New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-03
,,,,or Declares Defence
Council Members Take
ORDERS for Own Firms
Cites Big Profits
OF Aluminium Co.
conoany of 100000
Genital Made $2O,OOO,OOO
in a Year

Washington. July "A man who
r.. taking official position, advises
~ -oyernmcnt TO buy from his own
~. =, prices which yield his plant a
profit, NAV be honest Senator Reed
,w,.ouri. told the Senate to-day but
usole arrangement is Impossible
Aornd TO end disastrously for ALL
=, hours to-day Mr. Reed held up
~. tho Senate the absurdity of the
-. idea Of the advisory commission
-. Council Of National Defence,
-, business men pass on govern
-, contracts with their own or allied
irns -
o.,,inum Company of America, read
,be testimony before the House
r.,.;gn Affairs Committee Of Arthur
. Dsyis. president of that company,
a .bowinr from that testimony that
. ,,lv $4,000 capital the company
"a. s2OOOO.O 900 last year and has ac-
.--plated property worth SSo,OOO,0OO,
IN At prices lower than 1t Is now
,.,,ring the government for alumni
-, Mr. Davis, Mr.. Reed pointed
=, +, the chairman Of the sub-com-
-,.,,s on aluminium for the Advisory
c,nmission Of the Council Of National
Defence.
4 CHASTITY Farce
The historian Of the future, if he
"a, find any humor in this CHASTITY sit
.,,ion that now confroats the world
.s5 Mr.. Reed. might present on some
comic opera stage the picture Of Bar
rey Baruch selecting the president of
he Aluminium Company to pass upon
,uminum contracts for the govern
rent. and Of the president of the
Aluminium Company solemnly making
is offers 10 the government, and Of
Barney Baruch, with equal solemnity,
tuning them over for examination to
the president of the Aluminium Com
7any. who. in turn, with equal So
,emnity and dignity. certifes that the
rice is fair and that the parties con-
raging are reliable. What a spec
acle,"
Senator Newlands took Senator Reed
10 task for what he regarded as an in
smation that men acting as Mr.. Davis
lad done were not acting honestly.
Il have not charged anybody with
,o5bing the government" retorted SEN
.,or Reed. "These men claim they
rave been perfectly fair in their deal
rs With the government. What | say
Is that an impossible arrangement, that
:, bound 70 end dlsastrously for all,
Exists
Blames Department Heads
4 want 70 emphasize what seems to
ne 10 be the fact" said Senator Poin-
dexter, that II these gentlemen are al
.0Esd 70 make government contracts,
saving no authority Of law 10 do so, the
tsl0nsibilty for the abuses that
fo1ld grow out Of such a manifestly
npIoper situation rests upon the
nyernment in whom the legal powers
no responsibility for .hese matters
ust"
When ! say those gentlemen are
rinng contracts for their own benefit
co not mean they actually sign and
",iract H. behalf Of the government,
,4io Senator Reed. Il mean that they
'Te az inside advantage. ] mean that
iar Recommendations are largely
-isn by those who do have the au-
t'rliy TO sign. mean that condi-
~ Of fact has been created by which
tsse men are practically placed IN
.,irol"
Nsnstor Nardaman Interrupted 70 say
had read in a newspaper that Sec
''a'y Baker is trying 20 prevent eX-
sy the situation that Senator Reed
ra.lsed He thought the Secretary
Nar.ought 20 be commended for his
r.Ede.
ss,aior Reed took up the testimony
AF Davis before the House Com
wee on Foreign Affairs when a
iantg was conducted on the pro-
gal 20 allow various concerns 70
SOCIETY OF