New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-12-29
Gen. Sharpe's Testimony on
Uniform Scraps Refuted
by New York Firm
1t Offers to Do
Work for Nothing
1--WE Were Making Money,
but We Will Pay 1t Back"
Says Member

Quartermaster General Sharpe, in his
testimony before the Senate Committee
on Military Affairs Thursday. said that
the contract at cents a pound for
sorting rags made by the War Depart
ment with the Base Sorting Plant, Inc.
Of this city, had been changed so that
its earnings, estimated by him at $780,
900 a year, would not exceed $4,000
year.
Nathan Myers, who says he owns
one-third of the company, said yester-
day that the Scent price, on which
General Sharpe estimated earnings Of
100000 a year. still stands. As the
company's paid in capital, according to
Ira I. Kaplan, another of the owners, is
10000, this is at the rate of 1000 per
cent year.
Now. according to Mr.. Myers. the
company stands ready to do the work
for nothing.
Myers told The Tribune yesterday
that:
The company. whose plant is at
Mercer Street, is owned by himself,
Ira I. Kaplan and Edward Stone, the
latter of Cleveland.
That the company was formed az
the request of the Council OF Ma
tional Defence. through whom 1t
made It contract.
That Samuel VI. Kaplar, brother Of
Ira |. Kaplan, is associated with the
Council Of National Defence.
That the contract price, said by
General Sharpe 20 have been reduced
TO 2 cents, still stands at cents.
That b. it's terms all rags made in
uniform shops as far West as San
Francisco must be shipped TO II.
That to insure its getting all rags
made in these shops, for which the
contractors were receiving as high
as % cents a pound in the open mar
ket. the form of the army contract
was changed so that the plant now
pays not more than 30 cents pound
for clips. as the rags are termed III
the trade
That the company now STANDS
ready to turn back all of its prohts
20 the government.
Ira /. kaplan told Tribune reporter
that o. the $4,000 for which the com
pany was incorporated in June but $lO,-
OOO had been paid in.
"Al that there is to this said Mr..
Myers Yesterday, ais that we saw
good thing and grabbed il. Now that
there is lot of cheap newspaper talk
about it. we are willing TO give all of
our profits back to the government and
work for 81 year. That offer was
made last week. IL has not yet been
acted upon. All this talk Of our profits
is due to jealousy. There is lot OF
money in the rag business.
"Why, some people are saying they
would be glad to sort these rags for a
quarter of cent a pound. We will
do better than that-sort them for
nothing
All of our contract is not velvet.
We have 10 pay 81 cents pound on
rags from the Pacific Coast. We can
pay that and the other charges. for
we are guaranteed oEe-half cent a
pound profit. At that the government
is saving $4,000, 900 year"
How did the company happen to
be formed" he was asked.
"Thc CO.ncil of Defence wanted the
biggest firms in the country 10 handle
the things. kaplan'5 lirm was one OF
these Mr.. Stones was another. |
was with Eawitzer. another big house.
We just got together and formed it,"
Who put the money up-these
firms"
"No. we did | 30 not believe Ira
Kaplan is still in his brothers FIRM
don't know. But We all put up our
own money.
Would Work for Nothing
I'VE knew il was a good thing when
we went into it, but it is bigger than
we thought. However, now that there's
a kick over it, we're willing 10 give
up everything and work for nothing.
Furthermore, there is nothing about
this thing | want TO conceal. | don't
care If they take the contract away
tomorrow can make good money
buying this stuff from The trade