Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-10-04
IS WILLING TO HELP
If AID IS DESERVED
Government Lenient When
War Causes Loss to Con-
tractors for Supplies.


q hundred contractors have been occa-
stoned great alarm at the prospect Of
being compelled to fulfill their agree
conditions have increased the costs OF
materials to a point where the delivery
Of supplies under the contract means loss.
This alarm has been magnified in some
instances to belief that business done
under these contracts spelled financial
ruin for the contractor.
The government is disposed to be
lenient. It is also wise. Whenever there
10 an actual loss entailed in delivery Of
supplied under these contracts. and the
contractor deals fairly. the government
Is attempting to tighten the burden.
Where a contractor attempts to deceive
the government. however, he Is apt to
be confronted with an accurate knowledge
Of the economies Of his Industry, and his
efforts to obtain better prices defeated.
Byron r. Newton, assistant secretary
OF the Treasury. has direction over the
general supply committee. 1t is his
humane attitude that promises relief to
these contractors who find loss con-
fronting them in living up to their con-
tracts.
May Tighten the Burden.
The administration, under the law,
has no power to relieve a contractor OF
the obligations of a bona f1de contract.
Nor can it vary the terms Of the con-
tract, once entered into. No release can
be granted to a contractor from per-
Torrance Of the terms of his contract
Nor can q contract be suspended. But
the general supply committee can light
en- the burden OF loss. and has found
ways and means which 1t is pursuing.
In fact. there are now only eight con.
tractors Of the 100 who entertained
fears who have not been convinced
that their cause Is in sympathetic
hands, or who still persist in demand
ing release from contract obligations.
The government requires contracts
to be executed in accordance with the
awards made" Is the attitude Of the
Secretary Newton. TT does not con-
template being overexacting toward
contractors who find themselves EN-
barrassed in making deliveries on ac-
count of their inability to obtain the
necessary supplies. either by import or
by domestic purchase. The attitude Of
the government is not to be overstrict.
and to treat contractors who approach
these matters in a spirit of fairness
upon a plain equality"
No general rule has been promul-
gated Each case OF appeal from a
Contractor has been considered upon
its own merits. In cases where the
burden was made evident the govern
ment has restricted orders for supplies
under contract to the positive needs
Normal demand and directing economy
to keep down the consumption Of such
supplies. Supplies Of substantially the
same character as specified under con-
IL
has been no loss to the government,
and the contractor has been enabled
to fill his obligation under conditions
more acceptable to him.
A tendency Of certain activities of
the government to anticipate q Short
age in supplies of any certain char
acter, or generally. and to order ex-
tensively as a measure Of providence
against the future, has been checked
roundly wherever 1t has worked
has been one of the greatest measures
of relief afforded, as there were many
wise employees OF the government who
considered that they were best serv-
by such foresight.
Motives Under Suspicion.
Suspicion Of the motives Of some of
the complaining contractors Is enter
tanned. The experts Of the general
supply committee are vastly familiar
with industr ial processes. and have
uring conditions as thorough as that
Of the manufacturer. 1t will be diff
fcult to take advantage Of them
The purpose OF such compliments, In
some cases. is to have their contracts
regardless Of the merits, so
that they can sell direct to the govern
ment the same supplies at increased
prices on the plea Of conditions that
Increase prices. One contractor pleaded
that he will be unable to supply a
certain commodity. as an ingredient
made in Germany can be had only at
greatly advanced cost, and perhaps not
at all. 1t IL known to the general sup
ply committee that the ingredient in
it IL recognized that the cost
has advanced. The lack of sincerity has
prejudiced this case.
Another contractor, whose statement
ls credited that certain items for which
his bid was accepted, all made in Ger
many. cannot be obtained, has been al.
lowed to execute a contract calling for
all other items on which he bid, and
prices. The contract executed
does not relieve him from the oblira-
ton Of supplying the items he declares
are unobtainable. but makes 1t q sepa.
rate issue.
Desire to Aid Il Explained.
There Is no disposition on the part
Of the Treasury Department to hold
lp' any contractor" one of the COM
claimants was advised. ION the CON-
.rary. the Secretary Of the Treasury de-
,ires, under present unusual circum.
to assist contractors in every
way possible"
This concern asked: Can we surrender
he contract, or IL the government no. |
ng to hold US up? It's complaint al. |
eyed that the German material used |
vas costing double. ana even treble |
What 1t had previously cost, ali owing |
% the war, over which 1t had no con. |
.rol. 1t asked to know II it IL COM
oelled to supply goods to the govern