your ail- gram s will spun- ." The pro- o move off living. The . in the A-l k> Lounge 845-1741. .. • • > Associated Press WASHINGTON — Air Force Secretary Verne Orr, citing results of an internal Pentagon audit, has asked two of the nation’s largest de fense contractors to voluntarily re fund more than $200 million worth of “unreasonable profits,” according to letters released T hursday. Orr, in letters dated March 15, told chief executives of United Technologies Corp. and General Electric Co. of the audit results and his request for “a voluntary refund.” The letters said Pentagon auditors determined that the firms “realized profits that were significantly in ex cess of those negotiated by the gov ernment” in providing parts for jet engines between 1978 and 1983. In another development, Orr an nounced that the Air f orce has tem porarily suspended General Electric “from obtaining any new contracts with the Department of Defense.” Orr said the suspension was based upon an indictment returned by a federal grand jury Tuesday in Phila delphia, alleging that GE had de frauded the government of about $800,000 on a nuclear warhead sys tem. Regarding the jet engines, Orr said, the auditors calculated that the Pratt 8c Whitney Division of United Technologies was paid about $40 million in excess profits, while Gen eral Electric was paid $168 million in excess profits. The Pentagon later released a copy of the audit that fixes the pre cise amount of “greater than nego tiated profit” at $38 million lor United Technologies and $167 mil lion for GE. According to a summary of the in spector general’s audit report, the excess profits were paid to both firms in part because inflation rates were lower than originally antic ipated in 1982 and 1983. As for GE, the auditors also re ported the firm had received “higher than negotiated profits whenever deliveries were made ahead of schedule” and also because the negotiated rates for overhead expenses “were significantly higher than the actual indirect rates subse quently experienced.” Brian H. Rowe, senior vice presi dent in charge of GE’s Aircraft En gine Group said: “The government did not pay 1 cent more than it con tracted to pay for the parts in ques tion.” Lower inflation, efficiency extends Medicare trust fund vn lives to- Associated Press WASHINGTON — Social Security’s trustees said Thursday that Medicare’s hospital insurance trust fund is not likely to run out before 1^98, seven years later than their earlier forecast. Health and Human Services Secretary Margaret M. Heckler attributed the turnabout in Medicare’s for tunes to lower inflation and increased efficiency by phy sicians and hospitals. She said government reforms that changed the way Medicare pays hospitals’ and doctors’ bills also deserve some credit. But she cautioned that Medicare — which helps pro vide care for 27 million elderly people and almost 3 mil lion disabled — still has a Jong way to go to avoid a fiscal crash in the next century. Solutions will require “good faith and strong medicine in the months and years ahead,” she said. Part of the medicine the Reagan administration is seeking is a one-year freeze in 1986 on the fixed rates that Medicare pays hospitals and physicians to treat va rious ailments. Under the so-called prospective pay ment system adopted in 1983, Medicare pays hospitals set fees to treat various illnesses, regardless of how long — or short — the individual patient’s stay is. The trustees include T reasury Secretary James A. Baker III and Heckler. T he trustees also gave a clean bill of health to the old age, survivors and disability insurance trust funds, say ing they should be able to pay all “benefits on time well into the next century” under expected economic condi tions. However, they said the disability fund could have trouble paying benefits on time by the end of 1987 un der adverse economic conditions. The Reagan adminis tration imposed a moratorium on disability cutoffs last April, after some courts had ordered the reviews halted and many governors had refused to carry them out. Consequently, there were more people were added to the disability program in 1984 than left the rolls, mark ing the first growth since 1978. The disability program paid out $1.2 billion more than it took in. e 3rd An- :3G a.ra. e Satu at 7 as newspap g the ethics ;■ in what cot ical promotion ouston Chroii' eau chief, irsday that tit of not parliti s. 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